Described as a ticking time bomb for extremism, Yemen has captured public attention as al Qaeda in the Arabian Peninsula’s primary new breeding ground —  a chronic politically unstable state ripe for AQAP’s exploitation. More than 100 Yemenis have been incarcerated in Guantanamo since 2002 and several hundred al Qaeda affiliated militants are said to operate in the country.

Yet for many Yemenis, the pervasive al Qaeda threat is eclipsed by more impending crises, including an increasingly violent secessionist movement in the south and a civil war in the north. In addition to civil unrest, the poorest nation  in the region – and one of the poorest in the world – faces yet another catastrophe whose numbers portend a far deadlier long-term challenge.

Yemen’s population of 23 million, nearly half of whom are under the age of 15, is expected to double by 2035.

And experts claim the capital city, Sana’a, could become the world’s first capital city to run dry, raising concerns that a World Heritage City could devolve into a mere ghost town.

Yemen’s oil accounts for approximately 85% of the government’s revenue. Profit is used to subsidize expensive diesel pumps to extract water, but analysts predict that its petroleum output, already down from 460,000 barrels a day in 2002 to 300-350,000 in 2007, will fall to 0 in 2017.

“Everyone — the Yemeni people, the American government — are sitting around waiting for the crisis to vanish,” said Mohammed Albasha, press and public relations officer at the Embassy of Yemen in Washington. “They’re just talking about it and no one is giving solutions.”

Greg Johnsen, Princeton University expert on Yemen, argues that solutions have been offered – they’re just detrimental.

“Counterterrorism is the only tool the administration is availing themselves with to deal with Yemen and that is a catastrophic mistake,” said Johnsen.

Will Rogers, research assistant at the Center for a New American Security think tank, says the development community must work with locals to break the cycle and bolster the government’s legitimacy.

“You can throw money at the problem but if u don’t have a sustainable plan, you won’t see improvement,” he said.

As water becomes more scarce, the government is increasingly unable to maintain control and legitimacy over tribal governments. Pockets of ungoverned spaces present opportunities for al Qaeda to exploit economic and political challenges.

If the overarching goal is to make Yemen a more stable state, then the first and most basic task is to develop sustainable water projects. But that has become increasingly difficult.

According to a February 2009 report by Integrated Regional Information Network, eighty percent of rural water projects funded by World Bank and Yemen government programs had been seized by tribesmen near or upon completion.

“The effective implementation of programs is hampered by Yemen’s limited institutional capacity,” said Xavier Devictor, World Bank Country Program Coordinator for Egypt, Yemen, and Djibouti. “And actions are likely to require social change, which may take time to materialize.”

Under Secretary of State for Democracy and Global Affair Maria Otero recently traveled to the Middle East in a trip that was said to underscore the need to elevate America’s diplomatic efforts surrounding water.

“Yemen is perhaps the most extreme example of the problems in the region,” said Carl Schonander, primary policy person for the Bureau of Oceans and International Environmental and Scientific Affairs under Otero.

But Yemen wasn’t a stop on the department’s tour.

“The trip was planned far in advanced and we didn’t make it to Yemen,” he said, “but the consciousness of the issues should no doubt be raised more.”

Many are counting on it. But as the Yemeni proverb goes, from a pound of talk, an ounce of understanding.

“The next big war in the Middle East wont be over oil, but water,” said Albasha.

“It’s the main source for life,” he said, “and will be the next big ugly battle.”