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Business & Economy
01 - January 4th thru January 10th 1999, Vol IX 
 
 
 
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Trade Exhibitions:
THE PROS & CONS

Introduction
Exhibitions are excellent chances for businessmen to market their goods, and sometimes to launch new brands. The public jumps on the opportunity by buying a lot of things from exhibitions, as there is often a price mark-down. Thus, exhibitions seem to offer a win-win situation for both sides. But is it really the case? Does the Yemeni experience support such a conclusion?

To assess this matter, I had to do considerable leg-work on exhibitions in Sanaa, Aden and Taiz. I also talked to the major organizers of exhibition. Finally, of course, I spoke to the public.
Given the free market policy of Yemen, exhibitions are more and more becoming the common language between buyers and sellers - both foreign and local. Advertisements are also playing a rising role in giving consumers the right to choose from among different goods and products, at variable price ranges.

Exhibitions are not new to Yemen, though not in the present format. There is an open market system in each region of the country on a weekly basis. In the open market system, producers bring their products in one large showroom, and consumers exercise their preferences. The weekly fantasia of wheeling and dealing is a regular experience for most Yemenis.

Today, of course, exhibitions of products are more structured. One can speak of two basic levels of exhibitions - temporary and permanent. Temporary exhibitions are held for periods ranging from one week to a full month, and they usually involve foreign sellers. Examples are the Iranian Exhibition, Egyptian Exhibition, Saudi Exhibition, etc.
Then there are the permanent exhibitions. These large halls in which local and foreign goods are displayed. More are constructed in the country.
The government has encouraged the rise of both kinds of exhibitions. It provides facilities and tax breaks, as well as through the participation of senior officials in the launch ceremonies.

What the Organizers Say:

1) Nabil Sa'eed Al-Ghanem,
General Manager, Al-Ghanem Trade & Investment Corporation

"The main objective of exhibitions is to meet the needs of consumers at affordable prices. They are a big opportunity to provide citizens goods of all kinds at one place.
Since local output cannot cover all needs, there are imported commodities sold at competitive low price. Most of the goods we handle are for basic consumption. Nowadays, demand for nutrition and food products has increased rapidly. Public response has been extremely gratifying. Every day, thousands come to the exhibition to purchase goods."

2) Abdul-Latif Amer Ahmed Amer
Deputy General Manager,
Al-Kumaim Trading Center

"The most important aim of the Kumaim Trading Center (KTC) is to make all goods available to consumers in one place. Local and foreign goods are available. Generally speaking, we sell consumer products. But we also carry household equipment, jewelry, perfumries, cosmetics, etc.
Spending the day at KTC is an enjoyable experience. Our center has facilities such as a mosque, toilets, a buffet for light food and juices, and a restaurant.
Exhibitions are a good way to foster relations among nations. They bring peoples, experiences and products together. We are learning new ways in production, marketing, ware-housing, etc., from our foreign partners.

3) Hussein Shumeilah,
Chairman,
Shumeilah Trading Corporation, (Shumeilah Marketplace)

"The purpose of our exhibition is to give traders the opportunity to rub shoulders "first hand" with the public. This way, they are able to measure feedback and responses regarding their products. They can get a clearer view of public acceptance of new products. Finally, they can compare their performance with those of competitors.
Another purpose is to give the consumer - all under roof - the convenience of a wide choice, getting the best bargains. While the general concept of exhibitions in Yemen is consumer retail events, we promote international trade exhibitions. Initially we concentrated on products that were urgently needed in Yemen, without regard to the benefits to the economy. We looked at Yemen as a market. But, now we are trying to combine trade with investments.

The calendar of events for 1999 reflects a wide range of activities including the Yemen International Trade Exhibition for 99 in which we participate. The YITE99 is a general trade exhibition, which will be the first ever to be held in Yemen, and I am sure it will be a great success.
The idea received tremendous response and encouragement. It will bring together participants from over 10 countries. The event will take place on an area of over 4000 square-meters making it the biggest exhibition event in Yemen. We expect it will set the trend of more such events to follow.
The reason for organizing the YITE99 is that it is time for Yemen to host such major events as our economy has great potential. We can become a major trading center in the region given our potential.
This event will benefit our country's economy by bringing in foreign currencies, encouraging international companies to establish trading houses in Yemen, and by creating more jobs.

4) Omar Al-Nihmi,
Chairman,
Apollo-Sanaa Expo-Center

The objective of specialized international exhibitions is to provide adequate information to the public. What that means is that your provide different brands and different producers/sellers of the same product to the buyer. This offers more options and it enable the customer to really be king.
We have had some local shows with Arab participation, like Egypt, Saudi Arabia, etc. Other exhibitions usually take place at least once every season. Such exhibitions guide you to the newest available goods and equipment in various fields such as medical treatment, cars, agricultural tools, etc.
The Sanaa Expo-Center matches between customers' tastes and wider choices of products. As leaders in the field, we have to keep attracting visitors by providing more and better services at lower costs.

As you know, exhibitions revive the International economy and activate the trade exchange between Yemen and the world. Our target is to satisfy our customers. One major way to do this is to give buyer more options in terms of brands and prices.
About 8,000 visitors daily visit our exhibition to capitalize on the price discounts. Since competition among businessmen is high, the prices inside Sanaa Expo-Center are usually lower than the market outside.
We work closely with the Ministry of Trade and Supply, the Ministry Industry, foreign businessmen, local traders, and other participants.
Finally, exhibitions are really like a door or bridge to strengthen economic ties and consolidate relations between countries.
One way to contribute towards full integration of the economy of the Republic of Yemen with the world is through trade fairs. With the Government's continuous support, there is a chance for foreign and local investors to build up bridges linking Yemen with the world through trade exhibitions.

By: Ghassan Al-Ahdal,
Yemen Times

 
 
EID AL-FITR
THE BURDENS OF JOYOUS DAYS

A Typical Yemeni Family:
One of the most familiar features of the Middle East is the average number of family members. This is usually big as it includes extended members such as grandparents, first and second cousins, nephews and nieces.

Eid Al-Fitr & Related Expenses
These days, the less fortunate members of our society are worried about how to shoulder the expensive needs associated with festivals such as Eid Al-Fitr.
Every member in the family, especially the youngsters, want new clothings, toys, and other gifts. The family has to buy a sheep to slaughter, fruits, and above average food. Guests are to be served juices, cakes, and other confectionery.
Indeed, in two weeks, as Ramadhan ends and the month of Shawal starts, Eid Al-Fitr will bring with it new financial burdens.
Everyone has to celebrate that this occasion. People go back to normal living. They can enjoy regular meals and keep normal eating, smoking, and other habits. No more converting the night into day, and vice versa. No more staying awake all night till the first hours of sunrise, thus affecting normal healthy lifestyle.

The Effects of Eid Al-Fitr on Purchasing Habits:
Now what about prices? The rising cost of living is a nightmare to every citizen in Yemen! The upcoming Eid Al-Fitr has already increased the prices of most clothing items.
How have people reacted to the rise in prices? How has their purchasing behavior changed? Has the effect of price increments been different with government employees compared to the private sector? Are there regional disparities in this matter? In other words have the people of Hadhramaut or Aden or Taiz or Sanaa or Hodeidah reacted differently? These are topics for scholars and researchers to address. But it is clear that even joyous occasions like Eid Al-Fitr come to haunt the less fortunate members of our society.
For the well-to-do Yemenis, they use the occasion to fly out and spend the holidays in vaations in far-away lands. A quick glance at the airline reservations show this fact.
Social harmony and community soldarity are disturbed.

Types of Demand:

There are three levels of buyers in purchases for the upcoming festivities. The high class people often get their needs of clothings, jewelry, and expensive gifts from abroad. The middle-income buyers go to relatively sophisticated boutiques to purchase different kinds of clothings, and other gifts. They also tailor-make their garments rather than buy ready-made. For the low-income people, it is the ordinary stores and shops. Beyond those three economic classes, there are the under-trodden. If they buy at all, these citizens approach the street vendors and they shop from carts - the so-called mobile shops. They look for ordinary and inexpensive clothings.

The Role of Government:
The coming festivals carry opportunities for all Muslims to enjoy themselves following the month-long fasting and piety. It is a moment of joy. Thus, it is up to us to make sure that as many people as possible are happy on this occasion.
The government has to check that the demand pressure does not unnecessarily push up prices beyond control. It should also promote the traditional values of solidarity and harmony among the members of our community.
Finally, the first three days of Shawal (coinciding with 17-19 January, 1999) will be official holidays. Most people will leave town for the countryside to enjoy oneself with family, friends and neighbors. It is up to the government to make sure that there is no run-away holiday of endless days.

By: Ghassan Al-Ahdal,
Yemen Times.

 
 
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