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Yemen

Factual Figures 2Overview 2Economy and Oil 2Transport 4Tourism 4UK-Yemen Links 5Useful Contacts

Ministries 6Embassies 7Government Agencies 7Chambers of Commerce 8Other Business Links 9

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Factual Figures

Official Name: Republic of YemenCapital: SanaaLand Area: 527,968 km 2Population: 24,133,492 (July 2011 est)

Official Language: Arabic

Currency: Yemeni Riyal (YER)GDP Growth: 5.2% (2010 est)Main Industries: Crude oil production and petroleum refining; cotton textiles

and leather goods; food processing; handicrafts; smallaluminium products; cement; commercial ship repair; andnatural gas production

Main Agriculture: Grain, fruits, vegetables, pulses, qat, coffee, cotton; dairyproducts, livestock (sheep, goats, cattle, camels), poultry;

and fishExports: Crude oil, coffee, dried and salted fish and liquefied natural

gas

Export Partners: China, Thailand, India, South Africa, Japan and the UAE

Imports: Food and live animals, machinery and equipment, and

chemicals

Import Partners: China, UAE, India, Saudi Arabia, US, Brazil, Turkey, Kuwaitand France

Overview

Yemen lies at the southern end of the Arabian Peninsula and has frontiers withSaudi Arabia and Oman. It controls the strategic straits at the Southern entrance

to the Red Sea (Bab al Mendab). The north of the country has three well-definedareas: a coastal strip along the Red Sea, the highlands inland and a desert areato the east. The south consists largely of mountains and desert. The people ofYemen are largely rural, but large-scale urbanisation in the last decade means

that almost half of the population currently lives in towns. The capital Sana'a isalso the main city for most businesses in Yemen. Aden, Taiz and Hodeidah eachoffers potential for businesses and several manufacturing plants are located inthese cities.

Economy and Oil

Annual real GDP growth has averaged 3-4% since 2000. The country was largelyinsulated from the effects of the global economic crisis because its financialsystem was underdeveloped and not well integrated into the global economy, buta drop in oil prices since mid-2008 reduced public oil revenues in 2009 by more

than 50%, as compared to 2008. Yemen has sought to counter the effects ofdeclining oil resources by diversifying its economy through an economic reformprogramme initiated in 2006 that is designed to bolster non-oil sectors and boost

foreign investment.

In October 2009, Yemen exported its first liquefied natural gas as part of itsdiversification effort. It reaffirmed its commitment to reforms in a plan detailing

the country's top ten development priorities. Despite ambitious plans, the countryfaces difficult long term challenges, including declining water resources and ahigh population growth rate.

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A wave of unrest in the country that broke out in the spring of 2011 has hadserious repercussions for the Yemen economy. It relies on oil for 60% of itsincome, but robust oil prices above $95 per barrel have offered little respite; oil

exports have fallen and a serious shortage has forced the country to import crudeand fuel, draining its funds.

As a result, Yemens budget shortfall may rise to between $4bn and $5.3bn this

year, a level unseen since 1994, from an original plan of $1.5bn, economistspredict. The finance ministry has declined to comment on the budget situation ofthe country whose nominal GDP is $31bn. Only a fraction of $4.7bn pledged at aninternational donor conference in 2006 has been disbursed so far. Yemen is oneof the world's poorest countries with per capita income of $2,600, which is

roughly 10 times less than that of neighbouring Oman.

Meanwhile, the other main sectors of the economy tourism, agriculture andfishing require modernisation and investment. The long term depletion of the

countrys oil resources has motivated Yemen to seek to diversify its sources ofpublic revenue.

Yemen is confronted with a range of economic challenges related to its heavy

dependence on declining oil revenues, widespread poverty, and water shortages.It has adopted a three-year economic programme that aims to achieve high and

sustained growth and durable poverty reduction over the medium term. Theprogramme reinforces macroeconomic stability in the face of a difficult globalenvironment and its declining oil production.

At the conclusion of a visit to Sanaa in early November 2010, Masood Ahmed,Director of the Middle East and Central Asia Department of the InternationalMonetary Fund, said that, Important progress was made this year to strengthen

public finances and the revenue base. This will contribute to low inflation, greaterexchange rate stability, and more investment and pro-poor spending over themedium-term.

Nevertheless, the IMF official continued, the economic challenges facing Yemen

are enormous. These relate to Yemens heavy reliance on declining oil revenues,high unemployment, widespread poverty, and the countrys huge developmentalneeds.

The role of the donor community is critical to ease Yemens transition to a non-oileconomy and to maintain public support for the Governments ambitious reformprogramme. A Friends of Yemen ministerial meeting in Riyadh was expected to

lead to a quick disbursement of needed budgetary support.

Oil reserves are expected to run out within a decade in the absence of newdiscoveries. The country also faces depletion of its groundwater. These challenges

are compounded by a difficult security situation, a rapidly growing population,underdeveloped infrastructure, and weak institutional capacity.

In 2009-10 the continued decline in oil production, combined with lower oilprices, is forcing the country to reduce spending, which will in turn depressprivate consumption.

Over the same period, investment growth will slow, as work on the LNG facilitieswinds down and Gulf Arab companies rein in their foreign investment plans in thewake of the global financial turmoil. More positively, however, the disbursal ofmonies pledged at the London donor conference in 2006 should increase, andrebuilding in the sparsely populated east of Yemen after the floods in October

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2008 should also support investment. Overall, economic growth is expected toaccelerate in 2009-10, to an annual average of 5.2%, lifted by increased exportvolumes as production at Yemen LNG (YLNG) commences in June 2009 (although

there is a downside risk that depressed global demand could mean YLNGstruggles to find a market for its gas).

Yemen LNG has plans to boost production to 6.55 million tons in 2011 from 5

million tons in 2010, Francois Rafin, General Manager of Yemen LNG Company,said during press conference held to mark the first anniversary of YNLGs firstshipment of LNG from the country. The UK is now one of the regular markets forYemen LNG along with Chile, Mexico, Spain, Kuwait, India, Japan and China.

Transport

A major infrastructure project getting under way is the Yemen-DjiboutiCauseway. The $20bn first phase was delayed in 2010 awaiting the two

governments to signed a framework agreement.

The project will be the first bridge to link the Arabian Peninsula with the African

continent. The first phase of construction involves building the link between theYemeni mainlands to the island of Perim in the Red Sea. Phase two will thenconnect Perim with Djibouti.

The wider project also involves building two cities at either end of the link. Thehugely ambitious project requires total investment of 200bn for the constructionof the cities and the bridge.

Yemen is seeking to speed up the completion of an investment study for theestablishment of international strategic partnerships to implement industrial zoneprojects. This came during a cabinet discussion of a report from the Minister of

Industry and Trade on industrial zones in the provinces of Aden, Hodeidah, andMukalla. The report pointed to a memorandum of understanding signed with theEgyptian company Mina to develop and operate the industrial zone in Aden.

Meanwhile, the Arab Organisation for Agricultural Development (AOAD) expressedits readiness to carry out small projects to help the fishing industry with activities

such as storing fish, marketing fish, and using fishing tools.

Tourism

In 2009, revenues from the tourism industry reached $903m, up almost 2 percent from $886m in 2008. Some 58 per cent of the visitors to the country in 2009were Yemeni nationals who are resident abroad. Currently about 90,000 Yemenisare employed directly or indirectly in the tourism industry. By 2015, the

government hopes to create 375,000 new jobs in the sector.

Yemen's Tourism Promotion Council launched a regional and international tourism

promotion campaign in 2010 designed to attract more visitors from the UK,France, Germany and Spain. As part of attempts to expand the tourism sector,Yemen is currently planning five major resorts, two to be located on the Red SeaCoast and three on the Arabian Sea. One project will be distributed over 44 sites

and will include building three-star hotels, restaurants, stone and mud villages,and recreation facilities.

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Tourism-related projects worth more than $125bn are planned or under way inthe country. These include a 300-room, five-star hotel being developed by thelocal/Libyan Arab Yemen Libyan Holding Company at Al-Haswa; Dubais Golden

Leaves Hotels planned 226-room hotel in Sanaa and 140-room hotel inHodeidah. The Kuwait-based Al-Kandari Group is planning to build the KenozResort in central Yemen.

The General Authority of Investment and Cairo-based Naeem Holding are alsoplanning a massive tourism development in Bandar Faqm-Ras Amran at anestimated cost of $10bn. This is set to cover an area of 16 million squarekilometres.

In order to encourage foreign investment, the Yemeni Investment Law offersincentives for carrying out commercial activities including reduced custom duties,guarantees against expropriation and sequestration.

The General Investment Authority (GIA) is the main public agency tasked withattracting foreign investment. As part of a drive to make life easier for the newinvestor, the GIA has opened a One Stop Shop. Representatives of nearly all

the relevant ministries will be linked up, and the plan is that a potential investor

will be able to complete all the necessary paperwork at one visit, and permissionsgranted within a few days. Foreign investment in the exploration for and

production of oil, gas, and minerals is subject to production-sharing agreements.

Foreign investment is not permitted in the arms and explosive materials

industries, or in industries that could cause environmental disasters, or wholesaleand retail imports. Yemen has attracted the attention of regional investors sinceits presidential election in late 2006. Foreign exchange accounts are permitted.There are no restrictions on payments and transfers, and restrictions on capital

transactions are minimal.

The United States has supported Yemens accession to the World TradeOrganisation (WTO) with the US ambassador hailing its efforts to issue new lawsand regulations compatible with WTO rules.

UK-Yemen Links

For the period January-December 2009, UK exports to Yemen were 74.6 million

and imports 5.9 million. UK exports in 2008 were up 2% on 2007. UK importsfrom Yemen in 2008 down 76% compared to 2007. This was reflected in a majordecrease of imports of petroleum products and related material, down by 100%(10.8 million).

Yemen is not a rich country, but the presence of oil, gas and mineral deposits, theamount of development aid flowing into the country and the unequal distribution

of wealth among the population mean that a range of commercial opportunitiesexist.

As of September 2011, the Foreign and Commonwealth Office advises against all

travel to the whole of Yemen at the moment and advises British nationals in thecountry to leave by commercial means; for updates on travel advice consult withthe FCO.

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Useful Contacts

MINISTRIES

Prime Minister: Ali Mohammed MujawwarDeputy Prime Ministers: Abd Al-Karim Ismail Al-Arhabi

Sadiq Amin Abu Ras

Rashad Mohammed Al-Alimi

Ministry of Agriculture & Irrigation

Minister: Mansur Ahmad Al-HawshabiMinistry of Civil Service and Social Security

Minister: Yahya Mohammed Al-ShuibiWebsite: www.mocsi.gov.ye

www.yemen.gov.ye/portal/mocsi

Ministry of CultureMinister: Mohammed Abu Bakr Al-MaflahiWebsite: www.yemen.gov.ye/portal/moc

Ministry of DefenceMinister: Brig. Gen. Mohammed Nasir AliWebsite: www.yemen.gov.ye/portal/modefense

Ministry of Education

Minister: Abd Al-Salman Mohammed Al-JawfiWebsite: www.yemen.gov.ye/portal/education

Ministry of Electricity and Energy

Minister: Awadh Said Al-SocotriWebsite: www.yemen.gov.ye/portal/electricity

Ministry of Expatriate AffairsMinister: Ahmad Musaed HusaynWebsite: www.yemen.gov.ye/portal/moia

Ministry of FinanceMinister: Numan Salih Al-SuhaybiWebsite: www.yemen.gov.ye/portal/finance

Ministry of FisheriesMinister: Abyan Mohammed Salih ShamlanWebsite: www.yemen.gov.ye/portal/mof

Ministry of Foreign AffairsMinister: Abu Bakr Abdallah Al-QirbiWebsite: www.mofa.gov.ye

www.yemen.gov.ye/portal/mofa

Ministry of Higher Education & ScientificResearchMinister: Salih Ali BasuraWebsite: www.yemen.gov.ye/portal/mohe

Ministry of Human Rights

Minister: Dr. Huda Ali Abdelatif AlbanWebsite: www.yemen.gov.ye/portal/mhr

Ministry of Industry and TradeMinister: Hisham Sharaf AbdallahWebsite: www.yemen.gov.ye/portal/industry

Ministry of InformationMinister: Hasan Ahmad Al-LawziWebsite: www.yemen.gov.ye/portal/moinfo

Ministryof InteriorMinister: Mutahir Rashad Al-MasriWebsite: www.moi.gov.ye

www.yemen.gov.ye/portal/moi

Ministry of Justice

Minister: Ghazi Shaif Al-AghbariWebsite: www.yemen.gov.ye/portal/justic

Ministry of Legal AffairsMinister: Rashad Ahmad Al-RasasWebsite: www.legalaffairs.gov.ye

www.yemen.gov.ye/portal/mola

Ministry of Local AdministrationMinister: Rashad Mohammed Al-AlimiWebsite: www.yemen.gov.ye/portal/molad

Ministry of Oil and MineralsMinister: Amir Salim Al-AydarusWebsite: www.yemen.gov.ye/portal/mom

Ministry of Planning and InternationalCooperationMinister: Abd Al-Karim Ismail Al-ArhabiWebsite: www.mpic-yemen.org

www.yemen.gov.ye/portal/mpic

Ministry of Public Health and PopulationMinister: Abd Al-Karim RasiWebsite: www.mophp-ye.org

www.yemen.gov.ye/portal/moh

Ministry of Public Works and RoadsMinister: Omar Abdallah Al-KurshamiWebsite: www.yemen.gov.ye/portal/mpwh

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Ministry of Religious Endowment andIslamic Affairs

Minister: Hamud Mohammed AbadWebsite: www.yemen.gov.ye/portal/moisa

Ministry of Social and Labour AffairsMinister: Amat Al-Razaq Ali HamadWebsite: www.yemen.gov.ye/portal/mosal

Ministry of Technical Education andVocational TrainingMinister: Ibrahim Umar Hajri

Website: www.yemen.gov.ye/portal/move

Ministry of Telecommunications andInformation TechnologyMinister: Kamal Husayn Al-Jabri

Website: www.yemen.gov.ye/portal/mtit

Ministry of TourismMinister: Nabil Hassan Al-FaqihWebsite: www.yemen.gov.ye/portal/tourism

Ministry of TransportMinister: Khalid Ibrahim Al-WazirWebsite: www.mot.gov.ye/

www.yemen.gov.ye/portal/transport

Ministry of Water and EnvironmentMinister: Abd Al-Rahman Fadhl Al-IriyaniWebsite: www.yemen.gov.ye/portal/moew

Ministry of Youth and SportsMinister: Arif Awad Al-ZukahWebsite: www.yemen.gov.ye/portal/sport

EMBASSIES

Yemen Embassy in London57 Cromwell RoadLondon, SW7 2ED

Tel: 020 7584 6607Fax: 020 7589 3350Website: http://yemenembassy.org.uk/

UK Embassy in YemenPO Box 1287938 Thaher Himiyar Street

East Ring RoadOpposite Mvenpick HotelSana'a

Tel: (00 967) 1 308 100Fax: (00 967) 1 302 454Website: http://ukinyemen.fco.gov.uk/en

GOVERNMENT AGENCIES

UKTIPaul Bathgate

UK Trade & Investment Middle East TeamTel: + 44 (0)20 7215 4246Email: paul.bathgate@ukti.gsi.gov.uk

UK Trade & Investment YemenBritish Embassy - Commercial SectionPO Box 1287

938 Thaher Himiyar StreetEast Ring Road

Opposite Mvenpick HotelSanaaTel: (00 967) 1 302450 / 1 / 2 / 3

Fax: (00 967) 1 302454Email: commercialenquiries.sanaa@fco.gov.uk

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Email: visaenquiries.sanaa@fco.gov.uk

Yemen Ministry of Trade & IndustryAl-Jamea Al-Arabia StreetPO Box 1804Tel: +967 1 252345

+967 1 252339

Fax: +967 1 252337Email: info@moitye.net

Yemen General Investment AuthorityPO Box 19022

Tel: +967 1 262961+967 1 262962+967 1 262963

Fax: +967 1 262964

Email: invest@giay.orginfo@giay.org

Website: www.giay.org

Ministry of Planning & International CooperationPO Box 175Tel: +967 1 250118 / 250107Fax: +967 1 250665Email: mpd-minister@y.net.ye

CHAMBERS OF COMMERCE

Federation of Yemen Chambers of Commerce and IndustryPO Box 16990Airport Road

Al-HasabaSana'aPhone: (+967) 1 223539

Fax: (+967) 1 251551

Sanaa Chamber of Commerce and IndustryGeneral Commercial Services

PO Box 195Al-HasabaSana'aTel: +967 1 232361

+967 1 232362Fax: +967 1 232412

The Chamber of Commerce & IndustryQueen Arwa StreetCraterPO Box 473AdenTel: +967 2 221176

Fax: +967 2 255660Email: cciaden@y.net.ye

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OTHER BUSINESS LINKS

Aden Free ZoneTel: +967 2 232206 / 232314Email: adenfz@y.net.ye

Website: www.adenfreezone.com

Yemen Tourism Promotion BoardPO Box 5607Tel: +967 1 510794 / 5 / 6

Fax: +967 1 510447Email: ytpb@yementourism.comWebsite: www.yementourism.com