Hadramout office tries to boost foreign investment Private sector development [Archives:2003/07/Business & Economy]

BY YEMEN TIMES STAFF
The office of the industry and trade ministry in Hadramout has selected three industrial zones for founding investment opportunities in the industrial sector and for attracting Yemeni, Arab and external capitals. The objective is to enhance Yemeni production capacities and develop exports to foreign markets.
The office has finished studies on building the three industrial zones in Dhabba plateau and the regions of Fuwwa and Brum Dhalouma. The three areas are characterized by industrial and trade advantages because of their situation on the Arabian Sea and proximity to Hadramout oil wells, but they are in need of building industrial services infrastructure and support geological surveys for installing cement industries and building materials and metals. The ministry’s office has also laid proposals for establishment of investment projects available for the private sector in the new industrial zones, including:
allocation of sites for raw material investment,
drawing up a map for geographical and qualitative distribution for the industry of construction materials in the governorate,
building chemical and petrochemical industries, building food industries for exportation, depending on local agricultural products,
supporting and developing small industries and increasing production of handicraft professions, as figures indicate that the number of small industries in Hadramout is mostly covering: a) food industries, b) wood industries, c) paper industries, d) chemical industries, e) metal ores industries, f) mining products industries, g) spinning industries and conversion industries.
The governorate of Hadramout is seeing noticeable investment activity. The number of projects licensed to be invested in various fields is more than 160 at a cost exceeding YR 6 billion. Some of them began production and all provide job opportunities for around 3,500 workers. Therefore, the office of industry and trade has sought the help of the ESCWA organization for making an evaluation of the new industrial zones and it has been focused on the right choice of the three zones. Authorities there are endeavoring to attract Yemeni expatriate capitals, particularly of the sons of Hadramout who are living in Gulf states and possess huge financial assets. These people can build industrial areas and ensure their success as investment projects to be gaining necessary exemptions and facilities and provision of infrastructure.
In order to develop performance of private sector projects in the governorate of Hadramout, the governorate’s chamber of commerce and industry signed an agreement with the Dutch establishment for administrative cooperation, known as (N.M.C.B.) on cooperation in investment fields so as to support medium industrial factories and companies. The agreement aims at upgrading performance of the private sector in Hadramout and enable it increase production, development of exports and establishment of partnership relations with its Dutch private sector counterparts.
These steps represent the government’s interest in alleviating burdens and losses hindering progress of the Yemeni economy, which has suffered tremendously as a result of terrorist activities that in turn damaged Yemen’s reputation on the global scale. The instability in the governorate of Hadramout had severe effects on the desire of foreign investors to invest in seaports and the future free zone in Aden. Besides, high shipping insurance costs have also added insult to injury.

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