Business In Brief [Archives:2006/961/Business & Economy]

July 3 2006

Net-income tax to be reduced to 15 percent

The Customs Authority announced a plan to adjust the current taxation regulations in order to reduce the net income tax on corporations to 15 percent from the current 35 percent. This adjustment is remains subject to the review of the ministerial cabinet and must be approved by parliament. Such a measure will free up more cash for corporations to reinvest in their growth, as well as promote transparency in auditing and dealings with the customs authority.

$1.8 billion oil sales in first five months of 2006

The monthly report of the Central Bank of Yemen indicated that total oil sales during the first five months of 2006 exceeded $1.8 billion (USD) due to the global increase in the price of oil this year which raised the average price of oil to $63 per barrel. Yemen produces around 400,000 barrels of oil per day. The government of Yemen has a share of 63 percent in that production.

Al-Asali welcomes Chinese delegation

Finance Minister Dr. Safe Al-Asali has met with a Chinese bankers' delegation headed by Giang Gow Houa, vice-chairman of the Chinese Exports and Imports Bank that will discuss the current areas of trade and investment cooperation between the two countries through the bank in order to enhance trade ties. China is Yemen's largest trading partner importing chiefly petroleum from Yemen. Trade between Yemen and China reached $3.5 billion (USD) in 2005.

IFAD supports marine development

The International Fund for Agricultural Development (IFAD) will allocate between $10-15 million (USD) to promote and finance marine developmental projects within its developing countries assistance program. The focus will be on aiding fishermen operating out of small fishing boats and micro fishing enterprises and will create networks for marketing and storing their catch in cooperation with the Ministry of Marine Wealth in Yemen.

Investment in Yemen to be simplified

The International Development Agency donated $700,000 (USD) for a program coordinated by the General Authority for Investment and the Ministry of Trade and Industry to simplify the registration process for investors and new companies. The program aims to improve the business climate and Yemen's ranking in the World Bank's “Doing Business” report.

JITCOM exhibition starts

Fifty telecommunications and technology companies will take part in the Al-Jazeera Information Technology and Communication exhibition (JITCOM) held at the Apollo exhibition hall from July 5-10. Companies will showcase their latest offerings in computers and computer accessories, portable communications, software and other gadgets along with discounts and sale offers.

Saba Islamic Bank Inaugurates Branch in Djibouti

Saba Islamic Bank has successfully inaugurated the first overseas branch of a Yemeni Islamic bank in Djibouti with the presence of Ismail Jelah the Djiboutian Presidents and other government officials. Sheikh Al-Ahmar, chairman of the bank invited Djiboutian businessmen to take advantage of the bank's top-notch services and facilities.

Yemenia's board approves turnaround strategy

Yemenia's board of directors held its annual meeting to discuss its financial performance during 2005 and approve last year's budget. The meeting discussed plans to establish a domestic airline subsidiary in Yemen and approved a corporate turnaround strategy that Yemenia plans to embark on in the near future.

AlBaraka Banking Group coming to Yemen

AlBaraka Banking Group has indicated that it has plans to establish a subsidiary in Yemen following the recommendation of an extensive study on the banking climate in Yemen. The AlBaraka group is the largest Islamic Bank in the Arab region and has established subsidiaries in 10 Arab nations since its founding in 2002.

IFC loans Yemen $3 million for cement industry

The International Finance Corporation signed a $35 million (USD) loan agreement with Yemen's National Cement Company to support the construction of a cement plant at Al-Anad, 70km north of Aden. The project will be one of the largest private sector investments in the country outside the oil sector and is estimated to have an annual cement production capacity of 1.6 million tons and will include a 37.5 megawatt diesel-fired power plant.

Turkish Airlines official visits Universal

Ms. Lale Kaplan, Turkish Airlines Regional Manager, paid a two-day visit to Yemen during which she discussed various issues related to the Airline's growth prospects with the company's sole agent in Yemen: Universal for Travel and Tourism at a workshop in the Shahran Hotel. Turkish Airlines has initiated its business in Yemen in last February; however it has had immense success in linking Yemeni passengers with Europe and the rest of the world through excellent flight connection networks and competitive pricing.