Yemens Great Reserves of Fish Offers Excellent Profitable Investment Opportunities [Archives:2000/45/Business & Economy]

Yemen possesses diverse and rich marine wealth including sponge, coral reefs and large reserves of mollusca and malacostraca that allow fishing of about 1.6 million tons of fish and marine lives in a year.
To what extent this wealth is utilized and to what extent the government encourages investment in this sector? What kind of difficulties are imposed on investors in this field? That is what we will try to touch on in this article.
Yemen controls long coasts outstretching to more than 2500 kms. Along such a distance are spread more than 90 fishing villages.

Continental Shelf Area
According to studies conducted by the Ministry of Fish Wealth in cooperation with foreign experts, the fisheries in Yemeni continental shelf is spread over 4,463 knots from Aden Gulf to Socotra Island and 4,780 knots from Bab Al-Mandab eastward until Omani borders. Such areas can help increase fish exports to foreign markets to get more revenues to back up national economy.

Size of Investment Projects
An investment law has been passed granting local and foreign investors many facilities. Since 1990 5,730,000,000 rials was the total cost of investment projects until last year. The projects being worked on in this year have so far been estimated at 1,867,850,000.
Seventeen local and foreign companies have signed agreements with the Ministry of Fish Wealth to invest in the marine life. However, more chances are still there for more investors.
The Ministry has already published a book on shrimp and prawn culturing and has outlined plans for a number of investment projects.

Requirements of Investment in Marine Sector
Despite the encouragement of the government to investors in this important sector, some investors complain about some difficulties in their work such as lack of enough freezers to keep fish and smooth transportation to local and international markets.
The best kinds of fish are exported to international markets to ensure lucrative profits. Marine studies indicate availability of 350 different kinds of fish and marine life in Yemeni waters and that excellent opportunities are still there for more investors.
Fish export comes third after oil and cotton which shows the importance of investment in this field.

Loans to Promote Investment
The Agricultural Credit Bank has been established with other cooperative banks to offer loans to fishermen and encourage increase in marine products. The banks gives loans to provide engines, boats, nets and other equipment. The bank also helps provide means to keep fish, transport it to local market, establish fishing companies to market and transport it, etc.

Increase in Shrimps Fished
The General Authority for Coastal Fishing in Aden has distributed 200 fishermen in Hadhramaut, Al-Maharah and Aden Gulf to fish shrimps as part of a plan for current fishing season which began last October and will last till May 2001.
The increase in shrimps fishing and exportation to foreign markets achieved an increase of USD 30 million last season.

Total Exportation Size
Seven million tons of different kinds of fish were exported last year. Tuna exportation reached 936,000 cans while 370 tons of shrimps and 524932 tons of prawn were also exported during the same year.
Investment in the marine sector remains a treasure for all potential investors. However, there must be a serious movement to facilitate investment procedures in this important field.

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