Yemen's oil and water crisis has been a powerful agent of change in Yemeni society, affects of which are transforming Yemen's political, economic and social spheres. Yemen is far from the only country in the region currently experiencing or expected to encounter political, social and economic turmoil as a result of acute water and oil scarcity. As a vital ally of the U.S. and Saudi Arabia in counter-terrorism, Yemen also holds strategic importance for both countries who would like to see it a more stable country. Decades of relying entirely on Yemen's modest oil exports to operate complex system of patronage towards its various tribes and bureaucrats, operated largely in secrecy, also encouraged widespread mismanagement, abuse and corruption. As a result not only did the oil reserves and revenues from it began to declined drastically as oil ran out, a culture of crises mismanagement and corruption also depleted contributed to the depletion of Yemen's water supply. Therefore, Yemenis today face 40% unemployment, combined with acute water and oil shortages leading to crises in the agricultural sector, widespread poverty and malnourishment. Furthermore, consistent lack of effective action from the government of former President Ali Abdullah Saleh not only destroyed his legitimacy, but also eventually uprooted the system of patronage that he relied on to govern the country. The current political transformation and National Dialogue underway in Yemen will have to negotiate a new social contract and a viable political system that can revive Yemen's economy and effectively deal with its considerable security problems.