A comprehensive environmental study on the Ghulifqh Bay, Red Sea as a basis for the establishment of cage culture of fish in Yemen was undertaken including physical factors, type of soil, biodiversity, pollution, and the density of population in the region and their professions. Results showed that the rainfall rate is about 40 mm/y, while the rate of evaporation is 24 mm/y. In winter, the wind reaches its highest speed recording 18 knots in a south-southeast direction. It was noticed that the maximum speed of water currents was 6.3 km/h to the north, while the highest tide was about 60 cm, and the spring tide ranged between 25-75 cm. The bay coast is a mixture of sand materials, where the wide areas are coated with clay, while a layer of grass mostly covers the coast by which little pollution is hence guaranteed. The Bay is characterized by high biodiversity, where the density of marine phytoplankton is very high, with large groups of other marine organisms, especially fish and some crustaceans. In addition, a high diversity of pelagic fish species are inhabiting the bay, and this is a good vital indicator that the environment of Ghulifqh Bay is a suitable habitat for fish. The location of the bay protects it from environmental hazards. Additionally, the earthy dam on the western border of the bay breaks the currents and reduces any negative impacts. Thus, the bio-environmental factors are important indicators to guarantee the qualification of the region for a rearing fish project in cages. In this context, the current study proved that the Ghulifqh Bay is a promising area for aquaculture projects in cages.