National Yemen - Issue 07 by National Yemen Newspaper

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I am always heartened when relations flourish

Rights of trading

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More than a SocioEconomic and Tourist Event Sunday, July 11, 2010 Volume 01 - Issue 07 Price: YER 30 www.nationalyemen.com

Government Official Calls for Adherence to Ceasefire in North in Wake of Recent Kidnapping Sana’a—Yemen’ s Interior Ministry on Friday accused northern Shiite rebels of kidnapping five governmental oil engineers in the troubled northern province of al-Jouf, sources inform. “The Shiite rebels, also known as Houthis, kidnapped late Thursday, five Yemeni oil engineers belonging to the Marib-based Yemeni Oil Company (YOC) during their mission to inspect oil pipelines in the Barat and Kharab alMouashi districts of al-Jouf,” the Ministry released in a statement. They cite a police report from al-Jouf. “The Shiite rebel group still holds the five engineers,” said the statement. The Interior Ministry is questioning the motivations behind the kidnapping. On Sunday, an official over-

seeing a recent ceasefire with the Houthis called on the rebels to commit themselves to the agreed upon truce. He demanded they stop impeding efforts to bring peace to Saada province and the Harf Sufian District of Amran province. Since 2004, Yemen has witnessed sporadic battles between government troops and the Shiite Houthi rebels. They Yemeni government accuses the group of seeking to re-establish the clerical rule overthrown by the 1962 Yemeni revolution which created the Yemeni republic. On Feb. 11, the government and Shiite rebels struck a ceasefire agreement to end the conflict in the northern part of the country. However, both sides repeatedly trade accusations over breaching the truce, which so far still holds.

Mohammed Howais

NY-Staff

Guilty: A Yemen Court Issued Death Sentences for Mansour Saleh Salem Daleel, 18, and Mubarak Ali Hadi al-Shabwani, 23, for ties to Al-Qaeda. The two men await their fate for allegedly taking part in an armed gang that murdered Yemeni security officials. They were arrested in Marib Province on December 11 of last year.

Chairman of the Chamber of Commerce Appeals to the Supreme Council for Justice appealed to Judge Essam AlSamawi, Chief of the Supreme Justice Council, to intervene and promptly stop what he calls the Customs Authority’s “abusive” and sudden implementation of mechanisms for collecting the newly instituted General Sales Tax.

Hassan Al-Kbous Mr. Hassan Al-Kbous , Chairman of the Chamber of Commerce in the Capital Secretariat,

In an exclusive statement Kbous said, “Due to the Customs Authority’s intransigence, we appeal to Judge Issam AlSamawi to promptly and urgently intervene to stop the authority’s abuses and end its obstinacy. Most articles within this law are not constitutional

and are yet to be decided by the Constitutional Department of the Supreme Court”. Kbous added, “Implementation of the current mechanisms to collect sales tax will open the door to corruption, like that of smuggling diesel and natural gas. The state here is the biggest loser, and I say openly that when the Customs Authority imposes such implementation, it is like imposing corruption on us.” It is not, as noted by the chairman of the Customs Authority in a statement, that the rejection is coming from a particular

‘group’ in the Capital Secretariat Chamber. Kbous claims that the private sector in all governorates of the Republic agreed to refuse applying the mechanisms to collect the sales tax. He said, “The General Union of the Chambers of Commerce has authorized the Secretariat Chamber to refuse to apply the mechanisms of collecting unfair taxes under a law that is unconstitutionally contested. The union issued a statement to that end, and published it in all newspapers and many websites. We all agree to reject the implementation mechanisms, and we

Yemen Woman Union to Launch $2.5 Million Project to Support Women, Youth on Tuesday ADEN, July 10 – Yemeni Women Union (YWU) is to launch on Tuesday a project to support women and youth. This project will also combat unemployment, abuse of Qat, and environmental pollution.

over the next two years.

resentative, Julie Williams.

The project aims to raise social awareness among families, children, and young people to reduce the spread of Qat through a number of programs and activities.

The $2.56 million project is being implemented by the YWU in cooperation with the World Bank (WB). Financed by the Japanese government, the project will be carried out in seven provinces including Aden, Sana’a, Hodeidah, Taiz, Ibb, Dhamar and Hadramout

In this regard, the arrangements made to launch the project was discussed in a meeting chaired by Aden Governor Adnan al-Jeffri. In attendance was YWU’s executive office director and Secretary-General of the Arab Women Union, Ramzia al-Eryani, and World Bank rep-

Al-Jeffri expressed the need to find alternative means to discourage young people from chewing Qat through continuing to raise awareness of Qat’s risks in the society. Civil society has an important role in this regard. Al-Eryani and Williams pointed out that the project will be launched on July 13 in Sana’a, and would be implemented in 14 districts of the poorest districts in the seven provinces. The project aims to support

youth through establishing clubs and training them on establishing and managing small projects. The project will also serve to assist in rehabilitation of poor families by providing loans and grants. A key to successful implementation is their goal of creating partnership with local councils, they added. They stressed the importance of introducing youth to productive health, the risk that Qat poses to this health, and the importance of national loyalty and of democracy.

Ministry of oil Invites the International Companies to a new 50 Blocks NY-Staff The Ministry of Oil and Minerals announced last week new opportunities in the oil concession map. Mr. Ameer AlAidarous, Minister of Oil and Minerals, said that the opening of 50 new blocks will boost the economy by attracting new investors. “Petroleum companies all over the world are invited to explore Yemen’s great potential for oil drilling. We are really open to deal with all companies who have strong finical resources and a good record of adhering to local laws” said alAidarous. He adds that he looks for those who are well-qualified, have significant experience, and are ready to invest immediately. Yemen has developed

Ameer Al-Aidarous its oil law to be more flexible and attractive to serious and reputable companies. He emphasizes that his Ministry is ready to discuss any credible future petroleum investment strategies.

5 Football Fields Ready for the 20th Gulf Football Championship Initial skepticism of some Arabian states regarding the Arabian Felix’s aptitude to host the event is silenced. An extraordinary meeting was held on Friday in Sana’a to discuss the final agreements con-

cerning the 20th Gulf schedule. The championship will start on November 22nd, 2010 and end December 4 and will be hosted by Yemen. Additionally, 21st Gulf was decided to be held in Basra, Iraq.

Continued on ( 9 )

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A new battle of bad war we believe that at this point in nation-building it should not be done the way it is proposed. The appropriate mechanisms should be carefully studied and simulated to ensure their effectiveness and efficiency. These mechanisms are not applicable is the existing ailing financial system, systemized corruption, lack of transparency and accountability. Fakhri al-Arashi Publisher & Chief Editor

It is always unwise to engage oneself in any sort of confrontation with more than one opponent even if this one is alert and strong. But it is extremely insane to launch more than a war at the same time and it is even worse when unfocused and vulnerable. The government of Yemen, unfortunately, seems to be gone insane by indulging into endless battles at all levels: political, social, economic, security, and recently resuming an old battle with the private business sector on the controversial sale tax law. It is true the government has the right to raise revenue from its people. When its already scarce resources are shrinking, this right becomes even overdue when it comes to sale tax, a practice followed everywhere. Ultimately the end customer/ citizen the poor people who are not getting enough salaries working here or there will pay this tax through the businesses and its again a new suffer. This revenues – in an effective, transparent, and accountable system, will be returned to citizen in form of better services, pensions, and quality life. The consequent governments of Yemen since the nation’s reunification in 1990 have failed to perform effectively. These governments – including the one in office now – have never been serving the people of Yemen, because their loyalty orientation is not for the people, but for their bosses. This kind of orientation doesn’t lead to public satisfaction towards the existing government of the previous ones. It rather increases the level of distrust among the public in any reform plans or initiatives that come through the government. As explained that we agree the government has full legitimacy to impose sales tax,

The sale tax law is overdue, this clear, but the ratification and enforcement of this law will create new layers of financial corruption. A series of questions that raises here: Is the tax authority corrupt-free? Why the government is so confident about its system? Don’t these senior officials who push for this law have their businesses? Do they pay income tax? Where the money goes? Do we have better education, health, water, infrastructure? Are we really secure? Some major business houses in the country are as bad as the government. They belong to the same culture. However, they shall be dealt with as partners not foes and the poor will pay the fees. The opponents of the government increase in number and make its efforts go in vein. It is a misuse of power, and national resources. A renewed frontline is installed now with the private sector, just along with other opponents including AlQaeda, Al-Houthis, and separatist movement in the south among others. Our view is that the government has to work with its stakeholders not against them. And before enforcing the sale tax law, the government should be rightly qualified technically to handle this change. The government should clean up the mess they are in now, and reform the financial sectors. Otherwise this tax will just hurt business, make people angrier with the government, and continue to feed corruption. Does the government want more chaos and instability in the country? The experience of the business community and citizen with the government has failed in the history of the finical and managerial reforms as well with the development of the of the citizen’s life and salaries.

Chairman of the Chamber of Commerce Appeals to the Supreme Council for Justice

Continued from (1) are ready to bring all taxable merchants to the Customs Authority to prove it. He concludes, “What we do in the Secretariat Chamber is for the interest of the homeland and her citizens, and we

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are especially mindful that Ramadhan is fast approaching. If the authority continues to impose corruption upon the private sector and taxable merchants, prices will rise. Such a step, according to some local economists, is an open war on the citizens who are suffering already.”

Fakhri Hassan Al-Arashi Publisher & Chief Editor

Sunday, July 11, 2010 www.nationalyemen.com

TeleYemen decreases fares of international phone calls Starting July 1, 2010, Yemenbased telecommunications company “TeleYemen” announced a reduction in international calls rates, to 1.5 Yemeni Riyal per second for ground and mobile telephones. This is in addition to their reduction of international call prices by 56% for this year. Everyone can benefit from this offer at anytime, to anywhere, and from any phone without restrictions or conditions. TeleYemen Marketing Director Hayel Mohammed Ibrahim said, “We are glad to provide our customers with this substantial rate reduction for international calls. It will enable them to communicate with their friends and family abroad. We consider this campaign to be evidence of our continued commitment towards facilitating such international connections”. It is worth mentioning that TeleYemen is the sole and ex-

The minister affirmed importance to draw several suggestions to present to the coming meeting of the committee, pointing out to benefit from the signed agreements between Yemen and Italy.

clusive international telecommunication provider in Yemen. Ibrahim added that the company has plans for gradual reductions, and they aim for striking a balance between the incoming and outgoing connections. Incoming connections to Yemen are more costly than outgoing connections. The cuts in fares are a way to encourage outgoing calls. They have reduced prices from YR 99 to YR 90 per minute.

He highlighted role of the committee to enhance mutual cooperation between the two countries in fields of economy, development and investment. Some 391 agencies are working in Yemen in addition to eight branches for Italian companies, the minister said. He also affirmed concern of Yemen to boost its ties with Italy, saying that the volume of the trade exchange between two countries reached $ 85.6 million in 2009.

Charitable Social Reform Society (CSRS) : twenty years of continued and renewed giving Hamoud al-Hitar Minister of Endowments and Guidance, praised the humanitarian and charitable activities of the Charitable Social Reform Society (CSRS) over twenty years since it was established in 1990. in the artistic and rhetorical festival held by the CSRS today in the hall of the President Center for Orphans in Sana’a on the occasion of the 20th anniversary of its foundation, the minister said that the CSRS has upgraded the charitable work to the collective action, and provided a successful model of partnership between the state and the civil society organizations. He said, “This matter enabled it to gain the trust of the state and the well-wishers alike and gave a strong momentum for the

Mohammed Al-Asaadi Editorial Consultant

Mansoor Al-Rdaei News Editor

12th Al-Jazeera Information Technology and Communication Exhibition Begins

Hayel Mohammed Ibrahim

Government to hold 2nd meeting for YITC SANA’A, July 10 (Saba)Headed by Minister of Industry and Trade Yahya al-Mutawakel, a meeting was held in Sana’a on Saturday to discuss ongoing arrangements to hold second meeting of the YemeniItalian Trade committee that would be hosted in Sana’a in coming October.

The Al-Jazeera launched its 12th Information Technology and Communication Exhibition on July 8. The event is organized by APOLLO Exhibition Center, and 35 companies from the Arabian Gulf are participating. Internationally-known and upstart firms exhibited their innovative products and services at the only exhibition that features modern technologies in Yemen. In attendance were ambassadors, businessmen, and diplomats from both the Arab Gulf region and Africa. Local Ministers and a thrilled public attended, many of whom visited

the JiTCOM annual presentation. The Al-Jazeera Exhibition is considered one of the most important in Yemen due to the new technologies presented. New services and the latest products are released to catch the interest of investors, specialists, and entertainers. Such technology surely satisfies the tastes of all visitors. At the JITCOM, experts and curious attendees are shown the latest laptops, mobile phones, cameras, terminal and operator services, printers and more. The exhibition will continue until the 12th of this month.

1st Annual Sana’a International Book Exhibition for Children and Women SANA’A, July 10 (Saba)Minister of Tourism Nabil alFaqih opened on Saturday 1st the Sana’a International Book Exhibition for Children and Women. The ten-day exhibition is organized by the General Authority for Books and includes participation of 35 local and international printing houses. Al-Faqih affirmed the impor-

tance of organizing such exhibitions as a chance to provide knowledge specifically oriented towards issues relating to woman and children. Chairman of the General Authority for Books, Faris alSaqaf, made it clear that the aim of holding this exhibition is to establish an annual event focused on woman and children.

consolidating its approach in the community. He added that the charitable sector and voluntary work through associations and institutions support the missions of the State and its ef-

forts in social and humanitarian aspects. He said that the Society has moved from the area of material handouts to poor families to adopt sustainable development projects.

society to continue its course and activities, which included all aspects of development in society.” He called on all civil society organizations, foundations and charities to follow the CSRS example through the expansion of charitable projects for the care and rehabilitation and adoption of orphans. The minister expressed his gratitude to the charitable organizations, bodies and institutions from the GCC countries for their support and care for all charities in Yemen. Mr. Murshed Al-Arshani, President of the CSRS, reviewed the charitable projects and activities carried out by the charity during the past years. He pointed out that the charity was pioneer in establishing the culture of charitable work and

Fuad Al-Qadhi Business Editor

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e-mail: info@nationalyemen.com wibsite:www.nationalyemen.com address:al-qiada st.

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Interveiw

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National Yemen

I am always heartened when relations flourish Yemen is again in the spot light in terms of the British Government’s interest, politically financially, and most importantly, regarding security issues.

Fakhri al-Arashi_NY Since the London conference in January this year, Yemen has continued to facing many challenges in sustainable development, fighting Al-Qaeda , fighting corruption, the Sa’ada wars and the secessionist movement in South Yemen, and a further 100,000 problems which the next five year plan to support Yemen must overcome. Mr. Alistair Burt, the UK Minister for Middle East & South Asia, has made a recent visit to Yemen, where he met with a number of officials, including and starting with President Saleh, and a few members of his cabinet. The visit of the British Minister came as a result of the new British government’s attitudes toward Yemen. In an interview meeting with National Yemen Mr. Burt revealed part of the strategy of his country, saying that Yemen is a topic of great concern to many important issues, including the security, economic and political interests of the United Kingdom and fostering and maintaining a strong, cooperative, fruitful relationship will remain important, for both parties. The whole of the gulf region means a great deal to the UK, and one of the main reasons for coming out so early was to take the opportunity to talk to the president and see the ministers and hear their views about the relationship between us, right across the world, in areas for development, economic areas, and importantly security as well. The UK relationship with the “Friends of Yemen” group, and to make sure that people appreciated the necessity of keeping the intra-group relationships very strong. There is a certain amount that will be done by the Yemeni government itself; it must take the lead in the key issues that will make a difference in this country, but there are friends, support and also other

friends in the gulf can play a role too, so that was the principle purpose for coming out - I look forward to some honest discussion following your warm welcome, and I am already looking forward to coming again.

How did you find your meeting with our president whom UK will help Yemen to obtain its problems?

Well, the conversation with the president went very well. I was quite honoured that we spent a substantial amount of time in discussion. We had a good conversation which focused over a several issues, from economic development issues, to the relationships with the gulf states and “Friends of Yemen”, and, of course, we spoke about security as well. Our aim is to continue the support we have given in capacity building through counter terrorism, through training the coast guard work, which has been good and successful, and to reassure that the president is not alone in this issues. We all know that this is not a problem unique to Yemen or to the United Kingdom; many nations have shown an active interest in working together and a part of our conversation reflected that. So I enjoyed the conversation, the conversation was very positive and I hope the president felt the same.

Would your country prefer to support a strong government in Yemen or a weak one? The British government would always want to see a good stable government, and that kind of government has to support its people . In Yemen we want to see a prosperous, united Yemen; a Yemen that is unified where the government is able to

deliver the economic programs. That is going to be necessary for ensuring that the population has opportunities for raising standards of living and education. It’s in this sort of world that the British government is supportive of our development programs, and through our bilateral relationships, and it certainly seems that our aims and the Yemeni government’s are in line. We would wish to see a developing Yemen, and I think we have very much of one of this.

Have you met with any oppositions parties of Yemen? And what is your advice to the government and the opposition to solve the conflicts in Yemen? This was a government - government series of meetings, and therefore it was not possible in the schedule to arrange discussion with opposition parties. Formally, however, the British government would always wish to maintain relationships with key parties abroad. Moreover, we want to have the government address any of the economic courses that might lead to unrest and conflict. It’s not for the British government to settle the political issues of other countries. We would not wish to do this; it is not our place, where civil unrest may have economic issues attached, for us to help any government who is trying to ensure that these economics issues were tackled. So it’s a question of where is the economy needing to expand and to provide enough jobs to people where we have a very important social development program which is going to provide some thirty million hours of work for people over the next five years. We are very committed to that, so I think our approach to that is through the government itself,

EU Delegation Assumes Permanent Local Presidency of the EU in Yemen

Alistair Burt

and not to address problems outside governments should not interfere with. But we want to support a certain array of programs that will assist in providing stable prosperous peace for a country, in which the people themselves can make informed choices about their political options.

Don’t you think an unstable country will give a chance for al-Qaeda and other terrorist organizations to grow in the country? They do, and this is another reason for us to be involved in the security and the counterterrorist aspects of our involvement is very clear, not just with Yemen but with other places there will always be in need for collaboration and a working relationship. The government here is very open about these issues and, of course, that is an area where we can work together. The more prosperous and the more stable a country is then the less likely that these issues will be raised.

If the interest of the British government is to have a stable country, how does your country view past and future activities with and in Yemen? The past is the past. The British role, in terms of development, are important issues - this is undeniably a matter of British history. What the British people are looking for are relationships

with countries of mutual benefit to all of us. The more prosperous countries are, the more stable they are, the better living of people there. All our experience around the world tells us that it is those countries who are engaged with trade build their populations have less problems with their neighbors. The interest of the British people is the same interest is of the people everywhere: we want a secure and safe world and that is why we work together. Certainly investment opportunities and trade opportunities are very important and that is not a return to the past, because these roles have totally different bases now. We can compete with others who would want to come and invest. We can compete with people for products and there is a mutual sympathy and understanding for people who wish to invest, and for people who see these investment opportunities for their are countries to grow and develop. It is as straightforward as that.

been taken and that is the sort of thinking that assures outside investors. Our aim is to try and help the Yemeni people themselves to ensure that they have got peace, so people want to come and invest and it will be a good place to do so. Money for investment goes wherever there is a good return. Most people are very hard headed about these things and people who are looking to invest all throughout the world with available capital will look for a places where people are skilled, where there is a stable society and a good source of workers - that is the sort of place where they can invest. However, they will make their own choices - it is not the British government’s position to tell people where to go and invest. The most stable communities are the most likely places for people to come and invest. If British companies see strong engagement between the British government and with the people of Yemen then maybe that is encouragement enough.

The UK government has a number of supportive programs and at the same time they do not have many private British companies investing in Yemen?

Tell us about the Yemeni government education and development plan?

That will improve with time; people invest where they can see a point in doing so, where they can see an opportunity for themselves to grow and develop where the country is stable, where finances is stable and strong. Well if you look into the engagement of the country with the IMF, their proposals have

If you remember the ten point plan this was book forward initial by a group of business people is been taken off into government to work with, I think from memory this involves expanding civil service opportunities to move people, which is a good thing, and that will happen with the improvement of education like. The British government is working very hard in term of our efforts to build up school capacities or exchanges for schools.

Universal Group and Travelport’s Successful Joint Venture Show Encouraging Results Universal Group and Travelport, global travel service providers, celebrated last week a successful 18-month joint venture at an event in the Sheba Hotel in Sana’a.

under the authority of the High Representative for Foreign Affairs and Security Policy, Baroness Catherine Ashton. This brings together the previous tasks performed by the European Union Delegations, whose functions were exercised by rotating EU Presidencies.

6 July 2010 — As of July 1, the Delegation of the European Union to Yemen has taken up its role as President of the European Union. This role entails the task of representation, coordination and negotiation on behalf of the European Union. The local representation of the European Union will be unified

“The EU Delegation will seek to deepen and strengthen EU cooperation with the Government and people of Yemen in close coordination with the Embassies of each EU Member State on a number of key issues. These issues include state building, national dialogue, and economic reforms”, said the EU Head of Delegation, Ambassador Michele Cervone d’Urso. “The Delegation is expanding right now. It seeks to respond

to its growing responsibilities, and will soon be well-equipped to handle its new role. We look forward to more robust engagement with Yemeni stakeholders at all levels”. With the implementation of the Lisbon Treaty on 1 December 2009, the High Representative became responsible for the EU’s political dialogue. The High Representative represents the Union in matters relating to common foreign and security policies, and it is responsible for conducting political dialogue on the Union’s behalf. The EU rotational presidency will continue to exist, but such Delegations in third-party nations will assume permanent local presidency of the EU.

Present was Mr. Alwan alShaibani and Mr. Omer, Chairman and Deputy Chairman of Universal Group respectively; Mr. Rabih Saab, Vice President for Middle East Travelport; Jennifer D’Souza, Regional Commercial Director for Distributor Markets in the Middle East, Pakistan & Turkey; as well over 50 travel agents working in the airline business industry. Local media was invited to the celebration of distinguished travel agency awardees and company progress. The agents winning awards proved that use of the Travelport’s services leads to excellent achievements. Speeches were given to mark the occasion. Mr. al-Shaibani

welcomed Travelport guests, saying the genuinely successful partnership with Galileo is a result of their coordination in support of the Yemeni travel market. Galileo was absorbed by Universal Group last year. “The increasing local market share of Galileo business is 55% for the past year and almost 75% for the past six

months. This is a clear sign of the company’s stability in spite of strong competition from three different companies operating in Yemen” said Mr. AlShaibani. Since the Galileo partnership, Universal Group managed to train and qualify its staff to address customer requirements and the agent demands.

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Results of the Scientific Seminar on Yemen’s Petroleum Sector

Oil production falls to 280,000 barrels per day. Al-Aidaroos confirms the need for a better a means of new explorations. The Investor Institution organized last Wednesday in Sana’a, a scientific seminar on the petroleum sector in Yemen. This seminar was held under the auspices of the Minister of Petroleum and Minerals, Ameer Al-Aidaroos. Members of both the Parliament and Al-Shura Council attended the seminar, in addition to chairmen of oil companies operating in Yemen. At the seminar, the Minister of Oil and Minerals spoke on the urgent need for a clear vision for deep and comprehensive technological upgrades to Yemen’s oil and gas sector. Dr. Ahmed Ali Abdellah gave a lecture reviewing the history of oil from the beginning of oil explorations in Yemen. He detailed the geological characteristics of Yemen including potential areas of resource deposits, including 100 oil sectors and 12 production sectors. Dr. Abdellah pointed to a

number of challenges facing Yemen’s petroleum sector. He cited the Petroleum Act as a tool for working to address these challenges through identifying a long-term strategy, restructuring infrastructure, and improving human capital to reach a developed and modern energy industry. Engineer Nasr Al-Humaidi, Chairman of the Oil Exploration and Production Authority, reviewed the mission and activities of the Authority. He emphasized that Yemen’s oil future is promising, and that the Authority will do its best to promote this sector. Through training a cadre of energy experts at prestigious universities, reviewing current policy and practice, as well as strategic planning, al-Humaidi hopes to increase the sector’s contribution to the national economy. Dr. Rasheed Ba Rabaa, a Shura Council member, stressed the need for coordination between efforts of the various bodies within the Ministry of Petroleum and Minerals. She called on these bodies to complete the

studies and geological surveys the ministry initiated years ago. Dr. Ba Rabaa pointed out the value of engaging the private sector through heeding international companies’ experiences in conducting research within Yemen. There are 100 sectors within petroleum and minerals in Yemen. In 1996 this number was 56. Exploration sectors in that time numbered 36. Currently there are 12 oil production sectors and 10 production companies. Oil reserves have been estimated at 10.9 billion barrels. Total oil production during 2009 was 103 million barrels. Oil quantity in Yemen is suffering from a steady decline. Statistics indicate that the daily production reached 280,000 barrels at the end of last year. Compared with daily production levels approaching 430,000 barrels in 2003, it becomes quite clear that there is a serious depletion of known oil reserves in Yemen.

Chamber of Commerce Rejects General Sales Tax Law Implementation, Threatens Possible Strike. The Customs Authority began full implementation of the General Sales Tax Law last Thursday, July 1st. The law targets senior taxable merchants. This comes amid a debate between the Customs Authority and the private sector. The latter expresses total rejection of a sales tax law as it currently stands. Mohammed Salah, ViceChairman of the Chamber of Commerce and Industry in Sana’a, said that the government was given a week’s time to reconsider the resolution and resolve the problem before his group would threaten a strike. He pointed to the current ongoing dialogue between the Chamber of Commerce, the government, and the Customs Authority. He said that the government has to adopt a better mechanism, and remove unconstitutional articles from the law. He did, however, mention that the Chamber’s meeting concluded with asking traders not to proceed with a strike just yet. The private sector believes that the government’s system for revenue collection has

failed. The state has lost about 150 billion riyals, according to Hasan Al-Kabous, Chairman of Chamber of Commerce in the Capital Secretariat. He said, “If the authority continues with its arrogant implementation of this mechanism, it will make corruption worse. It will also cause non-equity among taxable persons”. He stressed that this mechanism has proven to be a complete failure. “The state received just 10% since the beginning of the year. 90% was not remitted to the state.” The General Assembly of the General Union of Chambers of Commerce and Industry takes issue with the law’s provisions. It requires senior taxable persons to maintain books and records of their business. It asks businesses to issue bills for

commodities they sell. They claim that these burdens on businesses in addition to a 5% value-added tax will hurt the private sector. Representatives of the private sector called on the Customs Authority to stop implementation of any provision within the General Tax Law. They claim its constitutionality is still undecided. The traders called on the government to abstain from its orientation towards raising tariffs and customs value in ports. They asked that government’s focus shift towards reforming the financial systems and economic legislation in the country. They also asked to abolish the recent resolution regarding raising the price of diesel.

National Yemen

Rights of trading, tax and service tariffs, customs valuation are core issues in the negotiations with the World Trade Organization (WTO) in July Dr. Hamoud Al-Najjar , Head of Liaison and Coordination Office with the WTO in the Ministry of Industry, said,” The meeting of Yemen’s negotiating work team, under chairmanship of Dr. Yahya Al-Mutawakkil, Minister of Industry and Trade, in the WTO will be held late July in Geneva. The meeting will focus on issues such as: the rights of trading, fees and taxes, service fees, implementation of the Customs Valuation Agreement, the health Agreement, Phyto-health Agreement, Business Technical Barriers Agreement, and aspects of trade related to intellectual property and services. These topics have reached an advanced stage in the drafting of the report. We hope to reach consensus on the items of the report, which we have prepared. If there are any new items proposed in the team’s report during the meeting, they will be studied and a consensus will be reached on most of them.” Al-Najjar also said, “Our country has recently sent its responses to the last batch of questions that it received last month. Answers to these questions were sent to the secretariat of the Organization. Our country has also studied the proposals of the legal commitment phrasings, which will be included in the work team report, and which will be discussed in its next meeting. We believe that the progress we have made so far in the responses and discussions with the member states is positive. Furthermore, during the next few days we will discuss these commitments and legal phrasings more deeply in an attempt to persuade the member states of the fewest possible commitments. On the other hand, as you know, we signed in initials with the US on the convention of access to markets in relation to commodities and services in the beginning of last May. Therefore, the bilateral negotiations in regards to commodities and services have made significant progress. Usually the United States holds more discussions on the various details of this subject. The bilateral negotiations are continuing with Japan, South Korea and Honduras. We hope to make significant progress especially that we expect to finalize negotiations with Japan and South Korea. Negotiations on commodities access to the markets are being held with Ukraine. We hope to sign as many bilateral agreements as possible during the Yemeni negotiating delegation visit, headed by the Minister of Industry and Trade to Geneva in order to enable the technical team to make progress and maybe sign bilateral agreements with Japan and Korea, and finally sign the agreement with the US. By having fulfilled all this, we will have made progress in the bilateral aspect. Then we will focus on multilateral issues. We are now working against the clock on the commitments in the work team report so that this report is almost ready in the next round. Perhaps, the members will reach full consensus on the report that will be reviewed again in a later meeting that is supposed to be the work team’s

final meeting in October this year. If conditions permit and if we give the members sufficient flexibility to reach a consensus on the remaining subjects, then by next October we will have agreed on all technical aspects. Accordingly, the work team’s report will be forwarded to the General Council to take the final decision in a meeting early December. Thus, our country will have completed the requirements to join the WTO as planned this year. In regards to the delay of our country’s joining the WTO due to financial and administrative reforms, Al-Najjar says, “The important part of the joining process is the conformity of the rules of trade and investment system with the other systems of the members of the organization. As we know the member states are the majority and represent 95% of the trade exchange bound by the organization conventions. Yemen’s conformity with this system means its conformity with the whole world, including the Gulf Cooperation Countries (GCC), which are all members of the organization along with a large number of Arab countries. This conformity requires legislative reforms and changes for the better in line with the financial and administrative reforms carried out by our country in the middle of the last decade. This conformity will certainly be important for the continuation of economic reform in Yemen. It is not just a reform; but it should also be compatible with most of the world reforms. As a consequence, Yemen will be one of the countries to be given the privilege of being a member and to be given a stamp of the organization. For investors, this means a great deal and for other countries it means stability of Yemen’s economic system.” About the private sector’s apprehension of certain national industries and joining the organization, Dr. Al-Najjar says, “ The private sector’s anxiety about competition cannot be justified because competition is inevitable, whether Yemen joined the WTO or not. There is no consumable product will be granted permit unless it meets the major requirements of international standards. Therefore, local products have to meet two major demands: first competitiveness, regardless of Yemen’s joining the WTO. Local products cannot compete with foreign products in both the domestic market and the global market. At the same time, national products will not be able to evade the basic and necessary specifications, which is a good thing for the Yemeni consumers. This has become the general pattern of production in the world. Competitiveness is very important for the domestic product. This does not mean, however, to open the floodgates for competitive foreign products. On the contrary, the current situation allows products to enter with certain customs categories and we negotiate to set tariffs at levels much higher than is currently being implemented. So, there

Dr. Hamoud Al-Najjar will be no negative impact at all on the competitiveness of domestic products with the foreign ones compared to the status quo. In contrast, application of the law to protect domestic products from harmful practices, if issued and enforced by the Ministry of Industry, will protect the domestic market from being flooded with foreign products. Yemen can prevent such cases and other practices harmful to the domestic product, if proven to exist. Agreements of the organization itself allow for certain temporary or not temporary protective policies, and there are also legal versions included in the WTO agreements allowing the leastdeveloped countries to follow certain procedures called measures of preferential treatment for least-developed countries, from which our country will benefit after joining the WTO. Concerning the impact of our country’s joining the WTO on the Agreements of the Arab Trade Zone and other Arab agreements, Al-Najjar says, “The agreement of the Arab Trade Zone requires reduction of customs duties on imported commodities from and to the member states to zero. This is not the case with the WTO. Membership of our country in the Arab Trade Zone will not be affected.

The government is perhaps reconsidering our joining the Arab Trade Zone, because the facts reveal that the losses of the state’s treasury which result from our membership were enormous and unexpected. However, there is no conflict between Yemen’s joining the WTO and its membership in the Arab Trade Zone. Regional groupings, by the way, are permissible according to the WTO agreements, and all WTO member states are members of other regional groupings

National Yemen

SPORT

President Fourth Horsemanship Tournament Begins The Guard’s AlTaweel snatches first place for senior barrier jumping, Al-Raimi second, Al-Ghazali third

The Special Guard’s jockey, Jamal Al-Taweel, won the title in the barrier jumping race for juniors in the opening match of the President Fourth Horsemanship Tournament.

Sports Elections: Where to Next? Young people and athletes desperate to change the tragic situation of clubs and sports associations in our country have reached an impasse. Financial and administrative corruption continues to proliferate throughout the administrative staff cadre. Next month’s election of members for the National Olympic Committee is widely viewed as tainted by the Com-

Mohamed Houeiss

mittee’s past work. These elections are viewed as no more than a mechanism to bring young athletes to their knees, and ease the ability of an influential an administration to dominate them. It is unknown if this election issue, or the loss of millions of riyals, will ever be referred to the courts and the High Commission against Corruption.

Iraq Finalizes Gulf 21Facilities in Basra, Yemen Lags

Participants include jockeys representing the Military College, the Police College, the Special Guards, YECO, Sheikh Abdullah Bin Hussein Al-Ahmar Stud for Arabian Horses, the Yemeni Equestrian Club, Judge Mohammed Al-Akwa Stable, Typical Traction Ranch, and Al-Kowr Ranch. The riders competed yesterday in a single round with two horses. They demonstrated their ability to jump hurdles as high as 110-120 cm. The Special Guard jockey, Al-Taweel, won first place for senior hurdling on his horse, Al-Ameerah, in a time of 56.55 seconds. Mohammed Al-Raimi from the Military College earned second place on his horse, Al-Ghallab, in 57.14 seconds. Late Sheikh Abdullah al-Ahmar Stud rider, Ibrahim al-Ghazali, came in third on his horse, Najm Saba’, in a time of 57.56 seconds. Adel Jum’aan, a rider from the Police College, earned fourth place in a time of 58 seconds on his horse, Al-Qatee’. Rider Bakeel Al-Yemeni, from the Police College, earned fifth place on his horse, Asmahan, in a time of 58.22. This tournament is held every year to encourage young peo-

Sunday, July 11, 2010 www.nationalyemen.com

While Yemen has yet to complete construction of the Khaliji 20 (Gulf 20) athletic facility, the governor of Al-Basrah announced that Iraq is about to complete the construction of their “Sports Town” . This major sports complex includes a golf course and facilities for all games associated with the Arabian Gulf Cup. It includes training arenas as well as hotels, conference rooms, information centers and multiple service annexes. The Sports Town, in which the Gulf Cup 21 will be held, has an area of 500 acres and

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ple to participate in the sport of horsemanship. The tournament is currently taking place

in the Military College Field in Sana’a. The tournament is organized by the General Federa-

tion of Equestrian and Camel. It continues from until the 15th of July.

On July 9th, Aden announced it had readied five football facilities to international FIFA standards. The Bureau of Youth and Sport of Aden Governorate said the total costs of the project cost 1 Billion YR, and that each field holds 5,000 spectators. The Championship’s main stadium, the 22nd of May International Stadium, will be ready by October. Minister of Sports and Youth, Hamoud Ubad, declared his

costs $650 million dollars. Yemen’s facility includes a single new court. Currently new construction in addition to the renovation of six other facilities is costing the government roughly 1 billion dollars. To the organizers of the Gulf 20 in Yemen, this is a scandal. The public fund is nearly depleted.

commitment to Yemen’s success in hosting the event. He said all construction is progressing as planned, and 70% of facilities are completed. Final touches will be added to ensure the enjoyment of the participants, and to meet the expectations of the Arabian States. The President already affirmed last week that there should be no doubt that Yemen will be prepared to host the Football Championship.

Referring the file of Omm Al-Shaheed Cup to the Anti-Corruption Committee The National Yemen newspaper leaned that the Supreme Committee To Combat Corruption has summoned captain Mohammed Alworafi, Director of Unions and Clubs Department in the office of the Ministry of Youth and Sports in Sana’a governorate along with a number of office staff to hear their testimony on the complaint against the Direc-

tor General of the Office, and the Head of Sport for All filed by the champion of Omm AlShaheed Cup Championship which was held by funding from the CAC Bank, Sana’a Governorate and the General Federation of Sports for All. The fund reached two million riyals. The sports clubs accuse the head of the Branch and the Director General of the Office

Last Day of 2010 World Cup South Africa

of stealing financial allowances allotted to the games as well as the financial awards allotted for the three winning teams. The Director General of the Office has admitted that he gave the head of the Branch one million riyals and the rest of the money was used as bribes and rewards. This was denied by the head of the Branch.

Sunday, July 11, 2010 www.nationalyemen.com

REPORT

National Yemen

Al-Badah Star Festival: More than a Socio-Economic and Tourist Event, it is the Tale of a Man and the Sea Salim Al-Juaidi, a well-known astronomer in the province of Hadramout, explains the phenomenon of the Al-Baldah Star: “Al-Badah refers to the positioning of the full moon in relation to constellations and the people of Hadramout. Al-Baldah is the only phase where the sky is relatively empty of stars. The moon is located between the twin towers (Sagittarius) and (Capricorn), and between two phases Al-Na’aym and Al-Marzom.”

Just as the first day of winter in Europe doesn’t always beget snow in a some sudden change of climate, the people of Hadramout don’t experience a rapid change of climate on the on the first day of Autumn, marked by the appearance of the first star of Al-Na’aym (Sagittarius). However, the rise of Al-Baldah Star is different. This star has built a traditional connection between people and climate. Natural phenomenons occur. The sea in Hadramout Al-Sahel becomes cooler and the waters of Aden become rough. The weather becomes more moderate with mild evenings and cool dawns. Date crops ripen. In response, the people of Hadramout market their fruits, and they cultivate and prepare their nurseries for the winter harvest. They take holidays from schools and institutes, and expatriates visit their homeland. Many partake in swimming the cool sea for recreation, entertainment and sport in the most celebrated rituals of the event dating back to ancient times. The phenomenon has scientific explanations. Some attribute the cooling of the seas to ocean currents between the arctic poles, while, at the same time, cold deep ocean water moves towards the surface. The sea off of Hadramout reaches its coldest temperatures generally during the highest phase of the Al-Baldah star on July 15 of every year. Occasionally, though, such temperatures may occur as late as Al-Marzom, as it did in 2001.

The Story of Al-Mukalla and the Sea This maritime event is used to both preserve Hadramout’s cultural heritage and cultural memory, as well as boost tourism around the region’s aesthetic and entertainment potential. The first festival geared for tourists was in 2004. The days of the event are filled with economic, social, and cultural activities. The largest activity is the congregation of people on the coast of al-Mukulla to bathe in the cool waters—sometimes reaching as low as 17 degrees Celsius. Some youth act on their own initiative, carrying out public activities on the shores of Al-Masharef Sea, Saif Hameed and Al-Sitteen Streets. The idea of celebrating the AlBaldah Star Tourist Festival is attributed to Mr. Abdul-Qader Ali Hilal, former Governor of Hadramout. He unleashed his brilliant creativity to boost local, Arab, and regional tourism following increased media coverage given to Al-Baldah Festival. Mr. Hilal, then Governor of Hadramout, held the first festival in Al-Mukalla City. From there, it was announced that every year a festival would be held from the 15th through the 29th of July in conjunction with onset of the Al-Baldah Star. AlMukalla celebrated the first festival in all of its neighborhoods. It organized cultural activities including poetry contests, Hadrami singing, folk dance, as

well as performances by popular singers, artists and dancers. Commercial fairs, games, entertainment, and intellectual events were also held. The motivation for establishing the festival came out of a desire to revive folklore, promote and preserve ancient Hadramouti customs and traditions, as well as to exploit the tourism potential of Hadramout and its capital Al-Mukalla for economic development.

The Power of the Sea Mr. Salim Al-Juaidi says, “Taking a bath in Al-Mukalla Sea during Al-Baldah Star season is evidently pleasant. Both extremes, cold and warmth, are there. It is so different during this season. The sea temperature keeps changing and fluctuating between cold to warm, which gives extreme pleasure and refreshment. It gives you magical energy and zest you have never experienced in your life before, and you feel that you never want to leave the sea. You don’t feel any depression and anxiety after taking your bath in the mysterious waves of Al-Mukalla Sea. That is the splendor of the sea that bestows you with recovery”.

Medical Benefits for AlBaldah Star Despite the rumors of the sea’s ability to cure skin diseases, treat joint and back pains, and reduce blood pressure, there is an unfortunate lack of scientific explanation or research.

However, logic here says absence of proof does not necessarily entail negation. I would like to draw attention to the simple notes on the importance of washing with cold water. First, Allah, the Almighty, tells Jacob (peace be upon him), “For your healing, run your foot in a bath of cold water and drink” (Surat Sad /Verse 35). Although we know that the healing was a miracle, linking it to cold water gives an emphatic meaning to the importance of washing with cold water. Second, the words of our beloved Prophet Mohammed (peace be upon him) say in the opening du’aa (prayers), “and wash my sins with cold water and ice”. Sin is an abstract thing, but the request from God to cleanse abstract things with

material substances like cold water and ice communicates the notion that cleansing is both a moral and physical action. Thirdly, peoples of China continued to wash in cold water, even in winter. China’s cultural heritage is among the richest in the world. You’ll find them breaking the ice sheets on the surface of lakes in early winter mornings before swimming in groups for a distance of forty meters. Notably, most of the participants in this ritual are over the age of sixty. Many people attribute their energy to washing in cold water. An old Hadrami saying, Ghaslat Al-Baldah Torge’ Al-Ajooz Waldah, emphasizes this idea: Washing under the Al-Baldah Star makes old people young again.

Al-Baldah Star Festival 2010 Bait al-Khibrah, the company organizing the Al-Baldah Star Festival this year, have major responsibilities if they are to live up to the great successes of previous festivals—especially after cancelling last year’s festival. The company emphasized that this is a new year, and to expect unique programming and activities. The slogan for this year’s festivities, “Al-Mukalla is So Far Away”, promotes a new image. Nine Arab and foreign countries are expected to take part in the activities of the festival. There will be Egyptian, Palestinian, Indonesian, Moroccan, Malaysian, Gulf, Algerian and French activities. The Arabic Circus will also participate.

The Filipino Community in Yemen Recently the 112th National Independence Day Commemorating Their Freedom Spanish and American Colonialism. The Philippine Declaration of Independence occurred on June 12, 1898 with the public reading declaring sovereignty and independence for the Philippine Islands from the colonial rule of Spain. They had been recently defeated at the Battle of Manila Bay during the Spanish-American War. The Philippine Declaration of Independence occurred on June 12, 1898 with the public reading declaring sovereignty and independence for the Philippine Islands from the colonial rule of Spain. They had been recently defeated at the Battle of Manila Bay during the Spanish-American War. The event was celebrated by a flag raising ceremony on June 11th in Sana’a. Filipino citizens pledged their respect to the symbol of the Philippine race

and to their mother land. The event was presided and graced by the presence of the Philippine Embassy to Riyad. In attendance also were K.S.A officials, headed by Consul Romulo Victor M. Israel, Jr. Secretary General of the Foreign Affairs Senior Superintendent Jimmy L. Manabat, Labor Secretary General / Overseas Worker Welfare Administration (OWWA) Administrator Mr. Cesar L. Chavez, embassy Attache Noly C. Dulay and Attache Dennis

H. Punzalan were also in attendance. In the ceremony Consul Romulo Victor M. Israel, Jr., stressed upon the importance of welfare and labor assistance to Filipino citizens. He encouraged Filipino nationals to be more cooperative with, and to respect the laws and policies of, their host country. The ceremony ended successfully with a lavish breakfast meal offerings and concluded with a visit to Yemen’s famous

Rock Palace of Wadi Dhar and other nearby scenic spots of the country. They were all amazed of the historic riches in Yemen. Ms. Zeny Cadion, Mövenpick Hotel Communications Manager & TFCY EXCOM for Social Affairs said, “This is our gesture to support Yemen’s Tourism program. We urge fellow foreign nationals to help us

promote Yemen and its tourism. It is one of the only ways to help the country as a foreigner living Yemen”. Furthermore, the celebration highlighted the induction of The Filipino Community in Yemen’s (TFCY) new elected officers in 2010. The new elected officers will be of further assistance to the Filipino citizens in Yemen

by acting as a direct link to the Philippine Embassy and will always be available for any legal assistance and support to Filipino constituents. Filipino citizens in Yemen can now log-on to Facebook TFCY Community Group’s official page or email the officers at info_tfcy@yahoo.com.

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