25 January 2012 Last updated at 09:23 ET

Yemen profile

• Overview
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The reputed home of the Queen of Sheba, Yemen has been at the crossroads of Africa, the Middle East and Asia for thousands of years thanks to its position on the ancient spice routes.

The Romans knew this fertile and wealthy country as Arabia Felix, in contrast to the relatively barren Arabia Deserta to the north. And today it maintains its distinct character.

The modern Republic of Yemen was born in 1990 when traditionalist North Yemen and Marxist South Yemen merged after years of border wars and skirmishes. But the peace broke down in 1994 and a short civil war ended in defeat for separatist southerners and the survival of the unified Yemen.

At a glance

• Politics: President Saleh finally agreed to cede power in November 2011, after months of protests. He has ruled since 1978, when he became president of the Yemen Arab Republic following a military coup
• Economy: Yemen is the poorest country in the Middle East; economic difficulties have sparked unrest
• International: Yemen is seen as a source of al-Qaeda-inspired terrorism

Country profiles compiled by BBC Monitoring

Since unification Yemen has been modernising and opening up to the world, but still retains much of its tribal character and old ways. Tensions persist between the north and the south; some southerners say the northern part of the state is economically privileged.

Since the summer of 2009, hundreds have been killed and more than a quarter of a million people displaced by clashes between government troops and northern Houthi rebels belonging to the minority Shia Zaidi sect. The government declared a ceasefire with the northern rebels in February 2010.

Many people wear traditional dress and the custom of chewing the narcotic plant khat in the afternoons is still widely observed. Yemen has attracted the curiosity of a growing number of tourists, although foreigners have been kidnapped by groups seeking to force concessions from the authorities.

Yemen has also gained a reputation as a haven for Islamic militants. Towards the end of 2009, the country came under the spotlight after crackdowns on al-Qaeda-linked militancy in Afghanistan and Pakistan raised fears that it was becoming a key training centre for militants.

After a Yemen-based branch of al-Qaeda claimed that it was behind a failed attack on a US airliner on Christmas Day 2009, the government stepped up its efforts to clamp down on Islamic militants, but warned that it would need help to win the battle against militancy.

The truce with northern rebels in February 2010 allowed the government to focus its attention on the struggle against al-Qaeda and southern separatists.