Foreign Enterprises in Yemen [Archives:2000/49/Business & Economy]

Taiz Bureau
Yemen Times
In an attempt to evaluate the role of the foreign enterprises in the economic development in Yemen, a few questions had to be answered: What do these enterprises really offer? How far do they participate in developing the economic situations of the poor countries? Do they assist poor countries in solving problems or just add more burdens upon their weak economy? Is there any foreign enterprise that offers the people real services?
Mr. Mutahar Al-Abbasi, Deputy Planning Minister, said that some foreign enterprises focus mainly on what is called the Institutional Building-up or Data Base and Self-help as projects adopted by the UN. It is true that more expenditure may be spent on administrative, informational and institutional aspects and not much is spent on the real projects; However, there are some projects that turned to be fruitful in this program,such as Local Communities Development that exists in five regions in Yemen: Mokha, Taiz, Ghail Ba Yamin – Hadhramaut, Aden, Al-Sawadia in Al-Baidha, and Khamis Bani Sad in Al-Mahweet.
Mr. Rudolf Guthier Advisor of Small Enterprise Promotion Project, said, The project strengthens the micro or small private enterprise sector in Taiz and Aden specifically and in Yemen, in general. We cooperate with the Ministry of Industry and micro, small and medium enterprises that form 96% of all enterprises in Yemen. The investment climate must be favorable not only towards foreign companies but towards Yemeni investors as well. All investors must be treated even handedly and should not be subjected to unequal treatment. Arbitrary way is to be avoided. The legal system must be improved and the intellectual property rights safeguarded. Then ultimately foreign investors will come in higher numbers. They will often start a partnership with established and trustworthy Yemeni business people. He added that the Yemeni people gain goods and services that meet international standards. Jobs are created and staff is trained to meet the often higher standards that foreign companies impose. Technology is transferred. Mr. Guthier concluded, Competition leads the local companies to aim for the higher standards. There is of course, also the danger that the latter cannot meet the higher standards, that they will falter. Overall, there should be good results achieved by encouraging establishment of foreign enterprises in Yemen.
Engineer Taher Mahyoub, IDAS-2 Project Director said that any enterprises that come with aid, loan or donations are good and we need them. However, the Yemeni cadre must exploit those projects well and must also estimate the value of the donations and loans and try to use them in the projects meant to serve the countrymen. He concluded, Not all enterprises are successful. On the other hand, there are good foreign ones that offer services to the people. What is more important is that the Yemeni cadre must gain experience.
Dr. Abdul-Ghani Hamid, Director of Small Industries Development Enterprise, said that the foreign enterprises are good and we need them but making use of them depends on the capability of the Yemeni negotiator in this side. He said, Among the negative aspects of these enterprises is the large amounts of money allocated for them. Some of these amounts are spent as salaries for experts. It is unreasonable to talk about Poverty Alleviation Program while its director has a monthly salary of about $12,000 and its members salaries are about $ 50,000. He added that these projects must train and rehabilitate the Yemeni cadre so that the projects work range is just one year and then it transfers to the Yemeni side.
The two most successful foreign enterprises in Taiz are, the Swedish Free Mission (SFM) and the Innovation Development in the Agricultural Sector (IDAS-2).
SFM
Mr. Erling Olmosse, Director of the SFM, said that the SFM is an NGO and a charity organization financed partly from the Swedish Government and partly from churches in Sweden. He said that its aim is to provide education and give some social help. He said that the Swedish Center in Taiz gives English courses (from basic to intermediate level), electronics, electric sewing and preventive health care. There is also a lending library in the center. It runs some teaching projects in Turba and Al-Noman Center. The center also targets groups of poor students who cant afford private schools or pay doctors fee and carries out some charitable activities.
Mr. Olmosse added that future plans aim at continuing the previous activities and to start a computer project to provide computer courses as well. He hoped that their efforts and activities would give people better chances to get good jobs and that in that way they might contribute to enhancing the economic development in Yemen.

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