JEDDAH, 4 March 2007 — The establishment of a Saudi-Yemeni Economic City was the focus of a meeting between businessmen of both countries that was held on the sidelines of the Jeddah Economic Forum recently.
Dr. Abdullah bin Marae Ben Mahfouz, chairman of the Saudi-Yemeni Business Council (SYBC), said that the economic city was to be established in Wadeea in the Empty Quarter and would promote joint investment projects. “The Yemeni delegation presented its vision about the economic city during the meeting,” said Mahfouz, adding that that the Yemeni side offered 75 investment opportunities for Saudi businessmen in their country.
These opportunities included seaport management, investment in mineral resources such as cement, titanium, calcium carbonate and marble, and investment in tourism.
The Yemeni delegation was led by Minister of Planning and International Cooperation Abdul Karim Al-Arhabi.
Mahfouz said Saudi exports to Yemen reached SR8 billion in 2006, reflecting growing economic and commercial ties between the two neighbors.
He added that the Jeddah meeting also discussed ways to remove obstacles facing Saudi investors and businessmen in Yemen.
“We have set up a panel to present its proposals on this issue to the next council meeting to be held next month,” he said.
Saudi businessmen demanded the extension of tax exemption period for Saudi projects in Yemen from 10 to 15 years. They also demanded greater reduction in the customs duty.
Saudi investments in Yemen account for 80 percent of total Arab investments in the country.
The Yemeni delegation included 24 officials and businessmen. The two sides have set up a $100 million fund to conduct studies on joint investment projects.
“The volume of Saudi investments in Yemen has to be raised as Saudi Arabia and Yemen jointly have a market of 40 million consumers,” the chairman of the Saudi-Yemeni Business Council said.
