Investment Magazine / Special Report
Prime Minister Ahmed Ghaleb Al-Rahwi has officially approved an agreement to localize the manufacturing of household gas cylinders at a 100% rate. The agreement was signed by Minister of Economy, Industry, and Investment Engineer Moeen Al-Mahakari, Minister of Oil and Minerals Dr. Abdullah Al-Ameer, and Acting Executive Director of the Yemeni Gas Company Yasser Al-Wahdi.
The agreement outlines the roles and responsibilities of the ministries and the gas company to ensure full localization of household gas cylinder manufacturing using local resources instead of relying on imports. It also guarantees production in compliance with technical standards set by the Yemeni Gas Company and specifications approved by the Yemeni Standards, Metrology, and Quality Control Authority.
As per the agreement, the ministers will issue a resolution mandating the localization of gas cylinder manufacturing and ceasing imports starting from April 1, 2025. The agreement also includes the reactivation of existing gas cylinder manufacturing facilities, beginning with the plant in the capital, Sana’a, with an annual production capacity of 300,000 new cylinders, along with maintenance and rehabilitation of 300,000 cylinders per year, at an estimated annual cost of 6.5 billion Yemeni riyals. This initiative is expected to create numerous job opportunities.
The objective of the agreement is to promote and encourage national industries in this sector and boost investment activity by leveraging economic stimulus programs and industrial localization initiatives.
The Prime Minister congratulated all parties involved in signing the agreement, emphasizing that it aligns with the government’s economic stimulus program. He commended the efforts of the Ministry of Economy and the Ministry of Oil in localizing this industry.
He highlighted the significance of this step, which follows the recent localization of the cement industry, underscoring the government's commitment to revitalizing and reactivating gas cylinder manufacturing plants to strengthen the national economy and reduce reliance on imports. He also welcomed investors interested in this sector.
Al-Rahwi stated that additional industries will be localized in the coming period as part of efforts led by the Ministry of Economy, Industry, and Investment. He affirmed the government's dedication to fulfilling the aspirations of the Yemeni people by enhancing local industrial production, which serves as a key driver of economic growth and job creation.
As part of the initiative, the Ministers of Economy, Industry, and Investment, along with the Minister of Oil and Minerals, visited the Yemeni factory for gas cylinder manufacturing and maintenance. Accompanied by the Acting Executive Director of the Yemeni Gas Company, they were briefed on the production process, the maintenance of existing cylinders, and quality assurance procedures. Officials reported that the factory's production capacity stands at 300,000 new cylinders per year, in addition to refurbishing 300,000 cylinders annually.
Ministers Al-Mahakari and Al-Ameer praised the factory's capabilities and its adherence to the highest safety and quality standards. They reiterated their commitment to supporting the factory and similar local manufacturers to enhance competition and meet domestic market demand.
They further stressed the importance of revitalizing local industrial and production capacities to stimulate economic activity, create job opportunities, and reduce unemployment. They also acknowledged the factory’s crucial role in ensuring periodic maintenance of gas cylinders to guarantee public safety.
The agreement approval ceremony was attended by several experts from the Ministry of Economy, Industry, and Investment, as well as the Ministry of Oil and Minerals.
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