Yemeni factories add value and diversity to the economy

The minimal press Yemen receives in the United Stated and Europe is all too often very negative – civil war, social unrest, and most recently terrorism. Financially, the unfavorable bits of news eclipse the potential of the Yemeni economy. One prominent Yemeni trade group has set out to explain how it turned a small family trade business into a thriving international group and dispel any misconceptions westerners might have about doing business in Yemen.

In 1938 Haj Hayel Saeed Anam and his brothers started a small trade company to capitalize on South Yemen’s strategic location and lengthy coastline. They traded in leather, fruits, and vegetables, principally with East African merchants. Their successful business endeavors made their way into the Imam-controlled North Yemen, attracting the attention of British companies. Soon the Hayel Saeed brothers were representing Shell.

The revolution of 1962 in North Yemen brought an end to Imam Rule and opened the door to the world economy. Six years later, South Yemen declared its independence from Britain and a Marxist government was established that quickly began confiscating private properties. The Saeed brothers were forced to move their operations north. The civil war of 1994 forced the Group to relocate yet again, this time back to southern Yemen to the port city of Aden.

Remarkably the dramatic social and political events did not impede the company´s growth. Since their first biscuit factory, the Hayel Saeed Anam Group has expanded into a variety of different sectors and grown to employ over 25,000 people across 38 different countries.

Headquarterd now in the city of Taiz, the Group is thriving in an improved economic and political climate. The end of the civil war marked a new era for Yemeni politics and for the private sector. Democracy has been established and a major campaign for modernization and privatization is underway.

“President Ali Abdullah Saleh and his colleagues achieved unification, democracy and stability,” said Mohammed Abdo Saeed, the Regional Manager and Member of the Board of Hayel Saeed Anam Group of Companies and Chairman of the Yemeni Chamber of Commerce.

Yemenis are now working on diversifying their oil-dependent economy. An increasing foreign demand for oil is draining reserves at a record pace. At current production rates, Yemeni oil wells will run dry in roughly twenty years, forcing officials to rethink their long-term economic development plans. “The oil sector cannot do it alone. We will have to work with the other sectors to help develop the economy of the country,” observed Mr. Saeed.

Mohammed A. Saeed Chairman of the Federation of Yemen Chambers of Commerce

The Saeed Group, in all its international success, has become a reference point for many Yemenis looking to generate work in areas other than oil. Mr. Saeed wisely views developing the private sector, on both local and international levels, as crucial. “I think we should concentrate on the economy,” Mr. Saeed said, “and the government is doing this by starting to believe more in the private sector.”

Learning from the success of the Hayel Saeed Anam Group, particularly in terms of diversification of products, services, and trade relationships, is exactly what Yemen will need to ensure the long-term stability of its economy. The Group’s companies generate a large portion of jobs and tax revenue, helping to fuel the economy.

An example of the Group’s positive influence on other sectors can be seen in the insurance sector. United Insurance Company entered the market in 1981 and, with the support of the Saeed Group, quickly became the market leader with a 44 percent market share. When asked what the key to his the company’s success was, head manager Tarek Hayel Saeed, grandson of the late Haj Hayel Saeed Anam stated: “It goes back to the Hayel Saeed Group of Companies which was very supportive; the name is very well known in Yemen and people trust this company.”

The Saeed Group is now looking to develop relations with the United States. Mohammed Abdo Saeed believes that Yemen’s commitment to helping Americans in the war on terror will strengthen economic ties. “I think we are in the same boat, especially in terms of fighting the terrorists. We have the same goals. This cooperation will help convince Americans to invest in some sectors in Yemen.”