Conference examines ways to attract capital [Archives:2006/950/Front Page]
Yasser Al-Mayasi
The first investment and HR development conference, sponsored by Gobari Investment Group, concludes today under the title, “Development and investment can only be realized by our own efforts.”
Seven nations and a number of Yemeni private sector members participated in the conference. Conference head Abdullah Ali Mohamed Abulwahab Gobari confirmed that the conference's aims focused on recognizing the functions of investment companies and authorities on an international level and principals for typical human resources utilization.
Presenting the private sector's role based on development in some countries was another objective, as well as revealing Western interest in Yemen as a strategic area that can be utilized. The issue of strengthening relations between Arab and Yemeni capital in order to find real partnership was another conference topic. Challenges encountered by Yemen's investment sector also were looked into in an effort to seek appropriate solutions to them. Motives that may be created by a Sana'a declaration were encouraged as well.
Gobari also confirmed that attracting investors and acquainting them with Yemeni investment prospects would be useful to both investors and Yemenis, reflected by providing employment opportunities and thereby combating unemployment.
Approximately 120 academics, researchers and investors joined the conference, presenting 20 working papers discussing investment and its hindrances, investment opportunities, human development and other subjects.
Conference results include forming an establishment with a chairperson, premises and public relations department. Investment propagation will be among its major aims. Conference management desires to see that its decisions don't die inside conference drawers.
Yemeni financial expert Dr. Abdulaziz Al-Tarib explained that the conference is an appropriate approach to identifying Yemen's economy, especially since Yemen is preparing itself for a donors conference, as well as qualifying to integrate into the Gulf Cooperative Council.
He said the conference motto should be, “We will be hand in hand for the development of Yemen.” “This requires Gulf, regional and international cooperation in agricultural, industrial and investment fields. It also requires industrialization and human development. We all must admit that investment has become a country without borders. Its real country is where it finds encouragement, protection and attraction.”
Al-Tarib continued, saying that all should work to establish huge national investments to serve Yemeni citizens. He noted that international and regional changes require long-term scientific planning, taking into consideration other countries' experiences. He added that many countries achieved successful investment models without possessing any natural wealth or strategic positions.
The conference tackled three areas: the first related to international investment and human development, the second was linked with the Arab and Islamic world and the third related to investment and human development in Yemen. Each area involved papers discussed by a number of specialized academics, who discussed several issues regarding investment laws and how they cope with international changes.
They also studied the impact of Yemen's integration into world trade and reviewed successful investment experiences of some developed countries and the prospect of utilizing them. International organizations' role in providing donations also was presented.
Dubai's experience was reviewed as a successful model for making use of Arab wealth and how to invest in the services sector. Seeking alternatives for gas and oil revenues also were among working paper studies.
Many working papers focused on Yemeni investment plans and types of infrastructure needed in Yemen. There were detailed reviews for investment prospects in Yemeni tourism, especially on the historical side. They also reviewed hindrances Yemeni investment faces.
The conference comes at a time when Yemen is facing hard financial situations realized in deteriorating per capita income during the past several years. Indicators disclose distressing economic figures with defective deteriorations in the labor market, the main reason for which is labor force growth at rates exceeding population and economic growth rates, accompanied by weak production and other sectors' failure to provide alternative opportunities. Another problem facing Yemen is the increase in university graduates, which are more than the labor market's capacity, thereby resulting in more unemployment.
Defiance grows daily, coupled with a decrease in oil exports. According to experts, the nation hardly will be able to pay half of its import costs by the end of this decade. Financial experts believe that Yemeni investment has suffered many problems, some of which are ongoing. Amidst these factors is that no healthy investment environment has been secured.
Hindrances can be divided into two types, one of which is linked to developing the market related to economic, administrative and financial reforms, as political and economic styles may not encourage development. The second type of infrastructure faces obstacles due to weak services they provide the various economic sectors.
Weak local and foreign investment growth in Yemen is attributed to slow reform program dealings in treating flaws in judiciary, control, security and other state systems. These systems protect property rights from interference of administrative abuses and guarantee against temperamental implementation of laws and regulations.
An incompetent judiciary system also is an obstacle to broadening the economic scope, as the system's incompetence causes most businesspersons to refrain from resorting to the courts to maintain their rights. Added to this is the long period it takes to issue a ruling or implement it. Security also must be strengthened, as many investors feel that the state has no control over some investment areas.
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