New procedures simplifying investors’ dealings [Archives:2004/770/Business & Economy]

September 6 2004

Reliable sources for investment said the Yemeni government was seeking for taking measures simplifying investment climate through leading a campaign of change. The decision came following a symposium held in Sana'a under initiative taken by the ministry of civil service and the Arab Organisation for Administrative Development.
The symposium adopted a recommendation for the significance of keeping in pace with technological developments, increase of transparency, informing investors on conditions of economy and also the work for ending administrative complexities that impede investment process. Participants in the symposium considered that the national economy lacking of the principle of transparency and slowness of the program of reform had caused investors backing off from using their money. However, taking new measurers and procedures simplifying their dealings and to finish them quickly would encourage businesspersons to build investment projects especially at the free zone in Aden. The sources affirmed that fixing administrative failures and providing more information for investors would polarize and attract new money, particularly the expatriates' money that used to have some doubts on speed and simplicity of measures and provision of statements necessary for the establishment of projects in their country.
Yemeni expatriates possess between 30 to 40 billion dollars kept abroad. Would the new measures succeed in improving investment climate, they could attract a big portion of expatriates' funds in Yemen. Those sources also view that sluggishness of investment operation in the recent years is attributed to weakness of investment climate despite the political stability in the country in general.
Economic analysts say the Yemeni economy has suffered from a state of stagnation prevalent in world markets although Yemen has many factors for attracting investors, such as political stability, availability of cheap labour and legislations offering enticing facilities to investors.
The analysts also stress that the progress of privatization process is slow and that impacted in negative results against investment process under the policy tug-of-war between the government and the opposition concerning implementation of the program. The analysts say the investment operation needs reformation of banking conditions, reconsideration of monetary policy and curbing inflation, in addition to building of stock exchange market and following a sound marketing policy. They also say that intermediaries of investment should be brushed away from businesspersons to realize facilitation of their task of building their projects without hindrances.
It is imperative to study feasibility of projects available for the investors so that their profits are clear and with safe growth in accomplishing their works. This would lead to an increase in creating job opportunities fro the unemployed. Hence comes, the idea of the special importance of measures of financial and administrative reforms for achievement of progress in the process of investment in all productive sectors.