Multi-sector approach neededInfrastructure needed to build Yemen’s industry [Archives:2003/688/Business & Economy]

November 24 2003

Mahyoub Al-Kamaly
The upgrading of Yemen's industrial sector and increase of its production diversification and orientation towards developing exports are in need of removal of all difficulties that hinder investment.
The most important thing is to establish the infrastructure necessary to industry and grant products certificates for exportation qualification.
It is for this reason the industrial zones in Yemen need removing all existing difficulties in the way of building integrated national industries.
Qualification is needed in the area of labour, shipment and customs.
Also important is to establish marketing centres and others for developing national exports, and supporting and encouraging the private sector to work in industrial opportunities.
This opinion needs, as a condition for success, investments in industrial zones in Yemen and to abolish customs restraints, and getting rid of governmental corruption.
Also, the establishment of industrial areas needs other factors such as speed, experience and accuracy of employees, cheap and well-trained labour, speed in finishing customs work, providing raw materials and speed of production.
Banks should provide enough services to opening export credits and conveying merchandise to external markets.
Qualification is in the first place needed for building industrial zones. The producer has to be qualified and capable of dealing with requirements of industrial technology and manufactures goods.
Bad marketing policy is in itself playing a negative role, keeping investors away because they usually are attracted by facilities.
It is also known that the Yemeni law on investment guarantees advantages and exemptions, but the presence of many industrial areas means more facilities to attract the more businessmen for investment in those areas.
The most significant factor in this regard is the establishment of necessary infrastructure to enable building new industries, because a failure to provide it would delay industrial investments and may cause their closure and withdrawal of capital owners.
The question of providing qualified and trained labour is still representing an impediment before industrial investment, because here the dealing is with merchandise for external marketing. Manufacturers who export their goods are committed to dates with foreign trading centres and any delay in their getting certificates confirming their product as qualified, hurts their credibility in delivery and commitment to contracts with importers, and consequently loss of that market.
The concerned parties have therefore to establish institutes and schools for training workers and also to work on removing any barriers that may hinder industrial exports. They also have to work for creating a suitable environment ridding the investor of problems he may face in construction of buildings.
It is also to be confirmed that building industrial areas must be multi-purpose ones and specialized in producing various kinds of goods. There also must be facility in finishing dealings of investors quickly, along with providing services and skilled personnel to ensure success in the industrial zones.