Sanaa redesigns economic landscape with private sector: a strategic shift with investment privileges

SANAA, Dec. 10 (YPA) – In a move reflecting a clear direction towards building a more sustainable and productive economy, the capital Sanaa hosted an expanded economic meeting gathering the Sanaa government and private sector leaders.

Held under the slogan “Together to Support Local Products and Encourage National Investment,” the meeting aimed to solidify a stimulating investment environment and enhance the role of national capital in development.

The gathering, organized Tuesday by the Ministries of Finance, Economy, Industry, and Investment in cooperation with the Chamber of Commerce and Industry, served as a direct dialogue platform to address the challenges facing commercial and industrial activity and explore mechanisms for developing economic policies that boost local market competitiveness.

Government Orientations to Enhance the Investment Environment

The Acting Prime Minister of the Sanaa Government, Mohammed Muftah, affirmed that the government is working to build a stable and attractive environment for investment. This is based on simplifying administrative procedures, improving the legal framework, and raising the efficiency of institutions related to industrial and commercial activities.

He noted that security stability represents the cornerstone for stimulating investment and attracting national capital. Muftah also stressed that the coming phase will witness a greater focus on supporting local products through incentive policies and legislation that guarantee market protection from dumping and enhance opportunities for industrial expansion.

Unprecedented Privileges in the Investment Law

For his part, the Minister of Finance, Abduljabbar Ahmed, reviewed the main features of the new Investment Law, which includes a wide range of incentives, including:

• Customs and tax exemptions reaching 100% for production equipment and inputs.
• Income tax exemption on profits for up to 20 years in some sectors.
• Granting land ownership to investors under specific controls for strategic projects.

The Minister confirmed that these privileges aim to transform Yemen into an attractive environment for local and foreign investments, emphasizing that protecting the national product is an integral part of these policies by restricting the import of goods for which a local alternative is available.

Protecting National Industry and Stimulating Competition

The meeting witnessed an official affirmation that decisions to protect local production fall within the framework of normal economic practices followed by many countries to preserve their industries. Flexible policies were adopted, which included restricting imports by a percentage ranging between 25% and 50% for some goods instead of a complete ban.

Participants noted that Yemen possesses a growing industrial base comprising thousands of factories, which prepares the local market for effective competition based on quality and price, opening the door for export expansion in the medium term.

Initiatives to Enhance Trust with the Private Sector

In the context of strengthening the partnership, an initiative was announced to release goods detained at customs ports under specific controls. This aims to preserve the rights of importers and prevent future violations, a step reflecting governmental flexibility aimed at protecting national capital.

Agreement was also reached to form joint committees to address sectoral issues, particularly in the fields of energy, telecommunications, and production inputs.

A Progressive Vision for a Productive Economy

The Acting Minister of Economy, Industry, and Investment, Sam Al-Bashiri, affirmed that the current stage necessitates a transition from a consumer economy to a productive economy based on manufacturing and localization. He indicated that the ministry is working on clear programs to support local industries, facilitate procedures for investors, and provide incentives in accordance with the new law.

In turn, the Head of the Chamber of Commerce and Industry in the Capital Secretariat, Ali Al-Hadi, considered the Investment Law to represent a “new beginning” for the Yemeni economy and a resolution to the problems facing the private sector and businesspeople. He stressed the importance of integration between the public and private sectors to build a more sustainable and competitive market.

Towards a More Stable and Competitive Market

The meeting concluded with a broad consensus that supporting local products, stimulating national investment, and adopting well-thought-out protection policies are the fundamental pillars for building an economy capable of creating job opportunities, achieving sustainable growth, and reducing the import bill.

This movement comes within the framework of a declared government orientation towards localizing industries and investing local resources, thereby establishing a more balanced and stable market and enhancing the position of the Yemeni product in both domestic and foreign competition.

YPA