Yemen’s 2002 economy: A year in review [Archives:2003/01/Business & Economy]
BY MAHYOUB AL-KAMALI
YEMEN TIMES STAFF
Yemen witnessed in 2002 various economic changes covering all aspects of the economy and business.
Some political incidents also left their imprints on economic growth last year, such as the attack on the French oil supertanker Limburg.
The convening of the donors conference in Paris in which Yemen was granted around $2.3 billion represented one of the most prominent supports for its economy.
It is expected that the impact of terror on the Yemeni economy would continue in 2003, especially after the declaration on higher premiums on vessels and tankers coming to Yemeni sea ports, causing Yemen a monthly loss of about $25 million.
If the rate of premiums remain as they are, exports and imports would be affected during 2003 and Yemen would pay a high price for the Limburg incident.
Meanwhile a probable U.S.-British war on Iraq would double the suffering of the Yemeni economy and would push other poor people to join terror and extremism networks.
Here’s a re view by Yemen Times of the rest of the most important aspects of the Yemeni economy for the year 2002.
Government bodies organised a discussion seminar on finishing the remaining phase the national strategy on poverty alleviation.
The ministry of works finished road construction of 2,580 km.
Trade exchange between Yemen and the Sultanate of Oman jumped by 800%.
The state company for vegetable seeds production in Seyoun raised the average of a hectare production of red onion seeds to 510 kg, beginning from 2001 till early 2002.
The state institution for waters in Aden announced that it would implement projects at a cost of $300 million.
The ministry of communications announced the start of the Technology and Communications Village during the first half of the year with the aim of creating a qualitative leap in services of communications, post and information in Yemen.
Sources at the Free Zone in Aden said the zone would witness in 2002 the implementation of projects costing $122 million, one of them the project of goods and shipping at a cost of $30 million.
The chamber of industry and commerce in Aden and Taiz agreed on tackling trade disputes between those dealing with companies and institutions of the two chambers by resorting to the principle of compromise and arbitration. The also agreed to exchange of expertise and holding joint activities in service of national economy.
Yemen accepted the establishment of an Arab company specialised in marketing agricultural products and to export them at both Arab and world levels.
The Kuwaiti company for oil explorations announced that the amount of its investments in Yemen at sectors 5 and 15 in Shabwa reached $ 200 million.
Minister of oil and minerals Dr Rashid Baraba’a predicted a rise in Yemen’s oil production hitting a level of 475 thousand barrels per day at the end of the year and the number of oil companies working in Yemen to reach at 27.
An official report expected that the events of 11 September 2001 in America would negatively affect the Yemeni economy and lead to rise in expenses of transfer and insurance on imported goods in addition to retreat in level of tourism activity and services of ports and airports. Such developments would lead to an increase in services payments by 6.4% and a decline in revenues by 5%. They would also cause a rise in services deficit, from $580 million in 2001 to around $640 million in 2002.
Yemen Central Bank maintained its efforts for preparing a draft law for fighting money laundering.
President Ali Abdulla Saleh has given his directives for exempting every investor from value of the piece of land if his project’s value exceeds $ 10 million.
President Saleh has placed a foundation stone for Mukalla Refinery project in Hadramaut whose final productive capacity amounts to 100 thousand barrels a day at a total cost of $950 million.
The World Bank asked Yemen to hasten its finalising the national strategy for combating poverty so that it would endorse the needed assistance for its implementation.
The International Company for Tourist Investments embarked on implementing the first phase of Sana’a Tourist Hotel at a cost of $75 million.
The ministry of planning and the company of Hael Said Ana’m signed an agreement for building a wharf at Aden port t a cost of $30 million.
Abudabi Fund for Development allotted a sum of $30 million for the implementation of the second phase of Mareb Dam canals project.
Exports from Aden port of containers and airport amounted to YR 44 billion and 994 million.
Yemeni institution or coastal fishing in Aden exported 225 tons of Sharoukh fish at a cost of $ 1.793 million.
Bahrain Aluminum company decided to build a factory in Aden costing $ 30-40 million.
Aden hosted the 37th session of the executive committee of Islamic Chambers of Commerce.
The parliament endorsed the free trade agreement between Yemen and Iraq.
In the annual meetings in Brussels between Yemen and the European Commission Yemen had gained a grant of Euro 70 million.
On the sidelines of meetings of the Yemeni-Saudi Coordination Council in Jeda three Saudi loans agreements had been signed totalling $ 100million.
The ministry of planning had prepared a plan for development of the sea ports of Hudeida, Aden and Mukalla at a cost of $ 100 million.
The ministry of oil organised the 2nd oil and gas conference with the aim of attracting investors at the oil productive and exploration sector.
The ministry of oil signed an agreement of principles with the Saudi Mutahida company for building a Saudi oil pipeline passing to the Arabian Sea.
Al-Mukalla factory for fish canning doubled its daily production to 160 thousand fish cans.
Japanese government supplied Oceanology Centre in Aden with a research boat and scientific laboratories.
An agreement was signed in Sana’a for rescheduling Yemen’s $ 73 million debts to the United States.
The World Bank credited $ 130 million for financing services projects in Yemen.
An agreement signed in Sana’a for rescheduling Yemen’s $24.5 debt to Italy.
Prime minister Abdulqader ba Jammal inaugurated services of electronic rial project.
The proportion of areas grown with cotton rose to 150 thousand faddans.
Yemen’s reserve of silica sand, used in glass and ceramics manufacturing, is estimated at 160 million cubic meters.
Central Bank reserves until the end of September reached $4 billion.
Yemen obtained $2.6 billion from the donors conference in Paris.
Around 30 thousand families of fishermen had lost their earnings after the terrorist attack on the French oil tanker Limburg.
Insurance companies raised their duties on vessels reporting to Yemeni ports by %300.
Yemeni-Jordanian joint committee signed 7 cooperation agreements in various fields.
Navigation sources announced that the size of losses sustained by Yemen as a result of the attack on the French oil tanker Limburg and raising insurance prices on vessels coming to Yemeni ports amounted to YR 1.37 billion.
Yemen received from Holland a 1000-horse power tugboat for towing giant vessels to container port.
Minister of Oil Rashid Baraba’ declared that Yemen intends to dig 130 oil wells during the year 2003 in order to raise oil production to over 550 thousand barrels per day.
International Navigation Organisation adopted in its meeting in London Yemen’s plan for new navigation routes south of the Red Sea.
Captain Said Abdulla al-Yafie, minister of transport and naval affairs asked the International Diplomatic Conference held in London to help Yemen for ridding of burdens of insurance companies duties on vessels heading for Yemen, estimated at 300%.
Yemeni expatriates in Saudi Arabia and America offered to erect projects in the free zone at a cost of YR 5 billion.
Container port in Aden received from January to November 2002 639 container ships from various world ports of which 380,000 containers had been unloaded.
Yemen and Russia concluded a number of economic and trade agreements. Russian companiexpressed their readiness for investment in oil, gas, industry and fish wealth fields.
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