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:
The law consists of 101 articles that solve most of the investment issues.
The law provides incentives, benefits and guarantees for investors.
The law includes exceptional incentives for the first 1,000 productive projects, in addition to setting a digital target for electric power.
The law has a clear and detailed incentive system for each type of economic activity.
The law gives equal treatment to new and existing projects.
The law is seen as a catalyst and competitor at the regional level.
The law has been carefully drafted, and the private sector has been actively involved.
It aims to remove barriers and challenges that have been pending for years.
Encourage investment:
Yemen has great investment opportunities in various sectors.
There is a need for projects in various sectors to meet the needs of Yemeni society.
The Republic of Yemen is characterized by a large market capacity, which makes investment projects close to profitability.
Emphasis is placed on localizing industries such as pharmaceuticals, agricultural and food products, clothing, and leather products.
The law encourages investment in infrastructure such as roads, ports, and power plants.
A message is being sent to Arab and Palestinian investors that Yemen is your country and it is a fertile ground for investment.
The importance of focusing investment on existing projects before attracting new ones was emphasized.
It was clarified that the law incentivizes all types of projects from the smallest to the largest.
Government facilities and procedures:
The procedures related to commercial registries were facilitated, as they were extended to five years instead of one year.
The industrial registry was canceled and merged with the commercial registry.
Electronic portals for government services have been launched to facilitate transactions.
The General Investment Authority and the Customs Authority are being linked electronically to facilitate procedures.
There is resistance from some employees to these changes, and investors should not listen to them and use the portals.
The role of the private sector:
The private sector is a key partner in economic development.
The private sector should actively participate in the implementation of the law.
The private sector was involved in drafting the law.
The Chamber of Commerce participated in building the law and is concerned with supporting investors and facilitating their business.
Reassuring messages:
The government's emphasis on protecting local products from imported products.
The government's emphasis on standing by the private sector and protecting it with the force of law.
The government is working to implement the law in its entirety, with all its privileges and facilities.
In short, the new investment law represents an important step towards stimulating investment in Yemen and achieving economic development. The law focuses on supporting local products, localizing industries, providing an attractive investment environment, and emphasizing the importance of public-private partnership.
Comments