Political Analysis

Street Protests Incur Heavy Economic Losses

The situation that still taking place in the Arab political arena represented in popular protests, and revolution which toppled the regimes of Zine El Abidine and Hosni Mubarak and set that has put the Gaddafi regime on the brink of collapse, is deeply affecting Yemen.

In addition, the street protests in our country and other Arab countries have negatively impacted economic activity and development prospects, as elsewhere in the region.

The Real estate and investment Sectors are some of the activities affected most adversely by the events.

Most Arab and international real estate companies have large investment activities in Libya, Egypt and Tunis. They have suffered significant financial losses running into millions dollars.

These astronomical losses seem to be accelerating faster than the events themselves.

At the same time, the current unrest and disturbances occurring in most of the provinces of Yemen, as in the economic capital of Aden, as well as in Mukalla and Sana’a has affected the real estate investment sector in Yemen, especially as these cities are the center of the real estate market in Yemen and the largest Real estate investments of local and Gulf companies are concentrated there.

The real estate investments have significant financial losses because of declining sales. According to the familiar, unstable events in Aden has rocked the pillars of most real estate companies operating in Aden, such as as Hamdani, Al-Awael, Joker and others.

The loss of economic activity to those companies are very large and will increase with the increase of protests.

Company owners ascribed the causes of those losses to the fear of losing their customers and the inability to pay monthly installments on residential apartments which have been slated for construction.