Yemen

The size of the economy has been growing in Yemen but the market conditions remain challenging due to political instability. Recently, extremist groups have been aiming and sending rockets or mortar shots at foreign companies, disrupting business. For more information, see the EDC’s report: Yemen: Compounding instability. Trade continues to be of high importance to the country’s economy, and the Canada-Yemen trade and investment relationship is established and stable. Potential remains minimal for Canadian trade in the country, however some opportunities do exist in oil and gas and power. Canadian companies should be aware of restrictions on meat exports to Yemen which must comply with existing Halal requirements.

Yemen’s economy depends predominantly on declining oil resources; however the country is trying to diversify its economy. In 2006, Yemen began an economic reform program designed to develop non-oil sectors and foreign investment. The program resulted in pledges of about 5 billion dollars from international donors for development projects. EDC is positioned to help Canadian companies finance and manage credit risk associated with sales to buyers in Yemen, and to support Canadian Direct Investment in Yemen. However, EDC has a very selective approach towards this market where very few Canadian companies are currently active.