Yemen Infrastructure Report Q4 2010Business IntelligenceSeptember 23, 2010 80 Pages - SKU: BTAI2831142 |
| Countries covered: Yemen Despite a wave of aid commitments in recent months and greater attention from multilateral institutions, Yemen’s construction industry saw little movement in the latest quarter outside of the power sector. Nonetheless, a combination of multilateral support to bolster and modernise Yemen’s economy, as well as funds funnelled directly into projects, and revenue from LNG exports (the Balhaf plant is expected to bring in US$700mn annually) will help offset the country’s declining oil production and the lingering effects of weak oil prices. BMI expects to see the construction sector grow by just 1.12% in 2010 to YER344bn (US$1.54bn). Recent developments: The country secured a YER243.5mn (US$370mn) Extended Credit Facility Arrangement from the International Monetary Fund (IMF) in July 2010, which is designed to not only encourage and support Yemen’s fiscal restructuring but also to develop infrastructure. The IMF will expect the government to invest in infrastructure that will see the country diversify away from oil. The government is expected to step up and reform its tax regime in order to generate funds for infrastructure development going forward. It is hoped that the upshot of the fiscal reforms will be an improvement in Yemen’s poor business environment over the coming years. Security concerns continue to threaten the country’s business environment even after apparent successes in negotiations with rebels. Energy infrastructure bore the brunt of tribal unrest in May 2010 as an oil pipeline suffered two bombings and electricity pylons were damaged, resulting in a power cut in Ma’rib. Tribal militants have threatened further action in the central-west governorate while security in northern Yemen also appears to be tenuous, despite a ceasefire between the government and militants some months ago. The vast majority of those who fled northern Yemen amid violence between pro-government groups and Shi’ite rebels, or Houthis, have yet to return to the region. Earlier in the month, Yemen agreed with South Korea to suspend dual taxation of Korean construction firms in order to entice the latter into the Yemeni construction market. Meanwhile, the Confederation of Indian Industry (CII) made its first visit to Yemen in late-May 2010 to sign a MoU with the Federation of Yemen Chamber of Commerce and Industries and to identify opportunities; Yemen’s energy and infrastructure are among the sectors that the CII expects to participate in. Beyond 2010, BMI expects of a modest y-o-y growth rate from 2011 to 2014 within the 2% mark. Real growth will decelerate only fractionally y-o-y until the sector grows by 2.08% in 2014 to YER543.1bn (US$2bn), when the industry will make up 4.93% of GDP. |
More Yemen Reports
D&B Country RiskLine Report: Yemen by
Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
Country Report Yemen January 2011 by
Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...
D&B Country Report: Yemen by
Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...
The 2005 Yemen Economic and Product Market Databook by
Icon Group International, Inc.
Market Potential Estimation Methodology
Overview
This study covers the outlook products in Yemen. For the year reported, estimates are given for the latent demand, or ...
The Economic Competitiveness of Yemen: Financials Returns, Labor Productivity and International Gaps by
Icon Group International, Inc.
Is Yemen competitive? With the globalization of markets, the increased mobility of corporate assets, and the need for productive human resources, this question has ...
See all reports like this >>
Related Markets
Commercial Reports
- Construction in Mexico – Key Trends and Opportunities to 2016
- Construction in Belarus – Key Trends and Opportunities to 2015
- Construction in Bahrain – Key Trends and Opportunities to 2015
- Construction in France – Key Trends and Opportunities to 2015
- Green Building Materials and Construction, 3rd Edition
