This lack of investment is evident throughout the country and especially so in Sana'a, the capital. Power cuts are a daily expectation, rubbish litters the streets, and crumbling buildings make the city feel more like a demolition site than a city under construction.
Thankfully, foreign money has preserved the wonderful old walled city of Sana'a, which in 1984 was declared a Unesco World Heritage Site.
The old town is like a scene from Hansel and Gretel. Multi-storey brick houses with pretty white window frames and geometric designs as far as the eye can see. The homes line a labyrinth of alleyways that make up the city's souk, or bazaar.
From early in the morning until late at night the souk is bustling with traders and shoppers buying and selling everything from plastic buckets, to silverware to spices and even miniature replicas of the distinctive houses.
Craftsmen work painstakingly by hand creating exquisite jewellery and intricate furniture. Wheelbarrow operators wait to help you home with your purchases, and traders sell watermelon by the slice.
With no government aid, Yemenis earn a living as best they can. Children toil away beside their parents; an education is a luxury many families can't afford. Illiteracy runs high in Yemen.
In a bid to prevent the kidnappings that have devastated the country's tourism industry, the police have stepped up security at checkpoints throughout the country.
Travelling alone with my guide, I had to hand in a copy of my travel permit at each checkpoint. In theory, they should have checked the permit and advised the next checkpoint I had passed, thereby knowing if I went missing in between.
In practice, the military recruits at the checkpoints couldn't read the permit, and were unaware of these new security procedures.
Their only inquiry was about my nationality, presumably so they could offer an informed opinion about which embassy to call should a blonde female be reported missing.
The high number of checkpoints in Yemen offers a false sense of security. Like everything else in the country, justice is available at a price or can be circumnavigated by the barrel of a gun.
The tribes in north and eastern Yemen are notorious kidnappers. They are also wealthy and heavily armed, and the police don't argue with them at checkpoints. In the more dangerous parts of the country it is essential to have a police escort, but the tribes have been known to bribe the police in return for a foreigner or two.
Not all tribesmen and chaps with guns are potential kidnappers. In fact, given the ready availability of weapons and loose interpretation of law and order, the country is surprisingly safe, largely because of the extremely kind and hospitable nature of the Yemeni people. Former hostages have been known to gush over the kindness of their "hosts".
With the north and east of Yemen too risky to visit, the former communist region to the south is considered the most civilised in the country, and kidnappings are unheard of.
Still, it is common to see tribesmen walking the streets with machineguns strapped to their backs. Gun possession is more a sign of manhood than it is protection against an aggressor. Nazar recounted his adventure of unwittingly driving through a gun battle; thankfully bullet holes in his car were the only damage.
The countryside in southern Yemen is a fascinating contrast of charming old mountaintop villages and chaotic newer towns. In past centuries, villages were built on the top of mountains for protection against invaders. Today, the crumbling brick homes still sit amid the dramatic mountain scenery like a landscape from biblical times.
Some villages preserve the historical tradition of closing the gates at sunset. Despite the obvious lack of maintenance, the villages retain much of their ancient charm. The mudbrick houses are built in the traditional Yemeni box-like style with their distinct window designs, although simpler than those found in old Sana'a.
Yemen is steeped in history. Even the smallest town seems to house a wonderful old palace or ruin of some sort. The old town of Jibla dates back to the 11th century, and although it is now more famous for the tragic killing of three American doctors by an extremist from the north, many of the original buildings are in remarkably good condition.
Walking through the town is like stepping back into ancient Arabia; poverty and tradition has prevented the town changing over the centuries.
The more northern Wadi Dhahr is home to Yemen's famous rock palace. Built atop a huge rock, the five-storey palace was built by an imam (Muslim cleric) in 1786, but the foundations date back to 1000BC. The surrounding countryside is a mass of lush green qat trees, interrupted by ochre-coloured brick homes and watchtowers to protect the qat.
From midday onwards, chewing qat becomes a national obsession for Yemeni men. Chewing the plant gives a feeling similar to a mild form of cocaine - alertness, energy and euphoria. Productivity drops dramatically during the afternoon while men sit enjoying the scenery as they chew.
Growing the plant is highly profitable and the watchtowers sitting among the plantations are to protect the plantations from thieves. The towers have manned gun holes, and it seems no mercy is shown to would-be thieves prepared to run the gauntlet.
In recent times Yemen has made headlines for more violent activities, such as the USS Cole bombing and kidnappings of foreigners, but its history is much prouder.
Legend has it Noah's Ark was launched from Aden on Yemen's south coast, and the Aden tanks are impressive even by today's standards. Dating back to the 1st century AD, they are a feat of engineering. Designed to collect water for the city and get rid of it during floods, the tanks are still intact, though they no longer work.
Aden is a pleasant and relaxed coastal city with its 19th century British colonisation still evident in much of the architecture. The city and port suffer from a lack of investment but the sparkling waters of the Gulf of Aden give it a pleasant backdrop.
The smaller modern towns inland are fascinating for the sheer madness that inhabits the streets. Traffic jams, cars tooting, traffic wardens creating chaos, cars driving the wrong way, roadside vendors selling anything that might attract a buyer, beggars, donkeys, goats, rubbish and, of course, total disregard for the signs telling you not to bring your guns to town.
I even saw a belt of hand grenades and bullets sitting on one car's dashboard. Carrying a belt of grenades is not entirely uncommon. Two weeks before my arrival one unfortunate fellow accidentally lost the pin to a grenade in Sana'a's souk, killing himself and those nearby.
In one small, innocuous-looking village we watched wedding festivities on the roadside. The men were dancing and encouraged me to join in the celebrations. The children crowded around me, fascinated to have a lone foreigner in their midst, and I was shocked when I realised one of the boys, who was no older than 10, had a rifle slung over his shoulder.
This prolific gun ownership is hardly surprising when you consider there is a souk on the outskirts of Sana'a where you can buy all manner of weapons with your fresh fruit and vegetables.
For less than US$100 ($150), you can be the proud owner of a semi-automatic. No licence is required and the souk is open from early morning until well after sunset. Fridays are busy, as tribesmen come to town to stock up on their day off.
Gun possession and kidnappings aside, Yemen is a magnificent country to visit. The people are exceptionally friendly, the landscapes are stunning, the history is astounding and the souk in Sana'a is the best I have seen yet in the Arabic world.
So if you feel like throwing caution to the wind, a visit to Yemen will be, at the very least, a fascinating experience.
CHECKLIST
Visas: New Zealand passport holders don't need prearranged visas. They cost $US60 at Sana'a airport.
Currency: Yemen's currency is the rial. The US dollar is the best to take and they will change most major currencies. There are ATM machines where your ATM and credit cards will work; some will even give you US dollars. Credit cards are accepted in many high-end hotels and tourist shops, but with regular power cuts and phone-line interruptions they can't be relied upon, as the processing machines often don't work.
Tipping: Tipping in Yemen is expected at top-end tourist establishments, but not in local restaurants. Tour guides will also expect a small tip.
Getting there: Emirates flies to Dubai from New Zealand. From there you can get a connecting flight to Sana'a. Travelling by road into Yemen is not recommended.
Getting around: Travelling around Yemen should be done with caution and only with an experienced guide or local. The north and east of the country are too dangerous for foreigners with the exception of the Wadi Hadramawt region. I used an independent guide to avoid the possible problems of being targeted by kidnappers who have been known to bribe the police escorts of larger groups. Whilst kidnappings have certainly occurred it is worth keeping in mind tourists do still visit the country in moderate numbers, most without incident. Sana'a is fairly safe to walk about alone, but the tribes have been known to come to town for the purpose of taking a foreigner.
My guide Nazar had a wonderful sense of self-preservation and an even better sense of humour. His knowledge of the country was excellent and having lived in the UK and the US for much of his life, he was fluent in English. He had family members in the Government, and could also give a wonderful insight into the workings of the country. His phone number is 00967 733293807; he doesn't do email.
Further information: Lonely Planet's Arabian Peninsula is an excellent book to plan your trip. You can also check out yementourism.com.
