Yemeni economy , 2003-2004,Investment impediments and attempted efforts to remove them [Archives:2003/698/Business & Economy]

December 29 2003

Mahyoub Al-Kamaly
What Hs the Yemeni economy achieved in 203 and did the government efforts to contain negatives resulting from rise in inflation rates succeeded? Why the establishment of a stock market was delayed and floundered despite of its importance for investors and the speculation sector and activation of capitals among local and foreign markets?
Economic indicators reveal that the Yemeni government has traversed a long distance on the road of realizing its goals of the economic and financial reforms programs but failed in attaining real growth rates.
According to those indicators the Yemeni economy has in 2003 suffered from investment hindrances that led to:
– slowness in finishing projects meant for the infrastructure of the licensed projects for investment,
– rise in averages of construction materials such as cement and steel that caused the blocking of works movement in the country,
-the rise of insurance premiums on ships calling at Yemeni ports, but the government has later managed to achieve progress in negotiations with insurance companies for reducing the prices imposed on those ships because of efforts exerted by the ministry of transport,
-a big drop by no less that 35% in influx of Yemeni expatriates capitals because of severity of measures taken for fighting money laundering and suspicions on transferring money as a result of 11 September events of 2001 in the United States of America.
Consequently the living conditions of the people have become more difficult under deteriorated services of public institutions, especially in health, education, and diminishing of hopes in improving the incomes of poor families and control of prices in local markets. It is eye-catching that the Higher Council for Oil, Economic and Investment Affairs did not take any measures, at least outwardly, to tackle the prices crisis but rather the parliament sufficed itself to only listening to a report regarding prices hikes with no avail.
The council of ministers should have to be clearer in the government's economic policy while it claims to be keen on ht citizen's interest and securing his living stability. Fod security would help the government in realizing both human prosperity and fighting hunger and terror.