The World Bank Doing Business Report (2013) downgraded Yemen from 129th out of 185 to 133rd out of 189 economies. Its overall performance is below the regional average of Middle East and North Africa, yet it performs relatively better in registering property (ranked 61st) and enforcing contracts (ranked 85th) than the rest of the indicators. In Yemen, the informal sector is substantial, and strategic sectors such as transportation, telecommunications, refineries and media are controlled by the state. The restriction on foreign business to have a Yemeni partner has been abolished and the transfer of investment capital and profits is allowed without limitation on amount or currency. However, deficiencies in infrastructure, especially banking services connected to getting credit hinder the business environment. In spite of the Decree 19 of 1999, which regulates market competition, monopoly prevention and commercial deception, monopoly exists in basic food industries. Also, Corruption and bribery is endemic as Transparency International ranked the Corruption Perception Index (CPI) of Yemen 167th out of 177 countries. The rigid employment regulation makes investors to start business.
|The Business Environment: Doing Business