"Sweets" and "Farhaati" are successful models
Investment Magazine
In light of the economic challenges, Um Ahmed, owner of "Sweets" and "Farhaati" for sweets and pastries, managed to establish her small project to face the living conditions and achieve financial independence for her family in a remarkable way, and in return provided the market with a series of local pastries and sweets of impressive quality and modern form.
Umm Ahmed . She started her journey at a steady pace, relying on the quality of products and distinctive taste, until she became a reliable destination for customers on various occasions, from weddings to holidays, and here was the secret in the small and smaller projects that began to grow in our country and strengthen as small investments that need to be nurtured.
"Small investment projects play a key role in improving the standard of living, as they provide a source of income for families and create job opportunities, especially for women," Um Ahmed told Investment Journal. She adds that the success of her project is due to several factors, most notably the quality of the products and attention to customer satisfaction, noting that the demand for local sweets and pastries increases during seasons, especially during Ramadan and holidays.
The manufacture of sweets and pastries is one of the most prominent small income-generating projects in Yemen, as many families rely on it, whether through home laboratories or commercial shops. Sales of traditional sweets, such as Rawabi, al-Shawabiya, Baklava, Kanafa, Awamah, Qataif, and Qatayf, increase during Ramadan, as Yemenis, especially in Sana'a, are keen to buy them.
Encouraging investment in small businesses
In the framework of supporting small and micro investment projects, Investment Law No. 3 of 2025 includes a set of incentives and benefits aimed at promoting these projects, especially those whose cost is less than or equal to 100 thousand dollars.
The most important incentives and benefits
The law offers many exemptions and facilities that ease the financial and administrative burdens on small business owners, including:
1. 100% exemption from customs duties and tax on fixed assets, which contributes to reducing establishment costs.
2. 100% exemption from customs duties on production inputs throughout the life of the project, which enhances the productive capacity of these projects.
3. Exemption from all government fees on licenses, approvals and permits upon incorporation and throughout the life of the project, making it easier to start the business.
4. Exemption from all types of direct taxes on income throughout the life of the project, provided that this exemption starts from the date of commencement of production or activity, which encourages investment in this sector.
5. Free utilization of land for the life of the project, for projects built on state-owned land, which contributes to reducing operating costs.
The importance of these incentives
These benefits constitute a great incentive for small and micro entrepreneurs, as they contribute to:
- Reduce the financial burdens on new investors.
- Enhancing the competitiveness of these projects in the market.
- Encouraging entrepreneurs to invest in the productive sectors.
- Supporting economic development by providing job opportunities and stimulating local production.
"Local pastries and sweets surpass imported ones in terms of quality and flavor, and this depends on the producers' interest in development and feedback," said Abu Khaled, a marketing official at Abu Khaled Sweets. Small businesses, which have received incentives and exemptions according to the new investment law, contribute to improving family income and boosting the local economy.
Um Ahmed's experience is not an exception, but rather reflects a growing reality of the success of home-based businesses, which have proven that they are able to compete and achieve sustainability under difficult economic conditions.
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