Saladin sent Turan-Shah to conquer Yemen and the Hejaz. Aden became the principal maritime port of the dynasty in the Indian Ocean and the principal city of Yemen. The advent of the Ayyubids marked the beginning of a period of renewed prosperity in the city which saw the improvement of its commercial infrastructure, the establishment of new institutions, and the minting of its own coins. Following this prosperity, the Ayyubids implemented a new tax which was collected by galleys.

Turan-Shah drove out the remaining Hamdanid rulers of Sana'a, conquering the mountainous city in 1175. With the conquest of Yemen, the Ayyubids developed a coastal fleet, al-asakir al-bahriyya, which they used to guard the sea coasts under their control and protect them from pirate raids. The conquest held great significance for Yemen because the Ayyubids managed to unite the previous three independent states (Zabid, Aden, and Sana'a) under a single power.

From Yemen, as from Egypt, the Ayyubids aimed to dominate the Red Sea trade routes which Egypt depended on and so sought to tighten their grip over the Hejaz, where an important trade stop, Yanbu, was located. To favor trade in the direction of the Red Sea, the Ayyubids built facilities along the Red Sea-Indian Ocean trade routes to accompany merchants. The Ayyubids also aspired to back their claims of legitimacy within the Caliphate by having sovereignty over the Islamic holy cities of Mecca and Medina. The conquests and economic advancements undertaken by Saladin effectively established Egypt's hegemony in the region.