Economy of Al Hudaydah

built 10 miles northwest of the town by the Turkish government, with a small train line leading to Al Hudaydah, and connected to the Sana-Hodeida Railway. A French company built the rail system, which was halted upon the Italo-Turkish War breakout. As of 1909, the port was bringing in less than the port at Jeddah. That year, 172 steam ships visited the port. Majority of the goods were from the United Kingdom, with Italy, Russia and Germany coming in behind. German imports had grown from 1905 to 1909, with British shipping declining. Despite struggles with a quality harbor, the town was described as being the center of dhow building.

The city was known for producing striped coarse cotton cloth, woven by hand. The artisans making the cloth were relocated to Al Hudaydah from Zabīd and Beit el-Faki due to tribal conflict. The city was also a center for tanning and sandal making.

In the late 19th-century, Al Hudaydah was a chief exporter of coffee, with that export business shifting to Aden in the early 20th-century due to more secure routes at Aden. Al Hudaydah had to transport their goods usually through Yemen and Indian ports for security reasons, making exportation to the United Kingdom troublesome. During this time period, the region imported cereal and rice from India, cotton from Manchester, England, and the United States, iron and steel from Germany, and general goods from Italy and Austria. As of 1920, the city was exporting fuller's earth, hides, and coffee. The coffee produced in Al Hudaydah was considered some of the finest in the region