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Investment Law in Yemen

  The Facilities, guarantees, privileges and exemptions, granted by the provision of the "Investment Law" in Yemen, for the investors and investment projects 
Firstly: the Facilities: -

  (1) Simplification of procedures related to issuance of project permits, as it takes a maximum of (30) days from the date of submitting the requests related to health and fishery projects, while for all others a period of (15) days.

  (2) On behalf of the investors, and for establishing and investment projects related to the government bodies in - concerns, the public investment authority solely undertakes completion of all other required procedures.

  (3) Supply of the information and data in the various aspects as per the requests of the projects and the investors.

  (4) Facilitating the procedures of utilizing foreign expertise locally non- available.

  (5) Any licensed investment project is entitled to have the right of opening its related foreign currency account in the commercial banks once its license application is submitted.

  (6) Industrial and agricultural investment projects have the right to singly open their own commercial stores anywhere in the Republic for sale their products, or like wise through joint venture with other projects.

 Secondly: - securities / Guarantees: -

  (1) Equal treatment in rights, obligations and procedures shall apply on the capital investments of Arab foreign enterprises, and Arab and foreign investors in line with that related to Yemeni enterprises and Yemen-born investors.

  (2) Freedom of investment in compliance with the provisions of "Investment Law"

  (3) Freedom of the investors in administration of their projects respective to evaluation of the economic circumstances and their business conditions.

  (4) No nationalization or seizure measures shall to apply. The law provides guarantees on both non-blockages of fluid capitals related to investment projects, and its confiscation, or free zone, or condensation or other state- control adaptable through the jurisdiction.

  (5) No compulsory pricing shall apply on the project products, or on determination of their profits.

  (6) Freedom of transferring their foreign account funds from other countries to the Republic for the purpose of its investment, and retransfer the invested capital, wither in- kind, or cash upon liquidation or during the project handling, to external areas.

  (7) Freedom of transferring the net profits, resulting from investing by foreign currency funds in projects, to external areas.

  (8) The right to export; personally or through mediators, and without an issued permit, or the need to register it in the exporters' register; the products of the projects.

Thirdly the Privileges: -

  (1) Investment projects may; for their establishments, or expansion, or development, or operating; import fixed assets, transporting means and other installations required for the production process.

  (2) Investment projects and firms; and Arab and foreign investors have privileges; in purchasing or leasing the estates or building owned by the private sector or state, for utilizing in purposes licensed by the project in -concern.

  (3) Investment projects have the right to the employment, discipline, and temporary termination of their working labor force in compliance to the views of their relative administrative boards, and subject to clearance to the labor contract, and payment of all entitlements inscribed within its provisions.

  (4) The investor has the right of transferring his foreign currency funds from foreign sources to the Republic for purpose of investments. In case of his inclination, he is free to re-transfer back with any interests arising form there within

  (5) For purchases of the government and public corporations/ institutions, preference shall be allocated to local products the agricultural and industrial investment projects rather than the comparative imported range, but within the price -scale increase up to 15% relative to the local one and subject to its compatibility of quality.

  (6) Licensed investment projects have the priority of obtaining loans and securities form the bank
and particular financing institutions.

Fourthly Exemptions: -

 (1) Fixed assets and properties required for establishing, or expanding, or developing investment projects are generally exempted from all tax levies (charges) and duties of customs and excise.

  (2) Profits yields of the first running seven years, starting form either date of the scheduled production, or proceeding time of activity as being subjective to their circumstances. These exemption projects of the following criteria: -

   a) Projects established within the classified investment territory (B);

   b) Projects held in ownership by public -sector enterprises provided into general share holdings
are not less than 25% of the paid capital; and

   c) Projects where to have their locally fixed -assets component exceeding 25% of the total
fixed-assets value attributed to the projects in -concerns.

(ÀÚ·á: Public Investment Authority of ROY by YEMEN Gateway http://www.al-bab.com/)

Table 4 Balance of Payments($mn)

 Source : IMF, Balance of Payments Statistics Yearbook, 1990.

 Table 5. Industrial Firms Organized by Ownership (1988)

 Source : CPO, Statistical Report, 1991.

Table 6. Sources of Development Financing (selected years)

 Sources: CPO, 1988 Statistical Year Book: 384; Unido, PDRY: Enhancing Industrial Productive Capacity, 1989: 8.

Table7. Percentage of Industrial Production According to Ownership(1987-1989)

 Source : CPO, Statistical Report, 1991.

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