Business and Investment

Three Saudi-Yemeni Enterprises are Established in Energy, Communications, & Exhibits

Published

1 day ago

25th December 2024

Huda

The Federation of Saudi Chambers' Saudi-Yemeni Business Council has declared that Saudi Arabia has launched three enterprises.

During talks in Mecca, the Saudi-Yemeni Business Council at the Federation of Saudi Chambers announced that Saudi Arabia has started six initiatives to improve trade and investment exchanges with Yemen and establish three enterprises in renewable energy, communications, and exhibitions.

Saudi-Yemeni Boosting Trade Exchange

The announced initiatives include the construction of border crossings between Saudi Arabia and Yemen and the development of logistical services and infrastructure to boost the volume of trade exchange.

Currently, the volume of trade exchange stands at 6.3 billion riyals ($1.6 billion), of which only 655 million riyals ($174.6 million) are Yemeni imports, despite Yemen’s potential in the mining, agriculture, livestock, and fisheries sectors.

In light of the difficulties in maintaining food supply chains at the regional and global levels, the recommendations called for the establishment of smart food cities in border areas to improve food security and foster a sustainable economic environment for cooperation in this sector by enhancing the use of natural resources and developing modern technologies to support local food production.

They also called for the establishment of quarantines to examine Yemeni livestock, agricultural, and fish products to increase Yemeni exports to the Kingdom.

The proposals also emphasised the necessity of resolving Yemeni banks’ predicament, establishing avenues for collaboration with Saudi banks, and advancing Yemen’s exchange industry to overcome the banking and credit obstacles that Saudi and Yemeni businessmen face while exporting their goods.

Establishing Three Enterprises

The Saudi-Yemeni Business Council discussed investment potential in renewable energy, agriculture, livestock, communications, and exports, with efforts to boost Saudi and Yemeni investment through the formation of a Yemeni Investors Club and alliances.

Dr. Abdullah bin Mahfouz, Chairman of the Saudi-Yemeni Business Council, has agreed to establish three Saudi-Yemeni companies, with the first company utilising $100 million for sustainable solar energy production to meet Yemen’s energy needs sustainably.

The second company will enhance the communications sector using the Starlink satellite communications network, while the third company will organise conferences and exhibitions in Yemen to promote Saudi products and aid reconstruction efforts by offering a forum for the exchange of ideas and business opportunities.

Through its investments in initiatives that promote economic development, create job opportunities, upgrade infrastructure, and grow small and medium-sized businesses—among the most crucial initiatives promoting employment—Bin Mahfouz emphasised the critical role that the private sector plays in attaining economic and social stability in Yemen.

Bin Mahfouz underlined the importance of supporting Yemeni entrepreneurs and providing funding for reconstruction projects. He emphasised the need to strengthen public-private sector partnerships in Yemen, enabling the private sector to carry out major development projects under the Build, Operate, and Transfer System (B.O.T). This partnership fosters a stable, sustainable economic environment, promoting social and economic peace.

He explained that the Saudi-Yemeni Business Council meeting led to the signing of trade cooperation agreements between Saudi and Yemeni companies, focusing on development and economic projects. This increased joint investment, particularly in sectors like energy, agriculture, industry, and infrastructure, stimulated the Yemeni economy and created new job opportunities.

Streamlining Border Crossing Processes

In addition, aiding Yemeni reconstruction projects, boosting Yemeni exports of agricultural, animal, and fish products, and easing trade between Yemen and Saudi Arabia by streamlining border crossing customs procedures, building logistics services, Yemeni ports, and airports, as well as fostering collaborations between the public and private sectors, will all help Yemen achieve economic stability.

Following a discussion session attended by over 300 investors, Abdul Majeed Al-Saadi, the head of the Yemeni side in the Joint Business Council, stated that it was intended to establish enterprises specialising in the quarry sector. The goal is to export raw materials to the Kingdom in addition to animal exports, which will improve food security for the two nations.

Al-Saadi noted that the focus would be on obtaining the required permits and streamlining processes at the two nations’ border crossings to promote commerce and business travel.

Al-Saadi clarified that although the exact amount of the anticipated capital has not yet been determined, it is anticipated that investments in the quarry industry would surpass $150 million, while energy businesses’ capital will not go below $100 million.

As Yemeni investments in the Saudi market are estimated to be around 18 billion riyals ($4.8 billion), ranking third, Al-Saadi praised the new Saudi investment system and disclosed that a large amount of Yemeni capital in Arab countries has started to move to the Kingdom due to the great opportunities.