Investors choose gas, oil and tourism [Archives:2004/741/Business & Economy]

May 27 2004

Positive indicators have emerged on growth of rates of investments in Yemen by world companies that have chosen liquefied gas, oil and tourism as areas entertaining promising profits.
In this regard Yemen and China have signed memoranda of understanding in the field of oil and gas on the sidelines of a promotional symposium held in Peking. The first memorandum was signed between the Yemeni authority for oil excavation and production and the Chinese company CNB.
According to the agreement the Chinese company would carry out development of Aden and Mareb oil refineries and implementation of a study concerning building of oil storages in Hudeidah.
The second memorandum was signed with an international company for the excavation of iron, manganese, chromium and nickel. The third memorandum with the Chinese Economic International company that invests in exploitation of metallic and non-metallic metals, the fourth memorandum was concluded with the Chinese company for constructions and development for the utilization of gold in the area of Wadi Madan.
The Chinese party has accepted conducting quick studies on the possibility of buying the Yemeni natural gas which Yemen possesses a large reserve estimated at around 16.7 trillion cubic meters.
The Indian Thermal Energy National Company has on its part extended the final date of a tender for providing it with liquefied gas that is to end on 27 May 2004 so that to enable the Shell Company coordinates with the French company TOTAL in Yemen, which supervises investment of Yemeni natural gas.
On the other hand the delegation of the Yemeni-Russian Friendship society during its meetings with officials in Sana'a has shown willingness to make Russian businessmen get acquainted with opportunities of investment in Yemen and the facilities granted to them as stipulated in the Yemeni law on investment. The Russian side is interested in investing in oil sectors and enhancement of trade relations with the two countries. And in this regard a French delegation representing a French group of companies has shown readiness for investment in Yemen in tourism area by building a number of hotel projects of high quality services. This French group of tourist companies works in a number of Arab countries and in the world.
Interest in investment in vital sectors in Yemen by international companies and groups of companies gives an indication of security stability Yemen is witnessing and success of the promotional campaign due to privileges the Yemeni law grants to foreign investors mainly encouraging facilities and exempts.
The government stresses that it would offer all facilities to investors for the purpose of flourishing investment situation, increased of work opportunities for the unemployed and gaining financial revenues in interest of the state general budget and the Gross Domestic Product.