Obstacles stand in the way of four major Yemeni companies seeking to invest in the country's telecommunication sector, official sources confirmed.

The main two companies that sought to invest was Shaher Trading Company, owned by businessman Shaher Abdulhak and the Ahmar Investing Group, mainly owned by Sheikh Hameed Al-Ahmar.

"The government lacks the institutional preparations and faces difficulties to provide the needed infrastructure," said Ali Farouk, an informed Yemeni official.

In a rare interview last week, President Abdurabu Hadi called on local businessman to start investing more in the country and promised to ease obstacles that stood in the way. He called on local investors to lead the way and help insuring the confidence of the international investors.

The local companies were strongly seeking government support. They did not rule out the possibilities in the near future if the circumstances improve.

The projects would have created much needed job opportunities over the next two years.

There are only 2.5 million Internet users in Yemen according to the Ministry of Telecommunications.