Business

Economists Call For Bank To Support Non-Oil Exports

National Yemen

Yemen central Bank

By NY staff

Recently, economists have called for the support of non-oil exports to reach a fit level in structure of Yemen exports after they found that the rate of non-oil exports is very low at about 6%, while oil exports are between 90 and 95%, which has led to an imbalance in the proportion of exports.

In addition, the economists suggest of establishing a special bank to support none oil exports, considering the export process a good strategy to promote economic growth and improve the purchasing power of the national currency as well as improve the level of national income from foreign exchange.

According to the economists, there are many countries that depend on such banks, called foreign trade banks, to develop national exports in foreign markets, whether regional or international.

They all confirmed the importance of diversifying non-oil exports and expanding the export base, which requires the promotion and development of competitiveness in the economy, especially in tradable goods.

Economists pointed out a set of factors for developing exports, such as studying suitable markets for exporting and the kinds of goods required by these markets like the Gulf markets in general and Saudi Arabia in particular, and studying demand for Yemeni products in African markets.

According to the economists, African markets are considered a major extension for local markets where there are Yemeni communities in most African countries and these markets are geographically close to Yemen, which decreases transportation costs, insurance and export, adding to the rest of the Asian and European markets.

They called the exporters and producers to pay attention to quality standards and specifications, whether in the goods or the conditions and requirements of marketing, in the field of packaging, storage and others as well as in planning for exporting goods, especially industrial goods that use raw materials from local sources.

Economists said that these factors will help to develop the competitiveness of non-oil exports because the dependence on the oil exports alone presents a significant risk to the national economy in case oil prices decline in the international markets.

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