Yemeni Businessman Munir Ali Daair Speak Out On Investing in Yemen, Interview

Yemen is maturing – into a new form. It has been sending a different massage to the world, its infrastructure and business infrastructure is nearing completion and due to its location across the Horn of Africa, it presents itself an attractive option to both local and international investors.

What it is really like to invest in Yemen, security concerns, legal framework, which are the "in" investment projects, and much more, was subject of a frank talk with prominent Yemeni businessman Mr. Munir Ali Daair, Director of Dome Trading and Contracting in Sana`a.

Mr. Munir Ali Daair, welcome to the interview.

Q: How do you rate the investment climate in Yemen

Yemen has excellent investment opportunities. From our experience, I wish to assure to those who are willing and capable to invest in resources, that Yemen is probably one of the best places to do so - in the region. Good opportunities exist in energy, power, transportation, tourism, entertainment and mining, to name a few. What is needed is that more resources take advantage of the available opportunities in Yemen, less government red tape, less unfair press reporting, which makes Yemen appear like a jungle of instability and hostility.

Q: You are with Dome, an UAE based company. Can you reflect on your activities and experience in Yemen

Dome also exists in the UAE and other places. We are, however, a Yemeni based company. Our experience in Yemen is exceptionally satisfactory. Ours are three major activities in Yemen, electro-mechanical contracting, maintenance services and trading activities. The greater part of our activities are centered on the oil and gas industries.

In additional, we are active in the private and public sectors. We are involved in projects for creation of additional power generation in Aden, Hodeidah, Taiz, Seiyun, Shihr, Mukalla, Ibb, Attaq, Amran and Lahej and have ongoing water distribution network project in Hodeida, all of which are government projects.

The YLNG project today is the largest undertaking in Yemen’s history amounting to USD 3.7billion. Our involvement in this project is on the increase and so far we are pleased.

Apart from Yemen, we have presence in UAE where we were also first established, further in Iraq, Egypt, Jordan and China where we recently opened a branch. We are seriously looking into possibility to establish our presence in Sudan, Libya and Iran.

Q: Are you satisfied with Dome’ position in the Yemeni market

Yes we are! Although in true spirit of a businessman, I will say, the more the better.

Q: How has your company coped with the shift towards wireless technology

We are an evolving company and deploy resources as required, as part of our overall strategy to meet the challenges ahead. Today the available technology in the market exceeds our current demands. We are continuously examining the resources available and our needs to ensure that we continue to deliver reliable, cost effective and efficient services and products to our customers.

Q: Where do you plan Dome to be -lets say- in a year from now

Continuing to deliver quality service that will make our customers to return to us again and again. To be able to do so, we will be investing more in resources and creating more regional and global partnerships.

Q: For some time, Yemen is trying to attract serious long term investment. Which are the bottlenecks and what should be done differently

As already mentioned, to remove the red tape. I think this has been also recognized at a senior government level, that government bureaucracy is an impediment and steps should be taken to address this issue. More should be done in this regard. Businessmen also need to put pressure on the government to provide an efficient and less bureaucratic administration.

Internationally, the government is already focusing on attracting investments to Yemen and I view this as an important step. The current Chairman of the Yemen Investment Authority Mr. Salah Al Attar is introducing some innovative ideas that hopefully will produce desired results. What is still lacking, is an international campaign, a sort of well prepared road show, to promote investment. Our embassies, for example, should also act in this respect. These outposts should be the first point of reference for investing in Yemen.

Critical issue is also education, education and again education. Yemen should create a pool of an educated and well trained manpower able to communicate proficiently with the rest of the world and able to manage the investments Yemen seeks.

Q: Who are the major investors in Yemen, from which countries and which sectors would be of particular interest

From Asia, China for example is getting more involved in Yemen. From the GCC, from there the majority investors are Yemenis living there. From Europe, France appears to be one of the major investors in Yemen. In the Yemen Liquefied Natural Gas project, the French conglomerate Total, is a major share holder.

We certainly need to attract more global players into Yemen whose presence will in turn attract other investors. We do have important foreign investors in Yemen, such as Canadian Nexen, DNO, Dove, Occidental, Oil Search, OMV, Petronas, just to name a few. The oil sectors seems to attract majority of investors. What is required is a more balanced approach and diversification to other fields and sectors as well.

Q: For the middle of the first millennium BC, Yemen dominated the carrying trade in the western Indian Ocean – a position it held up to modern times. You were born in Tanzania, once a part of the ancient Azania. Is remaking of Azania possible and or feasible now that Yemen is viewed by China and India an important bridge, or distribution center to cater for their African interest

The region from South Africa to Somalia used to be part of ancient Azania. Yemen and Oman for example, still maintain strong links with Tanzania. Similarly Tanzania has strong links with China, as does Yemen. In fact, there are about 150 Yemeni trading houses in China today. You can see, that Yemen can act as a bridge. Moreover, Yemen is geographically located and holds a very strategic position between China, India and Africa.

Q: Yemen has been aiming to join the GCC. What benefits brings for Yemen the GCC membership in terms of investments and business, or it means simply trying what Yemen is not and cannot be

The GCC countries can bring good benefits to Yemen in terms of investment. However, I am not convinced that membership should be condition precedent to investments. I have repeatedly argued that other countries get GCC investments without being members and that Yemen should try to attract GCC investments simply by creating a more hospitable investment climate.
No one is able to say what benefits Yemen will be able to get from GCC membership that it possible can without membership. List those benefits and you will see what I mean.

Q: Security seems to be an important issue, how safe is Yemen

As safe as any country in the world today and certainly safer than many in the region and beyond. It is simply a myth that Yemen is unsafe! You are living here, you are moving all over the place. This myth is produced by travel warnings that foreign embassies feel obliged to issue to their citizens. I can assure there are more people being killed and mugged in the streets of other countries whose embassies issue travel warnings, than those who were harmed in Yemen.

Q: How safe is Yemen for investors

If Yemen is safe for you and safe for its population, it is also safe for investors!

Q: Is the legal framework sufficient

The laws are sufficient. The application of the laws needs to improve and the government needs to work harder on this issue.

Q: What should be done to promote Yemen internationally

A full fledged continuous campaign in the media to demonstrate the opportunities that exist in Yemen and to dispel the ignorant unfair press reports that Yemen seems to be getting.

Q: What type of investment in Yemen is particularly desirable or sought after

Naturally, this depends on one’s investment capability, knowhow and risk appetite. As mentioned, a number of opportunities exist in the field of energy, power, transportation, tourism and mining. Not to forget, smaller scale investments, such as entertainment, restaurants and department stores. In many areas Yemen is – what one would call – a "virgin" territory.

Q: Much hope is build around the Aden free zone. What is the status, please update us on the situation there

Perhaps, the government would be a better address for this question. But I think that Dubai Free Zone is negotiating the management of the free zone. We ourselves have just applied for a 10,000 sq meter land there for an activity that we plan to set up in the Adeni free zone.

Q: The regular appearance of China, India and OPEC in headlines emphasize the shift in economic power to the Middle East and Asia. What should be done to ensure that Yemenis will share the benefits of this shift

I think China and India more than OPEC is where the economic centers of power lies in the future in our part of the world. Yemen should position itself more closely with these emerging powers. China - as already mentioned – is investing more in Yemen, India is also exploring opportunities in Yemen more than – lets say - few years ago.

We are already benefiting from what one would call the shift of economic power. With greater emphasis on removing bureaucratic impediments, more emphasis on training and manpower development, and ongoing efforts to attract investments, Yemen can derive advantages not just from India and China but the GCC and Europe as well.

One should not forget that today there is an abundance of capital looking for good investment opportunities.

Q: What are you most looking forward in the future

To see my three sons Ammar, Mustafa and Ibrahim fully developed, intellectually and physically, independent, and healthy, living a fulfilling family life. And to be able to finally play with my grand children.

Q: Who or what has been the biggest influence on your career to date

I cannot single out an individual, I have been influenced by many people. But I can tell you, my father died when I was nine years old to whom I was very attached and until today at the age of 53, I miss him. I keep asking myself would he be proud of me? I guess trying to answer that to myself, has probably been my driving force.

Q: Any particular saying

Saying of Prophet Muhammad (PBUH) "You will never truly win over people with your wealth, therefore win them with your character".

Q: What books do you read, your favorite music, movies

Many books are my favorite, but to name one that has had profound impact on me, it is "A fine Balance" by Rohinton Mistry. I like books by Indian writers, I find them very original and down to earth. Also V. S. Naipaul’s book " A House for Mr. Biswas" is a great read, very funny yet very intense in a very special way.

As for music, well it depends on the mood, but mostly classical or instrumental, certainly not rap, that’s for my children.

I am a movie buff so there are many movies I like. A recent one I liked very much is "Water", that I recommend. (By Deepa Mehta. "Water" discusses the position of widows in Indian society).

Q: What does you average day involve.

Waking up between 4:30 to 5 a.m, doing my gym at 7 a.m. I start my working day at 9 a.m. Mostly, I work at the office or office related activities till about 6 or 7 in the evening. After that it is either quiet at home, or socializing with friends. I love to cook for friends. When we socialize at home, I am usually the cook. It is pure pleasure. Of course there are also work related social events that we have to attend.

Q: Any last word

Real success comes after failure. Never be discouraged by failure. There is no true success without failure. To know the real meaning of success, to taste real success one must first fail. Those who have never tasted failure in their lives have never truly tasted success.

Mr. Munir Ali Daair, it has been pleasure talking to you.

See also: Yemeni businessman speaks out on investment, economy and education, in Yemen Observer http://www.yobserver.com/reports/10012719.html#comments

Picturing Mr. Munir Ali Daair in his office in Sana`a.