Development of banking work in Yemen [Archives:2003/666/Business & Economy]

Yasser Mohammed Al-Mayyasi
Banks and financial establishment s in the economically advanced countries represent the important sector and depended on in leading progress and economic transfer, in such a world characterized by rapid economic changes. Banks have also become the leading of economic changes and the essential structure for development advancement through performing human potentials and energies and utilization of natural resources.
In Yemen the sector of financial establishments and banks have been endeavouring for making the transformation and development and economic progress. Yemeni banks managed to traverse a long distance of success that could be considered as big despite the short span of time since they have been founded. That progress has been reflected on the way of their dealing and using the high quality means and technologies.
Those banks have worked for improving and modernizing their services in a good way depicted in easiness and rapidness in dealing. All banking institutions working in Yemen have been able to create a good climate that succeeded in attracting investors to the country and that was accompanied by diversity in offering services.
The specialized government banking establishments have been the pioneering ones in the process of development in Yemen and funding various agricultural projects, supporting construction movement in the country and providing short and long-term loans for citizens. During the eighties decade and beginning of the nineties, the government banks had become the major channel for expatriates remittances along with the rapid conveyance of them to their destinations. They have granted expatriates remittances encouraging interests as well as offering the expatriates banking and financial advices especially in relation to their shares in various companies and establishments.
Commercial banks have managed to create gigantic banking capabilities in development process in Yemen and could found job opportunities due to intensiveness of investments and openness in dealing compatible with the existing economic activity. Commercial banks have also managed to establish many companies that have accomplished big successes. They have also been able to encourage national capital to contribute to investment and saving. Thus they have founded an integrated banking system offering all kinds of banking services similar to world banks and were ale to introduce the latest technologies in banking. By virtue of those modern technologies and the qualified executive staff those banks have given a successful example in this regard.
Banking work in Yemen has not been confined to this limit of banking work. It has managed to offer its services to various social segments. Thus it has established Islamic banks for instance. Foreign banks working in Yemen have been as complementary to that diversity. Islamic banks managed in a short period to find a considerable market for them despite the fact that the regulations organizing their work were still new. National capital managed to establish three Islamic banks in Yemen ha have been able to attract money, savings and provided necessary financing for needs of economic and social sectors. They also managed to use direct investments by investing in commercial, industrial and agricultural projects or the establishment of or contributing to establishment of investing companies.
Concerning foreign banks working in Yemen, they have been able to achieve economic partnership and through offering banking services clients managed to offer fruitful banking services to clients in Yemen who have connections abroad. Foreign banks in Yemen possess substantial banking experience and have been successful in offering distinguished services in all banking areas.
Success of these banks is associated with efforts of Banks Society. The society has found channels of communication with Arab and world centers and unions to benefit from heir experience. It has organized raining courses for Yemen staff working in banks especially on practical applications of banking marketing and awareness about perils of money laundering. The Union of Arab Banks has affirmed that banking work in Yemen is among the most active works and managed to keep in pace with modern methods.
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