50 - December 9 thru December 15, 2002,
Vol XII
Economy
hit hard by terror attacks
Rescue Aden!

Aden, known as the pride of Yemen and among the world's best-known port
cities, is going through fires of crisis caused by Yemen's string of terror
attacks in the last several years.
If ever there was a time it needed help, it is now.
It all started when the Abyan fiasco occurred at the end of 1998, killing
four Western tourists in Abyan, which is close to Aden.
Then the attack on USS Cole took place in Oct. 2000, attracting world
attention to Aden as a dangerous port for military ships.
The city's economy was then crippled as world media focused on Aden
and reminded the world that its neighboring governorate is the hometown
of Osama bin Laden, the leader of al-Qaeda and the most feared organization
of the West.
Investors and businessmen refrained from moving on to invest in Aden
because of security threats and risks. However, the Yemeni government and
the Aden Port Authority tried extensively to clear this negative reputation
by giving more facilities and features to investments and going on the
gigantic and promising Aden Free Zone project.
Just as things started getting better, the 9/11 events took place and
the war against terror started.
Like all cities in the Middle East, Aden was also affected when vessels
and trade companies kept clear, especially as it is adjacent to Hadramout,
Osama bin Laden's home.
But Aden didn't give up and started to revive its activities once again
after the war in Afghanistan ended with the defeat of the Taliban, thinking
that al-Qaeda's threat was minimized. Activities at the port started to
pick up again, but the unexpected happened, and the French tanker Limburg
was attacked on Oct. 6, 2002.
The Limburg attack was the most devastating of all because it targeted
the lifeline of the world economy, that is oil. And oil is associated with
almost everything imaginable.
This was the point when Aden said, 'Enough is enough!' and realized
that unless stability is retained, Aden won't be able to go on as a vital
economic and trade hub in the region.
"It just cannot happen," one of the businessmen said.
"Economic life in Aden has come to a halt. We are in a state of
stagnancy and losses have become unbearable," he added, but requested
not to mention his name.
Indeed, everyone who knows Aden and its potentials realizes that what
the city has gone through during the last two years is totally devastating.
The City of Aden has suffered from several problems that stalled the
commercial activity at the ports and led to great losses for the city in
particular and for the Yemeni economy in general.
Insurance rates for ships heading to Aden have increased tremendously
especially after the Limburg attack near the coastal city of Al-Mukalla,
which is closely associated with Aden.
As a consequence, the private sector in Aden is going through an unbearable
crisis. Profiting investments in the mid 1990s have turned into losses,
and businessmen in Aden are asking for someone to come to the rescue.
Yemen Times met a few of the prominent businessmen in Aden to get their
views. They described the situation as catastrophic, expressing their discomfort
with the negative affects of the terrorist attacks that took place in the
last two years.
"We depend on the port almost wholly for our import and export activities,
and you can imagine what would happen if it is not operating properly,"
Another businessman said.
The business community in Aden is complaining of the doubling in insurance
fees three folds following the Limburg attack, which caused a number of
international shipping companies to change their routes in the Red Sea
and the Arabian Gulf.
The investors in Aden know that if conditions don't improve, they may
end up filing bankruptcies, especially as raw material has to be transported
through a number of new means including small ships and boats. This adds
more burdens and expenses to the private sector.
The insurance cost for a 20-foot container reached a record US $298
and US $500 for a 40-foot container. This resulted in the suspension of
a large number of investment projects in a number of companies in Aden,
which will probably result in the increase of food prices soon.
Apart from the trade sector, the tourism sector also lost a large portion
of its international market, as the number of foreign tourists visiting
the city has declined.
However, all is not totally lost, say some businessmen. With insistence
and perseverance things can change to the better.
The president's decision to retain the pre-October 6 insurance fee
is seen by investors and businessmen as a positive step, which they hope
to be implemented as soon as possible.
Steps to revive Aden's port activity have already started as on Dec.
1.
A Yemeni delegation headed by Minister of Transport and Marine Affairs
Saeed Al-Yafi'i and accompanying representatives from the port of Aden
and Hodeidah, Yeminvest, and the Yemen Marine Chamber, will be attending
the 76th meeting of the International Marine Safety Committee.
The Yemeni delegation is expected to present proposals to support ports
in developing countries in terms of facility and service enhancement. The
delegation will also be meeting with representatives of International insurance
companies in London to persuade them to reduce insurance fees.
Five
times more popular than closest competitor
Times is #1
According to a recent Yemen Times survey, newsstands, shops, and other
stores in Sanaa, the Yemen Times tops sale charts compared to all other
English-language newspapers, local and international.
The survey, carried out honestly and transparently, revealed that sales
of the Yemen Times, on average, are five times more than its closest competitor,
and more than three times the sales of all English-language newspapers
and magazines combined.
According to the shops surveyed, readers prefer the Times for its:
• Honesty, courage, and independence in news reporting;
• Variety of news items, topics and categories as there is something
for everyone;
• Wide international news coverage;
• Classified pages in both languages
• Greater number of stories and in depth analysis
• Greater 'Letters to the Editor' interaction
• Better distribution;
• Better English;
• Regular competitions;
• Leisure, comics, and other features;
• Popularity and reputation first established by the paper's founder,
the late Prof. Abdulaziz Al-Saqqaf;
• Other features.
The gap between the Yemen Times and other competitors gets even wider
in other cities such as Taiz and Aden as the popularity of the paper is
even greater.
At the same time, Yemen Times Online is five times more popular than
all other Yemeni newspapers websites in English or in Arabic.
Hence, the Yemen Times online readership is much greater than that
of all other Yemeni newspapers on the Internet.
It was also found that when searching the keyword 'Yemen' in the Internet's
largest search engine 'google.com' the first result in the search is always
'Yemen Times.'
Yemen Times has also been quoted in major news networks worldwide including
CNN and NBC, and other media outlests such as the Guardian in the UK and
radio programs such as the Voice of America more than any other Yemeni
newspaper.
The growth and improvements that have led to this unprecedented position
among other English newspapers in Yemen has also convinced local and international
advertisers to advertise often, promote themselves and their products in
Yemen Times to attract recognition from a large audience and achieve their
marketing objectives.
"We value our advertisements in Yemen Times, and know that every
advertisement published reaches its target audience and makes a big difference
for us," said one of the regular advertisers of the Yemen Times.
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