Yemeni government is discussing a new law draft submitted by the General Authority for Investment (GAI) that allows foreign investors in general and Gulf investors in particular to possess property and lands in Yemen. The law will be referred later on to the Parliament for final endorsement.    

The new draft law aims to attract more investments into the country, especially when numerous investing individuals and companies showed a readiness to invest in Yemen provided that the obstacles are cleared. 

This move comes in line with the new strategy of the (GAI) and in response to a request by the General Authority for Lands, Survey and Urban Planning that is responsible for granting lands for foreign investors to build their projects.

However, observers stress that just issuing a law is not the solution because land issues are one of the toughest issues in Yemen and state property is subjected to pillaging and looting, especially by influential people. 

They assure that such a law can not be useful maintaining that a long line of land issues exist and they require a prompt attention by authorities.

Different armed clashes occur from time to time in main cities over land plots and influential people and tribal sheikhs are directly involved in these issues. 

Economists hold that allowing foreigners to own lands and property in Yemen would push the wheel of development and investment in the country, where about 43 percent of youth are unemployed and over a half of Yemenis live below the poverty line.

Under the law 23 issued in 1997, foreigners and foreign companies and establishments generally operating in Yemen were allowed to posses property but through Yemeni agents.

The same law also allows foreign companies and firms to open branches and outlines the requirements for establishing a Yemeni agent. It also allows them to do business in Yemen by establishing foreign-owned and managed branches.

However, foreign establishments wishing to open branches in their own names must obtain a permit from the

Minister of Industry and Trade.