|
|
  
The Private Sector Manages Industrialization, the Government Provides Services Mahyoub Al-Kamali In a recent government industrial strategy, three industrial areas of the private sector are identified to treat weaknesses of local industrial products and materials. The government has proposed to provide adequate hired-lands in these area and introduce basic services required for industrialization. Reports of studies have envisaged establishment of three industrial areas to be managed by the private sector. The first is located within the triangle Aden, Lahj, Abian, the second in Broum and Hadramout governorates; while the third is located at the crossroad of Harad-Asaleef road in the Hodiedah governorate on the Red Sea. The studies aim at assisting the private sector to develop industries and open doors for competition in order to widen Yemen's capacity for industrial export to foreign markets. While national industrialists were keenly awaiting the government's radical policies to support and protect local industrial products, the Ministry of Industry considered the assignment of the three industrial areas, managed by the private sector in an environment that offers low-waged labor, is sufficient to develop industrial production together with continued imposition of taxes on local industries. Industrialists, however, believe that the strategic geographical location of Yemen attracts around 50 million consumers in the region, and it requires pursuing a comprehensive policy facilitating the establishment of developed industries. The establishment of three industrial zones without providing protection for their products against smuggled goods would weakening the domestic products preventing them from having competitive prices and would minimize the producers' profits. In return, the Ministry of Industry sources say that identifying the three potential industrial areas managed by the private sector, is a first step towards sorting out various obstacles for sustained industrial growth. The decision comes in the wake of a plan to encourage foreign investment in the process of industrialization. It is worth mentioning that the new government's credibility depends on the freedom of the economy, market mechanisms, and for providing incentives for investment taking into account the difficulties facing the private sector which invests capital for investment in the industrial field. But industrialists say that the government has been so preoccupied with structural reforms that it has neglected ensuring protection for local industrial products and has redoubled tax rates imposed on industrialists. This is a factor which caused regression in the industrial output of goods and services. However, official industry surveys indicate that 95% of national industrial firms are categorized as small industries. Thus, the new policy envisages establishment of industrial areas to develop the productive side and change its traditional image towards an extraction and transformation of industry. However, high costs of production, power, transfer and weak support for the industrial-agricultural sector, are considered major impediments for promoting industrials sector. Providing facilities for investors, would assist them to constructively utilize the opportunities made available though the planned industrial areas. The three areas are expected to promote a sustained industrial growth to cater to the needs of domestic markets in conformity with state policies to developing and increasing the export of industrial products to neighboring markets. In its new economic policy and program, the government has assured its control and reform of the banking system. The government, thus, will be establishing the Sana'a Stock-Market on a stable foundation. Finance environment private sector. The project also envisages providing confidence to Arab foreign investors for free investment, utilizing all available opportunities in the market, as well as exploiting other opportunities in other distinct fields. A committee, appointed by the previous cabinet to study other countries stock markets prior to Yemen's foundation of stock-markets, is likely to explore, as soon as possible, Yemen's potential to start such a market. The committee is to identify the modern and necessary services for individuals, companies, organizations, and brokers who are expected to benefit from this important market. Facing slow investment operations Absence of a stock-market in Yemen, as business-men believe, maybe a basic cause for turning off investors who fail to start their investment projects. This road block creates difficulties in securing banking-loans exposing their projects to major risks. However, existence of a stock-market would enable investors to put money in the market and to approach share-holders to implement the investment projects. These share-holders in turn may have the opportunities to go ahead with their projects. Hence, it is suggested by banking-systems experts that there should be statistics to estimate volume of the stock-market component in the public sectors. Means of Assignment Accurate planning to establish this market represents a challenge which requires efforts from two directions. First, finding a monetary circulation net based on the most recent applied methods in banking markets. This includes availability of highly advanced technology and hot lines to ensure confidentiality. The trading floor, if Arab modern banking markets are to be surveyed, has to be equipped with up-to-the-minute modernized companies, organizations, and monitoring local and external economics activities affecting the stock-market while serving the dealers. More over, the market should be constructed with the required modern mechanical exchange-systems, efficient enough to function in accordance with international standards of monetary circulation. It should have a facility for dealers to tie in their systems for dealing with Arab and international stock-markets so as to accelerate the attraction of investors. Branches in the government The basic hall for this stock-market has to be extended to the other governors ;especially in the free zone of Aden. The branches are to be joined to the base with advanced technology. An investors' club seems very essential, as it is the case in Cairo. It is to be provided with data and information demonstration equipment in the circulation traffic. Human working-elements The other issue to be taken care of is the preparation of the human working-systems. Dealers, too, have to be trained to deal with the alike systems. Execution of informative details about campaigns to make people aware of the market's goal and objectives and various scopes for investment, is of no less importance. Investment opportunities in Yemen are in fact as ample for international investors as they are abroad. Stock-market promotes Banking No doubt, the birth of this market would facilitate investments here. It would offer acceleration of banking activities with access to a data and information control system which would educate the customers about the trends in market and indicators on time. Other advantages of the market It would encourage speculators to put their stored capital in the market for movement, and control the unorganized importation of goods and services for the purpose of storing until prices rise. Such importers would be forced to buy shares and employ their available liquid assets in the stock-market in order to obtain profits. Finally, let's assume that the focus of the government on establishing this market, is a step in the right direction. It has a vital role to play in improving the economy and an increase in investments as well as to attract international capital. "The Main Objective of this Visit is to Prepare for the Operation of Canada Dry Factory and Inaugurate the Heart Center at the Yemeni-German Hospital" The Canada Dry Cola Factory in Aden has been given back to its original owners Omar Qassim Al-Isai and Ali Abdullah Ali-Isai a few weeks ago 30 years after it was nationalized by former South Yemen in 1972. This step comes as part of President Saleh's to efforts terminate the rules and regulations governing nationalization of private owned factories and establishments, which was common place in the 1970s in Southern and Easter Yemen. To focus more on this historic step, Yemen Times Aden Bureau Chief, Ridwhan Al-Saqqaf met with Mohamed Ali Abdullah Al-Isai, the Administrative Manager of the Factory, who said, "The regulations of returning the privately owned factories to their rightful owners were slow and awkward. However, because of the orders of H.E. President Ali Abdullah Saleh and the cooperation of the Governor of Aden, Mr. Taha Ahmed Ghanem and the Head of the National Council of Aden Governorate, Abdulkarim Shaif, all the paper work was completed in a record time on 3 May 2001. We have come out with a positive impression regarding the leadership's commitment to return all the nationalized rights to their owners and focus on investment at a greater pace." When asked about whether there were any conditions to be fulfilled before the factory could be returned, Mr. Isai said, "No there weren't. Even though, we intend to keep all the employees in the factory, we will maintain and enhance the factory's structure."Regarding future plans he said, "We have future plans to enhance and maintain the factory and produce the same products of Canada Dry. We will further enhance the production so as to include plastic bottles, which may require expansion of the factory. We are seriously in negotiating with the authorities concerned in Aden of the Ministry of Industry to establish a new factory to produce BET for plastic bottles, besides the recently returned factory. We also intend to establish a factory for manufacturing different vessels to be used for our local products. However, we are currently more focused on the newly returned factory which will require basic and regular maintenance in the departments of water and cooling. We have met with the representative of the Mother Canada Dry Company and discussed ways to enhance and modernize the factory and expand lines of business."About his assessment of investment scenario in Yemen he said, "Yemen is a country with great potential and has great opportunities for investments from Yemen and all over the world, especially as the leadership represented by President Saleh is offering all facilities to promote investment. Alongside with that, Yemen is a country with a huge marketplace and the different Gulf and Saudi products consumed in the country are a great indication of that. We can also say that industrial investments in Yemen are among the most successful."Regarding the different other investments Mr. Isai said, "We have many different investments in Yemen for Sheikh Abdullah Al-Isai, of which the Yemen German Hospital is the latest with the partnership with Dr. Yahya Al-Thawr. This is one of my goals of this visit as well as I believe that the hospital will be capable of competing not only in the local arena but also on the regional scale. Several advanced computerized systems not available even in Gulf countries have been brought to the hospital. On the the 22nd of May 2001, the first ever Open Heart Center will be inaugurated, providing the Diagnostic Catheterization Department and Heart Surgery Department and supervision on a 24-hour basis. This center will be the most modern and most well-equipped center under the leadership of Dr. Ali Al-Rabu'i and Abdulqadir Abbas, the Head of the Catheterization Department."Mr. Isai explained some of the problems he is facing, "There is no business that is free from obstacles and problems, yet we override them as serious businessmen taking into account our country's national interest. We however, request the decrease of the industrial and consumption taxes, especially softdrink taxes which create significant financial burdens."In concluding of the interview Mr. Isai said, "I would like to provide my utmost appreciation and gratitude to H.E. President Saleh and all those who helped returning the factory to us. There seems to be a clear and strong commitment by the president to encourage expatriate businessmen. I personally use this opportunity through Yemen Times to call upon all expatriate businessmen to come and invest in their beloved homeland. I would also like to point out that this month for us, Isai family are three in one: Labor Day, Unification Day (22 May), and the day when our factory was returned back to us." Yemen Builds Transport Network Yemen and seven Arab countries had signed in Beirut an agreement for building an extensive transport network to enhance cooperation, trade exchange, goods movement and realization of regional integration. This is one of the major goals of the UN Economic Social Committee for encountering challenges of globalization. The agreement stipulates that each signatory state funds the works of the network which consists of international expressways, railways lines, harbors and airports. Besides Yemen the other Arab countries that signed the agreement were Lebanon, Syria, Palestine, Egypt, Jordan, United Arab Emirates, Iraq. It would also be signed by Saudi Arabia, Kuwait, Bahrain, Oman and Qatar. 100 Villas to be Built in Tourist City in Sanaa The Economic Establishment and Saudi Al-Madina World Company for Technology signed a contract for construction of 100 residential villas in the Tourist city in Sanaa on an area of 20 thousand square kilometers. The contract also includes building of Ceremony Hall accommodating 100 persons in addition to tennis yards, squash , swimming pools and public utilities in Hadda town in Sanaa. Yemen Gets a US$ 102 million Loan from The World Bank Yemen has got a US$ 52 million loan from the World Bank to finance a project to build countryside roads. Another loan from the World Bank grants it a US$ 50 million for funding the second phase of the project involving protection of the city of Taiz against floods. Digging Exploratory & Development Oil Wells It is scheduled that during this year an area of 3 thousand square km of land would be covered for two-dimension seismographic surveys and for conducting a three-dimension survey over an area of 270 kms. It is also expected that 86 oil wells, will be dug 20 of which are exploratory and 66 of development type. 17 New Companies Established According to the licenses granted by the Yemeni Ministry of Industry and Trade during the first quarter of this year, 17 companies with limited liability will be set up. The ministry has also licensed the establishment of three companies of individual character. |
Advertise | Subscribe | Feedback | Discussion
Yemenis Abroad | Weather | Classified
Postcards | Links | Newsletter
Opinion Poll
Any comments or suggestions should be emailed to Yemen Times Webmaster