Front Page - Yemen Times

Issue 45 - November 9th thru November 15th 1998, Vol VIII

Dollar Inflow Over the Last 20 Years: WHERE DID IT GO? $22,500,000,000

Not many people can readily read the above number?

It represents the total amount of hard currency the Yemeni authorities have received over the last twenty years. The US$ 22.5 billion or YR 3,260 billion, yields an average of nearly one and a half million riyals for every Yemeni family.

The main question Yemeni citizens ask is where did all that money go?

Of course, some of the money was used for development projects. There is visible evidence to that all around. But a good part of the money was pocketed by crooked government officials and military/security officers working for the state. Also dipping into the bounty are tribal sheikhs and other civilians who are part of the entourage of our political leadership.

The largest source of dollar revenue to the state during this period has been the export of oil. Total Yemeni oil output, so far, is roughly one billion barrels. On average, if the Yemeni authorities' net income is US$ 10 per barrel, total revenue for the authorities from oil exports is roughly US$ 10 billion.
From the donors' side, the largest donor is Saudi Arabia. Though Saudi aid to Yemen stopped some nine years ago, it is still the largest, representing over 10% of the total inflow of hard currency to the country.
Today, the West (Germany, the Netherlands, Japan) as well as the UN bodies and multilateral donors (e.g., World Bank, EU, etc.) are the largest and most important donors to Yemen. Total annual revenue from Western bilateral and multilateral loans and grants nearly match the annual revenue of US$ 600 million the country gets from oil exports.

Main Sources of Revenue to the State Over the last 20 Years in million US$

Cumulative Revenue from Oil	10,000
Saudi Arabia	2,400
The World Bank	1,160
Germany	720
Japan	586
The Netherlands	541
UN Bodies (UNDP, WFP, etc.)	453
Kuwait	362
International Monetary Fund	350
Abu Dhabi Development Fund	297
The European Union	256
Others	5,375
TOTAL	22,500

The issue of how the resources available to the Yemeni state is used is expected to be a major issue in the 1999 presidential elections, although it will not affect an already pre-determined result. But it will no doubt touch a few nerves here and there within the ruling oligarchy.

1,000,000,000 Barrels So Far

Last week, Yemen's total oil production topped one billion barrels. Since Yemen Hunt Oil Company started pumping in 1986, the company has produced until November 6th, some 660,000,000 barrels of oil. Canadian Occidental Petroleum Yemen has similarly produced another 322,000,000 barrels.

In terms of revenue, if the Yemeni Government netted an average of US$ 10 per barrel, which is a low estimate for the period until 1996, that means a total income of US$ 10,000,000,000.00.
While most Yemenis think the oil age has yet to dawn, oil production is falling.

Eritrean Leader Asks Yemen to Mediate in Ethio-Eritrean Dispute: Yemeni-Eritrean Relations: A FRESH START

Eritrean President Asaias Afewerke completed a 3-day visit to Aden last week. He held several meetings with President Ali Abdullah Saleh and other officials on bilateral relations, and regional security and cooperation. "Differences and disputes exist among family members. The point is not to let such disputes get out of hand," the Eritrean President told the press.

He indicated the leaders of the 2 countries desired to overcome the Hunaish problem and re-launch stronger ties and cooperation. The Eritrean President also asked the Yemeni leader to use his good offices with Ethiopia in search of a negotiated settlement to the border dispute between the two African neighbors.

Yemen & Saudi Arabia: CHANGE OF HEART?

There has been a considerable growth of goodwill between the leaderships of Yemen and Saudi Arabia over the last few months. Many observers have called it a genuine change of heart.
Are they too hasty?
The leaders of Yemen and Saudi Arabia exchanged six letters in two months. In addition, there have been four delegations headed by minister-level officials. The flurry of contact does show there is a new mood.
One Yemeni opposition politician found the warming up between the leaders of the two countries disturbing in light of recent Saudi denunciation of Yemeni opposition media. "Are they ganging up on us?" he asked.