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With the implementation of tax incentives for merchants, Yemen’s trade environment is steadily improving but more government focus is needed on privatization and regulatory reform.

An April 2004 Presidential directive decreed that land be granted to investors at no cost and that the investment projects enjoy profit tax exemption if the project capital is more than 10 million USD.

A privatization program started in 1998 with sixteen enterprises in industry, tourism, and trade, came to a standstill in April 2001 when Parliament refused to approve a World Bank credit to fund a larger, long-term privatization program.

However, a few years later, the government funded the privatization program.

According to the technical Privatization Office, the government privatized two enterprises in 2005 and the Public Land Transportation Corporation government sector in 2007.

Airport services, cements, and medications are at the top of the privatization list.

Table of Opportunities in Various Sectors:

Sector	Location	Plant to Manufacture	Est. Investment U.S. Million
Electricity	Ma’areb, Bilhaf, Ma'bar	Gas power plants: A gas turbine plants composed of four turbines with a 400 megawatt capacity.	$200
Cement	Ma’areb, Hajah	Portland cement and packaging: 50 kg bags	$200
Housing	Aden, Hodaiah, Sana'a, Al-mukala, Lahij	Provide appropriate housing for low- income earners and youth.	$150
Oil and Gas	Aden refinery, Safer refinery (Ma'reb)	Modernizing and developing the existing refineries to increase production in conformity with international standards.	$700
Extracting	Taiz	Creating a marble and granite extraction: Cutting and glazing industry for ornamental stones.	$35
Transport	Aden, Almukala	Creating a company for maritime transport in a partnership between the private and public sectors.	$40
Transport	Dabba-m/Hadramut	Building a new port in Dabbam Hadramut .	$641
Glassware	Bilhaf industrial zone	Exploiting and manufacturing the glass materials. Glass industry, crystal industry, Ceramic industry.	$200
Steel	Aden, Hodeidah, Sheboa-Bilhaf	Iron fusion and shaping by using scrap iron and raw iron (imported foundries) to produce iron for armament and other iron products.	$15
	Aden	Liniralkyl fuel: Produce raw materials used in manufacturing detergents.	$180
Medical	Aden, Ibb	Hospital for cancer research and treatment.	$16
Pipeline	From Safer to Sana'a	200 Km Natural gas pipeline.	$65
Medical	Sana'a	Hospital for orthopedics, brain surgery and neurosurgery .	$30
Chemical	Aden - Hodaidah - Mukalla	Caustic soda used in soap, chlorine, hydrochloric acid.	$9
Medical	Taiz, Hodiadah	Hospital for kidney diseases and surgery.	$10
Medical	Almukala, Aden	Hospital for heart diseases and surgery .	$16
Tourism	Khaokha	Tourist resort and village on the Abu Zahr Khaokha beach	$11
Food	Hajja	Fruit and vegetable processing plant	$5

Sources:	*	The General Investment Authority Website
	**	Ministry of Industry and Trade
	***	Ministry of Planning and International Cooperation, “Republic of Yemen, 15 Years of Buliding and Development”, 1990-2005
	****	US-Arab Tradeline, Volume XIII, November/December 2005

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Last Updated: 05/15/08