After investment regulations in uninhabited islands, Speeding up establishment of free zones for investment [Archives:2005/892/Business & Economy]

November 7 2005

Mahyoub Al-Kamaly
The draft law of foreigners' possession of real estates, the Yemeni government had discussed, defined cases of foreigners' possession of real estates, terms of possession and its geographical regions. The discussions emphasized the necessity that the law takes into consideration attraction of investment in Yemen in comparison with the existing competition in the neighbouring countries in addition to the necessity of defining investment regulation in the Yemeni uninhabited islands. In this regard, there must be a consideration of benefit from experiences of countries having similar circumstances and legal and social systems.

The government's discussion also affirmed that the treatment of the foreigner intending to possess lands in the similar way applied to the Yemeni with regard to duties and other various commitments. Therefore, with regard to the state interest and attention to the investment process, as it is working on modernization and development of relevant legislations, the extent of the importance of acceleration in the completion of strategic plans intended for building free zones at land crossings, and seaports and islands in order to founding investment opportunities in vital areas that usually attract local an foreign capitals for investment.

It must be noted that success of investment process in any country depends on how much attention is paid to the building of those free zones because in the first place they mean placing local and foreign capitalists before an existing investment reality based on scientific and economic foundations for projects to be invested in at the land and sea inlets and islands in accordance with their importance and possession of investment constituents.

The free zones would provide the secure and stable climate for capitals and provide their owners with elements of trust as well as available opportunities for using their money. They present them with assurance in development of their looked for profits from the investment process. The government has approved modernization of its perception regarding the establishment of the free zones and this trend should be translated on the ground so that the country would be able to expand fields of investment and polarization of capitals for implementation of the new projects that are surely to contribute to creation of wide-range job opportunities, activate investment activity in various areas.

Many countries that recorded success in this field have built free zones specialized in implementation of gigantic industrial projects, tourist and services projects that effected big renascence in areas of work and production and contributed to reduction of unemployment rate in addition to bringing considerable financial revenues to their nation income.

Hence, the State Authority for Free Zones should shoulder the responsibility for activating its tasks in development and expansion the areas of investment in the Free Zone in Aden and the free zones decided to be built in the new regions. To fail in realization of those goals and implementation of responsibilities towards the free zones, would mean continuation in the lagging behind in the growth of investments and influx of capitals which seek well-studied projects to be run and obtaining profits from them.

The legal facilities approved by the law for attracting investors would not achieve the mutual interests but with the establishment of free zones in the Yemeni seaports, land inlets and islands. Businessmen who obtain investment licenses also need feasibility studies and necessary infrastructure and services necessary for success of projects.

Successful investment is interrelated to practical procedures urging investors to manage their work in secure and safe climate and establish their projects in area possessing integrated and qualitative constituents so that outputs of the process would be quick in realization of he common interests of both investors and the state. Such a successful operation would, in the long-run, yield its fruits in improving the productive and economic performance and moves the present stagnation in investment in all of its tacks.

Yemen possesses huge constituents in its outlets, ports and islands for the achievement of investment process through building the selected free zones that would not only attract local and foreign capitals but also strengthen commercial relations with the neighbouring countries, upgrade internal marketing and activate re-exportation to external markets.

If the investment process remained hostage to talking on the importance of building the free zones without implementation, the efforts for activation of the present stagnation in investment would remain in its place. The solution lies in the extent of the concerned parties' resolution to implement the new plans in this respect, speeding up their translation into reality attracting local and foreign capitals to change the present appearance of investment.