News Brief [Archives:2001/23/Business & Economy]

June 4 2001

Foodstuffs Prices go up
Trade sources have revealed that the prices of a number of foodstuffs have gone up. This includes wheat, 1850 rials from 1600 rials and sugar whose price has been raised by 100%. Traders attributed this increase to the deterioration of the purchase value of the local currency.
Yemen Participates in the International Forum to Fight Corruption
Yemen participated in the international ministerial meeting to fight corruption hosted by the capital of the Netherlands. Representatives of 120 countries participated in the meeting which lasted for four days. The Yemeni delegation was headed by Dr. Abdulwahab Raweh, Minister of the Civil Service.
Yemen-Saudi Joint Investments Exceed US$700 Million
Sources at the General Federation of Chambers of Commerce of Industry declared that Yemeni-Saudi Arabia Trade and economic cooperation was moving steadily for the better. Total estimation of the cost of joint ventures in the coming period is amounted to more than US$700 million.
The source have also mentioned that Yemeni-Saudi cooperation areas would also cover various investment fields. They also say that a Chinese consultative firm is in the process of finalizing an economic, technical and financial feasibility study for building a US$400 million worth Oil Refinery in Hadramout governorate. All capital of the project is provided by Yemeni and Saudi investors.
Kuwaiti Company to Increase Investments in Yemen
The Kuwaiti company for Petroleum Explorations announced intention to increase investment in oil and gas in Yemen after it has got concession in a field offshore Mukalla city.
The Kuwaiti Company, along with an Australian Oil Search Company and other partners, would invest US$12 million to carry out survey and exploration operation. It will also conduct a final assessment before starting production a first offshore oil field in Yemen.
Since the beginning of its activity in Yemeni in 1984, this Kuwaiti company’s investments amounted to around US$170 million in contributing to drilling oil from East Shabwa field which produces 30,000 bpd and Jannah field that produces 60,000 bpd.
Yemeni Riyal Loses More Points
Yemeni riyals lost about 3 points of its value within less than 2 months after formation of the new government.
Exchange agents ascribe causes of the riyal losses against foreign currencies, especially the US dollar, to local liquidity surplus in exchange markets, recession of commercial transactions and fall back of economic performance as a whole.