Market study: Yemen Infrastructure spending to grow 33% by 2013

Dec. 15, 2009 - PRLog -- The prospects for Yemen's construction industry are unexciting. We envisage that spending will rise from US$0.6bn in 2007 to US$0.8bn in 2013. Construction spending will likely remain at below 2% of GDP through the forecast period. Conversely, the outlook for capital investment in infrastructure is rather more promising. We are looking for investment to increase from US$4.4bn in 2007 to US$6.4bn in 2013. Investment should remain at around 15% of GDP through the forecast period. We are looking for the government to account for about one-tenth of investment in infrastructure. In essence, infrastructure development is being driven by protagonists who are insensitive to the risks and challenges of doing business in Yemen. Aside from the government, these protagonists include multilateral lenders such as the  World Bank, multi-national energy companies such as  Total of France and several well-established local contracting firms such as  HAWK International. Broadly speaking, the risks and challenges can be categorised as being of a long-term or a short-term nature. The long-term challenges include the lack of skilled workers, widespread poverty, a tribally-based political system and a consistently poor environment for business. The short-term challenges include the impact of the global financial crisis on the prices of oil and gas - Yemen's main exports - and political instability. The latter, as we explain, is being exacerbated by the return of Yemeni detainees from the USA's Guantánamo Bay prison at a time when long-scheduled elections have been postponed. Early 2009 is something of a landmark for the infrastructure development of Yemen. This is because  Yemen LNG Company Limited's LNG operations are due to begin working. The construction of new processing facilities in the Marib oilfields of central Yemen, a 320km pipeline to the coast (together with two smaller pipelines) and a new port and handling facility at Balhaf represents the largest single project in the country to date - with an estimated capital cost of US$4bn. When working at full capacity, the project - which began in 2005 - will enable the participants to capture LNG that would otherwise have been lost, and to export 6.7mt per annum to customers in the USA and South Korea.
         


Report Table of Contents:

Executive Summary
- Market Overview
- Yemen
- Global Overview
- Governments To The Rescue: The Global Surge In Infrastructure Spending
Table: Infrastructure Stimulus Plans List, Correct As Of July 2009
- SWOT Analysis
- Yemen Infrastructure Industry SWOT
- Yemen Political SWOT
- Yemen Economic SWOT
- Yemen Business Environment SWOT
- Major Infrastructure Developments And Key Projects
- Transport Infrastructure Overview
- New And Ongoing Projects
- Ports
- Airports
- Railways
- Road Networks
- Energy And Utilities Infrastructure Overview
- New And Ongoing Projects
- Power Plants And Transmission Grids
- Water
- Construction Overview
- Major Projects
Table: Yemen - Major Infrastructure Projects
- Industry Forecast Scenario
Table: Construction And Investment Data
- Projections And Risks
- Business Environment
- Business Environment Ratings: Outlook For The Middle East
Table: Middle East Infrastructure Business Environment Ratings
- Project Finance Ratings: Outlook For The Middle East
Table: Design And Construction Rating
Table: Commissioning And Operating Rating
Table: Overall Project Finance Rating
- Foreign Direct Investment
- Labour Force
- Legal Framework
- Tax Regime
- Macroeconomic Outlook
Table: Yemen - Economic Activity
- Political Outlook
- Domestic Politics
- Foreign Politics
- Company Monitor
- Al-Rehab Engineering
- HAWK International


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