RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/YEM/2 
17 August 2005 
 (05-3649) 
Working Party on the 
Accession of Yemen Original:   English 
 
 
 
ACCESSION OF YEMEN 
 
Initial Offer on Services  
 
 
 The following submission, dated 12 August 2005, is being circulated at the request of the Government of the Republic of Yemen.   
_______________ 
 
  Yemen, being a least-developed country, has prep ared this offer taking in consideration the 
General Council Decision on Accession of Least-developed Countries of the 10
th of December 2002, 
in particular the guidelines for market access negotiations, which read  as follows: 
"WTO Members shall exercise restraint in seek ing concessions and commitments on trade in 
goods and services from acceding LDCs, taking in to account the levels of concessions and 
commitments undertaken by existing WTO LDC Members." 
 Further, in preparing this offer, Yemen has also  taken into consideration the letter and spirit of 
the Modalities for Negotiations on Trade in Serv ices in the Doha Round, September 2003, which 
envisage flexibility for LDCs. 
 Yemen also expects members to facilitate and  accelerate  its acc ession in accordance with 
paragraph 42 of the Doha Ministeria l Declaration which reads as follows: 
"We agree to work to facilitate and accel erate negotiations with acceding LDCs". 
"We reaffirm the commitments we undertook at LDC-III". 
 Yemen reserves the right to make modifications  in this offer and to make any technical 
changes and corrections in it, as may be necessary.  
 WT/ACC/SPEC/YEM/2 
Page 2  
Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
I. HORIZONTAL COMMITMENTS 
All Sectors included in this Schedule  
(1), (2), (3) & (4) Commitments in this 
services schedule apply to all 
services except for those of non-
profit, public and publicly funded entities.  
 
 
(3) In case of joint stock and limited 
partnership companies, maximum foreign equity allowed is 45% and in 
other types of business partnership, 
maximum foreign equity allowed is 49%, unless otherwise indicated in 
the sector specific part of the 
schedule.  
 
(3)  Minimum foreign investment is YR 
50 million.   Subsidies:  
(1),(2),(3) & (4) unbound with regards to 
subsidies, tax incentives and tax 
credits.   
  
Acquisition of land:  
 
(3) Non Yemenis are not allowed to 
purchase land and properties; however, they can lease land and 
properties for business purposes in 
specific sectors and sub-sector covered in this schedule. 
 
  
 Temporary Entry and Stay of Natural 
Persons:  
 
(4) Unbound, except for temporary 
entry and stay of natural persons in 
the categories listed below, and in 
all cases, total number of foreign 
staff, including higher management, 
of any establishment should not exceed 10% of the total staff.  
 
Service sales persons
 
 
Persons not based in Yemen, who are 
engaged in activities related to representing a service supplier for the 
purpose of negotiating for the sale of 
services of that supplier where:  Temporary Entry and Stay of Natural 
Persons:  
 
(4) As in the market access column   
 
 
  
 
 
 
  
 
  
 
  
  WT/ACC/SPEC/YEM/2
 Page 3Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
a.  such sales are not directly made to 
the general public, and 
b. the sales person is not engaged in 
supplying the service. 
 Entry and stay for persons named in this 
category is limited up to ninety days.  
 Persons responsible for setting up a 
commercial presence  
 Persons who are employees of an 
enterprise not having commercial 
presence in Yemen, whose stay temporarily in Yemen for the purpose of 
setting up a commercial presence of that 
enterprise in Yemen. Personnel engaged in setting up commercial presence shall 
present proof of the commencement of 
business operation within one year from 
the date of entry of that person. 
 Entry and stay for the above-listed 
persons is limited to one year, which may 
be extended, upon provision of legitimate justification.  
 
Intra-corporate transferees
 
 
Managers, executives and specialists as 
defined below, who are employees of firms that provide services in Yemen 
through a branch  or subsidiary 
established in Yemen and who have been in the prior employment of their firm 
outside Yemen for a period of not less 
than one year imme diately preceding the 
date of their application for admission and 
who fall with one of the following 
categories: 
  
 WT/ACC/SPEC/YEM/2 
Page 4 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(a) Executives and Managers:  persons 
within an organization who primarily direct the organization or a 
department or sub-division of the 
organization, supervise or control the work of their supervisory, 
professional or managerial 
employees, have the authority to hire and fire or recommend hiring, 
firing or other personnel actions 
(such as promotion, or leave authorization) and exercise 
discretionary authority over day-to-
day operations. 
 
(b) Specialists: persons within an 
organization who possess technical knowledge at an advanced level of 
continued expertise and who possess 
proprietary knowledge of the 
organization’s services, research 
techniques or management techniques (Specialists may include 
but are not limited to members of 
licensed professions). 
 
Persons in the categories mentioned 
above are required to obtain work permits, which are given for one year 
renewable up to five years.    
  WT/ACC/SPEC/YEM/2
 Page 5Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
II. SECTOR SPECIFIC COMMITMENTS 
 Note: Sector specific section of this offer has to be read with  and is subject to the above ho rizontal section of the offer. 
1. BUSINESS SERVICES 
A. Professional Services 
(a) Legal Services  
 ii. International & Foreign Country 
Laws, only Advisory,  (Part of CPC 
861) except Domestic Law.  
 (1) None 
(2) None (3) Only in partnership with Yemeni 
Lawyers.    
(4) Unbound, except as indicated in the 
horizontal section.  (1)  None 
(2)  None (3) None  
 
(4) Unbound, except as indicated in 
horizontal section   
(b) Accounting, Auditing and Book-
keeping services 
 (CPC 862)   
 
  
 
  (1)  Unbound  
(2) Unbound    
(3) Only in partnership with Yemeni 
Accountants. Foreign accountants 
are required to be registered in the 
chartered accountant registry, for which it is necessary to satisfy the 
following requirements: 
 
 (a) Possess the degree of public 
accountant from accredited university, show evidence of 
experience in accounting of not less 
than 10 years acquired subsequently to the studies, and pass the exam of 
chartered accountants committee in 
Yemen 
 
 or  
  (b) Possess a degree of public 
accountant or an equivalent title 
issued by foreign institutions of countries with which Yemen has 
signed agreements on recognition of 
qualification and endorsed by the authorized governmental body. 
 
(4) Unbound, except as indicated in the 
horizontal section.  (1)  Unbound  
(2)  Unbound  
(3)    None  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
(4) Unbound, except as indicated in 
horizontal section.    
 WT/ACC/SPEC/YEM/2 
Page 6 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
(d) Architectural Services  
(CPC 8671) 
(e) Engineering services 
(CPC 8672) 
(f) Integrated engineering services 
(CPC 8673) 
(g) Urban planning and landscape 
architectural services  (CPC 8674) (1) Unbound  
(2)  Unbound  (3) None, except that foreign engineers 
need to obtain the qualification 
accreditation from Yemeni authorized body. 
(4) Unbound, except as indicated in the 
horizontal section. (1)  Unbound  
(2)  Unbound  (3) The manager has to have at least 15 
years of experience.  
  
(4)    Unbound, except as indicated in 
horizontal section   
(h)   Specialized  Medical Services  
( CPC 93122)  (1) None 
(2) None 
(3) Only in joint ventures with Yemeni 
Medical Specialists. 
   
(4) Unbound, except as indicated in the 
horizontal section. (1) None 
(2) None 
(3) Grants to patients may only be used 
at certain state/public health 
institutions. 
(4)    Unbound, except as indicated in    
horizontal section.  
B.  Computer and Related Services 
(a) Consultation services related to the 
installation of computer hardware 
(CPC 841) 
(b) Software implementation services 
(CPC 842) 
(c) Data processing services  
(CPC 843) 
(d) Database services  
(CPC 844) 
(e) Maintenance and repair service of 
office machinery and equipment including computers  
(CPC 845) (1)  Unbound   
(2) None 
(3) None  
(4) Unbound, except as indicated in the 
horizontal section.  
 
 
 (1)   Unbound   
(2) None 
(3) None 
(4)  Unbound, except as provided under 
horizontal section 
  
2.  COMMUNICATION SERVICES 
B. Courier Services (CPC 7512) 
  
 (1) None  
(2) None (3) None  
(4) Unbound, except as indicated in 
horizontal section.  (1) None 
(2) None (3) None 
(4) Unbound, except as indicated in 
horizontal section.   
  WT/ACC/SPEC/YEM/2
 Page 7Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
C.  Telecommunication Services 
Mobile Telecommunications Services (1)  Unbound  
(2)  None (3)  None, except subject to economic 
needs test.  
(4) Unbound, except as indicated in 
horizontal section. (1)  Unbound  
(2) None (3) None 
 
(4) Unbound, except as indicated in 
horizontal section.  
5.  EDUCATIONAL SERVICES 
C. Higher Education services  
(CPC 923) 
D. Adult Education Services  
(CPC 924) (1)  Unbound  
(2)  None 
(3)  None   
 
(4) Unbound, except as indicated in the 
horizontal section. (1)  Unbound  
(2)  None 
(3) Government scholarships and grants 
are only awarded to students in 
government educational institutions  
(4)    Unbound, except as indicated in 
horizontal section.  
7.  FINANCIAL SERVICES 
General Conditions: 
All commitments are subject to entry requirements, domestic laws , rules and regulations and the terms and conditions of compete nt regulatory bodies/authorities in the 
respective financial services sector. 
A. Insurance and Insurance Related Services 
(a) Life Insurance Services  
(CPC 81211) 
  (b)    Non- Life Insurance  
(CPC 8129) 
 (1) Unbound  
(2) Unbound  
(3) Only through joint ventures with 
foreign equity ceiling of 25 %.   
(4) Unbound, except as indicated in the 
horizontal section. (1) Unbound  
(2) Unbound  
(3) None   
(4) Unbound, except as indicated in 
horizontal section.   
(c) Re-insurance and Retrocession  
(CPC 81299)  
 
  (1) None  
(2)  None  
(3)  Only through :  
 -  Branches of foreign insurance 
companies; or 
  -  Joint venture with foreign equity 
ceiling of 25 %  
(4)  Unbound, except as indicated in the 
horizontal section.  (1) None  
(2) None  
(3) None 
  
 
 (4) Unbound, except as indicated in 
horizontal section.   
 WT/ACC/SPEC/YEM/2 
Page 8 Modes of supply    (1) Cross-Border supply   (2) Consumption abroad    (3) Commercial Presence    (4) Presence of natural perso ns 
Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
B.     Banking and Other Financial Services 
The classification of the financial Services in this offer is ba sed on the classification of the financial services in the Anne x on Financial Services in the GATS.  
(a)    Acceptance of deposits and other 
repayable funds from the public   
(b) Lending of all types, including, 
inter-alia, consumer credit, mortgage credit, factoring and financing of 
commercial transactions   
(c) Financial leasing   (d) All payment and money 
transmission services   
(e) Guarantees and commitments  (f) Trading for own account or for 
account of customers, whether on an 
exchange, in an over-the-counter market or otherwise, the following: 
 -money-market instruments 
(cheques, bills, certificates of 
deposits, etc.)   
 -  foreign exchange   -  derivative products including, but 
not limited to, futures and options   
 -  exchange rate and interest rate 
instruments, other than swap 
        -  transferable securities  
 -  other negotiable instruments and 
financial assets, including bullion. 
(g) Participation in issues of all kinds of 
securities, including under-writing and placement as agent (whether 
publicly or privately) and provision 
of service – related to such issues. 
(h)    Money broking  
(i)    Asset management, such as cash or 
portfolio management, all forms of collective investment management,  
custodial depository and trust 
services.  
( Pension Fund Management excluded)  (1)  Unbound  
(2)  Unbound  
(3)   Only through joint ventures with 
foreign equity ceiling of 45% in case of commercial banks (Traditional) 
and 20% in case of Islamic banks.  
  Individual shareholders, whether a 
natural or legal person, is subject to 
a ceiling of 10% of the equity or the voting power of the bank.   
 
(4) Unbound, except as indicated in the 
horizontal section    
 
 
 
  
 
  
 
  
 
  
 (1) Unbound  
(2) Unbound  
(3) None.  
  
 
  
 
  
 
(4) Unbound, except as indicated in the 
horizontal section   
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Sector or Sub-sector Limitations of Market Access Li mitations on National Treatment Additional Commitments 
8.  HEALTH RELATED AND SOCIAL SERVICES 
A. Hospitals with more than 100 beds  
(part of CPC 93110)   (1) None   
(2) None (3) None 
(4) Unbound, except as indicated in the 
horizontal section. (1) None 
(2) None (3) None 
(4)  Unbound, except as indicated in 
horizontal section.  
9.  TOURISM AND TRAVEL RELATED SERVICES 
A.  Hotels,  only 4 and 5 stars categories 
hotels   
(part of CPC 64110)   
 (1)  None  
(2)  None 
(3)  None; Market access may be 
restricted in order to protect national historic, artistic or environmental 
sites.  
(4)  Unbound, except as indicated in the 
horizontal section. (1)  None 
(2)  None 
(3) None 
  
 
(4)  Unbound, except as indicated in 
horizontal section.  
B.  Travel  agency and tour operator 
services  
(CPC 74710)  (1)    Unbound  
(2)    None 
(3)    None 
(4) Unbound, except as indicated in the 
horizontal section (1)  Unbound  
(2) None 
(3) None 
(4)  Unbound, except as indicated in 
horizontal section.  
 
 
__________