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Why Invest in Yemen..?

Investment Opportunities

Special Privileges and Exemptions


Investment Opportunities

      There are Significant Prospects.

      Yemeni Investment Law(No. 29 for 1997) has many privileges and tempting facilities.

      Favorable Business Environment.

-      More Freedom in Banking.

-      Unified Exchange Rate & Free Transfer of Capitals.

      Giving Incentives in Risk Areas.

      Facilitating Exchange of Information Between Working Oil Companies.

      Encouraging the Development of Marginal Fields.

      Political and Economic Stability.

      Excellent and Favorable Geographic Position .

      Improved Communication System .

      Hospitality of the People.

      The International Community Respects Yemen.

      Yemen is the Main Entrance to South and East Africa.

      Yemen has 2,500 km  Coast area.

      The Country still has Varieties of Investment Opportunities.

      Political stability, No sanctions in place or threatened.

      Government keen to attract International investors to the Hydrocarbon Industry.

      Yemenís capability to attract investors enhanced

      Interests of parties protected and Investor risk / reward balanced through improved terms.

      Proven hydrocarbon province.

      Potentially prospective acreage available for review and negotiation.

      Clear PSA application procedure.

      PSA ratified as special law which supercedes other laws (thus protecting the investor).

      Business readily conducted and personal safety achieved through sensible precautions.

      Acceptable risk profile confirmed by the number of International Parties doing business with few security incidents.

      High Qualified Yemeni Multi Disciplinary Petroleum Cadres Assist the IOCís  in Geosciences and Operations.

      Yemeni Petroleum Institutions (MOM,PEPA) are Well organized With More than 30 Years Experience on Petroleum Industry and Adopt an International Standard Model by Dealing With IOCís.

      Year by Year Development of PSAís Responding the World Oil Market .

      Settlement of all Border Conflicts .

      No Political Risk .

      Oil Infrastructures are Well Improved .

Special Privileges and Exemptions

      A contractor is granted exclusive rights to carry out all oil operations at the area (the specific oil block) and all types of relevant procedures are simplified. Assistance is also provided in solving any all issues which may encounter his work with respect to provisions not integrated in the agreement.

      Exemptions would include all levies, customs revenues and relevant tax;

      Involved parties should agree upon an apt method for paying income tax, a fixed amount for the income tax of foreign labor-force during the exploration stage; all of this is to avoid the governmental procedures which are complicated and various because of the different and various concerned agencies.

      Respective parties consent on a convenient mechanism to obtain the costs and expenses of exploration and development operations in a short time. This is through considering the agreed upon the Cost-Oil in such a way that suits both parties.

      Both parties agree on certain economic conditions and terms which take into account the common interest of both parties. The contractor is to gain rational economic returns being consistent with the expected reserves to be discovered and the MOM, representing the government, is to get royalty tax, grants and a share from the Production Sharing Oil that suits its right of sovereignty of natural wealth. All of that should have been accepted willingly by the contractor and incorporated in the agreementís provisions.

      Both parties would agree on a suitable mechanism governing the MOMís supervision and monitoring oil operations safety; this is through two committees. During the exploration stages, a consultation exploration committee would be formed having an equal number of representative members for each party. The other one is the common operation committee to carry out oil operations and to supervise and monitor development and production activities. Formed after the announcement of commercial discoveries, it represents both parties and its operations are financed by the contractor. Actually, the contents governing these committees have been improved and amended to suit both parties and to cut down and save expenses and costs. Another is to achieve skill-development, technical transference of expertise, overcoming the bureaucratic procedures experienced by many companies in other countries.

      In case of difference between the parties, then arbitration is the outlet provided that both parties agree on the arbitrator. Usually, arbitration is based on the principles of the World Trade Chamber in Paris, which is favored by most oil companies and has become familiar to the Yemeni party as it constantly responds to international developments.


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