Amid worrying reports pointing to aggravated political unrest and spreading unsecurity, one of Yemen’s financial bodies announced that all was not gloom and doom in the land of Sheba.
In its latest report, Yemen General Investment Authority (GIA) confirmed that investments in the country increased in the first nine months of 2013, in comparison to the same period last year. Government records show that the GIA registered 99 investment projects in between January and September 2013, as opposed 76 in 2012 for the same time frame.
While such improvement is relatively minor, it nevertheless bode well for Yemen’s financial future, as negative political and security outlooks have not put a damper on investors’ spirits.
Speaking to al-Shorfa earlier last week, Diab Saleh, GIA department statistic director noted, “Investment projects at the authority and its branches have reached 99 this year, with a capital investment of 56 billion riyals ($261 million) and fixed assets worth 18.5 billion riyals ($86 million), compared to 76 projects last year with a capital investment of 60.6 billion riyals ($282 million), and 13.9 billion riyals ($65 million) in fixed assets.”
Such investments will have a measurable impact on the work market by creating an estimated 2,545 job opportunities, thus spurring on the local economy and getting Yemen out of its economic apathy.
A top government official told Yemen Post that the ministerial cabinet had requested that big businessmen like Shaher Abdulhak create large investment projects in the country to help generate more income in the country and ease the pressure on the governments shoulders.
Of course such improvements would have to be reinforced by sound regulation and good governance practices.
And while most investments were generated through the implementation of foreign-backed projects toward the development of Yemen, progress will ultimately be reflected throughout all sectors of the industry.
“Investors are seeking to establish small and medium projects, rather than large-scale ones. This is clearly demonstrated by the increase in the number of projects in comparison to 2012, along with the decline in capital this year, because investors are keen to establish small and medium projects due to the security, political and economic situation in the country," said Saleh.