Mahyoub 
Al-Kamali 
The government has the intention to privatize some enterprises, although they generate considerable funds and support the public budget. The privatization program is opposed by the opposition party and the people working at these enterprises. However, the current government confirms that the privatization policy is carried out according to well-studied mechanism in cooperation with the World Bank (WB), with the view of redistributing the capital and assets of these enterprises between the government and investors, which is known as partial privatization of the crippled enterprises. The Higher Committee for Privatization, chaired by the Prime Minister Abdulqadir Bajamal, has recently approved upgrading some of the crippled public enterprises. However, the Second Five Year Plan for 2001 - 2005 includes privatization of 60 enterprises operating in the fields of manufacturing, transportation and public services. Their capital will be redistributed between the government and investors. Sources at the Technical Office for Privatization mentioned that the implementation of what has been outlined at the government program concerning the selling of the crippled enterprises is making slow progress due to the delay in enacting the Privatization Law of 1999. 
The privatization strategy for the General Corporation for Cement Manufacturing and Marketing, the General Corporation for Land Transport, and the General Corporation for Pharmaceuticals, besides selling and liquidating other enterprises, has been mapped out despite the existence of opposition to this program. Moreover, despite the controversy over this program the following steps have been taken: 
a - The privatization study for the Agricultural Bank and the Housing Bank has been finalized. 
b - The National Bank has been re-capitalized and the Industrial Bank has been liquidated. Sixteen other enterprises have been privatized as well, 17 other tourist enterprises have been leased and government-owned farms have been liquidated. 
The Second Five Year Plan aims at implementing the privatization program, which includes the privatization of 13 industrial enterprises, by redistributing the shares of the Textile Factory in Aden, although the government created a plan to upgrade it in cooperation with the Peoples' Republic of China. Furthermore, the government intends to re-capitalize the General Corporation for Dairies, selling the General Corporation for Pharmaceuticals and re-capitalizing Aden Refineries. 
The Second Five Year plan further aims at privatizing 13 agricultural enterprises, such as leasing agricultural machinery, selling the General Corporation for Poultry and two corporations for seed production, as well as selling the fish canning plants. Regarding the trade sector, there are eight corporations that have been selected for privatization, such as the General Corporations for Construction Materials and the Textiles Trade. 
The government intends to privatize the Housing Credit Bank, Yemen Marine Corporation and the other air cargo corporations. The proclaimed goals of privatization are: to promote investment; to create a climate favorable to competition in the private sector; to gain additional funds; and to ease the debt burden on the crippled public enterprises. The government said that it is striving to upgrade the technology used at the crippled institutions and to increase their productivity, particularly in the manufacturing sector, with the view of developing national exports to foreign markets. The government has entrusted the Central Organization for Control & Audit (COCA) with monitoring the privatization process in order to stop any wrongful practices. 
As far as the revenues of the privatized enterprises are concerned, the enacted laws stipulate that they should be channeled into a special account called the Privatization Revenues Fund, which has been included in the state general budget as an independent fund for financing different development projects in the country. However, the negative aspects of privatization remain a nightmare, especially for the laborers working at the crippled institutions. This necessities giving assurances and compensation to these people.

Banking sources have denied that the Central Bank of Yemen will examine private money and investments or entrust the capitals' terrorist groups at Yemeni Banks because of the late incidents in the US. The source said that it did not exclude the movements of checking, investigating or pursuing money flow. In fact, money laundering seems to be weak, but practicing illegal trade activities have increased substantially through investment processes or by individuals who merged illegal trade profits, particularly with banking speculation or smuggling expensive goods and services. 
The term "money laundering" emerged in the USA at the beginning of 1980s. It was then related to cocaine and heroine, later this trade was extended a great deal to include different processes and different phases. In money laundering, illegal and legal capital is merged together and investing it legally. The American administration has considered the Islamic charitable capital associations as that of Osama bin Laden's capital. The US has urged its allies and international banks to freeze his capital. These banks act according to what US has said, that this money supports a terrorist group. But here in Yemen, it is difficult to discover accounts owned by terrorists. Financial activities are restricted to specific activities, and certainly it is known to all, such as Al-Quds Fund, Intifadha Fund or the Islah Charitable Society. With the high increase of the illegal trade, it has been estimated that money laundering in the world has reached $2 trillion. The Washington D.C. and New York incidents served to freeze the capital of terrorist groups. The situation has become more dangerous when these groups are suspected of terrorist acts, whether in Yemen or abroad. Yemen has to distinguish between the real and false investor. Thus, legislation must be issued to get rid of money laundering, and a distinction should be made between governments' encouragement in investment processes and motivating capital for investment in all different sectors.

The Arab Agency for Industrial Development held its 8th General Conference on Minerals in Sana'a, with the goal of highlighting the situation of minerals in Yemen and the available investment opportunities for Arab capitalists in this field. The agency intends to establish a teledetecting mineral's center in Yemen. As geological surveys indicate there are investment opportunities in the field of minerals. Sources at the Ministry of Industry told the Yemen Times that the Mineral Sector at the Ministry designated many sites where nonmetallic minerals can be found in different parts of Yemen. The same sources added that 16 sites of volcanic rocks contain 30 million cubic meters, and nine sites of basalt contain a 25 million cubic meter reserve, and five marble sites contain a reserve of 100 million cubic meters. Moreover, there are six sites that contain 151 million cubic meters of granite and seven sites that have 777 million cubic meters of calcic rocks. The source maintained that many foreign companies have explored and excavated minerals in different parts of Yemen and reached satisfactory results in this respect. Thus, the Arab Agency for Industrial Development strives to highlight this issue during its conference in Sana'a through propagating the available investment opportunities in the field of minerals and the facilities given to investors in this regard. Since the implementation of the Mines and Queries Law in 1991, Yemen has regulated the exploitation of minerals and rocks. The law entitles the General Authority for Geological Survey & Minerals to issue investment permits. 
The 8th Conference organized by the Arab Agency for Industrial Development has strategic importance in highlighting the minerals in Yemen, which will help to attract foreign capital to invest in minerals in Yemen.

International Bank Capitals Increase 
The overall assets of the International Bank of Yemen have increased from 12.4 billion YR in 1999 to 14.6 billion in 2000. At the same time, the overall liabilities and sharers rights have increased from 14.6 billion YR to 12.5 billion YR. The bank could achieve a national sharing company to pay its capital at the level of deposit volume; finances and profits have totaled 995 million YR. 

385 Tons of Wheat Produced in Hadramaut 
Hadramaut farms produced 385 tons of wheat planted in a total area of 2700 hectares during the current agricultural season. The government of Yemen strives to distribute the improved seeds with the view of expanding the total area planted with wheat in order to curb wheat imports from foreign markets. Domestic production of wheat makes up only 25% of the country's total consumption of this product. 

Symposium on Cotton Cultivation 
A symposium on cotton cultivation is expected to be held in Hodeidah to discuss means to decrease production costs as well as to fight pests. Agricultural sources said the event would take place within the next two months. 
Cotton in Hodeidah stretches over 13,000 hectares, producing more than 20,000 tons every year. 

Yemeni-Eritrean Fishing Co. 
In an attempt to bring an end to fishing problems near some islands, Yemen and Eritrea are currently discussing setting up a joint fishing company. Discussions on this matter were held by Eritrean Prime Minister Mr. Ali Sayed Abdullah and a number of Yemeni officials in Sana'a. 
The two sides emphasized the importance of organization of transportation between the two countries, as well as cooperation in fighting smuggling.