Practical steps for activation of Yemen-Egypt economic relations [Archives:2004/745/Business & Economy]

June 10 2004

The preparatory committee of the Yemeni-Egyptian joint commission is to meet in Sana'a on Saturday to discuss ways and means of enhancing relations between the two countries, especially in investment and trading area and the study of a possibility of establishment of a Yemeni-Egyptian Bank as a practical step for the implementation of developmental projects by the two parties.
The commission, to be co-chaired by the two countries' heads of government, is to discuss important topics pertaining to sea navigation, issues of aviation and air transportation, ways of Yemen's benefiting from the Egyptian experiment in the field of free zones as well as issues connected to activation of agreements, protocols and memoranda of understanding concluded between the two countries in various areas.
The commission would also study security of the Red Sea as it is considered part of the Arab national security, in addition to some strategic issued of interest for both countries. The meting of the commission will also discuss drawing up new mechanisms for strengthening commercial relations within the context of the Great Arab Free Commercial Zone.
Yemen needs Egypt's experiences in the industry of construction materials, building tunnels, heavy industries, urban planning and discharge of torrential waters in the capital. It is expected there would be an activation of the twinning agreement concluded between Sana'a and Cairo through engagement of Egyptian technical, engineering and firms in implementation of infrastructure projects in the capital Sana'a. There would be also seeking the help of Egyptian technicians in the area of garden arrangement, planting trees and training working cadres in the Yemeni capital.
Yemen and Egypt are having cooperation relations in the areas of justice, judiciary and education. The Yemeni side has recently accepted the reduction of the condition of experience years for Egyptian teachers who desire to work as teachers in Yemen to two years and defined their spheres of specialty to fill Yemen's needs for seconded teachers in physics, English language, sports and Koran recitation.
The commission is also expected to activate relations between the two countries in the area of exchanging information and expertise, preparation of security, police cadres and terror combating, organized crime and drugs trafficking.
The preparatory meeting comes under trade indicators reporting that the Yemeni markets consume of various Egyptian goods more than the Yemeni exports to the Egyptian market and means that the balance of trade is tilting towards Egyptian exports to Yemen.
According to figures published by the national center for statistics, Egypt's exports to Yemen in 1998 reached YR 4 billion, 874 million and 26 thousand and in 2002 reached YR 5 billion,514 million and 263 thousand. Compared to that the Yemeni exports to Egypt in 1998 reached YR 3 billion, 493 million and 120 thousand. And in 2002 the Egyptian exports reached to more than YR 7 billion. In 2002 Yemen's exports to Egypt reached YR 677 million and 754 thousand.
The volume of the trade balance between the two countries in 2002 amounted to YR 5 billion, 194 million and 824 thousand.
From the above figures it is obvious that Yemen imports from Egypt products exceed those exported to the Egyptian market. Thus Yemen hopes for increasing the trade exchange with Egypt in a manner realizing balance in trading relations between the two countries.