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The State Policy and Recommendations

Date: 11/8/00
Time: 2:32:44 AM
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The State Policy and Recommendations Towards Developing the Export Sector in Yemen

Due to the consideration by the political leadership of the important role to be entrusted by the state in encouraging the export sector, as being the corner-stone in solving the economic problems paining the economy of Yemen, the Republican Decree No.127 of 1997 had been issued concerning the establishment of the Supreme Council for Development of Export and its Technical Unit. It has been intended to make this Council the chain link between the efforts of both public objective of up-grading the national export items, and increase the proportional ratio of the exports' volume. These particularly concern the agricultural, industrial and fishery exports. Besides, the council shall prepare studies and researches on the obstacles facing their progress, and enact on providing the relative solutions. When one may focus on the balance of trade's figures found in the three balance of payments of Yemen for the years 1995, 1996 and 1996, it can be traced that though some exports increase in volume did happen, yet all exported commodities constituted only 4% of the total export volume. 96% of it consisted of oil and gas exports. In order to introduce corrective measures aiming towards increasing the exporting of non-oil and gas commodities, most studies pre-conducted on this sector, have indicated the necessity to consider, and act in enforcing the following recommendations and/ or proposals:- A- In General:

Working towards directing the investment to instituting an infrastructure for creating a stabilized export environment. This should be achieved through encouraging formation of projects of marketing services, which are necessitated for installation of the agricultural and fishery exports suppliable with their accompanying utilities e.g. packaging, conservation, storage ect. Reducing the financial burdens chargeable on the local exporters, and removal of customs' and clearances' obstacles arising through the procedures required by the Ports Authority. These shall be directed as contributions by the state for the exporters to act in up-lifting the ratio of the exports' volume. Working towards activating the role of the banking institutions in financing the investments and industrial enterprises the products of which are objected for export, and through providing the financial loans, credits and facilities to the exporters in compliance with the experiences of the other countries that preceded Yemen in this field. Encouraging establishment of a specialized bank ready to finance the export sector, and directing all its activities towards financing the external trade, financial supporting and promoting the projects related to exports, and guaranteeing and insuring all national commodities meant for exporting against the various commercial and non-commercial risks. Objecting the outputs of education towards some suitable vocational and technological training programmes as to yield advantages that may arise later in acquiring the technical skills, and utilizing them within the development projects meant for up-grading the standards of exports. As for the role of the Supreme Council, assistance should be given to its programmes of training and researching within the following aspects of activities:- Initiating training programmes that should be practically available in the field of development of production of the commodities defined for export. Establishing laboratories assigned to operate for the packaging of exports of national products. Conducting training schemes in the field of simplification of the procedures related to the export business. Preparation of studies on the markets of some neighboring states, as well as, establishing a special laboratory for conducting researches on marketing and exporting the agricultural products and those related to the fishery wealth of the country. __________________________ Source: "Economic" issue No. 118 of 15/9/98. Reference: Part of the article on "Reality and future prospects of Yemen's export sector".

Last changed: September 15, 2002