After investment regulations in uninhabited islands,Speeding up the establishment of free zones [Archives:2005/896/Business & Economy]
Mahyoub Al-Kamaly
A governmental discussion of the draft law regarding foreign ownership of real estates has defined the cases which allow the foreign possession of real estate, terms of possession and the geographical regions available. The discussions emphasized the necessity of attracting foreign investments in Yemen in comparison with the existing competition in neighboring countries in the region. The discussion has also defined investment regulations in the uninhabited Yemeni islands with special consideration to the experiences of countries which have exploited their islands through foreign investments.
The discussion also affirmed that treatment of foreigners intending to possess lands in Yemen will become identical to that of Yemeni citizens in terms of duties and other civil commitments as a part of the state's interest and attention to the investment process.
Governmental agencies are also working on the modernization and development of relevant investment legislations, the extent of the importance of acceleration in the completion of strategic plans intended for building free zones at border crossings, seaports and islands in order to create feasible investment opportunities in several industries that usually attract local and foreign capital for the purpose of investment.
It must be noted that the success of investment process in any country depends on governmental attention to the creation of free zones because of the scientific and economic foundations free zones facilitate for projects and investment opportunities at land and sea inlets and islands in accordance with their importance and the availability of investment constituents. Such free zones would provide the secure and stable climate for capital and endow their owners with elements of trust as well as opportunities for utilizing their capital.
The government has approved a modernization plan of its perception regarding the establishment of the free zones so that the country would be able to expand possible fields of investment and polarization of capitals for implementation of the new projects that are surely to contribute to creating a wide range of job opportunities and activate various industries.
Many countries have successfully attracted foreign investments through free zones specialized in implementation of gigantic industrial projects, tourist and services projects that resulted in big renascence in areas of work and production and contributed to the reduction of unemployment rate in addition to creating considerable financial revenues to national income.
Therefore, 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. Failure in realization of those goals and the implementation of responsibilities towards the free zones would mean lagging behind in the prospected 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 law for attracting investors may achieve the mutual interests only when coupled 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 their projects.
Successful investment is interrelated with practical procedures allowing investors to manage their work in a secure and safe climate and establish their projects in an 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 yield its fruits in improving productivity and economic performance and improve the economic situation in the long term.
Yemen possesses huge constituents in its outlets, ports and islands for investment purposes through the creation of needed free zones that would attract local and foreign capitals and also strengthen commercial ties with neighboring countries and trade partners. However, if the investment process remained hostage to lip service on the importance of building the free zones without actual implementation, then any efforts for the activation of the present economic stagnation in investment would be impossible considering the current reality of investment in Yemen.
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