Yemen occupies advance rank in the Doing Business 2009

Yemen implemented one of the boldest reforms, reducing the world’s second-highest minimum capital requirement and launching a one-stop shop for business start-ups, thus, Yemen jumped from 178th rank last year in terms of the starting business indicator, to the 50th rank due to these reforms, according to Doing Business 2009—the sixth in an annual series of reports published by IFC and the World Bank, launched in Washington D.C., September 10, 2008.

Yemen occupied, generally, the 98th rank globally in terms of business production instead of the 123rd rank last year because its efforts related to facilitating procedures of starting businesses, applying single-window systems for investments, and amending several laws to facilitate the investment climate, according to the report. 

Dr. Yahya al-Mutawakil, the Minister of Industry and Trade confirmed that the government, in cooperation with donors, implemented a number of projects aimed at starting businesses in order to reduce the time and cost required, and encourage new business for local and foreign investors or businessmen. “These projects have contributed to improving the business environment and investment climate in general in a framework of the government's plans to develop the economic structure and modernize its management,” said al-Mutawakil.

The governmental efforts to improve the investment climate and business environment led to Yemen achieving an advance rank related to starting businesses which occupied the 50th rank instead of 178th rank in the report of 2008, said al-Mutawakil.

"Several projects are implemented by the Ministry of Industry and Trade such as the automation of procedures for company's registration, agencies and branches of foreign companies," said al-Mutawakil. "Improving trade projects and facilitating procedures for starting businesses as well as applying a single-window system for investments reflected positively on the business environment in Yemen to offer easier and faster procedures for commercial society.” 

The ministry reduced required procedures of starting commercial business from 12 to a three procedures and through a single-window system.

The Minister reviewed the amendments of some articles in laws and legislation prepared by the ministry, and ratified by the parliament; For instance, amending the limited companies law which abolishes the minimum requirement of capital as a condition for the establishment of limited companies. Thus, this amendment contributed to improving Yemen position in the report.

He said that this amendment was a step in the right direction to facilitate the business environment in Yemen, which was viewed from the outside world as one of the most difficult regions in the world to set up commercial activities, and this undoubtedly was the amendment to remove restrictions and obstacles that were adversely affecting and negatively portraying the classification of Yemen as an attractive environment for investment. Now, you can start any business with the available capital.

An additional amendment was related to commercial law. “We amended article number 28 which allowed for non-Yemenis to practice commercial business and trade without the need for a Yemeni partner, which would encourage Arab and foreign investment and business to set up companies in the trade sector regardless if the Yemeni market is considered a promising market for products.” 

The report showed that Yemen topped other countries in terms of implementing the largest number of reforms in the starting of commercial activities.

According to the report Yemen has implemented one of the most radical reforms, a reduction of the minimum requirement for capital to establish companies, and the application of single-window systems to facilitate the procedures of setting up investments and new companies.

The report, which includes 187 countries, showed that Yemen occupies the 50th rank in terms of starting businesses because it reduced the number of procedures from 12 to 7 only, and the number of days from 63 days to 13 days only. In addition, Yemen reduced the cost of starting a business from 269% of income per capita to about 93%, as well as reducing capital requirements to a minimum, from 1561% of income per capita to zero. Thus Yemen jumped from 178th rank from last years report to its current ranking of 50th.

Abdul-Kareem al-Arhabi, Deputy Prime Minister for Economic Affairs and Minister of Planning and International Cooperation said that remarkable progress in investment environment in Yemen reflected positively on progress released in reforms agenda and performance of the government. 

Al-Arhabi said that the international indications of World Bank have showed that Yemen realized positive results at economic and investment levels. 

He pointed out the recent report of the International Finance Corporation IFC, which showed improvement in the Yemeni performance especially in field of business start-ups in which Yemen achieved the 50th rank instead of 178th rank last year. Such a renowned achievement makes a good reputation worldwide, which will attract extra investments for Yemen.

In terms of Middle East and North Africa countries, the report pointed out that these countries continue to ease the regulatory burden of doing business, according to Doing Business 2009. For a third time, Egypt is one of the top 10 economies that reformed their business regulations, while both Saudi Arabia and Bahrain rank among the top 25 worldwide on the ease of doing business.  In two-thirds of the region’s economies, the report records 27 reforms between June 2007 and June 2008 that make it easier to do business.

Egypt, which was the world’s top reformer of business regulations last year, continued to lead, with improvements in six of the 10 areas the report covers. Egypt advanced 11 places in the global rankings on the ease of doing business.  The region’s other leaders in reforming regulations are Saudi Arabia and Tunisia; each made it easier to do business in four areas.  

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