Located just outside of the Red Sea's southern entrance, the zone is expected to begin operations in 1999. Numerous incentives have been offered to encourage foreign investors. Yemen's draft law on free zones has provided a number of options such as exemptions from custom duties and taxes on processing and exportation of goods outside the free zones. Companies in the zones will be exempt from commercial and industrial taxes on net profits, as well as from general taxes on income for a fixed period of time. Import and export restrictions will not be applicable for goods brought into and exported from the zone.
Projects operating within the free zone are free to transfer their capital and profits abroad.
Nationalization and confiscation of projects operating within the free zone are also prohibited. The recent launching of the project has provided many needed jobs and should be a source of employment well into the future. Foreign Investment Incentives offered in the Aden free trade zone will be optimum for foreign investors. Since 1991, only one proposal out of 600 has been rejected. Foreign investment is restricted in some areas, primarily to protect existing production and small individual investors.