BY IRENA KNEHTL
FOR THE YEMEN TIMES
The Red Sea means many different things to different people, a divider of continents, or Tanker alley as it is known for its mercantile profession has played a central role in the history of navigation, communications, and trade between the Arabian peninsula, Asia, and Europe for at lest four thousand years. It is a history full of adventure, excitement and discovery. It has been a crucial waterway ever since Man first took to the sea in boats: “that’s how civilizations grew – by sea – they got contacts, raw materials and inspiration...”
The Red Sea remains a major shipping lane and its importance has been increased. Surrounding countries have all established strong links with the Red Sea weather for fishing, navigation and commerce – or as a source of sea – salt commerce. In the recent years these have been added in an increase in leisure activities, and tourism and industrial projects such as desalinated fresh water.
The central portion of the Red Sea is unique in that the medium rift has created rich deposits of heavy metals.
The Red Sea region is nevertheless relatively poorly explored. The great variety of its natural habitat and the tremendous beauty of its remote uninhabited islands, intricate coral-reefs and desert coast line together with its abundant wild life and rich cultural heritage, create an over changing kaleidoscope of color, form and movements. Within its boundaries there remains some of the richest coral-reef systems in the world, and modern science has revealed many of the secrets of this submarine realms. The role here is to further develop our understanding of the Red Sea region.
A mere glance at a map of the Middle East gives an indication of the paramount strategic importance of the Red Sea region. Lying at it does between two continents, Africa, and Asia, between the Middle East and Far East, as well as between Europe and Asia, the Red Sea is at the heart of an area which has seen the birth of civilizations and religions, and which constitutes a link between two worlds and two civilizations. Ever before the Suez canal came into being the Sea had been of importance over the centuries as an international waterway which favored long distance trade. The Red Sea served as abridge between the richest areas of Europe and the Far East, but never managed to attract to its shores any significant portion of the wealth which flowed through the waterway. More recently, a stream of oil begun to flow through the Red Sea. The Red Sea is a long and narrow body of water which provides a line of communication from the Far East to the Mediterranean and hence to the North Atlantic. The Red Sea is only moderately integrated into the regional level but it is much more deeply integrated into international level. National pride, regional development, international commerce and worldwide political events have played a part in shaping the Red Sea region as it exists today.
The geopolitical position of the Red Sea is of special importance bordering the eastern coast of Africa and the western coast of the Arabian Peninsula. It is the vital route for the transportation of oil through Bab el-Mandab and the Suez canal in the North. As much as the international strategic configuration affects the situation in the Red Sea region, the developments in that region have likewise their impact on world affairs. Issues of free navigation and nuclear disarmament, environmental pollution, in particular, will remain of paramount concerns to the states of the region. The Red Sea region faces a huge number of problems, demographic imbalance, pollution, environmental pollution, in particular, will remain of paramount concerns to the states of the region. The Red Sea region faces a huge number of problems, demographic imbalance, pollution, environmental degradation, etc..., and many others. They will certainly intensify and coastal populations will increase in size. It is only through cooperation and dialogue, and in particular, mutual economic cooperation, projects of common interest, and trade, focusing their attention on the Red Sea area that they will be able to overcome problems and difficulties and create a solid base for a strong regional and sub-regional system in the area which will contribute to the peace and stability, and increase the prosperity and welfare of the peoples of the area.
Dialogue and solidarity remain the only valid means available for transforming the Red Sea into a zone of peace and mutual economic cooperation. Exploration of offshore oil and gas potential, fisheries, sea farming, environmental protection, further exploration of metal-bearing mud, zinc, cooper, silver, as well as gold, lead, and iron would be only some of such projects of mutual interest. Further creation of a common Red Sea “infrastructure” for joint marketing exploration and trade, establishing of joint transport and logistical routes, telecommunication network, distribution centers for products for trade, creation of a Red Sea free trade zone would be another contribution to awareness of opportunities leading to eventual full economic cooperation, and a balanced development to meet the challenges of 21 century which is to dismantle the “big” and develop the people. Careful management, particularly in respect of environment and pollution control will become urgent.
Fishing is important around the Arabian Peninsula and most national development plans envisage continued expansion of commercial fishing. The matte of exclusive fishing zones is of particular importance to Yemen, where import trade is headed by fish and fish products. The desire to extend territorial waters has become more pressing in recent years.
The Arabian peninsula seas contain two of the most important strategic waterways in the world, Bab al-Mandab and the Strait of Hormuz. Without them much of the geopolitics of the Horn of Africa and South West Asia would make little sense. Approx. 10 percent of Europe oil supplies passes through Bab al-Mandab which is in the territorial waters of Yemen, Djibouti and Eritrea. Of these, Yemen is well placed to exercise direct control of the shipping lanes. All of maritime trading nations which use the Suez canal have an interest that Bab al-Mandab remains open and safe for shipping. Too little attention has been given to the significance of proximity of the southern Red Sea region which includes highly volatile parts of the Horn of Africa at one end, and the Arab-Israel interface at the other. Potential for conflicts and thus regional instability? The whole art, literature and culture lie between them.
The states bordering the Red Sea have an obvious interest in preserving peace and stability in the region. Although the Sea itself is a major cause of rivalry and conflict because of geographical configuration, physical resources, and global location, they could be also unifying factor in the future. The quest for regional security, problems of environmental management, and a common desire to limit outside interference could form the basis for fruitful regional cooperation, and recognition of common problems which can only be solved by regional cooperation. Thus the sea which is a potential source of disunity is also a powerful argument for cooperation. Red Sea states may yet to recognize the advantage of a unified economic and political front on matters associated with the sea while gaining the space for formulation of ideas of their own for development. It is the geostrategic significance of the Red Sea as a resource which the regional countries themselves have yet to explore to the full. If a regional grouping of states is to emerge around the Red Sea – Yemen as a member of both the Red and – the Indian Ocean states, at the hub of world and regional shipping routes, as bridge between ancient and modern, a creator of new relationships will be once again destined to play an important role.

* Irena Knehtl is an economist and writer currently researching economic cooperation among the Red Sea countries

The Road Ahead
BY RAIDAN A. AL-SAQQAF
r_saqqaf@hotmail.com
To start a new business there should be an identified business opportunity in the form of a need to be satisfied. In market jargons this need is called demand, and the service or product you provide to satisfy this need is called supply. There is a simple established equation when it comes to business; to make a profit, the demand must be more than supply.
However, it is not just a matter of quantity, because if it were so, to start with, there will be no innovation in businesses, as a successful business would attract fortune seekers who will simply copy the successful business opportunity. And secondly, there will be overloading of the same supply in the market, which will cause stagnation and eventually loss. It is obvious though, that the higher the supply is the less price consumers have to pay for the service or the product and vice versa. For example, when Internet Cafés first started in Yemen, the browsing rate was 9 YR per minute, but after the big growth in the number of Internet cafés, the rate slashed down to 2 YR per minute.
The idea here is that a business opportunity cannot simply be copied because demand is not constant. The problem with adopting a “me-too” strategy in business is that copying does not give enough attention to the essence of the market which is the demand and supply formula. In other words, the objective of the business is to create a market for its product then earn profits out of it, not do whatever others do to make money, it just doesn’t work that way, unless you are satisfied with being a copycat.
The main challenge that faces copying a successful business is how to adjust the existing idea to the current or changing circumstances of the market. Sometimes just making simple variations in the supply could create a new business. Sometimes demand can grow through educating the marketeers about their need for the product / service through advertising and publicity. This is the reason that multibillion companies spend millions on market research; to find out what the demand is, and what the market circumstances are before starting a new business and even whilst having a business in the market.
Human beings are never satisfied, and needs keeps on arising; and this makes the development of unlimited business opportunities possible. It’s time to innovate instead of copying.
Endnote: A business opportunity suggests itself from a need not another business opportunity. It is to innovate, not copy.