By: Ahmed Al-Tayyar
In an exclusive interview with Investment Magazine, Eng. Mohammed Ahmed Al-Farzai, Head of the Promotion Sector at the General Investment Authority, revealed groundbreaking achievements in identifying and preparing investment opportunities in Yemen. Over the past three years, Al-Farzai and his team have developed a repository of 1,121 promising investment opportunities across key economic sectors, with a total investment cost exceeding $12 billion and the potential to create a quarter of a million jobs.
Promoting Investment Opportunities
Speaking about the role of the Promotion Sector, Al-Farzai emphasized its critical function within the General Investment Authority. “The Promotion Sector is one of the main pillars of the Authority. It oversees various departments such as marketing, policy advocacy, media, and relations, all aimed at promoting Yemen’s promising investment opportunities at home and on international platforms.”
The sector organizes workshops, forums, and conferences to present these opportunities to potential investors and collaborates with relevant government bodies to prepare sectoral studies for key industries.
What is Investment Generation?
Al-Farzai explained that investment generation is a core function of the Authority, alongside investment facilitation, policy advocacy, and building a positive image for Yemen as an investment destination. “Investment generation starts with identifying and presenting opportunities to investors, then converting these opportunities into viable projects—a process we refer to as targeted investment generation,” he said.
The Investment Landscape in Yemen
The Authority has identified 1,121 investment opportunities across various sectors, including:
- Mining
- Food Industries
- Poultry
- Construction Materials
- Fisheries
- Tourism
- Electricity and Energy
- Transportation
- Pharmaceuticals
- Healthcare
These projects, prepared in collaboration with relevant government ministries, aim to address a significant market gap. “Over 85% of Yemen’s needs in most sectors are met through imports. This gap creates vast marketing opportunities for local investments,” Al-Farzai explained.
Among the most promising sectors is mining, which has vast reserves of metallic and non-metallic minerals. With an estimated investment need of $2 billion, the sector offers 285 opportunities in mining and extraction-related industries.
Private Sector Involvement
Al-Farzai highlighted the active involvement of the private sector in preparing sectoral strategies, such as those for pharmaceuticals, food industries, and poultry. “The private sector has been a key player in shaping these strategies, ensuring their objectives align with market realities,” he noted.
He also emphasized the critical role of the private sector in driving investment: “Without the private sector, there can be no investment. Our primary goal is to present these opportunities to national private investors, followed by Arab and foreign investors.”
Opportunities for Foreign Investment
The Authority is also targeting foreign investments in large-scale infrastructure projects, including electricity generation, seaports, airports, and transportation. “These projects require significant expertise and capital, which specialized foreign companies can provide. However, we prioritize local investors if they have the necessary capabilities,” Al-Farzai said.
Collaboration with Government Bodies
While collaboration with government entities has improved, Al-Farzai noted lingering challenges. “Some ministries view the Authority with apprehension, fearing it might encroach on their responsibilities. Our role is to coordinate, facilitate, and promote investment opportunities across all sectors, not to take over their functions,” he explained.
He added that many government entities have begun to embrace the Authority’s role, showing increased willingness to collaborate. “In 2021 and 2022, some ministries were hesitant, but by 2023, they are actively seeking our partnership to develop investment opportunities,” Al-Farzai said.
Looking Ahead
Eng. Mohammed Al-Farzai concluded by expressing optimism about Yemen’s investment potential. He reaffirmed the Authority’s commitment to fostering a business-friendly environment through partnerships with the private sector, government bodies, and international investors. “Investment is the cornerstone of economic recovery, and we are working tirelessly to make Yemen a hub of promising opportunities,” he said.
This interview highlights the critical steps being taken to bridge Yemen’s economic gaps and lay the foundation for sustainable growth through strategic investment initiatives.
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