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Business Profile
Economy: Yemen is one of the poorest countries in the Arab world, and among the principal motivations behind the unification of Yemen in 1990 was the prospect of economic transformation and expansion. However, a series of political developments served to undermine the plan and it is only since the late 1990s that the economy has started to show signs of improvement. Under IMF auspices, the government has implemented a programme of structural reforms involving privatisation and an overhaul of the financial system was implemented in exchange for financial support and, subsequently, a substantial reduction in Yemen’s large foreign debt. The economy is now growing at four six per cent, but inflation has taken off once again and is currently running at 16 per cent annually. Large-scale unemployment persists; an estimated 30 per cent of the workforce are out of work.
Agriculture is concentrated in the fertile northern part of the country. The principal cash crops are cereals, cotton, coffee, fruit, vegetables and qat (a narcotic leaf); sorghum, potatoes, wheat and barley are grown for local consumption. Livestock rearing and fishing, both of which occur throughout the country, are also important. The manufacturing industry is mainly involved in the production of construction materials, processed foods, tobacco, drinks and chemicals. The most important industrial activity, however, is oil and gas production. Yemeni reserves are modest by regional standards but, since the opening of the refining complex at Aden in 1994, the sector accounts for the majority of export earnings. Aden also hosts a newly established free-trade zone. Other mineral deposits, which are concentrated in the south, include copper, gold, lead, zinc and molybdenum.
Yemen’s main trading partners are the United Arab Emirates, the Republic of Korea, Saudi Arabia, Japan, Egypt and the USA
Business: Businesspeople are expected to dress smartly for meetings and formal social occasions. English is commonly used in business circles. Appointments are needed and visitors should be punctual. Visiting cards are often exchanged. Do not be surprised during a meeting if Yemeni businessmen chew qat. Office hours: Sat-Wed 0800-1500.
Commercial Information: The following organisation can offer advice: General Investment Authority, PO Box 19022, Sana’a (tel: (1) 262 962/3; fax: (1) 262 964; e-mail: gias@y.net.ye or giasyemen@yahoo.com; website: www.giay.gov.ye).
Copyright © 2003 Columbus Publishing Ltd.
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