Impediments of inter-Arab investments [Archives:2005/900/Local News]

December 5 2005

SANA'A, Dec. 5 ) The participants in the mechanisms of funding and guarantees for exports and investments forum have confirmed that there are several impediments facing an increase in inter-Arabian trade, Among these is the high rate of export insurance costs, high bank guarantees, in addition to the restriction of capital transfer. This deprived the smaller and medium companies of the facilities and the right to acquire data of the funding programs. There are also other problems that face exporters such as the high costs of export, customs exemptions, and the restrictive procedures. These reduced inter-Arab trade to 10% of the international trade. These problems among others were tackled by the participants in order to come out with solutions.

Mr. Fahd Rashid Alibrahim, is the General Manager of Inter -Arab Investment Guarantee Corporation, indicated that it is established in order to achieve the aims of the Arab investments. It secures insurance and cover for the inter-Arab investments against trade risks. These constitute confiscation, nationalization, lack of funding, armed conflicts and riots. It was confirmed that Yemen comes in the fourth rank among the beneficiaries in the region, as it has received about $24 million up to the end of October 2005 as a recipient of investments and exports, constituting 0.95% of the total benefits of the exporting countries.

He insured that their organization supports Yemeni economic strategies to attract foreign investments and to increase its exports. Mr. Alibrahim confirmed that the establishment will help in building a national Yemeni authority for guarantee of exports. In his speech Mr. Khalid Rajih, Minister of Industry and Trade had called the Yemeni banks to establish this authority. He pledged that his ministry will furnish support and facilities, for the guarantee of Arabic investments, and to serve the national exporters. He confirmed that the European Union had agreed to import Yemeni products on condition tat they meet the European quality standards; he also added that Yemen is an optimum location for Arab investments.

The forum which started last Sunday in Sana'a, had discussed the Arab system for investment guarantee, the covered risks and the general conditions of the systems feasibility. It also tackled the compensation rates in addition to Arab system for guarantee of exports, the investment environment and the investment prospects in the Republic of Yemen.