Yemen’s Investment Opportunities have been Impeded Due to Conflict

Sawt Al-Amal (Voice of Hope) – Ahmed Omar

Yemen has many resources that enhance its position among the countries of the region economically, the most important of which are livestock, agriculture, fish, oil, ports and marine ports that has significant strategic locations, which overlook the international navigation lines between Europe and Asia.

The industry is of great importance in reviving the national economy, pushing it towards the wheel of development, eliminating inflation, and providing job opportunities for young people. It also contributes to diversify the country’s sources of production, income and exports to the country by raising the ratio of the sector’s contribution to the GDP and exports. Additionally, the development of the industrial sector also helps to raise growth in other sectors such as agriculture, trade and marketing .It creates opportunities and prospects in industrial integration at the regional level.

Industrial Sector Financing

Fouad Al –Fateh, an Economic Researcher, said in an article published on October 15, 2022, “Discussing the topic of industry in a country that is worn out by conflicts, seems as if it is an expression of wishes. However, the economic scene has an industrial movement that is often directed towards manufacturing industries, such as food, tobacco, weaving, wood, cement, and minerals. The country is witnessing efforts to develop these industries and involving in other areas. However, these efforts are still limited due to the difficulties that faces those who initiated this step. “

The International Labor Organization prompts Yemen to work to build peace and the ability to confront crises, the most important of which is by creating opportunities to obtain work, income and enhance the ability to employ people, as well as promoting the ability of institutions in the areas affected by the conflict since eight years ago.

According to the official website of the organization, on July 15, 2021, it worked to enhance the ability of local institutions and stakeholders to improve work governance through dialogue, participation and setting policies.

The site stated that the International Labor Organization seeks to create immediate opportunities to obtain work and income through enhancing the impact of cash for work programs to provide practical training opportunities, skills development, entrepreneurship, and working for a special account.

The organization continues to provide technical support to the tripartite bodies formed in Yemen, which are governmental institutions, workers’ organizations and employers.

The official website of the International Labor Organization, which is affiliated with the United Nations, also reported that the organization is working to promote social justice, human rights and internationally recognized work rights. Moreover, Yemen has ratified 30 agreements, including economic agreements since its accession to the International Labor Organization in 1965.

The World Trade Organization announced, on May 28, 2014, that Yemen will become a full -member country to become the 160 country in the organization. It will also rank the seventh of the least developed countries.

Trade Ministers of the World Trade Organization had officially agreed to join Yemen, on December 4, 2014, during the ninth ministerial conference held in Indonesia, according to the United Nations website.

“Yemen will benefit from its membership in the field of technical assistance and capacity building from the organization’s general secretariat in order to support the implementation of its accession obligations, negotiate the rules of trade and develop skills related to trade and infrastructure needed to benefit from its membership in the World Trade Organization.”

Challenges and Solutions

Dr. Rabie Al –Obathani, an Economic Researcher, believes that the most prominent challenges facing the industry in Yemen are the continuous collapse in the local currency price, the problem of energy poor, high fuel prices, the deterioration of supply chains, and the transportation of raw materials. This is due to the deterioration of current situation in ports, seaports, land and air transport.

Al -Obathani stressed, in his statement to “Sawt Al-Amal”, that the emergence of illegal levies is one of the challenges that threaten the industry sector and the prospects of its development. He noted that the human resource is weak, and it needs intensive and directed training, the most important of which is vocational training, which is one of the main inputs of the industry.

Regarding the effect of the struggle on the opportunities for industrial solidarity, Dr. Al -Obathani stated that the conflict caused the reluctance of many traders and investors from the industrial sector in Yemen. Furthermore, he stressed that many traders closed their activities in the country, and some of them transfer thier industrial activities to other countries.

Regarding the solutions to the advancement of the industrial sector, Dr. Rabie Al -Obathani, the economic researcher, stressed to “Sawt Al-Amal” on the need to find a solution to the local currency problem and its deterioration, and to create the investment environment in the sector. He also stressed on the importance of the government’s contribution to have serious intervention to solve the energy and electricity problem, reduce fuel prices, restore ports and airports, and facilitate the flow of raw materials and all manufacturing requirements.

“Paying attention to the Yemeni human cadre, and their rehabilitation and training according to clear and correct programs will help in finding highly efficient inputs in the manufacturing sector. Moreover, focusing on vocational and technical training will contribute to keep pace with the regional countries in developing the local industry sector,” he continued.

Available Opportunities for Industry in Yemen

The National Information Center stated that in Yemen there are many investment opportunities in various service and productive fields to achieve the industrial renaissance, the most important of which is the investment in establishing and preparing the infrastructure within the industrial areas to be established in this important vital sector.

In the same context, the “ISO Investment Support Organization” published a report on investment in Yemen on March 18, 2011, and it explained that Yemen has multiple investment potentials that made it an attraction for local, Arab and foreign investments, including the strategic location and its possession of an important coastal strip. The Yemeni seas also abound with huge fish wealth that attracts global attention.

The report indicated that Yemen is one of the wealthy countries with raw materials, and it can be used in many lucrative investment fields, in addition to the advantages and incentives guaranteed by the Yemeni investment law for local, Arab and foreign investors. The Yemeni investment law is also one of the best investment laws in the Arab world, according to the organization’s report.

Yemen has lost many local and foreign industrial investments after the broke out of the conflict between the internal factions in early 2015, which led to a major stagnation in the sector, in which Yemen remained decades behind the international industrial revolution.