Face to Face

Yahya al-Mutawakel & Abdullah Bin Mahfouz

Aden recently hosted a fourth investment conference, titled “Aden…Yemen’s Gate to the World,” November 11-21 in Aden province. Yemen Today business correspondent Faisal Darem sat down with two key individuals to discuss the highlights of the conference.

Yemeni Investment climate has improved, but challenges remain
Dr. Yahya al-Mutawakel, the Yemeni minister of Industry and Trade, described the advantages and privileges granted by Yemeni investment laws to investors, while also discussing frankly the obstacles that face investors.
Yemen Today: What do you think of the investment climate in Yemen, especially as it relates to lands?
Yahya al-Mutawakel: There are some trials related to setting up investment projects and there is a problem related to executing those verdicts.
YT: What about the other problems that face investors?
YM: There are challenges which face investors in Yemen, but there is evidence which demonstrates improvements in the investment climate. The solutions of these obstacles must be included in development plans and reform programs, either in the short-, medium- or long-term. I can admit that the situation in Yemen is not ideal but we can not say that the investment environment is alienating 100 percent. But the reality is there are many investment projects in several sectors and fields which achieve high net profits from Gulf, Arab, and foreign countries.
 YT: Some observers criticize investment conferences, claiming that they don’t produce real outcomes. What do you think?
YM:  We have held four investment conferences. Between the first and the most recent, we have accumulated extensive experience in dealing with investors. Those conferences represent opportunities to follow up on the recommendations and measures of the government, to facilitate and enhance the investment climate in Yemen.  The real outcome of these conferences is the inflow of much capital, as well as investment projects, as can be observed by anyone.
YT: What is the real outcome of this Aden conference?
YM: We agreed to create a sugar factory in Aden Free Zone, as well as a project of heavy industy development. This is a strategic project, in that it will provide the infrastructure needed for further investments.

 Land issues are the biggest challenge facing investors
The Vice Chairman of Jeddah Chamber of Commerce and Industry Dr. Abdullah Bin Mahfouz confirmed the presence of many difficulties and challenges that face Saudi businessmen who want invest in Yemen, in particular problems related to land conflicts. He also talked about the efforts of the Yemen-Saudi coordination council for businessmen and its role in solving their problems in both countries.
Yemen Today: What can you tell us about the Yemen-Saudi coordination council for businessmen?
Abdullah Bin Mahfouz: This meeting is the third of 2009. We focused on three points: the first was the free zone in the border cities, such as al-Twoal and  al-Wadia. These outlet cities will help their people find job opportunities instead of doing illegal work.
YT: What is your evaluation of the investment climate in Yemen?
AM: Unfortunately, investors got surprised when they found interventions and obstacles by influential people and soldiers, leading to the suspension of their projects. The Yemeni government has announced measures to facilitate an enhanced investment climate, but in fact there has been nothing.
YT: What is your message to Yemeni government?
AM: My message to government if it wants to seriously improve the investment climate is to solve land problems, which are the biggest challenges facing investment in the country. The second point is the lands of Saudi investors which have been plundered by influential people. The Supreme Court issued verdicts in favor of the Saudi businessmen, but no one is able to execute these verdicts
YT: Can you talk about your investment projects in Yemen?
AM: There are joint projects with Ha’el Saeed Investment, a real estate investment project in Mukalla, as well as a transport company project, in the framework of the Yemen-Saudi coordination council for businessmen, with an investment of $5 million.
YT: Will Aden be Yemen’s gate to the world?
AM: I express my admiration of Aden, which does form Yemen’s gate to the world. Aden is a crucial business hub in the region, and the city has many special characteristics, making it a good destination for capital, in particular the Aden Free zone.
YT: Are there advantages for holding investment conferences to Saudi businessmen?
AM: Saudi businessmen do not necessarily need such conferences, because most of those who invest in Yemen are of Yemeni origins. They simply need land and a suitable investment climate.