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FDI in Figures

The war represents a serious obstacle to FDI in Yemen amid the deterioration of an already unfavorable business climate. UNCTAD's World Investment Report 2023 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 2022, representing around 9.4% 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. Before the conflict, Yemen had attracted FDIs mostly in the oil and gas industry, with lower shares for agriculture and tourism.

Foreign direct investment 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 among the 180 economies on the 2023 Corruption Perception Index. Yemen is not ranked on the latest Index of Economic Freedom.

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	2020	2021	2022
FDI Stock (million USD)	1,942.1	1,942.1	1,942.1
Number of Greenfield Investments*	0.0	0.0	2.0
Value of Greenfield Investments (million USD)	0	0	358

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.

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.

	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

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

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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%

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FDI in Figures

Country Comparison For the Protection of Investors

Tax Rates

Individual Taxes

Country Comparison For Corporate Taxation

Investment Opportunities

Business Setup Procedures