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FDI in Figures

The war represents a serious obstacle to FDI in Yemen amid the deterioration of an already unfavourable business climate. UNCTAD's 2022 World Investment Report does not provide official figures concerning FDI inflows to the country; nevertheless, Yemen recorded a cumulative outflow of USD 923 million between 2017-19 (latest data available). UNCTAD estimated the total stock of FDI at USD 1.9 billion in 2021, representing around 8.8% of the country's GDP (a share that has been declining since its peak of 10.7% of GDP in 2018). The United States and France are the main investing countries in Yemen, owing to the presence of their energy companies. Data from Eurostat show that as of 2020 the stock of FDI in Yemen from the EU amounted to EUR 0.5 billion (latest data available). Before the conflict, Yemen had attracted FDIs mostly in the oil and gas industry, with lower shares for agriculture and tourism.

Foreign direct investment (FDI) in Yemen has been limited in recent years due to the ongoing conflict and political instability. The conflict has led to a significant decline in economic activity and a deterioration of the investment climate. Due to the current political situation and the ongoing conflict, property rights and business activity are impaired by insecurity and corruption. The nominally independent judiciary is weak and susceptible to interference from the executive branch. Authorities also have a poor record of enforcing judicial rulings. Access to basic services such as electricity, water, and health care is severely limited in much of the country. Foreign investments in Yemen are governed by the Investment Law No.15 of 2010. Corruption is widespread, and the country ranks 176th out of 180 in the 2022 Corruption Perception Index. The poor business climate is also reflected in Yemen's performance in the 2023 Index of Economic Freedom, which does not rank it.

 

Country Comparison For the Protection of Investors

  Yemen Middle East & North Africa Estados Unidos Alemanha
Index of Transaction Transparency* 6.0 6.4 7.0 5.0
Index of Manager’s Responsibility** 4.0 4.8 9.0 5.0
Index of Shareholders’ Power*** 3.0 4.7 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

 
Foreign Direct Investment 202020212022
FDI Stock (million USD) 1,942.11,942.11,942.1
Number of Greenfield Investments* 0.00.02.0
Value of Greenfield Investments (million USD) 00358

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 

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Tax Rates

Sales Tax
5% (standard rate), 10% for telecommunications and GSM services.
Company Tax
20%
Withholding Taxes
Dividends: 0%/10% (non-resident companies); Interests: 0%/10% (non-resident companies); Royalties: 0 (residents)/10% (non-residents).
Social Security Contributions Paid By Employers
9%
Other Domestic Resources
Yemenese Tax Authority, in Arabic
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 
 

Individual Taxes

Personal income tax
Up to YER 120,000 0%
YER 120,000 - 240,000 10%
Over YER 240,000 15%
Non-residents and resident foreigners 20%
 
 

Country Comparison For Corporate Taxation

  Yemen Middle East & North Africa Estados Unidos Alemanha
Number of Payments of Taxes per Year 44.0 20.8 10.6 9.0
Time Taken For Administrative Formalities (Hours) 248.0 204.0 175.0 218.0
Total Share of Taxes (% of Profit) 26.6 32.1 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Yemen
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Yemen.
Useful Resources
General Investment Authority (GIA)
 

Business Setup Procedures

Setting Up a Company Yemen Middle East & North Africa
Procedures (number) 6.00 6.28
Time (days) 40.50 19.51

Source: Doing Business.

 
 
 

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Latest Update: December 2023