Private sector invests in agriculture [Archives:2004/736/Business & Economy]

At last and after a long hesitation since Yemen embarked on implementation of the economic reforms in 1995, the private sector has made for using its money in the agricultural sector as it has realized that investment in this area would make it avoid many of difficulties and inconveniences investors would face in other sectors. Among the agricultural areas selected for investment by the private sector is the Wadi Al-Saeed in the governorate of Sa'da where a number of agricultural projects are being implemented at a cost of over YR 100 million.
The projects include new farms specialized in production of fruits, vegetables and cereals that have achieved high profitable results which urged capital owners to compete for it and reinvest their money in agricultural area. The Yemeni government encourages this kind of investment due to its contribution to supporting the national economy, the employment of hundreds of unemployed persons and alleviation of the sharpness of unemployment. This investment also helps increase agricultural production and increases in turn exportation to foreign markets especially in neighbouring countries.
The private sector in this context intends to intensify its investments in the agricultural sector, especially in cotton plantation, and the establishment of research centers for development of agricultural products and animal wealth and developing their exportation.
These activities are given attention by the private sector for investment of its money in productive field guaranteeing the obtaining of profits, employment of cheap work force in addition to contribution to building water dams and barriers for storing and preserving waters.
The government expresses its willingness and preparedness to support investment in agriculture sector especially for realization of self-sufficiency of cereals and fruits. But that necessitates finding a solution to agriculture of the qat plant which a non-nutritious material. It is for that reason the government in Yemen is offering all facilities to investors in agriculture belonging to the private sector. Because development plans of the government are not able to prosper the agricultural production and that requires conducting more feasibility studies for investment in this area, the government thinks it reasonable to encourage the private sector in this field.
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