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Business images of Yemen

Economy of Yemen

The economy of Yemen has significantly weakened since the breakout of the Yemeni Civil War and the humanitarian crisis, which has caused instability, escalating hostilities, and flooding in the region.South Yemen and North Yemen had vastly different but equally struggling underdeveloped economic systems. Since unification, Saudi Arabia expelled almost 1 million Yemeni workers, and both Saudi Arabia and Kuwait significantly reduced economic aid to Yemen.In return, it has pledged to implement significant economic reforms.the enhanced structural adjustment facility (now known as the poverty reduction and growth facility, or PRGF) and the extended funding facility (EFF). In the ensuing years, Yemen's government attempted to implement recommended reforms: reducing the civil service payroll, eliminating diesel and other subsidies, lowering defense spending, introducing a general sales tax, and privatizing state-run industries.

Top Sectors in Yemen

Agriculture in Yemen

Yemen's economy, generating more than 20 percent of gross domestic product (GDP) of the working Yemeni population. However, a U.S. government estimate suggests that the sector accounted for only 13.5 percent of GDP. Numerous environmental problems hamper growth in this sector — soil erosion, sand dune encroachment, and deforestation but the greatest problem by far is the scarcity of water. As a result of low levels of rainfall, agriculture in Yemen relies heavily on the extraction of groundwater, a resource that is being depleted. Yemen's water tables are falling by approximately two meters per year; it is estimated that Sanaa's groundwater supplies could be exhausted by 2030. The use of irrigation has made fruit and vegetables Yemen's primary cash crops. With the rise in the output of irrigated crops, the production of traditional rain-fed crops such as cereals has declined. According to the Central Bank of Yemen, the production of khat, a mildly narcotic and heavily cultivated plant that produces natural stimulants when its leaves are chewed, rose 6.7 percent and accounted for 5.8 percent of GDP; the consumption of khat is widespread in Yemen. According to the World Bank and other economists, cultivation of this plant plays a dominant role in Yemen's agricultural economy, constituting 10 percent of GDP and employing an estimated 150,000 persons while consuming an estimated 30 percent of irrigation water and displacing land areas that could otherwise be used for exportable coffee, fruits, and vegetables.

fishing in Yemen

Although Yemen's extensive territorial waters and marine resources have the potential to produce 840,000 tons of fish each year, its fishing industry is relatively underdeveloped and consists largely of individual fishermen in small boats. In recent years, the government has lifted restrictions on fish exports, and production has reached one-quarter of capacity, yielding revenues valued at US$260 million in 2005. Fish and fish products constitute only 1.7 percent of Yemen's GDP but are the second largest export. In December 2005, the World Bank approved a US$25 million credit for a Fisheries Management and Conservation Project to be launched in all coastal governorates along the Red Sea and the Gulf of Aden. This project is expected to improve fish landing and auction facilities; provide ice plants for fish preservation; and enable Yemen's Ministry of Fisheries to undertake more effective research, resource management planning, and regulatory activities.

Oil and gas in Yemen

Yemen is an oil producer and has significant untapped offshore oil and gas deposits. Unlike many regional oil producers, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government. Income from oil production constitutes 70 to 75 percent of government revenue and about 90 percent of exports. Yemen contains proven crude oil reserves of more than 9 billion barrels (1.4×109 m3), although that is falling from the country's older fields, which have been wrecked by war and corruption, both driven by the fact that oil provides around 90% of the country's exports.

Industry in Yemen

The US government estimates that Yemen's industrial sector constitutes 47.2 percent of gross domestic product (GDP). Together with services, construction, and commerce, industry accounts for less than 25 percent of the labor force. The largest contributor to the manufacturing sector's output is oil refining, which generates roughly 40 percent of total revenue

services in Yemen

Economists have reported that Yemen's services sector constituted 51.7 percent of gross domestic product (GDP) in 2002 and 52.2 percent of GDP in 2003. The US government estimates that the services sector accounted for 39.7 percent of GDP in 2004 and 39.3 percent in 2005.

tourism in Yemen

Yemen's tourism industry is hampered by both limited infrastructure and significant security concerns. The country's hotels and restaurants are below international standards, and air and road transportation is largely inadequate. Kidnappings of foreign tourists remain a threat, especially outside the main cities. Coupled with terrorist bombings at the Port of Aden in 2000 and 2002, the threat of kidnappings presents a significant deterrent to tourism. As recently as September 2006, tribesmen in the Shabwa province, east of Sanaa, kidnapped four French tourists on their way to Aden; the tourists were freed two weeks later. In October 2006, the U.S. Department of State reiterated previous warnings to U.S. citizens, strongly urging them to carefully consider the risks of traveling to Yemen. Britain's Foreign Office has issued a similar advisory. Recent statistics for tourist arrivals in Yemen are not available, but the number of tourist arrivals rose to 274,000 in 2004 from 155,000 in 2003.


Yemen - Key Economic Indicators

Exports & Imports

While crude oil remains Yemen's primary export, its dominance has declined. Recent data suggests total exports hover around $12.45 billion, with oil contributing a smaller share compared to the past. FocusEconomics reports Yemen is looking to diversify exports towards agricultural and fishery products. Data on the most recent figures can be found from the Central Bank of Yemen or the WTO.

Balance of Trade

Yemen has historically run a trade deficit. This continues, with import bills exceeding export earnings. The World Bank estimates a recent deficit due to ongoing conflict and the need for imported goods.

Infrastructure Development

Yemen's road network is underdeveloped, with a total length estimated to be below pre-war levels due to damage and limited construction. The World Bank highlights night-time light data suggesting a slight increase in economic activity during the 2022 truce, potentially indicating some improvement in infrastructure use. However, significant investment is needed for substantial development.

Fiscal Policy

Yemen's government budget faces strain. Data from the IMF shows government revenue at around 9.58% of GDP, while expenditure sits at 12.17%, leading to a deficit. The government aims to support social programs and businesses, but achieving a balanced budget remains challenging.

Monetary Policy

The Central Bank of Yemen struggles to manage inflation, which FocusEconomics estimates averaged over 20% in the past decade. The ongoing conflict disrupts economic activity and weakens the Yemeni Rial.

Trade Agreements

Yemen's membership in the WTO offers some trade benefits. Free trade zone agreements with neighboring countries are also pursued, but the conflict hinders progress.

Environmental Regulations

Yemen has environmental regulations, but enforcing them is difficult due to the crisis. Water scarcity, land degradation, and limited waste management are pressing concerns

Tax System in Yemen

Capital gains tax: Still no definitive information on a specific tax rate for capital gains in Yemen.
Corporate tax rate: The standard corporate tax rate remains at 25% (as of 2016-2017 data).
Sales tax: The General Sales Tax (GST) system likely persists. The standard rate was 5% with a higher rate of 10% for specific goods and services like telecommunications. However, there's a possibility these rates have been adjusted due to the conflict.
Property tax: Specific details on property taxes are still unavailable.
Payroll tax: The social security system likely remains in place with contributions around 12% from employers and 7% from employees (as of 2016-2017 data). Again, these figures might have changed due to the situation.
Tax deductions and credits: Information on available tax deductions and credits remains limited.
Tax compliance: Due to the ongoing conflict, tax compliance is likely to have weakened further since 2016-2017. This means the actual amount of tax collected may be significantly lower than intended.
Tax burden: It's difficult to say definitively if the overall tax burden has increased or decreased due to a lack of recent data. However, with potential changes in tax rates and likely issues with collection, the burden might have shifted.

94 Live Notices for Yemen ....

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The Annual Framework Service Agreement To Provide Medical Health Insurance For Mfd Employees For 2025
country Yemen
posting date27 May 2025
deadline11 Jun 2025
Renting A Four -Wheel Drive Vehicle With The Driver, Fuel And Maintenance (Aden - Abyan) (Aden - Shabwa)
country Yemen
posting date27 May 2025
deadline11 Jun 2025
Supply, transportation, delivery, and distribution of fertilizers and agricultural fertilizers to beneficiaries in the targeted governorates of Sana'a, Amran, Al-Jawf, and Al-Hodeidah
country Yemen
posting date27 May 2025
deadline24 Jun 2025
Supply, transport, delivery, distribution, installation, and operation of modern agricultural irrigation networks, including all accessories and technical requirements for them, with integrated sprinkler and drip systems, for beneficiaries in the targeted governorates of Sana'a, Amran, Al-Jawf, and Al-Hodeidah.
country Yemen
posting date27 May 2025
deadline24 Jun 2025
Supply of Emergency and intensive care medicines
country Yemen
posting date27 May 2025
deadline24 Jun 2025
Purchasing and supplying cardiac catheterization supplies
country Yemen
posting date27 May 2025
deadline24 Jun 2025
Fuel Provision In Yemen
country Yemen
posting date27 May 2025
deadline18 Jun 2025
Supply, Delivery, And Inspect Of Manhole Covers And Manhole Steps To Sana'A Wslc'S Warehouses, In Sana'A City Capital, Yemen
country Yemen
posting date27 May 2025
deadline16 Jun 2025
Supply, Delivery, Configuration And Commissioning Of It Equipment To Local Water And Sanitation Corporations And Water Authorities Offices In Yemen (Yiuesp Ii & Yehcp)
country Yemen
posting date27 May 2025
deadline16 Jun 2025
Rfq-011/2025 For Procurement Of Rehabilitation Of The Generator And Parking Yard At Fao Aden Office
country Yemen
posting date27 May 2025
deadline05 Jun 2025
Establishment of a Frame Agreement for the Provision of Fueling Services for UNHCR Office South Yemen Operation
country Yemen
posting date27 May 2025
deadline18 Jun 2025
supply and install a solar energy system in the Hadhramaut directorates (Sah, Hajar, and Ghayl Bawazir)
country Yemen
posting date27 May 2025
deadline03 Jun 2025
Purchase of paving equipment according to the governorate's need, including Komatsu or Caterpillar tractors, modern model, (6) Verkawa bulldozers, (1) + (2) backhoe loaders
country Yemen
posting date24 May 2025
deadline25 Jun 2025
Contribution to the rehabilitation of the College of Agriculture in the Governorate (furnishing and equipping the laboratories of the College of Agriculture at Saada University)
country Yemen
posting date24 May 2025
deadline25 Jun 2025
Rfp Services-The Provision Of Technical Needs Assessments And Proposals For The Education And Health Sectors In Yemen
country Yemen
posting date23 May 2025
deadline12 Jun 2025
Procurement Of Maintenance Toolkits With Delivery To Sana'A
country Yemen
posting date22 May 2025
deadline29 May 2025
Supplying The Bag Of Art Equipment Or Resin Art (For The Manufacture Of Accessories, Utensils, Home And Office Purposes) For Sanaa Governorate
country Yemen
posting date21 May 2025
deadline05 Jun 2025
Rehabilitation Of The Khokha Water Project + Rehabilitation Of The Al -Waar Water Project (Al -Khokha Directorate, Al Hudaydah Governorate)
country Yemen
posting date21 May 2025
deadline05 Jun 2025
Supply of voltage transformers to the General Administration of Transport and transformer stations
country Yemen
posting date21 May 2025
deadline23 Jun 2025
Supply of a (5) ton winch with a truck to the General Administration of Electricity of the Secretariat
country Yemen
posting date21 May 2025
deadline23 Jun 2025