Law & Diplomacy - Issue 50

50 - Dec 11th thru Dec 17th 2000, Vol X

Yemen in the Indian Ocean Community

Irena Knehtl*
Indian Ocean in History
Not all societies have taken the path to urbanization, nor has any society been immune to the temptation of trade. A little more than 2000 years ago Arab and Persian Seafarers discovered the secrets of the monsoon wind system across the Indian Ocean. This discovery opened the way for the great transoceanic voyages so important in later world history. The continued movement of people and trade goods has led to a complex process of interaction which has not left the Indian Ocean countries untouched. These countries are rich in human and natural resources, a fact recognized long before the recent importance of oil.
Even Arab geographers recognized an invisible sense of unity steaming from the trade network and sea based political alliances. The Indian Ocean is an important source of food and the sea bed is repository of minerals such as manganese, nickel, cooper, cobalt, molybdenum, zinc, and lead. Nehru, the later Prime minister of India wrote about the importance of the sea for the Indian continent India’s destiny, he said, can be fulfilled in its entirely only when Indian becomes again a seafaring nation. We have developed this continental psychology which was that of aloofness, and narrowness
of vision.
But it is when we open ourselves, our nation, to the seas on the three sides of this great land and play our part there and interact with people inhabiting this ocean and beyond that India can really fulfill its destiny....
Southern Arabia, especially Yemen is once again placed in the position of a go-between or bridge in the Indian Ocean community, now the fastest growing behind the Asia -Pacific rim.
The Indian Ocean Rim Association for regional cooperation (IOR - ARC) was formed in 1997 by 14 countries bordering the Indian Ocean. The Republic of Yemen is a founding member of the Indian Ocean Rim Cooperation which now constitutes 19 members. It is an outward looking forum for economic dialogue and cooperation, in many ways similar to APEC. Australia, India, South Africa have emerged of major importance to Yemen. The presence of Singapore in the grouping has potential to provide significant benefits in the areas of micro - project management, and infrastructure development, and strategies for attracting and retaining foreign investments, as well as development of selected service sector.
The Republic of Yemen is more openly in search of expanding opportunities for economic cooperation between Indian Ocean countries. Due to its location across the Horn of Africa, at the entrance to the Red Sea and the Indian Ocean, occupies a strategic position. To the south is joins together with the Indian Ocean into the vast new commercial and strategic unity, i.e. the Indian ocean community and linking emerging opportunities and markets including investment and trade.
Gateway to the emerging opportunities in the Indian ocean markets. The port of Aden is one of the world largest natural harbors. It is geographically and strategically located at the crossroads of the Red and Arabian seas with direct access to the Indian Ocean.
Sailors have used Aden for more than 2000 years, running cargoes of frankincense, spices and perfumes. Later, the port of Aden was one of the world top bunkering port and second largest bulk port.
Today, the Yemeni port of Aden is again an international gateway: your gateway to markets and emerging opportunities in the Indian ocean:

Aden Container Terminal
A full service container terminal, distribution, transshipment, investment, financial, communication, information and logistical center...for the Indian ocean as whole.
It is rapidly becoming one of the regions largest and most modern industrial free zones.
It provides access to a regional markets, such as the Middle East, East Africa, Australia and the Indian sub-continent.
It is a natural logistical and transshipment hub 4 km from the east-west shipping route - 9 days steaming from Europe and 7 days from Singapore an ideal outlet for transshipment operations between European markets, east Asian economies, connecting busy free zones, of India, Bangladesh, Sri Lanka, Mauritius, logistically serving
Australia and South Africa, Europe’s most important trading partners.

To the West is links with Malta, Europe’s fifth busiest port, and Mediterranean foremost distribution, transshipment and logistical center, now rapidly becoming also Mediterranean off shore financial center. It offers one of the best packages of incentives in the region.

The Aden free zone incentive package includes:
* 15 years tax exemptions,
* free transfer of capital and profits,
* 100 percent foreign ownership and income - tax exemptions for
expatriates.

* Irena Knehtl is an economist, entrepreneur, and writer from Slovenia
An associate of the Indian Ocean Center at Curtin University of Technology, Perth, Australia, she promoted the Australian sponsored Indian Ocean dialogue in Yemen.
She is also member of the Indian ocean Business and Academic network.
Currently in Yemen she is setting up her undertaking Investment Contact Business network.
View also www.geocities.com/iren_knehtl/ under title Scent of Place and Time for smaller countries to take initiative.