Yemen's unique culture, history and geography offer attractive prospects for tourism development. Plentiful stocks of fish and shellfish provide opportunities for packing and export. Steadily growing ship trade in Aden provides excellent prospects for skilled ship maintenance and repair facilities. Furthermore, a major component of economic reform is the planned or completed privatization of approximately 100 public sector enterprises. The lack of adequate infrastructure impedes foreign investment.
Government revenues are insufficient to guarantee commercial power purchase contracts.
Outside the electricity sector, the World Bank and other donors are financing road, water and sewage treatment projects. Despite the higher shipping costs of U.S. versus European or Asian products, U.S. manufacturers and contractors should continue to benefit from the opportunities emerging in Yemen. The Embassy believes export potential exists for irrigation and agricultural equipment and supplies, electricity generation, transmission, and distribution equipment, hotel and restaurant equipment, oilfield equipment and services, computers, medical equipment, supplies, and pharmaceuticals, telecommunications equipment and services, banking services, and vehicle spare parts. In agriculture, wheat and wheat flour will continue to have long-term potential, but 1997 sales have fallen dramatically from 1996 levels. Demand for corn, rice, soybean meal, and grocery products are expected to grow steadily for the foreseeable future.