Mr. Zaid
Abdu Mohammed Al-Qubati is one of Yemen's most ambitious entrepreneurs.
Having made his fortunes in Saudi Arabia, to which he had emigrated in
1971, he returned to Yemen to help in shaping a better future for this
country. Al-Qubati, 45, returned to his native Yemen in 1988, and for the
last ten years, has embarked on highly diversified business ventures such
as construction, civil works, tourism, real estate development, and other
activities.
On the 10th anniversary of the return of Al-Qubaty to Yemen, Bin
Sallam of Yemen Times talked to him about the present state of economic
affairs and his future plans.
Excerpts:
Q: What are your current local and foreign projects?
A: At this time, we don't have
any projects abroad. We closed down our businesses in Saudi Arab after
the 2nd Gulf war.
As for our projects in Yemen, there is currently a giant tourist project
in Hadhramaut we are implementing with Saudi partners. There are also two
projects to build luxury villas in Aden and Sanaa. Also in Sanaa, we are
now implementing projects to construct a factory of ready-made concrete
structures and apartment complexes, in addition to a 20-storey tower building
to house our main offices.
Q: I also understand that you will start a few
more projects soon?
A: God willing, we'll be renovating
the Ghamdan Palace in Sanaa to be in its same old style and glory. You
remember that this was a tower palace of pre-Islamic Yemen.
Our vision is for a project which will be one of the greatest establishments
in the Middle East. The 23-storey Ghamdan Palace will consist of 360 rooms
and suites, 3 large convention halls each accommodating nearly 3,000 persons,
and a number of gardens and other facilities. The construction and renovation
costs will be around $55 million. In addition, there will be the cost of
refurbishment and facilities.
Q: You have recently participated in the MENA
conference held in Doha, Qatar. How have you benefited from your participation?
A: I took part in the conference
at the invitation of our Qatari brothers. It was a good opportunity to
meet with representatives of Arab and foreign companies. We invited a number
of very important international companies to be our partners in joint ventures
in Yemen. The major fields of mutual interest include heavy-industry projects
such as iron and steel, aluminum, cement, tourism and construction.
Our Ghamdan Palace project received quite an enthusiastic response
from both Arab and foreign investors and companies. We offered 60% of the
project's outlay.
Q: How do you assess Yemen's present economic
conditions?
A: I am very optimistic. The World
Bank is now pushing more economic and administrative reforms in which a
lot of progress has already been done.
Q: Citizens have not seen much change. The progress
you mentioned seems to be official media hype. What do you think?
A: Great efforts are being made
by the government and the World Bank, but some time will have to pass before
a visible positive outcome is achieved. There is no magic wand to change
a backward country overnight. We must all remain optimistic. The World
Bank is moving in the right direction vis a vis Yemen. All people must
support and encourage the work being done by the government and the World
Bank.
Q: Is the current economic climate advantageous
for investing in Yemen?
A: I believe that whoever invests
in Yemen at this time will benefit a lot. If there are some bureaucratic
obstacles or frustrations, then they are really negligible in comparison
with gains to be made by investing in this country. However, I sincerely
hope that comprehensive reforms be conducted within all government organs
so as to improve the country's image for potential investors.
Q: How do mean that people investing in Yemen
now will benefit a lot?
A: We are now experiencing an increasing
openness to the outside world. Much of Yemen is still as yet undiscovered,
and a lot of natural wealth is still buried underground.
I strongly disagree with the claim that the country in unsafe. It is
true some incidents do take place, but, compared to a country like the
US, such incidents are very few and far between. However, I call on the
authorities concerned to be active in solving security problems such as
the kidnapping of foreigners.
Q: Do you have any projects for the Aden Free
Zone?
A: We submitted some proposals
to the relevant bodies, but we have not been successful up to now.
Q: What are the most strategic industries that
should soon be introduced into Yemen?
A: The raw materials necessary
for establishing strategic industries in Yemen are readily available -
iron and aluminum ores. We made many proposals to international companies
at the Doha conference for joining us in partnerships to help exploit these
ore metals. We also proposed the establishment of a paints factory, the
raw material of which is quite abundant in our country.
The cement industry - a strategic one - is already flourishing. I really
hope that other construction materials such glass, electric cables, etc,
be manufactured in Yemen.
We must also not forget Yemen's great fish wealth on which we also
made some joint investment proposals to international companies.
Q: How do you see Yemen in ten years time?
A: I hope to see Yemen really happy
and prosperous. I will work with other businessmen to attract foreign investments
and capital into the country. We'll be more active in the future. The recent
Doha conference has given us an appreciable push in the right direction.
Q: Some Yemeni businessmen tend to deposit the
money they earn here in foreign banks abroad. What do you think stops them
from investing national capital in national strategic industries?
A: I advise all those who smuggle
their money out of the country to reconsider. Yemen can only be built with
the efforts and wealth of its people. They really have nothing to fear,
the country is quite safe. Many indications prove my point. I believe that
national capital should be invested within the country, which is far more
beneficial than when foreigners come to exploit the country's resources
primarily for their own gains. If national capitalists do not take part
in building the country, then we must not pin much hope on foreigners to
do that for us. They will not come if they feel that the citizens themselves
are refraining from investing in their own country.
ýSo people who take their money abroad are really destroying
the country's economy and its image as a safe place for investments.
Q: The Island of Socotra is still a mysterious
region, and many people wish to visit it. Do you have any plans for tourist
projects on that island?
A: I hope that I will have the
chance to do a project or two on that island, but there is not enough information
on the place's available resources and potential for tourism. Moreover,
the relevant authorities have not yet invited anybody to consider the possibilities
of investing in Socotra. It still remains a closed and inaccessible place.
I think the Ministry of Planning and Development should really start to
do something about Socotra.
Despite all that, we are planning to visit the island soon to gain
first-hand knowledge of its potential for investment. This will be facilitated
by the building of a sea and air ports which the government is currently
doing.
Q: Do you have any last comment?
A: I call on business people in
the world, Yemenis included of course, to participate in investing in Yemen
and help build a strong industrial base for the country. There is adequate
legislation to govern the process and protect the interests of the investors.
So there is really nothing to fear. Foreign investors are no longer obliged
to have Yemeni partners in order to invest in Yemen. There are also numerous
customs and tax exemptions and other facilities provided to make investing
in Yemen a very attractive prospect.
During his recent visit to France, President Ali Abdullah Saleh announced
that he will personally work on modifying the Yemeni investment law so
as to accommodate the requirements and needs of foreign investors. He also
promised to work as best as he could to remove all obstacles that will
likely face investors.
Next Week in Sanaa:
Yemen-Egyptian Cooperation
Talks
Egyptian Prime Minister, Dr. Kamal Al-Ganzouri, arrives in Sanaa on December
11th at the head of a large Egyptian delegation. The 3-day visit comes
within the Yemeni-Egyptian Supreme Coordination Committee, which has a
mandate to strengthen economic cooperation and to enhance political coordination.
Yemeni-Egyptian trade exchange has grown significantly over the last
few years. Several envisaged joint investment projects are among the many
issues to be discussed.
How to Deal with Surplus Manpower
Ismail
Al-Ghabiri,
Yemen Times.
A workshop on "Reviewing the Experience of Some Countries in Dealing
with Surplus Manpower" was held at the Ministry of Civil Service in
Sanaa on December 3rd and 4th. Held under the theme of "Development
and Modernization of the Civil Service System in Yemen, the workshop was
the fruit of efforts made by the Ministry of Civil Service and the World
Bank. A number of papers on the experiences of administrative reforms in
Ecuador, Spain, Peru, Argentina, and Mexico were reviewed. A paper was
also submitted on over-staffing in economic and civil service sectors in
Yemen.
Recommendations:
The
participants recommended that a comprehensive strategy for administrative
reform should be adopted to guarantee a good level of coordination and
integration among the various relevant state apparatuses. A state of coordination
must also exist among the economic, financial, educational, and administrative
policies of the government. The steps to be taken in this regard are to
include the following:
1- reviewing the general structure of the state's general administrative
apparatus, including proposals for downsizing and raising the efficiency;
2- categorizing the various functions of the state's administrative
apparatus in order to specify tasks and duties and the required staff and
their qualifications;
3- specifying the staff size required for each administrative unit;
4- objectively evaluating the personnel performance and using the results
for specifying training needs, rewards and punishments;
5- developing the manpower abilities and skills;
6- redistributing the surplus manpower to achieve a balance among the
various administrative units;
7- concluding the preparations for conducting a general job survey
and census so as to establish a complete and comprehensive database on
the manpower in Yemen;
8- adopting an active policy to limit over-staffing and veiled unemployment;
9- limiting the appointment of new staff, and restricting the process
to essential needs in vital sectors such as health, education, and the
judicial system;
10- rationalizing the employment of non-Yemenis, and adopting policies
to gradually replace non-Yemeni employees with Yemenis;
11- putting an end to occupying dual jobs in the civil and defense
organs by adopting an effective method to uncover such cases;
12- amending the civil service law in accordance with the new direction
adopted by the state's general policy;
13- pensioning off those who have reached the legal age of retirement;
14- developing the methods and organs of administrative inspection
and monitoring;
15- endorsing policies to downsize economic and administrative organs;
16- adopting incentive policies to deal with surplus manpower such
as early retirement, providing good redundancy compensations, distributing
arable lands to the laid-off people who are willing to cultivate them,
etc.
17- reviewing education policies and directing them in the best way
to serve the requirements of development;
18- protecting the civil service from political and social pressures
and influences; and
19- adopting a transparent attitude in the interaction between the
state administration and the private sector, and removing all bureaucratic
and legal obstacles that may hinder private investments in Yemen.
