Business Yemen

EMERGING BUSINESS AND INVESTMENT OPPORTUNITIES
Tradition blends with modernity in this fascinating country, a rich cultural legacy, and a spectacular landscape… Arabia Felix the ancients called Yemen – Happy Arabia – for its fertility and frankincense, and the fabled civilizations of the Queen of Sheba.

It is a place of scenic grandeur and intimate charm. The bare rock of mountain spines is interlaced with hillsides of intricate terracing and valleys of apricot and apple orchards. The characteristic tower-houses, high-ceiling and pierced by exquisitely decorated windows, have a haunting medieval beauty. Unspoiled beaches and vibrant coral reefs run along more than 2000 kilometers on the Red and Arabian Sea.

As the history of Arabia which is one of perpetual motion and covering phenomenal distances, so has Yemen over the past years made impressive strides forwards and set the stage for sustainable nation building. It has introduced multiparty system election, respect for human rights, freedom of press and has distinguished itself as leading democracy in the region. In addition commitment to free market and enterprise economy and implementation of economic reforms have created an attractive environment for investment.

YEMEN LAND OF PLENTY
Investment is now open for all in numerous fields, including oil, gas and minerals. Oil and gas in Yemen have become foremost sectors and backbone in the economy of the country. Tremendous efforts over the recent years have been exerted to create a favorable climate for foreign investment. No effort has been spared in offering facilities according to available resources. Investors in search for a hospitable environment and incentives will find both in Yemen.

VITAL MARKET LINK
A number of natural advantages await the investor. One is its location, the South west of the Arabian Peninsula, a varied landscape, and climates ranging from the coastal, mountains to the desert interior. An eager workforce, and a country rich in natural resources complemented with an excellent location at the hub of world and regional shipping routes. Yemen offers easy access to regional markets. Investors will find tremendous scope for growth both within and outside the country and explore markets within easy reach.

THE YEMENI INVESTMENT LAW
Aims at mobilizing and facilitation the influx of potential local Arab and foreign capital and providing the private sector with the impetus for more involvement in investment endeavors.

FACILITIES AND INCENTIVES
General Investment Authority acts as one window authority for investors. Simplified procedures for project license issuance, duty exemption of fixed assets, tax holidays from 7 years to 16 years, duty drawback for the exported portion of production.

GUARANTEES AND INCENTIVES
Guarantees for project funds and property against nationalization, seizure and restrictions.
No difference between Yemeni and foreign investors. Ease of capital and profit movements.
Investors freedom of choice and operation.
Freedom of administering the project with regard to employment, pricing of products and export. Freedom to buy/lease land/property.
Training funds for labor-intensive and export oriented project.
Easy procedures for bringing in skilled expatriates.

Yemen is also a member of
The Inter Arab Investment Guarantee Corporation
The Islamic Corporation for the Insurance of Investment and Export Credit
Multilateral Investment Guarantee Agency
International Convention for Settlement of Investment Disputes

INVESTMENT OPPORTUNITIES
Yemen most obvious investment opportunities lies in oil, gas, mineral exploration, agriculture, fishery, infrastructure, tourism including the whole range of economic, production and service sectors for creation of new job opportunities and application of appropriate technology.

Opportunities are many for specialized agricultural production, including fruits and vegetables, oil seeds, spices, garden seeds, and flowers that could be attractive to innovative local investors as well as foreign. Conditions also favor specialized livestock and poultry operations and fish and shrimp farming. Food processing for domestic use and export also has an enormous potential for expansion. Also live animals, hides and skins which need to be upgraded.

Method of investing
Direct, Joint ventures, the Aden Free Zone

THE ADENI FREE ZONE
Through history Aden has been a port of commercial importance as it used to be a meeting point of ships coming from the Red Sea, from India, from Persian Gulf, and from East Africa. The port of Aden is one of the worlds largest natural harbors located at the crossroads of the Red and the Arabian Sea with direct access to the Indian Ocean. Once a world top ship berthing port and the second largest bulk port is set today to remake its name.

Aden Free Zone project now aims at facilitating industrial development and the flow of trade between countries, i.e. among Indian Ocean community of countries of which Republic of Yemen is the founding member. Further serve as cooperation among countries, and act as regional information highway and investment center. The private sector has taken the lead in financing and operating most of the projects needed for regional growth.

The Aden Free Zone project includes
Container Project and the
Industrial Warehouse Estate project, a joint venture between Yemen Free Zone and YemInvest, a joint undertaking between Bin Mahfuz Co. of Saudi Arabia and PSA Corporation Limited of Singapore.
It will include also Aden Industrial and Warehouse Estate, construction of a new convertible gas turbine plant, development of a new air cargo village and construction of an international airport, new sewage and waste water treatment facilities, and development of new tourist facilities.

Free Zone Incentives include
exemption from taxation on industrial and commercial profits for 15 years with a possible extension for a subsequent 10 years,
100 percent foreign ownership permitted and encouraged
free transferable capital and profits are not subject exchange control income tax exempted salaries.

Due to its excellent geographic position on the main shipping route between Asia and Europe, en route to Australia and South Africa, Europe most important trading partners, the Aden Container Terminal will reduce shipping rates. It acts as natural product distribution and service center for markets within reach.

YEMEN – GROWING EXPORT MARKET ACROSS CONTINENTS
Offering tremendous business potential Yemen is the ideal destination to explore investment opportunities. Here are untapped human and natural resources, a large domestic market, and regional markets.

INVESTING IN TOURISM
Unique Tourism Product. Yemen has exited the imagination of travelers through the ages. Scenic beauty, dramatic terrain and friendly people - Yemen has the magic formula that appeals to tourists worldwide. The culture and traditions of Yemen offer visitors a complete Arabian experience – unlike any other.

Realizing the importance tourism for stimulating economic development, the year 2005 has been declared THE TOURISM YEAR. It has rapidly becoming one of the fastest growing sector, income and employment generating sector. Steps are being taken to improve the facilities and infrastructure. Incentives which are available to investors have been extended also to tourism.

Potentially, tourism in Yemen is a boom industry.
Yemen is breathtakingly beautiful and scenic. Here are all year around festival. It offers tranquil beaches, unexplored Red Sea Islands, out of which 180 in the Red and Arab sea are open for investment. Further castles, towers, tunnels. There are excellent investment opportunities in tourism and tourist services and scope for specialized tourism. Some of such projects are building of hotels, tourist resorts, villages, transportation, tourist restaurants, recreational clubs, bottling of mineral water and juices.