Yemen and foreign private sector,Development of relations [Archives:2003/662/Business & Economy]

August 25 2003

Relations between Yemen and the private sector in the Kingdom of Saudi Arabia, the United Arab Emirates and the United States of America are experiencing a steady development that would contribute to flow of capitals for investment available in Yemen especially in the free zone in Aden and capitalization on oil and gas wealth.
Among the results of this development of such relations has been the conclusion of a 10-year marketing agreement with the company of Hadramout refineries and the Korean Samsung company. The agreement stipulates the marketing of 8.8 metric tons of petroleum refined by the Hadramout refineries company. The value of the agreement, signed in London last week amounts to $1.2 billion and would open for Yemen opportunity of entering new markets for marketing its refined oil.
Yemen's prime minister Abdulqader Bajammal has stressed in an address delivered on the occasion that Yemen is keen to encourage investment and the importance of such projects in consolidating bonds of ties between Yemen and private sector in the UAE, KSA, U.S., South Korea that are parties in this agreement.
Yemen is presently producing about 465 thousand balers a day from many oil fields, a large proportion of which is from Hadramout governorate. The Yemeni government is still hoping in success of the project of investment of liquefied gas by gaining markets for its exportation. Yemen is in possession of gad reservoir amounting to 16.8 trillion metric tons.
Yemen depends on oil revenues by at least 65% for supporting its budget that is suffering from a deficit that in this year reached at more than YR 60 billion.