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Yemen Gets Long-Term Loans of USD 300 Million Mohammad Bin Sallam Yemen Times Al-Madina Al-Monawarah KSA The meetings of the Yemeni-Saudi Coordination Council held in Al- Madina, KSA, during 11-12 December were said to be fruitful. The two sides discussed strategies of bilateral cooperation in a number of fields, some of which were mentioned in the final communiqué while other fields, said to be sensitive, were dropped. Politically, The two countries agreed to coordinate their stances concerning the relations between them and other relations on the Arab and international levels. They are also to organize official visits for more discussions and review of cooperation protocols. In the development filed the two sides agreed on a visit by the Saudi Fund for Development to Yemen to hold talks with the Yemeni officials in the ministries of Finance and Planning about rescheduling late debts of Yemen, estimated at USD 245 million. The Yemeni delegation tried to get a debt-drop, but the request was turned down under the pretext that other countries might be motivated to ask for dropping their debts if Yemen was granted a debt-drop. However, the Saudi delegation promised to provide USD 300 million as long-term loans in support of development projects that will be executed under the full supervision of the Saudi Fund. By this Yemen’s debts raises to USD 545 million. In education, a number of qualified Saudi teachers are to be sent to work in Yemen. In addition, Saudi Arabia agreed on providing a limited number of scholarships to Yemeni students. They also agreed on reviewing the school text-books taught at schools of both countries to make sure that they are free of material that harms bilateral relations. The Saudi delegation stated that more than 150 thousand Yemeni students study at the Saudi schools. Those include immigrants. In agriculture, they agreed on facilitating exchange of agricultural products and exchange of visits of ministers. In the health field it was agreed to treat one hundred cases in Saudi hospitals every year. They also discussed means of enhancing health cooperation. Discussion of the Yemeni laborers was postponed by the Saudi side to another meeting. However, the time was not identified. In a press statement, an officer in Sana’a International Airport said that one thousand Yemenis were driven out of the KSA on December 13-14 2000. The Saudi authorities commented that they were illegally living in the kingdom. On the subject of investment and trade they stressed the commercial cooperation as one of the main cooperative areas between them. They decided to make every efforts to enhance such cooperation and encourage the private sector to invest in both countries taking advantage of the many facilities both countries offer for investors. Ministers of Trade and Industry were requested to encourage investors to increase joint ventures. In this context, prime Minister, Dr. Abdul Kareem Al-Iryani met with a number of Yemeni businessmen who live in the KSA and urged them to invest in their motherland. He also listened to their reasons for refraining from investment in Yemen. The two sides also discussed issues related to electricity and assigned ministers of Electricity of the two countries to make studies on possible future cooperation. In transportation, the delegations discussed means of developing transportation of goods and passengers through the two countries in order to back up trade and the bilateral interests. On the issue of culture, youths and sports, the authorities concerned were assigned to outline the cooperation framework that will be presented in the next meeting. As for oil and mineral wealth, a joint committee is to be formed under the supervision of the ministers of Interior. The committee will include ministries of Defense and Oil which will get together to outline the work-plans to survey the border areas. In aviation, the council assigned the general directors of the Saudi Air-ways and Yemeni Air-ways to meet with each other to discuss means of developing cooperation between the two institutions and present suggestion to the next meeting scheduled for Mid 2001 in Sana’a. The two delegations were led by Prime Minister, Dr. Abdul Kareem Al-Iryani and Saudi Arabia second deputy Prime Minister, Minister of Defense and Airforce Prince Sultan Ibn Abdul Aziz. The meetings were attended by a number of Ministers from both sides in addition to journalists and many others. Mahyoub Al-Kamali Yemen which, depends heavily on oil exports, faces many difficulties in benefiting from the international trade as an essential factor for the development of its economy. Classified as one of the poorest countries in the world, if Yemen does not promote its agricultural, marine products and encourage production of primary products for export, it will not move forward. Horizons of Agricultural Promotion Developing of agriculture can help increase production and organize internal and external marketing. Revenues of agricultural products constitute the major income-source for many families in addition to its being a source of foodstuff production meeting demands of the increasing population. Despite the low level of agricultural production and its fluctuating revenues, promotion of agriculture seems to be provided with the suitable ground. Among the most important factors to further agriculture are development of water resources, exploitation of countryside waters, improving agricultural equipment, conducting scientific surveys and studies on soil, climate and identifying the crops that are suitable for cultivation during the whole year. Self-sufficiency. Achieving family self-sufficiency is one of the priorities of promoting agricultural production. Statistics indicate that agricultural production level falls every year. Farmers sometimes stop cultivation owing to losses, lack of water, difficulty of marketing, high costs of production, etc. Sources of the Supreme Council for Exports Promotion say that weak marketing hinders exportation of agricultural products. However, the sources add that the production of vegetables and fruits increased from 6000 tons in 1996 to 54000 tons in 1999 and that it is expected to rise to 100000 tons in the beginning of 2001. Yemen produces about 130000 tons of grapes, 170 thousand tons of wheat, 62 thousand tons of corns, 56 thousand of barley, 77 thousand tons of seeds, 747 thousand tons of vegetables, 35 thousand tons of melon and 120 thousand tons of watermelon, 554 thousand tons of fruits, etc. Random Marketing The above numbers are not fairly distributed to local markets according to population density. This production suffers from random marketing and lack of companies to market it. Encouraging Exports. During 2000 the Fund to Support Agricultural and Marine Production spent about 30 million rials in support of export samples of agricultural and marine products and participation in foreign exhibitions. It also financed 107 agricultural projects in 1998 at the cost of about 973 million rials. However, the private sector indicates that this support is not enough to promote agricultural production. Strategic Infrastructure for Marketing Needed To eradicate the difficulties facing agricultural marketing, specialists suggest establishment of a strategic infrastructure on the basis of exempting materials used in production such as seeds, etc. from taxation. Transportation costs need also to be enhanced. Some specialists are of the view that the Fund should undertake 50% of the total cost of air shipping and 30% of the cost of land shipping and similar part of sea transport. It should also provide export harbors with the necessary equipment for quality control. For the above, marketing seems to be a complicated procedure that requires a lot of facilities and human abilities to cope with the local and international market changes. Therefore, there must be a clear role of the banks specialized in supporting production and marketing. To promote and protect production, the authorities concerned must undertake clear and specified responsibilities to enable local agricultural products to cover local needs and invade the foreign markets to get hard currency. Case for Smaller Countries to Take Initiative Irena Knehtl Economist, entrepreneur and writer from Slovinia Republic of Yemen is in process of establishing its regional role aiming to promote regional stability and prosperity. Yemen is also the richest Arab country in culture and people, human capital being its greatest strength. Strategically located across the Horn of Africa it is a natural hub of logistical and transport routes, a distribution and investment center for emerging marketing opportunities in southern Arabia and the Indian Ocean Rim. It has been also emerging as bridge for servicing Australia and Southern Africa, Europe most important trading partners. But Yemen is seen as bridge between ancient and modern, and a creator of new relationships… Scent of Place: Geographically the Arab Peninsula is an area with strong flavors, and smells too intense, and contrasts much too extreme, stretching from the desert lowlands, mountain tops wrapped in thick clouds, wilderness, to the cities, and shores of the Red and Arab Seas, the Indian Ocean, and further. It is here that the Scent is the strongest. Scent, so it is being said, clears also “darkness” of visions. Scent also brings back memories of youth. This is also an area with rich commercial and cultural links, and not until this century did Arabia and the West resume a comparatively fruitful commercial intercourse, only this time the commodity was oil. Here even the geography of peoples faces has the shape of their mountains, which meant being free! But once upon the time they had the power that created fear, it changed lives. Now, however, their teeth were pulled out, and their spirit died. Whether inside or outside, a partnership with an economically united Arab world is increasingly in Europe interest, to help Arabs to realize their economic potential in full. The potential for an equal partnership thus lies in continuing liberalizing of their economies, and managing economies more efficiently, on one hand, and a different set of European countries on the other, in order to reach a new quality in relationships and development. European investors no longer seek exceptionally high profits, and fast returns only, but also other enduring values, such as culture. The oil and gas industry, once a king maker has lost much of its political prominence, and its significance, and has been eclipsed by a new economy and telecommunications. However, e-commerce must never remain confined only to network, telecommunications, computers, and the media, and or markets, but rending it human and no consolidating of democratic space and duty maintain the freedom. The battle is one: the challenge for 21 century is to dismantle the big, and develop the people. Further, just what type of investments, projects, deals, and which technology will be more appropriate as we have to become ten to twenty times more efficient in our use of resources is now further challenge. It is culture that provides us with values and identity, and which enables us to cope with challenges, and changes occurring as we expand our relationship with an increased united Europe on one hand and a potential economic united Arab world on the other. It is also culture that reserves the right to be different and an instrument of opportunity and inclusions on one own terms. Technology too has to be seen as part of culture, and new technologies are important for cultural development. Many of the answers to Arab problems of development, however, lies not so much in the wholesale adoption of foreign values and ideas, as in a more realistic perception of its own, its past, its culture, and splendidly complex ecosystem may well provide some exciting alternatives. Thus the model for a new Euro-Arab economic partnerships is one of joint marketing exploration and approach and joint establishing of transport, and logistical routes, and distributions, centers for emerging marketing opportunities. Further, the source of foreign capital from foreign investors should include also management know how, and technology, and an economic engine to help to reinvigorate the region. Innovation is a key success behind all successful firms, undertakings and countries. Being innovative means, however, more than just having good ideas. In fast changing environment innovation is not just matter of export profitability, it can be a matter of survival. Republic of Slovenia, has been aiming of setting and example of new Euro-Arab economic cooperation and partnership with Yemen in form of interactive business networks, and an regional investment summit to begin with. Thus the youngest country in the world has opted for an innovative approach having in mind it is innovation that will allow companies and countries to thrive and survive. In a global economy is the harvesting the power of innovations the central theme. Together with our human resources, technologies, and our cultural heritage, we could achieve European and world standard: “… among the olive trees of our valleys, and in the ripeness of the fields, we shall await the promise of July. And the joyous dance and the harvest…” The Yemeni Petroleum Company decided to reserve its production of Mareb crude light oil for next January. The decision came after failure of negotiations with businessmen in Singapore auction in which Yemen offered a price for January contracts less than 49 cents per Brent Crude oil in the urgent transactions while the businessmen’s offers were less by one dollar than the price of Brent crude oil price. Yemen sells about 800,000 barrels of Mareb crude oil every month. The results of the referendum launched by the Yemeni Association for Consumer’s Protection on 20,000 people chosen from different classes of the society, showed that more than 98% of the population of Yemen are prepared to boycott the Israeli and American products. This step came in support of the Palestinian people and in response to the decisions made recently by the Arab Union for Consumer’s Protection in Amman. Yemen took part in the international conference held in Italy in which a final draft of an international treaty was laid. It included terms for restricting the phenomenon of money laundry resulting from illegal activities by groups of people dealing in drugs, weapons trade and illegal investments under assumed names in a way that affects economies of the countries where the phenomenon is spreading. The value of the Yemeni exports through Aden Seaport and Airport reached 3 billion dollars until November. The exports included fish, coffee, potatoes and other manufactured and agricultural products. They were exported to more than 21 Arab and foreign countries. |
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