Activating Private Sector [Archives:2000/43/Business & Economy]

Within the process of heading for free market economy, activation of the private sectors role in funding investment projects and supporting the national economy seems to be an urgent need. This activation requires overcoming obstacles, increasing production and finalizing relevant legislation.
Developing private sector is made by having the private sector to be more involved in sick government projects.
Statistics show that private sector spends 40% of the capital in service , 30% in industry, 18.6% in tourism, 7% in agriculture and about 5% in fishing.
These numbers show how low investments in productive sectors are, which are expected to be higher and more effective.
Businessmen regard that to be done to the absence of utility studies and what makes them invest in the educational and health sectors in addition to the fast revenue of those investments. Thats why we see many private schools and hospitals nowadays. Some of those investors are complaining of the low profits , even some of them are close to bankruptcy.
No doubt, bad planning will delay investments in some vital sectors like mining where excavated materials represent 3.7% of the local production for the industry.
According to geological data, there are chances of investment for the private sector. Yemen has about 300 million cubic meters of glass , 316 million cubic meters of granite and 58 million cubic meters of basalt. Yemen also has about 116 million cubic meters of minerals, 160 million cubic meters of gypsum , 10 billion cubic meters of lime stone and 35 million cubic meters of pumice which is used in tooth paste production.
Private sector could invest in the field of excavation and that could cover the demand of the local market for those materials. The surplus could be exported which will pay back in hard currency .
To conclude, the private sector should be activated by giving permissions, low rates of customs and taxes and security which is a very important factor in investment.

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