The qat industry: a successful business model [Archives:2008/1205/Business & Economy]

By: Ali Saeed
Qat has become one of the most important sources of income on the national level. Taxed at a rate of 33 percent, qat contributes to around 10 percent of the GDP, according to the Yemeni Tax Authority.

Unfortunately, there are no accurate statistics as to how many people work in the qat business in Yemen but, according to the recently-established Qat Dealers Syndicate, at least 20 percent of Yemenis are involved whether as farmers, mass dealers or retailers.

The process

Qat farmers come from different villages to Sana'a every day to sell qat, either themselves or through hired sales agents to whom they give roughly ten percent of the total sale. The price depends on the season, on the farm and on the type of qat leaf.

A great number of farmers and agents come from the areas of Dhamar, Riamah, Khawlan and Sana'a. Today, an increasing number of men from Taiz have joined the business because it is easy and lucrative. As qat has to be grown in cool hilly areas, many people from such regions are directly involved in the industry.

As often as once every six months and especially when pesticides and special fertilizers are used to aid growth, the qat agent sells the farm's produce and dealers package and distribute the qat leaves.

Qat dealers rent small shops or even a section of pavement to offer their products in the town from eleven in the morning until nine or ten at night. Qat must be bought the same day or it dries out and no one will buy it. For this reason, farmers bring their produce to the cities quite early in the day to allow for deals and packaging to take place on time. Bunches of qat are called “rubat””