Jordan - National US-Arab Chamber of Commerce

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“Yemen todayhas undergonea transformationin recognition ofthe fact that theprivate sector roleis essential fordevelopment.”Yemen Gaining Ground in Search for InvestmentOn November 17, NUSACC and the Middle EastFree Trade Agreement (MEFTA) Coalition cohosteda roundtable discussion featuring H.E. AhmedSofan, Yemen’s Deputy Prime Minister and Minister ofPlanning and International Cooperation. Held at theOffice of the U.S. Trade Representative in conjunctionwith Yemen’s Trade and Investment Framework Agreement(TIFA) talks, the event was limited to 25 U.S.business leaders.Yemen’s Deputy Prime Minister Ahmed Sofan (center) and USTR’s CatherineNovelli (right) address business leaders at a roundtable discussion on Yemen.Minister Sofan, who has helped to guide Yemen’sdevelopment efforts for much of the past two decades,highlighted some of the positive trends taking place inhis nation. The World Bank and Transparency International,he suggested, have both lauded steps taken byYemen in recent years to encourage transparency andfight corruption.In the same vein, the financial community is showingincreasing confidence in Yemen’s economic stability andfinancial institutions. Yemen has not defaulted on anyloans, for example, and its debt-to-GDP ratio (27 percent)is the lowest in the region, Minister Sofan said. Thenation’s cash reserves are in good shape, he continued,and rating agencies recently upgraded Yemen’s creditworthiness. In addition, the Export Import Bank of theUnited States has enhanced its presence and increasedits credit line in Yemen.On the security front, Minister Sofan said, Yemenhas closely aligned its policies of fighting terrorism withthose of the United States and the international community.He pointed out that since the bombing of the USSCole by Yemeni extremists, there have been no instancesof terrorism, and the Government of Yemen has crackeddown on local groups involved in questionable activities.In part because of this “get tough” approach, MinisterSofan suggested, there have been no kidnappings inYemen since 2001.Minister Sofan said that in the past, Yemen, like manydeveloping nations, relied very heavily on the governmentto drive the economy. Yemen today, he said, has undergonea “transformation” in recognition of the fact that the“private sector role is essential for development.” Onaverage, he said, it now takes 96 days to establish a businessin Yemen, and the government is working toreduce that number further.The hydrocarbon sector holds “greatpromise,” said Minister Sofan, noting thatthree-quarters (74 percent) of the hydrocarbon-richareas are not yet part of anyconcessions.Minister Sofan also touted the telecommunicationssector, noting that a major newopportunity is “nearly ready to go.” Yemenis actively seeking private investment in thetelecom sector and, to this end, some 25– 40 percent of the new venture’s shares willbe set aside for the public. Moreover,according to Minister Sofan, strict limitswill be placed on the number of shares thatcan be owned or controlled by any oneindividual.In some instances, the Government ofYemen is turning to outside consultants toprovide expertise or advice that will serve the businesscommunity and investors. Minister Sofan admitted, forexample, that there are some “holes to repair in Yemen’sprocurement practices.” In response to such problems,the Government of Yemen is now following the WorldBank’s procurement procedures and Yemen recentlyhired Crown Agents to help plug these holes. In anotherexample, the Government of Yemen asked Lloyds tolook into the tenfold increase in rates of maritime freightinsurance. Lloyds determined that Yemen is remarkablysafe and secure and that the huge insurance increase isunfounded.In concluding his remarks, Minister Sofan invitedmembers of the U.S. business community to come toYemen to see for themselves what steps the nation hastaken to reform its economy, bring about political change,and stabilize its financial markets. The new level oftransparency in business, he concluded, will “produceresults that will raise your eyebrows!” ✦For more information about specific projects in Yemen,click onto the Web sites of Yemen’s General InvestmentAuthority (www.giay.org) and the Aden Free Zone(www.aden-freezone.com).6 November/ December 2004 • US-Arab Tradeline
Roundtable at NUSACC Explores Reform andTerrorism in Saudi Arabia“Envision yourselves in a museum in front of anancient tapestry that depicts a famous and mythicaltale of love and pain. Being old, it has one smallsquare inch at the bottom right-hand corner withfrayed threads. Imagine that a camera zooms ontothis square inch and projects it onto a screen the sizeof the original tapestry. And so, through the powerof this medium, you have lost sight of the beautifulstory of the tapestry and you see only the negativeimage of the minute, frayed fault.”On October 7, NUSACC and the Center for InternationalPrivate Enterprise (CIPE) hosted aroundtable discussion on Reform and Terrorism in SaudiArabia. Mr. Amr Khashoggi was the featured speakerfor the event, which was held at NUSACC and attendedby upwards of 50 public and private sector representatives.Khashoggi is CEO of the Amkest Group in SaudiArabia and is a regular visitor to the United States.Khashoggi talked about internal pressures for reform,with more than 60 percent of the population under theage of 20, and external pressures, including those fromthe United States and Europe. Khashoggi noted thatAmr Khashoggi, CEO of Amkest Group, addressed a full house atNUSACC.many in the West seek to transform Saudi Arabia intothe image of America and Europe. “I believe this iscounter-productive,” Khashoggi stated, “and it underminesthe efforts of Saudis who want to move the countryforward, yet not lose sight of the important role Islamand our historical traditions play in the development ofthe individual, the family, and society.”Khashoggi noted that steps have been taken towardreform in such areas as the media, labor, insurance,capital markets, and tourism. There are now greateropportunities for women in the workplace, he noted,and municipal elections are on track.“Everyone recognizes that we must progress, and wemust overcome the challenges facing our nation,”Khashoggi stated. “We need to come up with internallydeveloped solutions that are the result of national debateand that have gained what you in America would call‘buy in’ from a highly conservative population. Thisdebate will take time and must be based on open,transparent, and honest dialogue, and the extent of itwill dictate the speed and pace of implementing reformsin Saudi Arabia.”On terrorism, Khashoggi noted that an environmentconducive to reform can only be maintained once mattersof terrorism and internal security have been adequatelyaddressed.He outlined steps that the Saudi government hastaken to address terrorism, including:• Improving coordination among security agencies;• Freezing the assets of individuals and groupsdesignated as supporter of terrorism;• Instituting new banking policies and procedures;• Monitoring financial transactions; and• Instituting harsh penalties for money launderingand terrorism financing.Khashoggi noted that Juan Zurate of the U.S.Treasury Department’s Office of Terror Financing saidrecently that the “targeted actions undertaken by theKingdom have already produced tangible results, andthe systematic changes made by the Kingdom couldprove even more effective in defeating terrorist financingover the long term.”Khashoggi highlighted the fact that Saudi Arabia isthe largest market for the U.S. in the Middle East, andSaudi private investment in the U.S. exceeds $500billion. “Saudi Arabia is ranked the 25th largest importer/exporter worldwide,” he said, “and in 2002, trade betweenthe Kingdom and the U.S. amounted to $18 billion.U.S. companies are the largest foreign investors in theKingdom, with over 280 Saudi-U.S. joint ventures.”The United States and Saudi Arabia “have been alliesand friends for 50 years,” Khashoggi observed. “Thetwo countries fought Iraqi aggression together in thefirst Gulf War and continue to cooperate after the falland capture of Saddam Hussein. The basis of ourrelationship is strategic cooperation, and we have a longhistory of successes.”Khashoggi expressed surprise at how little the Saudisand the Americans understand each other as people—even after all this time. “We need to reach out… tocommunicate with one another,” he noted. “It’s aboutbridging the gap of understanding, or bridging the gapof ignorance. We’re not there yet. Still, small steps arebeing taken in that direction.”“Let me close by saying that Saudi Arabia and theU.S., despite what anyone might say, share many importantvalues and respect and understand each other’sdifferences. Let us not allow the likes of Osama BinLaden to succeed in driving a wedge between our twonations.” ✦Amr Khashoggi takes questionsabout reform and terrorism inSaudi Arabia.“Everyonerecognizes that wemust progress, andwe must overcomethe challengesfacing our nation.”Amr Khashoggi, CEOAmkest Group of Saudi ArabiaNovember/ December 2004 • US-Arab Tradeline7
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Jordan - National US-Arab Chamber of Commerce

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