Gulf investments in Yemen, Achieve noticeable progress [Archives:2003/678/Business & Economy]

October 20 2003

Mahyoub Al-Kamaly
Gulf investments in Yemen are achieving a noticeable growth manifested in the growth of their profits and gaining good investment proceeds. This gives preliminary positive indications on operating capitals of foreign private sector in Yemen unlike the fears shown before regarding investment in Yemeni available opportunities for external capital and also the capital shared with the local sector in running some projects.
Statements issued by the Yemen and Gulf Bank indicated the occurrence of a qualitative leap in the rate of deposits growth since the beginning of this year. The third quarter of the year ending in last September has seen growth in deposits amounting YR 7 billion, equaling $393 million.
The Bank has realized profits amounting to YR 103 million till the end of September at a growth rate of 53%. On the other hand the total amount of assets rose during the first half of the year to YR 2.3 billion, compared to YR 1.4 at the end of last year.
The data issued by the bank, whose chairman of board of directors is the well-known economist Mohamed Hassan al-Zubairi, revealed that the total amount of loans till the end of June amounted to 2.3 billion rials against YR 2.1 billion at the end of last year, at a growth rate of 7%, which a weak rate if compared to the growth proportion in the banking sector that reached 16%.
The bank does in fact pursue a cautious policy regarding bank policies on following up non-valid facilities but it grants facilities to good clients and preserving the quality of facilities. Capital for the first half of this year has risen to a proportion of 30%, which is above the minimum 8% extent required by the Central Bank. Private Banks request from the Yemeni Central Bank to reconsider the measures and controls it had imposed in 1995 on banking activities describing them as no longer useful in the present stage.
The Yemen & Gulf Bank is carrying out enhancement of trade and investment relations between Sana’a and the Gulf states. It works for providing database and full information on opportunities and advantages of investment and exchange of trade.
The Bank’s paid capital amounts to YR 1.25 billion to which Saudi and Omani investors contribute by 25% and Yemeni investors by 75%. But the Bank’s basic capital amounts to YR 2 billion. The Bank intends to expand its activities in Yemen by opening 6 branches in major cities where there are big tourist and investment activities.