Yemen is a country located in the Middle East bordering the Arabian Sea, Gulf of Aden, and the Red Sea. Yemen has a strategic location on Bab el Mandeb, the strait linking the Red Sea and the Gulf of Aden, one of world's most active shipping lanes. Neighboring countries include Oman and Saudi Arabia. The government system is a republic. The chief of state is the President and the head of government is the Prime Minister. Yemen has a mixed economy in which there is limited private freedom but the economy remains highly controlled by the government. Yemen is a member of the Council of Arab Economic Council (CAEU).