Investment hronic impediments vs. possible solutions [Archives:2005/878/Business & Economy]

September 19 2005

Despite of all reforms and amendments introduced on the law of investment in Yemen, hindrances still exist in the face of investors because of the absence of a unified mechanism in offering necessary facilities to investors, non-implementation of laws and maintaining the duality in specialties of the parties responsible for granting investment licenses.

In the view of businessmen and capitalists, opportunities of investment process in Yemen has been facing failures due to frustrating factors that steered direction of investment towards accumulation of richness at the expense of investors.

In order to acquire and ensure trust of businessmen in this regard, there must be a unification of mechanisms and enhancing of measure aimed at fighting corruption as well as enforcement of the laws. The is to activate stagnation in investment and put an end to administrative malfunctions. This could not be realized but through drawing up a future plan to what should the investment process be in Yemen.

Among the goals of the proposed plan is the allotment of pieces of land for industrial, oil and gas and mineral, residential, commercial, tourist and agricultural projects as deemed vital projects for investors create job opportunities and contribute to serving goals of development. The plan also include future orientations of investment process embodied in speediness in building of industrial zones already decided in the cities of the main ports in Hudeidah, Aden and Mukalla in order to prepare them for industrial investment and also to be factors of attraction of local and foreign capitals to invest in them by building various productive projects.

It is apparent that the recent presidential directives in this regard have drawn up a complete system for uplifting the investment process through obliging local authorities in the governorates to follow-up the issues pertaining investment under their authorities and in coordination with concerned parties within domain of the law.

The presidential directives have diagnosed the hindrances that slacken the investment process through emphasis on reaching two major goals. The first is the granting of plots of land to investors under contracts in return for encouraging token prices. The second goal has stressed the importance of following up finishing licensed projects for investment. The main point is the actual implementation of projects and not to be satisfied with mentioning the number of licensed projects to imaginary investors.

The state shoulders many responsibilities supporting investment process through providing the necessary infrastructure for the establishment of investment projects. Such responsibilities are mainly the building of roads, providing plots of land and important services such as electricity, waters and means of communications in addition to exempts mentioned in the law of investment. The directives have also included instructions to officials in the central apparatus for audition to undertake their national and responsible role and to send violators to judiciary authorities for accountability.