This paper investigates the challenges and opportunities of launching Islamic Sukuk, in Yemen amidst the enduring conflict and weakened system of the homeland. The analysis emphasizes problems like volatility, regulatory gaps, institutional weaknesses, and declining investor confidence. Notwithstanding these challenges, Islamic Sukuk could play a role in enhancing infrastructure development and fostering revitalization, in Yemen. The paper suggests strategies, for lawmakers and financial institutions to improve Sukuk-related regulations and modernize banking systems through encouraging cooperation efforts and partnerships. As an instrument aligned with Sharia provisions, Sukuk aims to promote stability and growth in the long term. The study presents recommendations to address difficulties and establish conditions helpful for Sukuk to contribute significantly to Yemen's economic revival.