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:
A clear and detailed incentive system: The law provides a clear and detailed incentive system, with specific articles dedicated to each type of economic activity, including small, medium and large enterprises. These articles include the system of incentives and the governmental requirements needed to obtain them.
Gradation of enterprises: The law starts by incentivizing small projects starting at $100,000, and then progresses to larger projects up to $1 million and above. This progression ensures that all types of projects, from the smallest to the largest, are properly incentivized.
Equal treatment: All investors, whether existing or new, are treated equally. This means that existing projects receive the same incentives and benefits as new projects.
Incentives for existing projects: Existing projects are already benefiting from the new law, as GAFI has started issuing incentive certificates for production inputs for these projects. A number of applications for these incentives have already been processed.
Removing barriers: The law aims to remove the barriers and challenges previously faced by investors through clear and detailed provisions. The law is designed to solve most of the issues that have been hindering the investment environment.
Government facilities: The law provides facilities in government procedures, such as extending commercial records to five years, canceling the industrial register and merging it with the commercial register, and launching electronic portals for government services. These facilities minimize red tape and save time and effort for investors.
Focus on productive projects: The law pays special attention to productive projects, with specific articles in the law dedicated to encouraging these projects, such as production projects and electricity projects. Clearly defined targets have been set to incentivize these projects, such as providing exceptional incentives for the first 1,000 productive projects.
Incentivizing investment in energy: The law focuses on incentivizing investment in the electric power sector, especially renewable energy, with the aim of providing clean and low-cost energy.
Overall, the new investment law offers comprehensive and diverse benefits to investors of all sizes and aims to create an attractive and stimulating investment environment in Yemen.
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