New Investment Law No. 3 of 2025:

Vision and objectives of the law: The law aims to improve the investment environment in Yemen and attract local and foreign investments. It focuses on supporting local products, localizing industries, and reducing dependence on imports. The law encourages a shift from an import economy to a local production economy. It aims to manage value chains and reduce the import bill. The law is considered a new page in the history of the Yemeni economy.

The importance of the law and its features:

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Yasser Abdul Karim Al-Mansour

President of the General Investment Authority

The General Investment Authority is currently playing a more profound role in the investment mechanisms in our country, thanks to the new structure that made it at the top of the pyramid in the economic construction of Yemen through the Ministry of Economy, Industry and Investment.

This integration with the economy and industry makes investment and investors the priority for building and this will be the new starting point for GAFI in innovative ways.

Investment Magazine / Special

As part of the interest in local investments and ensuring the protection of their activities, the Minister of Economy, Industry and Investment, Engineer Moeen Al-Mahakri, and the Minister of Finance, Abdul Jabbar Ahmed, directed the General Investment Authority and the relevant government agencies to provide the necessary support to the cotton gin and Al-Akhwein Steel Factory in Hodeidah Governorate to ensure their restoration after the damage caused by the recent airstrikes.

Introduction:

The government is keen to promote investment in productive and service projects by offering a range of financial and administrative incentives aimed at reducing the financial burden on investors and stimulating economic growth. These incentives are specifically targeted at projects with costs ranging between $100,000 and $1 million, ensuring maximum benefit from both local and foreign investments.

General Incentives:

Introduction

Small and micro enterprises are a key pillar in supporting the local economy, and governments are keen to provide the necessary facilities to enable them to grow and be sustainable. In this context, Investment Law No. 3 of 2025 includes a range of incentives and benefits that aim to encourage these projects, especially those whose cost is less than or equal to $100,000.

The most important incentives and benefits

Yemen's new investment law offers various benefits to investors, both small and large, with the aim of incentivizing investment and developing the national economy. The law is characterized by clarifying the mechanisms for dealing with different sizes of projects, with special incentives for each of them.

Benefits for small and large investors:

Investment Magazine / Special

The economic stimulus program launched by the government of change and construction in Yemen since November 2024 strengthens the investment environment in Yemen by combining investment incentives for investors and preparing the investment environment itself and providing it with multiple advantages included in the new Investment Law 2025, which became a reality for implementation in all governorates since the official launch of the law in early February 2025.

Investment Magazine / Special

The Minister of Economy, Industry and Investment, Engineer Moeen Hashem Al-Mahakri, confirmed that the government pays special attention to the sponge industry, as part of its efforts to support and localize local industries, indicating that the ministry is working to protect national products from being dumped by imports, in accordance with the directives of the government of change and construction.

Investment Magazine / Special

Businesswoman Lina Ahmed, vice president of the sewing and embroidery factories and accessories sector at the Chamber of Commerce and Industry in Sana'a, said that the sewing and embroidery factories sector in Yemen abounds with multiple investment opportunities, including the establishment of factories specialized in the production of specific types of clothing such as sportswear, children's clothing or traditional costumes, in addition to developing small projects to produce textile accessories, home furnishings and souvenirs.