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Fiscal Regime Development History, Summary
·
Necessity to Develop The Fiscal Regime to Accommodate With:
-
E &
P. Status and Development.
- International
Markets Development and Requirement.
- International
Competition to Attract New Investments.
· 1st
Agreements Generation Coincide With First geological studies in
the late 19th Century (Early Fifties).
·
2nd
Generation Early Sixties and Seventies. No Discoveries Achieved.
·
3rd
Generation Resulted In 1983 1st commercial oil discovery (Hunt at
Marib). 1991 billion barrel Masila discovery (Canadian Nexen
Petroleum Yemen,
previously Canadian Occidental).
· 1987
oil export started.
· 1987
Shabwah discovery (Russian) Service Contract.
·
4th
Generation 1991 – 1995 No Successful Results Achieved (Difficult
Terms).
·
5th
Generation Last 10 years continued exploration success and field
developments (Total 3rd, DNO, Dove etc.) making use of existing
infrastructure:
- Marib
- Ras Issa pipeline (438 km)
- Masila
- Ash Shihr pipeline (138 km)
- Shabwah-Rudhuma
pipeline (207 km)
·
Development of Complimentary Contracts (Facilities Usage
Contract), with The Aim to Encourage Marginal Fields Development.
Economic policy
It is based
on marketing mechanism and economic freedom: and support the
initiative to investment.
The economic
policy ensures private ownership which cannot be forfeited except
for public interest and then with fair compensation. The
investment law has created many investment opportunities and
provided incentive to local and foreign investment
in all
aspects of the economy.
Economic Indicators
Yemen is
classified within countries that is less growing, however it is
considered as a country that is full of main economic resources
which have not been exploited economically, especially in oil and
gas field, fisheries and different mineral resources.
The most
important economic indicators in
Yemen are
the following:-
Agriculture
and fishing constitute the rate between (15-20) % Of the gross
domestic production where cultivated areas considered (3%) of the
gross republic areas so the planting areas constitute
exactly(67.9%) of the cultivated areas
Mining and
quarrying industries and manufacture industries constitute a
rate between( 30-40) % of gross domestic production, and the
extraction and refining of oil represent the largest part of this
rate and the contribution of petroleum sector of domestic
production reaches the rate (25-35)%, and
the average of petroleum production in
Yemen reaches
(435.000) a barrel in a day.
Yemeni
economy grows rapidly and the average rate of its annul growth
ranges between ( 10-15)% of current prices which
reach by the account of constant prices to the rate (2-4)% annul,
and the average of a person's share from national production in
2002 reached 473 $).
Exports
constitute( 33.4%) of gross domestic production in 2002 and
imports constitute (29.3%) of gross domestic production in 2002.
Therefore, the exposure ratio for Yemeni economy reached ( 62.7%)
approximately.
The most
important exports, in
Yemen,
are in the field of crude goods that constitute (94-97)% of gross
exports whereas direct consumption goods constitute the rate
between (1-4)%, and the crude goods at imports range between(55-60)% of gross imports that constitute direct consumption
goods (15-20)%and the capital goods constitute (20-25)%.Yemen
imports from Arab countries between(30-40)% of gross imports
whereas its exports to Arab countries range between (5-10)% of
gross exports to abroad . Asian countries, not Arabian, are
considered as the largest market for Yemeni exports. Yemen
exports to them between (70-85)% of gross exports.
Petroleum
Policy
Diversify the
source of revenue by;
·
Increasing proven reserves to balance declines in existing fields.
·
Promoting new areas for exploration.
·
Evaluating PSA terms and procedures to accommodate the
International Petroleum Industry requirements.
·
Introducing tax and customs exemptions and free transfer of funds
and revenue.
·
Encouraging the private sector to play an important role in all
stages of hydrocarbon development.
·
Encouraging The Development of Marginal Field Discoveries Through
Reduction of Investment Requirement By:
-
Making Use of Extra Capacity of The Existing Infrastructures
Against Nominal Fees for Usage.
·
Opening New Horizons For Investment Jointly or Severally With
Private Sector in Upstream Projects (PSA, Gas, Petroleum Services)
as well as Downstream Projects (Transportation, Refining) as First
Step to Develop Such Industry.
·
Easy Transfer of Technology by Participating In The Contractor
Share and Introducing Carried Interest.
·
Develop Yemenization Plans To Replace Expatriates In The Working
Company.
·
Active Control of The Costs of Operations Through Operating
Committees.
Visas
The visitor
can get entry visa to the
Republic of
Yemen from the Yemeni Embassy or Consulate in his country and
payment of a minimal Consular fee. Prospective visitors from
countries with which Yemen has no diplomatic or consular
representation, an extendible 96 hour transit visa from the port
of entry can be obtained. Upon arrival, the visitor is given one
month residence permit. There is no need to register at police
stations or to apply for an exit visa during the scheduled one
month period. All travelers have to pay an airport departure tax.
This applies to Yemen nationals and visitors alike.
Banking Services
Modern and
reliable Banking services are available in most cities. Major
cards are available, and honored in larger hotels, and banks.
Telecommunications
All the
Yemeni land is covered by a modern Telecommunications network that
provides worldwide direct access telephone calls, facsimile
service, and Internet service.
Airline Services
The Yemeni
capital, Sana’a is only a seven-hour flight away from the major
European airlines fly to the Yemeni international airports, and
the Yemen Airline flies to major Yemeni cities, remote areas, and
the
Soqatra
Island.
Transportation services
A descent
network of Asphalt, and dirt roads links all major and secondary
cities. Public and private companies provide first-class daily
coach services between major cities. Taxi stations also provide
their services around the clock.
Accommodations
Tourist
hotels are available in all major cities, and many secondary
cities, with service levels ranging from one-star to five stars.
Some hotels are local subsidiaries for international hotel chains.
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