Vice President of the General Federation of Chambers of Commerce for the Capital, Mohammed Salah, Says for "Investment Magazine":
We have made significant progress in improving the investment environment, and there is a strong will to enhance the partnership between official entities and the private sector.
Having a minister who manages the economy with practical principles has greatly increased the opportunities to boost the private sector's activity, ensure its sustainability, and promote recovery and growth.
We have a strategic plan for industrial transformation, encouraging the localization of industries, enhancing exports, and developing local production.
It is important for transactions to be electronic through a single window that includes both advantages and obligations.
Description by Mohammed Salah, Vice President of the General Federation of Chambers of Commerce in the Capital, on the Government and Private Sector's Will to Strengthen Partnership:
Mohammed Salah described the government and private sector's determination to strengthen their partnership as strong and progressing with the implementation of a series of important steps.
He considers the integration of related government institutions into the Ministry of Economy, Industry, and Investment as a notable development. He pointed out that the meetings between them and His Excellency Minister Engineer Muen Al-Muhairi are encouraging. In his conversation with "Investment Magazine," he stated, "Through our meetings with the minister, we can confirm that stimulating the private sectors, simplifying procedures to attract investors, and activating the partnership between the public and private sectors are the cornerstones of the ministry's agenda."
He addressed the challenges facing investment in Yemen and how to overcome them, as well as the key actions the chamber is undertaking in partnership with official entities to improve the legislative environment to attract investments and support projects. He highlighted that the chamber has a strategic plan for industrial transformation, encouraging the localization of local industries, enhancing exports, and developing local production.
He also discussed other issues such as the chamber's role in encouraging businesswomen, collaborating with organizations, utilizing technology, and community contributions. You can find the details in this interview:
What are the main issues the chamber is focusing on in the field of investment and trade in the Capital Municipality?
Currently, the issues are centered around improving the business and investment environment by enhancing partnership mechanisms between the private sector, represented by the Chamber of Commerce and Industry in the Capital Municipality, and the government entities concerned with business and investment.
Despite the economic challenges and the effects of war and the economic blockade, the will of both parties to strengthen the partnership is strong. Therefore, we are moving forward with a series of steps following meetings and joint activities in this direction. We can say that the year 2023 witnessed significant developments in researching and addressing these issues, all supported by the momentum of relationships between the private sector and the government. Now, with the appointment of the Government of Change and Reconstruction, there has been a notable development in restructuring the economy portfolio into the Ministry of Economy, Industry, and Investment, which encompasses the country's economic sectors. Through our meetings with His Excellency Minister Muen Al-Muhairi, we can confirm that stimulating the private sectors, simplifying procedures to attract investors, and activating the partnership between the public and private sectors are the cornerstones of his ministry's agenda. This is very promising for the private sector.
What are the most prominent challenges facing businessmen and investors?
In our view, there are multiple challenges, all due to the conditions left by the war in Yemen and the economic blockade. From our perspective, the challenges include weak infrastructure, financial fragmentation resulting from the transfer of central bank functions, double customs and tax procedures, and the multiplicity of taxes and procedures affecting the private sector in business services.
We also cannot forget the market stagnation, the decline in community income, and the prevalence of poverty and unemployment. All of this has led the private sector to bear and face numerous challenges. Additionally, external factors have caused an increase in the cost of imports and a decline in supply chains to our country.
There is also a clear challenge in the private sector's inability to obtain any financing opportunities for trade, investment, and industry, which puts national capital at risk. We must not forget the regional instability and its impact on our country. In general, the chamber dedicates its efforts to addressing these challenges and works diligently to solve them in partnership with the government and relevant entities.
How do you view the future of the local economy amid these challenges?
We in the private sector believe that the local economy can grow despite multiple challenges. During the current period, and with the presence of His Excellency Minister Muen Al-Muhairi, Minister of Economy, Industry, and Investment, who has expertise and skill in economic management and private sector activities, the opportunities to enhance the private sector's activity, ensure its sustainability, and promote recovery and growth are very high. This is because he manages the economy based on practical economic principles. Therefore, topics such as national industry, encouraging and stimulating investment are top priorities, in addition to enabling and enhancing small and medium-sized projects and investing in productive sectors such as agriculture and industry.
What steps is the chamber taking to support the private sector and enhance its investments in the city?
The chamber is the home of all traders and represents them according to its establishment law and the current Law No. 27 of 2003, which specifies that it works on facilitating commercial procedures and providing legal and economic consultations to members and the government.
It also works with the government to improve the legislative environment that contributes to attracting investments and supporting projects. Therefore, the chamber has a strategic plan for industrial transformation, encouraging the localization of local industries, enhancing exports, developing local production, promoting entrepreneurship and innovation. We have an Entrepreneurship and Startups Center within the chamber, through which we provide support to small and emerging projects, work on enhancing their status, and network them with companies. We take the same steps to enhance the Businesswomen Center within the chamber, encouraging and supporting them, in addition to specialized sectors within the chamber that highlight specializations in the private sector and enable them to participate in development and enhance their status in the national economy.
How can the chamber enhance cooperation with international organizations to attract more investments?
We always welcome cooperation with international organizations. The chamber works on strengthening its relationships with international organizations through programs to enhance the private sector's activity. We wish that organizations finance projects for the private sector, especially since financing in our country is currently halted.
We also seek the cooperation of organizations with us in organizing investment forums to encourage foreign investors to enter the Yemeni market, as well as supporting chambers of commerce in building, governance, technology, and business intelligence.
What are the most important current projects that can help improve the commercial infrastructure?
We are currently working to prepare the business environment for the private sector. It is important for us that transactions are electronic through a single window that includes both advantages and obligations. We also hope to improve roads, port activities, enhance markets, inaugurate industrial zones, and establish electronic platforms to facilitate commercial procedures for investors.
What is the chamber doing to empower women in business and encourage their participation in the economy?
The chamber is considered the home of businesswomen, just as it is for businessmen. The chamber established a Businesswomen Department at the beginning of the millennium, and today we are working on transforming it into a Businesswomen Center to provide training, qualification, support, and empowerment for businesswomen's projects.
The chamber grants special care to businesswomen by providing them with technical and legal consultations, in addition to solving obstacles and barriers that impede their activities. The chamber works on sustaining their activities.
How has technological development contributed to business development, and to what extent can you utilize it in developing your work?
Technology is an essential part of business development in any country. In our commercial chamber, we have a great ambition to rely on digital solutions to facilitate procedures, serve members, and enhance their electronic activity. We strive to expand the use of technology in industry and trade.
What initiatives are available to train and qualify youth to enter the local labor market?
The chamber launches training programs in collaboration with local and international entities to qualify youth in fields such as technology, management, and artisanal industries to facilitate their entry into the labor market.
What are the future directions the chamber plans to achieve in the coming years?
The chamber plans to enhance the industrial sector, develop infrastructure, expand investments in promising sectors such as renewable energy and agriculture, and work on improving the overall business environment.
How does the chamber contribute to social and environmental issues in the local community?
The chamber effectively contributes to social issues through its social responsibility activities. It has established social institutions that work for the benefit of the community, including the Yemeni Food Bank, Yemeni Medicine Bank, Yemeni Cancer Fighting Foundation, and the National Prisoners' Foundation.
All these institutions operate under the supervision and support of the chamber's leadership and the private sector, representing the private sector's social responsibility arm. In addition to these institutions, there are charitable activities that encourage chamber members to participate, such as supporting education, health, relief campaigns, and assisting in economic empowerment, qualification, training, and apprenticeship programs for graduates of technical institutes in factories and companies.
Regarding support for environmental projects, we aim to support recycling and industrial utilization of waste. We aspire to establish joint-stock companies and encourage entrepreneurs to enter this field.
We also encourage the use of clean energy, and the chamber makes significant contributions to renewable energy conferences and events. We support investments in this area as it is the future of Yemen.
Additionally, we contribute to supporting needy community groups through developmental and social initiatives.
To what extent has the Commercial Arbitration Center contributed to resolving commercial disputes between the private sector?
The Yemeni International Commercial Arbitration and Mediation Center, established by the chamber in 2019, plays a pioneering role in resolving numerous commercial disputes within the private sector through innovative methods, especially since it has a team of arbitrators with extensive experience and high skills in arbitration.
The center also has a strong foundational base and advanced, effective legal frameworks, which contribute to enhancing investors' confidence in the local commercial sector.
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