The investment in Yemen is getting a worse reputation day by day, simply because of indirect corruption for the benefit of select decision-makers and the wrong understanding and poor international communication, which has discouraged the biggest potential investors from entering the country.
Yemen has got no major companies to revive its markets or to make significant changes in the country’s economy. Once this changes, if it changes, the companies might be able to satisfy the interests of political players as well as the population at large, rather than counting on a circle of corrupted elite.
Corruption can be seen everywhere and it’s the main reason for today’s revolution. Denying governmental jobs opportunities for youth for years is corruption, ignoring reform, overtaking contracts and slowing down public procedure is corruption, and all of this has led to the current political outrage.
Yes, Yemen has a deficient commercial system and bidding framework, and it should be corrected for the sake of the new generation.
Companies should have a direct approach to the available opportunities paying no one to satisfy or monopolize their work.
The major projects in Yemen are considered to be failures, as the shareholders inevitably withdraw their investments, or unsuccessful communication over the profits sink partnerships.
If we review the map of investment, we will find the majority are family companies or small personal business. The real business can be seen in the oil and gas sector and lately real estate which is collapsing with the current protests.
The government has failed with the Sana’a airport project, the Aden free zone and many other projects financed by international donors interested in development.
These projects have a low impact, but the major companies who really operates continuously and invest a lot of money may face strong resistance by few number in the community who do not want to see an international companies working in Yemen.
I would not blame companies for how they made their contracts or over what. I would blame the rotten regulatory framework that impedes their progress and demands unjust rewards at every turn. Breaking deals is harder than starting them.