Looking at the past yearEconomic highlights from 2004 [Archives:2005/804/Business & Economy]

January 6 2005

Mahyoub Al-Kamaly
The government of Yemen has implemented a number of economic activities during 2004. It approved many agreements and executed a variety of development projects serving its economic policy based on the free market and private sector involvement in investment.

The government continued its policy of loaning and financing infrastructure projects. Those activities were mostly in the social fields including supporting development, social care, agricultural encouragement, and fishery funds. The government also took care of transportation and cargo services. Of the most prominent economic stations in 2004 are the following:


The Cabinet approved the draft of the executive program of the decision and recommendations of the 2nd conference of the local council that was held in Oct. 2003. The decree of establishing the provinces of Raimah was approved as well as the results of the 6th course of the Yemeni-Chinese Joint Ministers Committee which were a gift of 30 million Chinese Yuan and a loan without interests of 20 million Chinese Yuan.

The board of directors of Social Fund for Development (SFD) approved its agenda of 2004 worth of US$ 83 million. It studied the report of accomplishments of 2003 of which the direct beneficiaries exceeded 3.10 millions besides 600,000 who were the indirect ones. The female direct beneficiaries were about 49 per cent and the indirect ones were 48 per cent. SFD executed 620 projects (92 per cent of its targeted ones).

The government agreed to the agreement of the development loan for 3rd step of SFD project signed by Government of Yemen and International Development Authority on Dec. 20 2003 that granted 41, 700,000 of the special withdrawal units (US$ 60 million).


The Cabinet approved integrating the government and joint banks making the integrated bank's capital not less than US$ 50 million. A strategic partner should be accepted and public qualification should be opened for selling shares. The draft presented by the PM of issuing the executive bylaw No. 2 for 2002 of Handicapped Care Fund. The Cabinet accepted the tender of 3rd contract of Aden Sewerage project worth of YR 1,681,950,000 by the government and German Fund for Construction.

The government agreed to reorganize Ministry of Health and Population. Ending monopoly of transportations, cargo and services in all seaports as well as increasing the depth of the harbors No. 5 and 6 in Aden in order to enhance its capacity were approved. Establishing Sana'a Cooperation Gathering including Sudan, Ethiopia and Yemen signed in Addis Ababa on Dec 29 2003. Yemen joined the Regional Grouping for fighting money laundering and terrorism. This Grouping's memorandums of understanding were signed.

The approval of the loan of the project of maintaining groundwater and soil worth of US$ 40 million was signed by International Development Authority. The agreement of financing and executing Al-Haswah electricity project with 132 Kilo Volt worth of US$ 33,688,197.


The cabinet accepted to the agreement of the loan of support for completing the Capital's Sewerage Project signed by the Social and Economic Development Arabic Fund with 12 million of Kuwaiti Diners (US$ 40, 700,000). The (US$ 13 million) loan signed by OPEC for supporting the 3rd step of public labors project was approved. This step cost US$ 400 million. There were two other agreements which the cabinet agreed to: agreements of exchanging encouragement and protection between investments signed by Yemen and Hungary and BluRussia.

It approved the suggestion of holding a national meeting about the population problem and the abnormal social behaviors. The second report about applying the process of Population, Housing, and Establishments Census 2004 was agreed to. The tender of executing additional dryness basins for Sana'a sewerage with US$ 622 million was agreed to.

The cabinet approved the agreement signed by Yemen and European Group Commissioner about establishing the commissioner delegation in Yemen.

The draft of the Technical and Vocational Education and the executive bylaw No. (1) for 2001 of the private societies and establishments were approved. The republican decree draft on establishing the distinct of Muzher ijn Raimah.


The cabinet accepted to a number of memorandums of understanding and agreements signed between Yemen and China including:

– Granting Yemen an easy loan from China Bank for Export and Import of 200 million Chinese Yuan.

– Agreement of Economic and Technical Cooperation offering accordingly a gift of 30 million Chinese Yuan.

– Educational Cooperation Agreement during 2004- 2006

– Economic Cooperation Protocol

– A number of memorandums between ministers and establishments in Yemen with some Chinese Establishments and Corporations.

Referendums of some articles of law No. (22) for 1997 about commercial corporations in order to adapt with the new changes took place when issuing laws on commercial sector.

PM, Bajammal, launched the beginning of distributing the second batch of the president's project of computers (5000 computers worth of YR 680, 400.000) in the Technology City.

SFD while meeting with PM approved SFD financial allotment of 2003 stating that the total outcome was YR 10, 867, 516,000 of the total income of the same year that reached YR 11, 086, 958,000 yet the above income was divided between 582 projects in all provinces. The calculated projects reached 3440 projects in all fields at a total expenditure US$ 245, 283, 969. The overall beneficiaries of these projects till the end of 2003 were 9, 458, 502 while those projects provided 12, 471 permanent labor chances and a million temporary ones.

The government agreed to the executive program of electricity projects. The loan agreement signed with the Social and Economic Development Arabic Fund including support for the rural roads projects worth of 26 million Kuwaiti Diners (US$ 800, 000) was approved.


The government agreed to the tender of Dhamar Al-Husainiah road project worth of US$ 38 million

Employment plan directions of 2004 were also approved with all procedures and executive control. The republican decree on Seismological Studies Center in Dhamar was agreed to. The draft specifying and protecting drinking water wells in Ibb and Hadramout was approved too.


The Cabinet in its periodical meeting following the republican directives transferred the draft referendum of Marketing Law to Al-Shura Council to study it with representatives of Government and General Union of Commercial and Trade Chamber about establishing Civil Service Fund.

The Cabinet approved the draft of organizing procedures of attendance, arrest, and applying the legal fines against law violators. A tender on the project of establishing a double leveled crossroad in the roundabout of Taiz St. with 45 St. worth of YR 614, 096.


SFD approved the agreement of financing the 3rd step of the Social Fund Project during 2004 -2008 through the loan signed with the International Investment Authority with US$60 million.

The Cabinet agreed to distinguish the central subsidies and the public joint resources among the administrative units in all provinces for 2005. It approval the bylaw organizing medicine trade and its equivalences.

It approved the organizational bylaw of Ministry of Water and Environment, the basis and conditions of permitting the 3rd operator of GSM-900 system, the tender of the project of establishing the building of Ministry of Information in Al-Hasabah at the cost of YR 1.4 billion the tender of establishing the building of Yemen News Agency (Sheba) and the permanent journalist center worth of YR 612 million the tender of the project of executing water network in Al-Guraf and Al-Hasabah at the cost of YR 978 million

The draft of the national strategy for Technical and Vocational Education for 2004- 2013.

PM opened the project of reinforcing the electricity in Al-Rayan station by adding productive capacity with 10 megawatt worth of Euro 6, 350, 542 paid by the government.

PM opened in Al-Ghaidhah, Al-Mahra, Faculty of Education belonging to Hadramout University for Sciences and Technology at the cost of YR 170 million. He opened also Taj Balza Hotel, gifted from Sheik Ahmed Salem bin Muhaisen, the hotel's owner. He put the foundation stone of the Faculty of Applied Sciences in Al-Gharf worth of YR 125 million.

The Supreme Council of Civil Service approval the results and orientations of the study of simplifying the procedures of the government services presented to the public and private sector. The program of improving the public services in a number of ministries and official authorities was approved as well as the executive bylaw of law No. (1) for 2004


Agreements, memorandums and executive programs of cooperation between Yemen and Lebanon signed whilst the Lebanese PM visit to Yemen was approved by the Cabinet. It agreed to the following:

– the republican decree on establishing the General Administration for Medical Services in Ministry of Interior.

– restructuring the company of producing and marketing salt and blaster in Al-Saleef, Hodeidah, throughout making it a Yemeni Joint Stock Company and its shares are owned by its workers equally.

– solving the problems of Awsan Establishment for Producing Bascuits and Sweets and the Automatic Bakery in Al-Mansourah, Aden, by privatizing it.

Placement of the foundation stone for the project of Police System in the capital by PM. It's worth of YR 400 million. The project will be prepared with highly developed technologies worth of YR 370 million.

The government permitted General Authority for Post and Postal Saving represented by Postal Saving Fund to be a new partner in Teleyemen Company for International Telecommunication instead of the British Cable and Wireless by %5 (US$ 3,10 million) of the company's assets after the reevaluation that reached US$ 62 million.

The republican decree on establishing Yemeni Distance Investment and Geographical Information on basis of investment service and scientific researches was approved. The Cabinet approved of the contract of importing and preparing eight systems for checking the containers and compounds with x-ray that was signed by Costumes Authority and a Chinese Group worth of US$ 23, 022, 600. The agreement of cooperation in marine transportations affairs signed between Yemen and Lebanon was agreed to.


The Cabinet agreed to the UN Agreement on Fighting Corruption and to open an additional allotment of state general budget with YR188, 589, 932, 000. It approved the republican draft on forming the Supreme Committee for preparing the 3rd Five-year Plan.

It approved the final account of the state general budget for 2003 that contained the total income, actual outcome and actual deficit in budget. The tender on Arad-Souk Al-Hurriah road project in Taiz was approved. The road is 31km in length worth of YR685, 210, 000.

Protection Encouragement Fund discussed the indications and general directions for preparing a plan and policy of encouragement as well as the suggestive budget of 2005.

The Cabinet permitted the agreement signed by Yemen and Italy to execute the required services for the ships passing in Yemeni waters.

It agreed to the tender of establishing the Faculty of Medicine in Dhamar University worth of YR 595 million.

The loan agreement signed by Yemen and Islamic Bank for Development on Dec 14, 2004 offering support for Hajah-Keshr road project was approved. The support was worth of 7 million Islamic Diners (=US$ 10, 850, 000).


The cabinet agreed to the loan agreement dated July 6 2004 signed with the first letters between Yemen and the World Agricultural Development Fund, so as to support the Society Resources Management Project in Al-Dhale'e province special withdrawal units. The total cost amounts to US$ 22 million


The Cabinet agreed to the republican decree draft regarding construction, management and supervising of industrial areas and issuing the covenant, reconciliation and solidarity document among the Arab Leaders that was agreed on by the Arab League Council on he 16th normal Summit held in May 2004 in Tunisia.

The Cabinet approved the bylaw of medicines and accessories systematizing based on Bern International Agreement of Classifieds Protection.


During his visit to Hadramout Valley, PM inaugurated Dates Purification Lab Project in Sayun being qualified by the Yemeni Economic Corporation, at a total cost of more than YR 105 million. The productive capacity of the lab accommodates about 60 people of local workforce. Oratorical ceremony held at shows yard in Shibam Historical City, Hadramout on the occasion of the Palm Tree Festival.

The cabinet approved taking measures for investment structure enhancement and preparing programs of health, agriculture and tourist sectors.