163 registered projects waiting to be implemented

10 Oct
Jobs for 3845 unemployed Yemenis are pending because of bureaucracy and instability.

Malak ShaherPublished:10-10-2011

SANA’A, Oct. 9 — It is now commonplace and a known fact that the political crisis Yemen, now in its eight month, has affected the financial situation and the economy adversely. The result is that many projects continue to remain suspended until the conflict is resolved.

The Arabian Trading Company had a project involving the production of glass in Nahm, 30 kilometers away from Sana’a. It stopped working on the project in February. The reason was attributed to the uncertain political climate.

Nageeb Hailan from the company said that the start of protests resulted in German experts — who were working with the company — left country as they feared uncertainty in the months to come.

The investment in Yemen too has been affected by the crisis. However, the registration of new projects did not stop. By the end of September 2011, 163 projects have been registered at the General Investment Authority. These however are on hold as the concerned are waiting for the political situation to smoothen until they renew the contracts with the authority.

“The current political situation closed many projects that were in an active phase in Yemen prior to the uprising,” said Mohammed Hussein, head of the promotion sector in the authority.

“However, the registration rate of projects has increased this year during the uprising as adventurous investors did not have contestants,” he said.

Hussein added that the time span for the registered projects is two years in which the investors can renew their business at any time.

According to the records published by the authority, the number of registered projects in Yemen in the first quarter of 2011 has increased by 114 per cent when compared to the number registered in the first quarter of 2010.

At least 96 per cent of the investors that have registered their projects are Kuwaiti. Other investors are Chinese, Emiratis and Uzbeks. At least 39 of the planned projects will be in the fisheries sector of which 61 per cent will be in the coastal city of Al-Hodaida.

It was expected that the investment seen in this quarter would offer jobs to 1,454 people.

When the political crisis ended, these registered investors would have the chance to renew their contracts with the authority. It would be less expensive for them to implement the projects they have already registered when there were no contestants, according to Hussein.

The registered investment projects in this quarter were distributed in 11 governorates in which most of the projects were shrimp farming, steel melting plant and construction work. Other investments were focused in the capital in the air cargo, auto gas filling stations and tourism suites fields.

The registered projects in the second quarter of this year were mainly focused in tower construction and residential complexes. Other areas also included gas, tourism and granite production.

The report mentioned that 77 per cent of the investors were Saudi. Others were Indian, Romanian and Egyptian. Sana’a had the highest rate of the registered investment with 63 per cent of the total investment. These investments registered in the past nine months would create 4,480 job opportunities.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: