Economy
Yemen is 1 of the poorest countries in the Arab world, and among the principal motivations behind the unification of Yemen in 1990 was the prospect of economic transformation and expansion.
However, it is only in the last few years that the economy has started to show irregular signs of improvement. Under IMF auspices, the government has applied a programme of structural reforms involving privatisation and an overhaul of the financial system.
In exchange, the Yemenis received financial support and some relief of 5 %, and inflation eased to 11 %, after a rapid increase in previous years. Large scale unemployment persists, an estimated 30 % of the workforce are out of work and there is serious under employment.
Agriculture is concentrated in the fertile northern part of Yemen. The principal cash crops are fruit, cotton, cereals, coffee, vegetables and qat (a narcotic leaf), sorghum, potatoes, wheat and barley are grown for local consumption.
Livestock rearing and fishing, both of which happen throughout the country, are also important. The manufacturing industry is chiefly involved in the production of construction materials, tobacco, processed foods, drinks and chemicals.
However, the most significant industrial activity is oil and gas production. Yemeni reserves are modest by regional standards but since the opening of the refining complex at Aden in 1994 and new fields coming on stream, the sector accounts for the majority of export earnings. Aden also hosts a newly established free trade zone. Other mineral deposits, which are concentrated in the south, include lead, copper, gold, zinc and molybdenum.
Yemen’s main trading partners are the United Arab Emirates, Saudi Arabia, the Republic of Korea, Japan, Egypt and the United States of America.
Business
Business people are expected to dress smartly for meetings and formal social occasions. English is frequently used in business circles. Appointments are necessary and visitors should be punctual. Visiting cards are often exchanged. It is usual for Yemeni businessmen chew qat during a meeting.
General office hours are Saturday to Wednesday from 8.00 am to 3.00 pm.
Commercial Information
The following association can offer advice:
General Investment Authority. |
