The British overlooked the construction of irrigation works and in 1947 the Khanfar scheme was reorganized as the Abyan Development Board, financed by credits of £170,000.

[3][4] In the mid 1980s, the Soviets built an ammunitions factory in Khanfar, for the manufacture of light weapons and Kalashnikov rifles.

[5] After the fall of the Soviet Union it continued to operate as a centre of weapons production, On March 28, 2011, an explosion occurred, killing some 150 people and injuring many more,[6][7] a day after around 30 armed al-Qaeda militants raided the "7th of October" ammunition plant, stealing cases of ammunition and leaving gunpowder exposed at the site;[8] militants took over another nearby munitions factory in Khanfar.

According to Al Jazeera, the initial fire was reportedly triggered by a local resident dropping a lit cigarette while inside the looted factory,[9][10] as some were checking the site for weapons,[11] which soon led to an explosion.

It was loud enough to be heard roughly 15 km (9.3 mi) from the factory, and left many charred bodies at the scene.