Armies of Liberation

from The Economist:

A fantastic plan to span the Red Sea’s troubled waters is raising eyebrows

ONE OF Osama bin Laden’s many half-brothers, Tarek bin Laden, this week signed a deal with tiny Djibouti which may—or may not—mark the start of one of the world’s boldest engineering projects. Djibouti’s president, Ismael Omar Guelleh, promised Mr bin Laden 500 sq km (193 sq miles) of land to start building Noor City, the first of a hundred “Cities of Light” the vast Saudi Binladen Group plans around the world. “A hope for all humanity, the first environmental city of the 21st century,” gushed the promotional video at the signing. The audience, mostly American military contractors near retirement age, clapped enthusiastically. Engineers elsewhere say the scheme is a fantasy. (Read on …)

The power plant is just to run the steel mill.

Middle East Online

ISTANBUL – Saudi Arabia’s Al-Tuwairqi group confirmed on Tuesday it planned to invest $1 billion in Yemen to build steel and power plants.

Chairman Hilal Al-Tuwairqi said on the sidelines of a steel conference the Yemen steel plant would have a capacity of 5 million tonnes of liquid steel.

“In addition to that, we will build a rolling mill which will produce 1 million tonnes of rebar annually,” he said.

The investment would include installation of a power plant as Yemen lacked the necessary infrastructure, he said.

Yemen’s official news agency, Saba, reported the scale of the investment on March 31 but gave no details of the plants.

Al-Tuwairqi said he expected the plants to be operational by 2011.

Still not going to the highest bidder, wonder why?

Yemen Post

In a symposium organized by Al-Tagheer.net, economic experts stressed that government should bring the agreement relating to operating and developing Aden Container Terminal before parliament for discussion, and demanded it to act responsibly with this issue because the terminal is of vital economic importance to the country.

The participants also demanded the government to reconsider all agreements as to operating Aden Container Terminal, hinting all the previous agreements are not binding to the country because they harm its interest.

They further stressed that an international tender for operating Aden Terminal should be announced through which qualified and eligible companies can bid, maintaining that the bidding process should be conducted according to the tenders law, together with presenting it to parliament for approval.

Several papers have been presented during the symposium including one paper by Ayman Mohammed Nasser who pointed out that bidding or buying the government institutions should be referred to parliament for approval and later a republican decree should come next.

Political science professor Abdullah Al-Faqih warned against the new agreement signed with Dubai Ports Authority, stressing the agreement wastes Yemen’s financial rights. He also indicated that partnership of 50 percent of profits is not beneficial, and maintained this could lead other bidding companies to sue the Yemeni government.

Al-Faqih added that the bidding of the three companies was as follows:

1. Kuwaiti alliance with $462 million.

2. Philippines International Services with $451 million.

3. Dubai Ports with $297 million, hinting the best bid was offered by the Kuwaiti company and instead of declaring it as the successful bidder or having negotiations, Yemeni government decided to re-ask for new tenders.

In return, former Member of Parliament Salim bin Talib declared that the government withdrew the agreement from parliament in an effort to pass the agreement away from the parliament‘s control, adding that any agreement like that of Aden Terminal should not be signed only under the approval of parliament.

For his part, Mohamed Abdul Majeed Al-Qubati expressed his sorrow over the appalling situation of Aden Terminal, mainly because of the confused and unclear government policies.

Al-Qubati, however, indicated that Aden can be an international port and cited an American report speaking of the possibility of turning Aden Terminal into the most important free zone in the Middle East.

Economists and MPs demanded the formation of a civil coalition to defend Aden Terminal and maintained that it was a famous port in the past.

Yemeni businessman Saleh bin Fareed Al-Surimah pointed out the eligibility of his company Gulf and Kuwait Coalition Company (KGL) to operate and develop Aden Terminal and hinted that several parties cheated and beguiled in an effort to deprive KGL of it.

Al-Surimah emphasized the agreement with Dubai Ports is invalid and it abuses people’s right, hinting that if those people succeed in passing this dubious deal, this could help corrupted officials to pass the selling of other government institutions like Aden Refinery, etc. in the future.

He also requested President Saleh to act according to his constitutional responsibility to stop what he named as misuse and abuse in Aden Terminal because it does not serve the country’s interests.

Agreement of setting up company to operate Aden Containers Port signed

[09 March 2008]

DUBAI, March 09 (Saba)- General Corporation for Aden Ports and Dubai Ports International (DPI) signed on Sunday an agreement of setting up a joint company to operate Aden Containers Port.

Chairman of the corporation Mohammed Mubarak and executive director of DPI Mohammed Sharaf signed the agreement.

Last December, the cabinet approved establishment of the company.

So if Saleh’s son, Ahmed, head of the Republican Guard, was in control of this land, who is Qatari paying paid for the land, the government or Ahmed? Also how did the Republican Guard get 440,000 square meters of land? It was just there? No one owned it? Yemen Post

The General Authority for Investment signed an agreement with Qatari Al-Diyar Company for Real-estate Investment to implement Tilal Al-Rayan project at Faj Attan area in Sana’a.

Built over a total area of 440,000 m2, the project’s total costs are about $500 million and will overlooks most areas of Sana’a.

In the past, the land that will be used for the project was among the locations where building is not allowed and it belongs to the Republican Guard Forces. The project will be implemented as of next April. According to a release by the company, the project will include a five-star hotel, real-estate areas, commercial offices, luxurious villas and residential apartments.

al-Sahwa

December 9, 2007- Another quality Fakhruddin development – again coming from the very top end of the scale – is rising amongst the prestigious surroundings of Jumeirah Village South. This unique, elegant and versatile twin tower development will offer a diverse range of residential facilities to the discerning customer. (Read on …)

Arabian Business

DPI back in the game

Yemen and DP World have reached a preliminary accord for the UAE company to run the Aden container terminal in the Arab state, Yemen’s transport minister was on Saturday quoted as saying.

Under a memorandum of understanding signed by the two parts, DP World and Aden’s port will set up an equally owned joint venture to develop and operate the container terminal, Yemen’s state news agency Saba quoted Khaled Al-Wazeer as telling a newspaper.

DP World officials could not be reached to comment.

In 2005, Yemen awarded Dubai Ports International (DPI), a DP World predecessor, a contract to develop and manage the Aden container terminal.

Yemen later suspended the contract after parliament deputies criticised it, Saba said. Industry sources said the objections were partially on the grounds that the Aden facility is in competition with Dubai’s Jebel Ali port, also run by DPI.

Joint Yemeni-UAE company to run ACT

Saba

[01 December 2007]
SANA’A, Dec. 01 (Saba) – Minister of Transport Khalid al-Wazir unveiled on Saturday that Yemen and International Dubai Seaport Company signed last Wednesday a memorandum of understanding (MOU) to establish a joint Yemeni-UAE Company to develop and operate Aden Container Terminal (ACT). (Read on …)

YT

ndoubtedly, the attractiveness of the business environment is a fundamental concern for the private sector, as its operations and growth will lead national macroeconomic growth towards more trade, income and more job opportunities in turn reducing poverty and spreading prosperity.

A recent study by a local think tank has asserted this fact, indicating that the study of obstacles to business investment as well as the need to gain information and analysis is critical for decision makers inside and outside the government, in order to allow them to formulate certain pro-investment policies.

The study has exhibited a very important point which was noted by one of the interviewed investors, he said that Yemen is not among countries which have a secure banking industry, he pointed out that foreign banks do not accept issued guaranties by Yemeni banks, not even letters of credit issued from several banks operating in Yemen. He added that he, as an investor, intended to establish a large manufacturing project in Yemen but needed additional financing from an international bank. For his surprise, all regional and international banks declined his loan application in spite of providing the required documentation, indicating that documentation from Yemen is invalid, in addition to Yemen’s being a high-risk country.

The report stated that problem as one of genuine concern, as it is limited to Yemen and the negative and untrustworthy image it has in the region.

The report classified the obstacles hindering investment in Yemen to several categories, starting from legal and administrative obstacles, to structural and technical obstacles as well as documenting several case studies from the survey which explain a number of these obstacles.

Administrative obstacles

These obstacles include the corrupting bureaucratic system which consumes the energy of investors and wastes their time, money in the governmental offices when starting taking the preliminary procedures prior to staging any project. Additionally, the lack of measures and standards while appointing the administrative leaders. There are so many corrupt officials supposed to be before prosecution accused of embezzling public money. Instead of prosecuting these corrupt, they are exalted to a higher position, resulting in negative impacts at the level of performance. Consequently, they can not deal with different problems forming a dismissal factor for the local and foreign investments.

Lack of qualified human manpower

The lack of adequately qualified local human elements to deal with foreign investors is considered one of the prime investment obstacles, graduate accountants are unable to do proper book keeping, engineers do not understand the basic maintenance operations, and administrative staff who suffer from inefficiency and redundancy. Even the relatively more qualified staff is unable to use computers and can not speak English and need intensive and expansive training in order to qualify them for the job, after which they tend to ask for more salary and threaten to leave the job regardless of their employment contracts.

Structural obstacles

The weak infrastructure such as the underpowered electricity grid, poor roads and transport facilities, poor Internet and communication networks and other infrastructure issues discourage investors, knowing that they cannot outsource any of their activities and that they must establish a complete operation, which means a substantial investment which increases the risk.

Financial obstacles

Duties, taxes and other fees are another obstacle, in spite of being regulated by the law, there is an inefficient system to gather data and impose such fees, in addition to the handicapped mechanism in place which is a hustle to too many investors, according to the survey.

Technical obstacles

For a business enterprise to grow and prosper in Yemen it needs all sort of technical assistance from other supplementary bodies, such as the chamber of commerce, the board of audits, market research agencies, ministry of trade, the banking industry, and many other bodies which facilitate the growth of any enterprise. Other weaknesses include the weakness of the institutions of technical education and vocational training in providing labor market with the technical and vocational cadre. The private sector is the third side in the partnership with the country as well as the civil society organizations.

Judicial obstacles:

Local and foreign investors have been shocked time and again by the Yemeni judiciary in general and by the commercial judiciary in particular, as the later is specialized in adjudicating business and investment issues, such as the fact that judges in these courts do not know the rules of the international law, are unfamiliar with international commercial agreements, do not wish to address violations of several Yemeni laws such as Intellectual property law among others, coupled with the slow legal procedures which result in substantial damage to business operation, in addition to the fact that corruption is evident within the legal system.

Survey Results:

The study quoted a number of obstacles faced by financial and business institutions in the public, mixed and private sectors, focusing primarily on the private sector and contacted some 686 local and foreign business ventures in Sana’a, Taiz, Aden, Hodaidah and Hadhramout.

Smuggling phenomenon

The study showed that 96,6 percent of the respondents affirmed that the phenomenon of smuggling is a very important obstacle of the investment in Yemen. This factor leads substantial damage in the local economy due to smuggling goods and commodities, These goods are not exposed to taxes or customs, they are cheaper than goods which entered the country legally, and flood the market forcing businessmen into a position where they cannot compete with smugglers, most respondents were in the vehicle, electronics, mobile phones, computers and technology segments.

Security situations

The study stated that 89,5 percent of the respondents said that the security situations and the lack of stability obstruct investment in Yemen, this makes investors worried;

In the tourism sector, 94,6 percent of the respondents see kidnapping and terrorism as one of the prime obstacles for investment in the tourism and hospital sector.

Other respondants said that this problem of lack of security jeopardized themselves as well, on several occasions, businessmen or members of their families have been kidnapped for a random or even to settle scores between competing businessmen, even when entering into commercial disputes with other persons instead of resorting to judiciary.

Insufficiency of power

The study showed the 95.4 percent of the sample mentioned that the insufficiency of power supply and power interruptions as an obstruct investment and expansion, electricity power covers only 30 percent of the republic areas. While existing power supply is subjected to interruptions causing damage to machinery and frozen foodstuff, thereby increasing overhead and making business operations more expensive than it should be

Weak and inadequate transportation

The study mentioned that 67.1 percent of the sample individuals stated that the weakness and insufficiency of transportation system is an obstacle to investment, paved road links do not connect the whole country, on several occasions several inter-city roads are blocked either by tribes, poor road infrastructure or other reasons, there is also an underdeveloped cargo transportation facilities in the country.

Fiscal obstacles

The study showed that 98.1 percent of the sample individuals stated that the instability of the value of the local currency is another obstacle for investment as dealings in Riyals usually depreciate faster than any other currently resulting in a capital loss. However, 94.7 of the sample said that price hikes, inflation and declining purchasing power also limit the growth of their business.

Obstacles related to economic policies

86.1 percent considered the absence of economic stability one of the investment obstacles. Whereas, 70.6 percent said that the economic growth hinders investment in Yemen. However, 81.7 percent of the study sample mentioned that the containing inflation as well as treating unemployment obstructs investment. Moreover, 86.1 percent of respondents agreed that the failure of the economic policies related to distributing income equally and connecting the financial reform.

70.8 percent stated that the financial and administrative reforms program did more harm that good and obstructs further investment in Yemen. Moreover, 88.5 percent of the study sample indicated that the weak demand as well as the smallness of market size is considered one of the investment obstacles.

Legislative and legal obstacles

Respondents said that there are a group of legal and legislative obstacles for investment in Yemen. 90.4 percent of respondents said that the income tax law is a legal obstacle, while 87.4 percent said that labor tax obstructs investment. Whereas, 88.8 percent confirmed customs law one of the legal obstacles.

Administrative bodies

61.4 percent of the respondents considered current measures relating to investment complicated, however, 96.5 percent of the businessmen said that the law of tenders as well as the current mechanism of winning government contracts hinders investment in Yemen. Bribery is one of the investment obstacles related to administrative bodies, according to 99.5 percent of the respondents. Furthermore, 97.6 percent of the respondents considered financial and administrative corruption one of the obstacles.

Customs and taxes exemptions positively affect investment, according to the survey, however, around 47.7 percent of investors do not consider tax exemptions to encourage investments.

Recommendations of the study

• The study stressed the importance of selecting right leaders and competent administrative and technical cadre according to vocational measures. It also emphasized the necessity of following up all aspects of corruption and administrative deviation.

• The study also mentioned that the stability and unifying principles ruling the processes of investment as well as updating laws facilitating measures are the primary approach to providing appropriate investment climate.

• It also recommended providing good infrastructure in order to attract investments concerning infrastructure.

• It went on to say that projects in need of loans must work on achieving proper balance between the capital of project and obtained loans. So loans will not exceed the acceptable limits financially and commercially.

• The study mentioned that there is a pressing need for knowing the consumers’ requirements and their desires. There must be some kind of cooperation between national and international insurance institutions to provide insurance cover of the marketing activities with proper conditions and costs.

Cabinet discuses implementation of foreign supplied projects

[20 November 2007]

SANA’A, Nov. 20 (Saba)- Cabinet discussed in its meeting held on Tuesday a report of Ministry of Planning and International Cooperation over level of implementing projects supplied by foreign loans, aid, gifts and donations for the year 2006 and the first half of 2007.

The report shows that during 2006, Yemen has got soft loans for financing development programs and projects with a total value of $ 331 million and funding facilitations worth $ 1.1 billion have been allocated for a number of projects in fields of electricity, roads,agriculture and irrigation and other fields.

The report also pointed out that the total value of the loans Yemen has got during the first half of 2007 estimated at $ 295. 5 million has been allocated to sectors of technical and vocational education, social security, poverty alleviation, constructions, transport, health and agriculture.

It showed that the total value of current loans of different sources is $ 2.902 billion and the used of them are only $1.115 billion.

The cabinet stressed on concerned ministers to have necessary measures for gearing up carrying out hampered projects especially in fields of electricity, public works and roads, environment and water.

Yikes. Repent, the end is near.

SANA’A, NewsYemen

Reliable source said that the US Oxy Petroleum Company and Oil Search Compnay working in Yemen have suspended digging new oil wells.

The US Oxy stopped its activity last July 2007 and the Oil Search stopped last Monday, the source told NewsYemen.

The source expected that the Hungarian Mol company might stop its activity two weeks later.

Yemen and some donors like the World Bank have talked since four years about dangers of oil running out in Yemeni oil blocks.

Earnings from oil exports account for a substantial portion of the government’s budget revenue and Yemen’s export earnings. Yemen’s average output rose from 10,000 barrels/day (b/d) in 1987 to 465,000 b/d in 2003, according to International Energy Agency (IEA) data (which vary slightly from Yemeni production breakdowns by field).

Some officials in the government have criticized minister of oil and minerals for his refusal to admit fears of oil running out despite official reports have assure oil production dropped as low as 15%.

With aid of firm in California

Engineering News Record: Acting on endorsements and pledges of land from the president of Yemen and the president of the African nation of Djibouti, a Dubai-based developer has tapped an American firm to build a bridge across the Red Sea.

Middle East Development LLC on April 25 issued a notice-to-proceed to Noor City Development Corp., Napa, Calif. It authorizes Noor City, as sole agent, “to proceed with the planning, development, construction and management of the bridge between Yemen and Djibouti.”

MED is chaired by Tarek M. Bin Laden. His second-generation company, a powerhouse of construction in the Middle East, labors under the dark reputation of Bin Laden’s notorious half-brother, Osama Bin Laden. While Osama’s name is an anathema to much of the world, the greater Bin Laden family has a long history of driving major construction and development in the region. Its work continues today with signature projects throughout the region. Tarek Bin Laden turns aside questions about his half brother, saying he has no contact with him and no knowledge of his whereabouts.

The newly formed Noor City Development Corp. is led by Tariq E. Ayyad, president. Ayyad is also president of ShareChive LLC, San Francisco, a technology firm with patented systems for delivering constantly refreshed project data to mobile computers on jobsites, with an emphasis on highway and large infrastructure. Ayyad is an American of Kuwaiti extraction, a civil engineer, construction manager and a former bridge engineer with the California Dept. of Transportation.

Ayyad says MED’s goal is to create economic opportunity and stability on both sides of the Red Sea by tying in the bridge to new rail and road construction hubs and networks in Africa and the Arabian Peninsula.

“MED is a developer. They want to create jobs, they want to move products,” Ayyad says. “It is very, very critical to connect the African nations and their products and crops right to the Middle East. The Middle East is extremely wealthy in money and oil, but we lack quite a lot of crops and services.”

Noor City is forming an international commission to refine concepts for a design/build/operate/transfer concession to create the rail and highway crossing. Concepts developed by Danish engineering firm COWI envision a 28.5 km crossing with a suspension span over the Bab al Mendab Straits.

Phase I will likely be a 3.5 km leap to the Yemeni island of Perim and a 4 km land link to the western channel. Phase II may be broken into several contracts for the 21.5 km transit to Djibouti, which will include 13 km of suspension bridge and 8 km of girder bridge. Cost is estimated at between $10 billion and $20 billion, depending on design, project organization and financing. Construction would take seven to nine years.

“If you open up to this [transportation system that provides access into the heart of Africa] then you can create jobs by moving products, moving services,” Ayyad says. “You can ignite economic development just by the transportation element. The bridge is really critical.”

Al-Motamar

Mohammed Tahir almotamar.net – An official at the Investment Authority said Tuesday that arrangements are underway to complete implementing the presidential directives on introducing the single window system in the Authority and revising laws pertaining banks, trade, taxes and customs in order to strengthen facilities and incentives for in investors in Yemen.

Head of promotion sector at the Authority Mohammed Ahmed Hussein told almotamar.net that the Authority board of directors is to hold a meeting in the coming few days presided over by the prime minister Ali Mohammed Mujawar and president of the Authority Salah al-Attar as well as a number of ministers to discuss the question of the single window system. The meeting is to discuss completing the creation of offices for some ministries and government institutions at the Authority and to prepare for making offices of the Authority in some governorates work according to the single window system in order to provide more facilities for those who desire to invest.

Head of promotion sector at the Authority affirmed that the Authority is working in full harmony with all relevant institutions to introduce solutions and treatments proposed by investors to remove hindrances in line with a program included the remarks and proposals of investors in addition to those resulted from the investment opportunities exploration conference and all that will be carried out in a short period.

He pointed out that among the major short-term tackles are the allocation of new industrial zones beside the existing ones and to be allotted to only investment projects and also allocation of plots of land for investors.

Sana’a, NewsYemen

The two-day conference of Exploring Investment Opportunities in Yemen came to conclusion on Monday without practical steps, but some promises and more requests from Yemen to make its investment environment more healthy through more reforms.

The final statement of the conference focused on “the importance of developing the financial sector in Yemen”. More than 20 participants, in different sessions with prime minister and finance minister, asked the government to quickly achieve “the stock market” project.

The statement did not identify specific projects to be implemented, but said that the participants listened to 100 investment opportunities offered by the government in different sectors.

The official media outlets which published the final statement of the conference talked only about “intentions” of some investors to invest in Yemen. Although the statement welcomed the Yemeni government’s pledge “to provide more suitable environment for investments and to melt all difficulties that face investors”, it
talked only about an investment agreement in Aden Free Zone and a number of agreements in field of mining and local transportation.

Deputy prime minister for economic affairs, minister of planning and international cooperation, Abdul-Karim al-Arhabi, announced the intention of the government “to annually hold a conference on investment”. “You will find in the coming conference to what extent the government is earnest to fulfill its promises of providing
facilities and making reforms,” said al-Arhabi.

The greatest result we could get in this conference is that the robust attendance of investors to check out investment opportunities in Yemen. “We have almost 500 participants from the Gulf states whose attendance reflects their interest to invest in
Yemen,” said al-Arhabi. “This is a very important message to us implies that our brothers in the Gulf are interested to merge Yemen in Gulf economies.”

The real challenge comes after the conference as we have to reach understanding between the government and investors from Gulf states on one hand and between the Gulf investors and local investors,” said al-Arhabi.

The final statement mentioned the pledges of president Ali Abdullah Saleh to prevent officials interference in investors affairs, to apply the system of “Single Room” to deal with investors and to review relevant legislations to be more expedient for investors.

A number of Yemeni and Gulf businessmen told NewsYemen their companies “will study the investment opportunities offered according to the needs and benefits. The conference is the second event organized by the Yemeni government in cooperation with the Gulf Cooperation Council after the Donors Conference held in London last
November focusing on Yemen’s needs of reforms and financial aids.

The GCC’s secretary-general Abdul-Rahman al-Attiya said in an interview with the official Al-Thawra daily that the economies of Gulf states depend upon competition and free economy system that depends on open the door for local and foreign private sector to play a key role in development. He said that Yemen and Gulf states
could move from traditional frames to modern ones and they should go ahead to “correct the past and build promising future.”

Chairman of the General Authority for Investment, Salah al-Attar said the authority will call for a meeting next week, to be headed by prime minister, to discuss measures to apply the system of “Single Room”.

YT

TAIZ

Influential person demolishes home with residents insides

April 15 — One of the influential persons in Al-Hasab area in Taiz, aided by a group of policemen, demolished a house, belonging to the citizen, Mr. Awadh Saif Al-Selwi while women and children were inside under the pretext that this person is one of the landlord’s heirs. The mother of the children revealed that policemen, accompanied by gunmen, came aboard police vehicles and raided the house without giving them any chance to go outside.

HAJJAH

Water Corporation threatened of bankruptcy

April 14 — Officials in Hajja governorate’s Local Water Corporation mentioned that the corporation, which is only two years old, is bound to collapse and threatened of bankruptcy due to the heavy loans it granted to social personalities in the governorate. Local sources said that the debts on social personalities to the corporation amount up to YR 120 million. They added that corporation hardly pay the salaries of workers and the operating expenses.

IBB

NUPO criticizes ruling party’s policy

April 15 — The Ibb Branch of Nasserite Unionist Popular Organization (NUPO) expressed concern about obstacles posed to projects funded by the exceptional budget of Ibb Governorate. It said that the money is wasted and the projects are randomly implemented under the pretext that those in charge of works have limited time to complete them as the 17th anniversary of the National Unity is drawing nearer. In addition,The party’s branch released a statement criticising the ruling party’s policy with regard to transforming the development projects into seasonal ones.

Yay!

Sana’a, NewsYemen

A Parliamentary committee has described the process of knocking down some houses in Aden by the local authority as “erroneous and headlong act”.

The committee said the decision of demolishing challenges the president’s order to the local authority to tackle the problem of those houses and lands according to the Law of Estates. It said that the demolishing process included houses “which are not involved in the president’s order at all”.

This behavior may have negative impacts on the province as a free economic zone for local and foreign investments, said the committee in a report raised to the Parliament’s leadership.

The committee said the Prosecution did not issue an order before demolishing and that the warning with the houses owners got from the leadership of the province did not include specific dates and that people received such a warning only one day before starting knocking down their houses.

Parliament and the ICC Statute, Did it pass?

SANA’A, NewsYemen

Although the Yemeni Parliament approved last week the Rome Statute of the International Criminal Court (ICC), many MPs continue to say that the way of voting was not legal.

The legal controversy over this issue came to the climax on Saturday when 80 members voted for rechecking the decision of joining ICC against 50 members opposed to have the approval rechecked.

The Parliament leadership suspended the session for more than an hour as the MPs could not reach an agreement after voting by loudspeakers according to the Parliament bylaw.

Some MPs said that re-voting the approval breaches the constitution as the Parliament had officially raised the approval to the president and asked to complete the constitutional procedures in this regard.
(Read on …)

AM

almotamar.net – Al-Utaibah & Rawas Emirates Group intends to construct investment projects in Yemen in areas pf electricity, water desalination, petrochemicals and communications at a cost estimated at $ one billion.

The Utaibah Group’s Board of Directors Chairman Sheikh Abdulsallam al-Rawas said “We have come to Yemen for investment in energy through building a power generating station with capacity of 300 MEGAWATT according to BOT system or that of BOO, in addition to investment in the area of water desalination.”

He said his group has conducted feasibility study and hope to make other studies either individually or in cooperation with the state. He said a foreign company had previously conducted a study of feasibility for this project but its results are not compatible with results of the study we conducted as European companies operate in a different system not similar to the American systems. That necessitates giving opportunity to our company to study what is convenient with the nature of its work and capabilities.

Saba news agency also quoted al-Rawas as saying that they have learnt that the Yemeni government has the intention to produce 1400 MEGAWATT of electric power and putting g 200 MEGAWATT to investment and that they are ready to produce the total power, i.e. production of 3400 MEGAWATT with specifications the government requires, whether through gas stations or stations operated by solar energy.

Regarding investment in water desalination al-Rawas said they presented to government officials an offer for investment in this field under the system of BOB included all information, capabilities and equipment the group possesses in this regard and they are waiting for the re[ply.

More commercial courts would help too. But that would require systematic law enforcement as well.

RIYADH, 12 March 2007 — Saudi and Gulf investors who seek to invest in Yemen will be given several privileges, among which is being exempted from paying taxes and being able to transfer profits and capital without hindrance, according to Yemeni Minister of Trade and Commerce Khaled Sheikh.

Addressing a joint press conference in the Gulf Cooperation Council (GCC) Secretariat General Headquarters yesterday with GCC Secretary-General Abdul Rahman Al-Attiyah, the minister said his country was seeking investments from Gulf countries, Arab and foreign countries worth $10 billion.

The press gathering highlighted the upcoming Conference for Exploring Investment Opportunities in the Republic of Yemen, scheduled to be held in Yemen on April 22. The GCC had authorized Al-Iktissad Wal-Aamal Group to organize the event. CEOs and general managers from over 20 Gulf, Arab, and foreign establishments are expected to attend.

Al-Attiyah said organizing the conference was part of the agreement signed between GCC states and Yemen to facilitate more economic cooperation in the GCC 2001summit.

“There are over 100 investment opportunities in Yemen,” the minister said.

Among the potential areas for investment was three electrical power plants with the capacity of 400 megawatts for every plant, he said. He added that other investment venues were in seaport facilities, airline industry, water desalination plants, mining industry, oil refineries, and railway industry. The five industrial zones in Yemen were also a rich area for potential investment, he noted. Other investment opportunities were in the health sector. “Many health centers (and) private hospitals can be built in Yemen with foreign capital,” he said.

Investment in tourism sector was another area open for investors in the GCC.

“We will offer specific projects that can be owned entirely or partly by the foreign investors,” Shiekh said.

Al-Attiyah, on his part, noted the importance of establishing joint GCC-Yemeni venues, especially in tourism, industrial, and commerce sectors.

Sheikh said the Yemeni government has been implementing a series of economic reforms since both Yemens unified into one in 1990. “Since the formation of the unified economy, all sectors have been freed for investment,” the minister said. “We have also had several negotiations to join the World Trade Organization.”

He mentioned that 40 percent of the total imports of Yemen were from Gulf countries.

Highlighting some of the aspects in the Yemeni Investment Law, the minister said that all investment companies would be exempted from paying custom tariffs in its basic structure contents. “It also gives an exemption to paying taxes on profits from five to seven years, depending on the project,” he said.

As for the labor employed in joint Yemeni projects, he said that projects located within the free zone have the freedom of importing foreign labor or recruiting local, or both.

“As for the law for inner markets, the basis is Yemeni labor. But the law allows the import of foreign labor within 10 percent,” he said.

The minister said that if and when experienced local labor was not found, investors were allowed to import more than 10 percent of foreign labor.

The Yemeni government is in talks with a Malaysian investor interested in backing a new oil refinery in the country with Gulf investors about developing its islands, the minister.

Malaysia’s Prime Minister Abdullah Ahmad Badawi visited Yemen earlier this month.

Despite the minister saying that his country was “working hard” on joining the GCC, the secretary-general said it was still early before a measure could be adopted by the six GCC countries.

“We should not surpass the necessary steps,” he said. “This must be done in a careful and studied manner.”

A Yemeni source told Arab News that Yemen was likely to join the GCC before 2015, after the country implements a number of economic reforms to boost its overall GDP growth.

YO

A Saudi company intends to build two big housing and trading towers in Sana’a, at a cost of $150 million, said the Saudi Investment Group. The company said the two towers could be great landmarks in Yemen.

A delegation from the company will visit Yemen in two weeks to discuss the executive procedures for building investment projects, according to the Saudi Iqtisadiya Newspaper.
Tariq bin Laden, Head of the Middle East Development Company, had earlier announced the desire of his company to invest in Yemen by building a full economic city, including industrial, educational and business centers, hotels, recreational facilities, conference centers, tourist centers, in addition to a wharf and an airport.

This city, which would be constructed to receive large number of tourists visiting Yemen, would employ many Yemeni laborers.
These plans are the result of efforts by the Yemeni government to promote Yemen as an investment environment, and as a support for the Yemeni economy.

He’s building twin towers.