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Back Matter

Author(s):
Nada Choueiri, Klaus-Stefan Enders, Yuri Sobolev, Jan Walliser, and Sherwyn Williams
Published Date:
May 2002
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Annex I Tourism Sector in Yemen: Problems and Prospects

The tourism sector is widely seen as a potential source of growth in the non-oil sector. It is also widely recognized that a number of structural impediments— such as security concerns, first and foremost, and lack of infrastructure— constrain this potential and would need to be fundamentally addressed before the tourism industry could start making a major contribution to future economic growth and employment.

Sector Potential

Yemen has abundant tourism resources and potential for further growth and development. Yemen’s long history, reflected in its rich and unique culture, has left a wealth of significant archaeological sites and a unique vernacular architecture. Yemen has a mixture of scenery—ranging from desert through verdant valleys to mountain ranges—some 2,000 kilometers of coastline, fringing the Red Sea and the Gulf of Aden, and more than hundred islands. Finally, after centuries of isolation from the rest of the world, Yemen remains one of the last unknown destinations.

In addition to the traditional tourism potential of its existing historic and scenic attractions, Yemen has significant opportunities for the development of other forms of tourism that are still largely unknown there, but which possess increasing market potential. These include trekking and mountain hiking, mountain biking, beach resort tourism, scuba diving, and eco-tourism, both terrestrial and marine.

Size and Trends

In general, since unification in 1990, international tourism in Yemen has been on an upward, trend, with visitor arrivals growing on average by about 5 percent a year (Table 17 and Figure 24). The tourism sector suffered major setbacks in 1991, after the Gulf crisis erupted; in 1994, the year of the civil war in Yemen; and in 1999. after a fatal kidnapping incident in December 1998.

Table 17.Visitor Arrivals and Tourism Revenues
1990199119921993199419951996199719981999
Visitor arrivals, thousands51.827.372.269.839.961.474.580.587.657.8
Revenue, US$ million40.021.046.954.035.050.055.069.084.048.4
Source: General Tourism Authority.
Source: General Tourism Authority.

Figure 24.Visitor Arrivals

(In thousands)

Source: Data provided by the Yemeni authorities.

Yemen’s principal tourism source market is Western Europe (Table 18), in particular, Germany, France, Italy, and Britain, which to a large extent reflects the contacts established by the existing tour operators. The peak tourist season in Yemen is between October and March. International tourism is mainly concentrated in the governorates of Sana’a, Hadhra-mout, Al-Jouf, Al-Hodeidah, Marib, and Shabwa.

Table 18.Average Tourism Statistics Since Unification
Yearly

Arrivals,

Thousands
Duration of

Stay,

Nights
Revenue

per Stay,

US dollars
63.95.4805
(Of which: By Region)
Percent

Share
Nights
Europe65.26.1
Middle East17.45.4
Asia7.25.6
The Americas6.76.4
Africa2.47.7
Australia1.15.1
Source: General Tourism Authority.
Source: General Tourism Authority.

In 1998, the tourism sector provided jobs, either directly or indirectly, to an estimated 23,000 workers, including those in the hotel industry and related sectors. As tourism extends to remote regions, it helps provide employment opportunities and increases incomes among the local population. Total foreign exchange revenues from tourism are still relatively small—at about 3 percent of total exports of goods and services, or 18 percent or non-oil exports in recent years—but have been growing on average by 8 percent a year.

The Yemeni government believes that developing tourism will help enhance long-term economic growth and improve the living standards of the Yemeni people, as well as protect and preserve Yemen’s cultural heritage and natural environment.

Structural Impediments

Concerns over peace and security, and inadequate infrastructure, are the two largest immediate obstacles to the successful development of the tourism industry in Yemen, while the danger of losing the historic and cultural heritage and environmental degradation are longer-term problems.

Security Concerns

At present, the image of Yemen in the Western world is relatively poor and, prompted by continuous security-related incidents, the country is often characterized in the Western media as “kidnapping and bombing prone.”93

Although Yemen was unified in 1990, civil unrest lasted and a 70-day civil war erupted in 1994. There are areas, especially in the North, which are still not under the full control of the central government. Reportedly, there are large numbers of Firearms in the country, almost four per head.94 Illicit weapons, including assault rifles, are openly carried. Politically motivated violence persists and security violations occasionally occur in rural areas.95 Tribal disputes, kidnappings, and shootouts between sheikhs’ armed entourages and government security forces are frequent, including in major cities and public places such as Sana’a International Airport.

More than 100 kidnappings have occurred throughout Yemen since 1991, mainly conducted by armed tribesmen with specific grievances against the government.96 These kidnappings are normally resolved peacefully, but tribesmen have held some foreigners for extended periods, and the December 1998 incident—when four tourists were executed by a group of Islamic militants—gave Yemen front page international news coverage and dealt a severe blow to the nascent tourism industry.

Since then, many countries, including the United States, the United Kingdom, and Japan, have advised their nationals against traveling to Yemen;97 Germany has reduced the number of accredited Yemeni tourist agencies to two; and KLM Airlines has suspended its service to Yemen.98

Inadequate Infrastructure

Addressing security concerns is necessary, but not enough for the successful development of the tourism sector in Yemen. The lack of adequate infrastructure—such as hotels, roads, catering, and airport services— is another major factor constraining the growth of the tourism sector.

Only a third of roads in Yemen are paved. Poor roads and lack of easy access to tourist attractions entail long and uncomfortable journeys by four-wheel drive vehicles, which means that visits to places of interest have to be of relatively short duration.

Existing hotel stock is heavily concentrated in the urban areas of Sana’a, Aden, Hadhramout, and Taiz, with more than 50 percent of first class rooms located in Sana’a. Despite a significant increase in hotel construction since unification, the number of hotel rooms suitable for international tourists who prefer to stay in high-grade properties has remained unchanged and is currently only about 1,100, or less than 15 percent of the total room stock.99 Consequently, tour operators have reported problems getting enough rooms of a suitable standard during the high season and have often had to reject big tour group reservations because of accommodation and transportation constraints.100

The development of tourism is also constrained by the absence of basic services—such as eating and toilet facilities—and a shortage of potable water both at places of interest and at possible stopover points. Furthermore, there are no tourist information or interpretation centers outside Sana’a, while those available in Sana’a are not up to international standards, lacking appropriately trained or licensed tour guides.

The situation is compounded by the shortage of trained and experienced local personnel and the absence of facilities providing professional training in the services sector. As a result, expatriates often have to be hired, especially in the hotel industry, thus further hindering the development of a local tourism sector.

Finally, airport facilities have limited baggage and passenger handling capacity, partly reflecting Yemenia’s monopoly in this area, and could become congested if more than one aircraft is being served.

Threat to Historic Heritage and Natural Environment

At present, regulations to prevent the destruction of buildings of historic and cultural significance or protect the natural environment are limited and poorly enforced. As a result, there is a real threat to the historic heritage of Yemen, the very feature that constitutes the principal tourist attraction. According to anecdotal evidence, some 30 percent of “physical” heritage in the countryside has been lost in the past 10 years to unregulated commercial development, and parts of the coastline with significant beach resort potential are being lost to industrial development.101 Furthermore, the potential for eco-tourism, especially in the coastal areas, is being destroyed as various species—such as sea turtles—are driven to extinction because of poor enforcement of seasonal hunting and fishing restrictions.

Policy Implications

Given the undoubted potential of tourism in Yemen, the foregoing discussion suggests that the following are critical to the successful development of the tourism sector in Yemen:

  • Guaranteeing of security and maintaining a stable political and economic environment as preconditions for investment, both domestic and foreign, in the tourism sector, given the long-term, and hence high-risk, nature of such investment;
  • Investing in essential infrastructure and tourism-related services and facilities;
  • Providing training and licensing for both public and private sector tourism personnel to ensure that tourists receive a standard of service consistent with internationally accepted norms; and
  • Protecting and conserving the historic and cultural heritage and natural environment of the country.

The formation of a public sector institutional structure, with well-defined functional responsibilities that would readily facilitate planning, development, marketing, and regulation, is critical to the attainment of policy objectives for the tourism sector in Yemen. This would require structural changes and training initiatives in order to make the public sector more effective in carrying out its statutory functions, and would include collaboration with the private sector.

Government Efforts to Date

After the kidnapping incident in December 1998, the government stepped up its effort to address the security problem and shore up the tourism industry. Special courts were set up to try kidnappers, and the death penalty was introduced for the offence.102 Weapons were banned in the capital, and a Special Forces unit was formed in November 1999 to combat terrorism.

A new Tourism Law was issued in August 1999, and three new government entities were established—the Tourism Promotion Board, the High Council on Tourism, and the Environmental Council—in addition to the existing government structures in charge of tourism affairs, such as the Ministry of Tourism and Culture and the General Tourism Authority.103

The Tourism Promotion Board was set up under the umbrella of the Ministry of Tourism and Culture and consists of representatives of the government, the private sector, and the media. It is charged with improving the image of Yemen in the Western media as well as increasing the general awareness abroad and at home of tourism in Yemen. It is chaired by the Minister of Tourism and holds weekly meetings to discuss the sector’s promotion and development strategy, hut has no decision-making authority. In addition, the Board has undertaken to study the experience of Egypt in limiting the fall-out from terrorism on the tourism industry.

The High Council on Tourism is chaired by the Prime Minister and comprises seven other ministers, including the Ministers of Tourism, Information, Industry, Planning, Interior, and Defense. It meets to discuss key policy, investment, and security issues in the area of tourism and has decision-making powers.

The authorities, led in their efforts by the General Tourism Authority, have recently been actively seeking technical assistance and external Financing for project implementation, including updating the Master Plan for Tourism Development in Yemen which was sponsored in 1991 by the European Community.

Annex II Summary of the Tax System as of End-June 2000
Summary of the Tax System as of End-June 2000
TaxNature of TaxExemptions and DeductionsRates
1. Taxes on business income
1.1 Domestic corporationsLevied on net profits. Assessment base encompasses most forms of income, including interest, dividends, and foreign incomeDeductions: Operating costs; depreciation allowance; charitable contributions up to 5 percent of net in come; and Zakat.



Exemptions: Income of cooperatives, and agricultural and humanitarian societies, provided trade is limited to members; and income from agriculture, livestock, poultry, fishing, and beekeeping, subject to regulations. Corporations may be granted an exemption if they qualify under the Investment Law (IL); this entails a five-year exemption, but Council of Ministers may grant an additional five years
35 percent flat rate Penalties are levied for late payment
1.2 Foreign corporationsSame as aboveSame as above35 percent flat rate
1.3 ProprietorshipsSame as aboveDeductions: Same as above Exemption: YR1s 36,000Personal tax rates, 10 percent-35 percent
2. Taxes on personal income
2.1 Tax on wages and salariesLevied on total wage income (wages, salaries, bonuses, etc.,) including gratuities in cash or kind.



Monthly withholding by the employer from wages of both residents and nonresidents and paid to tax authorities during the first 10 days of the following month. Companies with eight or more workers must keep tax records for their employees
Deductions: Pension contributions, and work-related costs



Exemptions: Monthly exemption: YR1s 3,000. Exemption not granted for nonresidents



Fully exempted: diplomats: UN experts; pension and severance payments; wages paid to Yemeni agricultural and fishing workers: domestic servants; and income of day laborers
Personal tax rates with a ceiling of 20 percent.
2.2 Tax on professional incomeLevied on noncommercial and nonindustrial income.Deductions: Costs deducted according to specified listPersonal tax rates, 10 percent 35 percent
3. Social security and retirement contributions
3.1 Civil service and public enterprise employeesPaid to General Authority for Insurance and Pensions (GAIP)12 percent with equal contributions from employees and Government; Government also pays 1 percent for accident insurance.
3.2 Police employeesPaid to separate pension fund12 percent with equal contributions from employees and Government
3.3 Defense employeesPaid to separate pension fund12 percent with equal contributions from employees and Government
3.4 Private sector employeesPaid to separate pension fund6 percent employee, 9 percent employer
4. Taxes on property
4.1 Real estate income taxLevied on all net income from leased buildings and landExemptions: Government; religious organizations; local councils; diplomatic housing; and hospitalsOne month’s rent (8.33 percent)
4.2 Real estate sales taxLevied on sales proceeds From land and buildingsDeductions: None allowed. Exemptions: Transfers through inheritance; donations to religious or charitable organizations; religious organizations; and agricultural land3 percent of sales value
5. Taxes on goods and services
5.1 General excise taxesHarmonized taxes are levied on certain domestic and imported goods. The tax applies to the import costs (before the tariff) or at the domestic manufacturer level. For mineral water and soft drinks, tax applies to retail price paid by consumer5, 7, 11, 15 percent, 25 percent applies to certain specified transportation vehicles and luxury items
5.2 Selected excise taxesItems taxable at manufacture level
5.2.2 TobaccoLevied on domestically produced and domestically trademarked or foreign trademarked cigarettes; imported tobacco, and tobacco productsFor domestically produced cigarettes: 80 percent on domestically trade marked and 65 percent on foreign trademarked; 80 percent on imported cigarettes; 60 percent for cigars; 25 percent for imported tobacco
5.2.3 Taxes on petroleum productsLevied on retail sales price
Percent
Gasoline:2
Kerosene:2
Turpentine:2
Oils:2
Diesel oil:2
Liquid gas:0.5 per cylinder
Lubricants:1
5.3 Qat taxLevied on assessed market value25 percent
6. Customs tariffApplied to all imports not specifically exemptedExemptions may be provided to corporations that qualify under the ILFour-band structure with rates of 5, 10, 15, and 30 percent, A single exemption of 70 percent applied to cigarettes and other tobacco products
7. Other taxes
7.1 Motor vehicle taxesLevied on all motorized vehicles operating in Yemen with gasoline or diesel powered engines: levied on purchases of fuel (domestic or imported)Exemptions: Government vehicles, diplomatic and embassy cars, and emergency vehicles.YR1s 0.25 per liter of gasoline: YR1s 0.15 per litre of diesel
7.3 Counselor feesFor Yemeni visasAccording to a specific schedule
7.4 Passport feeFee varies with the type of passport
7.5 Compulsory military service feeLevied on Yemenis for exemption from or postponement of compulsory national military serviceYr1s 86,000 for exemption
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Statistical Appendix
Table A.1.Social and Demographic Indicators, 1995 and 1997
19951997Selected

MENA1,2
Sociodemographic indicators
GNP per capita (in U.S. dollars)2602702,070
GNP per capita (PPP. current international dollar)7307204,630
Total population (in millions)15.316.1280
Population growth rate (in percent)33.23.52.1
Total fertility rate6.76.43.6
Age dependency ratio (dependents to working-age population)1.21.10.7
Urban population (in percent)33.634.458.4
Labor participation rate (in percent of population aged 14–64)69.367.057.2
Female labor participation rate (in percent of total population)27.827.926.5
Health
Life expectancy at birth (in years)3535967
infant mortality rate (per 1,000 live births)31009849
Under five mortality rate (per 1,000 live births)14513763
Maternal mortality rate (per 100,000 live births)1,471205
Immunized: DPT, under 12 months (in percent of age group)535790
Child malnutrition, under 5 years (in percent of age group)302914
Access to safe water (percent of population)3985
Access to sanitation (percent of population)1962
Education
Adult literacy rate404262
Sources: Central Statistics Organization. Statistical Year Book: and IBRD, World Development Indicators database.

Algeria, Bahrafn, Djibouti, Egypt Iran, Iraq, Jordan, Lebanon, Libya, Malta, Morocco, Oman, Saudi Arabia, Syria, and Tunisia.

Data for the nearest year to 1997.

Second column data are for 1998.

Sources: Central Statistics Organization. Statistical Year Book: and IBRD, World Development Indicators database.

Algeria, Bahrafn, Djibouti, Egypt Iran, Iraq, Jordan, Lebanon, Libya, Malta, Morocco, Oman, Saudi Arabia, Syria, and Tunisia.

Data for the nearest year to 1997.

Second column data are for 1998.

Table A.2.Selected Economic and Financial Indicators, 1994–99
199419951996199719981999
(Change in percent)
Production and prices
Nominal GDP at market prices28.467.143.721.50.424.3
Real GDP at market prices−3.67.92.98.15.33.8
Real non-oil GDP−9.65.50.58.25.93.2
Real oil GDP43.720.013.57.52.76.2
Consumer price index (annual average)71.362.540.04.611.58.0
Crude export oil price
(weighted average, U.S. dollar per barrel)15.416.920.318.511.618.7
(In percent of GDP)
Government finance
Total revenue and grants12.819.535.932.826.431.8
Oil revenue3.79.325.122.113.819.8
Non-oil revenue8.99.810.510.112.211.1
Grants0.30.30.30.60.40.9
Total expenditure29.025.639.834.732.732.1
Current26.422.533.227.926.626.5
Development2.63.16.66.86.15.6
Overall balance (commitment basis)−16.3−16.3−16.3−16.3−16.3−16.3
Overall balance including grants (cash basis)−15.7−5.20.6−1.8−7.9−0.4
(12-month change in percent of initial broad money)
Monetary data
Broad money34.720.48.610.711.713.8
Credit to nongovernment sector69.028.0−29.446.654.215.0
Benchmark deposit interest rate (percent p.a.)6.520.025.011.015.018.0
Velocity (Non-oil GDP/M2)1.21.71.92.02.22.1
(In millions of US. dollars)
External sector
Exports f.o.b.1,8241,9372,2632,2741,5012,466
Of which
Crude oil1,6151,7351,9761,9451,2292,131
Imports, f.o.b.1,522−1,948−2,294−2,407−2,228−2,440
Services (net)−475−411−370−470−398−489
Private remittances and transfers (net)1,1171,1041,1881,2561,2541,314
Capital account (net)−641−876−39734−15411
Overall balance−779−38−625116−463320
Central bank own gross foreign reserves3575259371,1528531,351
In months of imports12.93.14.65.34.26.0
Current account, including grants (in percent of GDP)5.62.81.70.3−3.72.9
Debt service ratios2
Obligation basis46.842.131.912.617.010.5
Actual3.36.68.710.314.08.3
Official external debt10,87611,01711,1355,3595,3735,490
(In percent of GDP)167170173818580
Terms of trade (1996=100)85.585.3100.0100.769.5114.1
Exchange rate (free market, eop) (YR1s/US$)101.0127.1126.9130.5141.7159.7
Real effective exchange rate (1996=100)376.2100.0109.7119.5107.1
Sources: Yemeni authorities and IMF staff estimates.

Gross reserves minus commercial bank foreign exchange deposits held with the central bank. Imports are for the current year and exclude oil and gas sector imports.

Public and publicly guaranteed debt, including central bank foreign liabilities. In percent of exports of goods and services.

INS. based on free market rate.

Sources: Yemeni authorities and IMF staff estimates.

Gross reserves minus commercial bank foreign exchange deposits held with the central bank. Imports are for the current year and exclude oil and gas sector imports.

Public and publicly guaranteed debt, including central bank foreign liabilities. In percent of exports of goods and services.

INS. based on free market rate.

Table A.3.Sectoral Origin of Gross Domestic Product at Current Prices, 1994–99
199419951996199719981999
(In millions of Yemeni rials)
Agriculture and forestry63,34290,330108,526124,750158,397167,441
Fishing5,8148,83210,70013,25616,11018,610
Mining and quarrying8581,6402,4492,5062,5242,705
Oil and gas117,79069,116191,273244,915137,758263,309
Manufacturing39,30064,28757,06565,60577,19183,829
Oil refining2,4388,64523,20726,60027,76930,433
Electricity, gas, and water2,0343,1115,3346,7187,9128,401
Construction10,42316,86725,71337,44241,97741,867
Wholesale and retail trade30,07749,63458,91872,87787,91099,807
Restaurants and hotels2,0653,3754,0475,1016,1526,983
Transportation, storage, and communications44,62564,61883,056104,337113,219127,814
Financial institutions13,86818,82816,85617,43731,46733,602
Real estate and business services7,83112,14916,84021,00725,04528,827
Community, social, and personal services6,93311,00012,78414,53616,72818,625
Government services48,60965,77773,96382,17596,479121,982
Private, nonprofit services196140270304342384
Import duties7,44016,80425,99729,03429,65330,994
Less: Imputed bank services charges−11,364−16,644−14,886−15,703−20,688−22,056
Total GDP292,279488,509702,112852,897855,9451,063,557
Of which:
Non-oil GDP274,489419,393510,839607,982718,187800,247
(In percent of GDP)
Agriculture and forestry21.716.515.514.618.515.7
Fishing2.01.81.51.61 91.7
Mining and quarrying0.30.30.30.30.30.3
Oil and gas6.114.127.228.716.124.8
Manufacturing13.413.28.17.79.07.9
Oil refining0.81.83.33.13.22.9
Electricity, gas, and water0.70.60.80.80.90.8
Construction3.63.53.74.44.93.9
Wholesale and retail trade10.310.28.48.510.39.4
Restaurants and hotels0.70.70.60.60.70.7
Transportation, storage, and communications15.313.211.812.213.212.0
Financial institutions4.73.92.42.03.73.2
Real estate and business services2.72.52.42.52.92.7
Community, social, and personal services2.42.31.81.72.01.8
Government services16.613.510.59.611.311.5
Non-oil GDP93.985.972.871.383.975.2
Source: Central Statistic Organization.

The large increases in oil and gas GDP in 1993 and 1996 are in large part due to exchange rate effects. The official exchange rate increased from YRls 12US$ in 1994 to YRls 40.5/US$ in 1995 and YRls 114 /US$ in 1996.

Source: Central Statistic Organization.

The large increases in oil and gas GDP in 1993 and 1996 are in large part due to exchange rate effects. The official exchange rate increased from YRls 12US$ in 1994 to YRls 40.5/US$ in 1995 and YRls 114 /US$ in 1996.

Table A.4.Use of Resources at Current Prices, 1994–99(In million of Yemeni rials)
199419951996199719981999
Consumption240,105419,296599,098727,558827,233938,112
Public sector161,97678,033105,161134,623146,820179,257
Private sector178,129341,263493,937592,935680,413758,855
Gross investment59,785101,057146,155202,029180,976197,758
Gross fixed capital formation56,77399,025143,207198,543180,976197,758
Public sector7,49815,04846,52957,81552,58459,496
Private sector49,27583,97796,678140,728128,392138,262
Of which:
Oil companies14,67815,30718,59820,10616,85023,246
Change in stocks3,0122,0322,9483,48600
Domestic absorption299,890520,352745,253929,5871,008,2091,135,870
Net exports of goods and nonfactor services−7,611−31,843−43,141−76,690−152,264−72,318
GDP at market prices292,279488,509702,112852,897855,9451,063,557
Net factor income2−25,994−37,682−74,414−81,535−48,813−101,968
Gross national product266,285450,827627,698771,362807,132961,589
Net current transfers2,350,01983,278129,212162,350170,340204,675
Gross national disposable income316,304534,105756,909933,712977,4731,166,264
Gross domestic saving52,17469,213103,014125,33928,712125,445
Gross national savings from disposable income76,199114,810157,812206,154150,239228,152
Public sector national savings439,706−14,69618,83441,391−1,53756,877
Private sector national savings4115,905129,506138,977164,763151,776171,275
(In percent of GDP)
Consumption82.185.885.385.396.688.2
Public sector21.216.015.015.817.216.9
Private sector60.969.970.469.579.571.4
Gross investment20.520.720.823.721.118.6
Gross fixed capital formation19.420.320.423.321.118.6
Public sector2.63.16.66.86.15.6
Private sector16.917.213.816.515.013.0
Change in stocks1.00.40.40.40.00.0
Domestic absorption102.6106.5106.1109.0117.8106.8
Net exports of goods and nonfactor services−2.6−6.5−6.1−9.0−17.8−6.8
Net factor income−8.9−7.7−10.6−9.6−5.7−9.6
Gross national product91.192.389.490.494.390.4
Net current transfers17.117.018.419.019.919.2
Gross national disposable income108.2109.3107.8109.5114.2109.7
Gross domestic saving17.914.214.714.73.411.8
Gross national savings from disposable income26.123.522.524.217.621.5
Public sector national savings4−13.6−3.02.74.9−0.25.3
Private sector national savings439.726.519.819.317.716.1
Sources: Yemeni authorities; and IMF staff estimates

Uses data from the fiscal accounts.

Uses balance of payments data.

Includes workers’ remittances.

The large increases in public sector savings and declines in private sector savings in 1995–96 are attributable largely to the effects of exchange rate depreciations and world prices increases.

Sources: Yemeni authorities; and IMF staff estimates

Uses data from the fiscal accounts.

Uses balance of payments data.

Includes workers’ remittances.

The large increases in public sector savings and declines in private sector savings in 1995–96 are attributable largely to the effects of exchange rate depreciations and world prices increases.

Table A.5.Sectoral Origin of Gross Domestic Product at Constant Prices, 1994–99
199419951996199719981999
(in millions of 1990 Yemeni rials)
Agriculture and forestry33,36535,68836,15839,07544,49744,375
Fishing6887229301,2671,3811,505
Mining and quarrying312345396403364368
Oil and gas20,15624,19727,46929,54230,32632,217
Manufacturing10,44913,33413,52413,68214,43814,518
Oil refining2,3222,4702,3762,3852,2332,266
Electricity, gas, and water1,5521,7631,9792,0182,0662,215
Construction3,3734,2065,0926,7346,7716,371
Wholesale and retail trade8,4529,76410,56311,26312,18512,929
Restaurants and hotels408467506563609646
Transportation, storage, and communications14,37913,97312,01613,99613,62314,373
Financial institutions3,6163,2892,4952,4693,9963,988
Real estate and business services4,1174,4044,5984,9535,2965,697
Community, social, and personal services2,3642,3952,5732,7712,8602,976
Government services14,13512,24910,58811,15711,74813,893
Private, nonprofit services576569736776
Import duties4,8314,6815,4505,3874,3784,237
Less: imputed bank services charges−3,303−3,100−2,028−2,088−3,496−3,490
Total GDP at market prices.121,273130,912134,754145,652153,342159,160
Of which:
Non-oil GDP101,117106,715107,285116,110123,016126,943
(Changes in percent)
Agriculture and forestry−3.37.01.38.113.9−0.3
Fishing−7.34.928.836.29.09.0
Mining and quarrying−3.110.614.81.8−9.71.1
Oil and gas43.720.013.57.52.76.2
Manufacturing−4.427.61.41.25.50.6
Oil refining−9.56.4−3.80.4−6.41.5
Electricity, gas, and water−10.313.612.32.02.47.2
Construction−18.924.721.132.20.5−5.9
Wholesale and retail trade−13.215.58.26.68.26.1
Restaurants and hotels−13.614.58.411.38.26.1
Transportation, storage, and communications−19.2−2.8−14.016.5−2.75.5
Financial institutions8.6−9.0−24.1−1.061.8−0.2
Real estate and business services6.27.04.47.76.97.6
Community, social, and personal services4.51.37.47.73.24.1
Government services−18.4−13.3−13.65.45.318.3
GDP−3.67.92.98.15.33.8
Non-oil GDP−9.65.50.58.25.93.2
Sources: Central Statistics Organization; and Central Bank of Yemen.
Sources: Central Statistics Organization; and Central Bank of Yemen.
Table A.6.Distribution of Employment (Age 15 Years and Over) by Economic Activity 1
199419981999
ActivityThousandPercent of

Total Employed
ThousandPercent of

Total Employed
ThousandPercent of

Total Employed
Private sector
Agriculture, forestry, and fishing1,66752.31,92849.21,99648.5
Mining and quarrying100.3130.3130.3
Manufacturing1314.11884.82065.0
Electricity, gas, and water140.4210.5210.5
Construction2176.83418.73829.3
Trade, restaurants, and hotels33210.441510.644010.7
Transport, storage, and communication1504.71965.02105.1
Finance, insurance, and real estate351.1471.2491.2
Social and community services2247.03659.341210.0
Public administration41012.940510.33899.5
Total employment3,188100.03,919100.04,119100.0
Source: Ministry of Planning.

Data for 1994 are based on the general population census of that year; 1998 and 1999 data based on Ministry of Planning estimates.

Source: Ministry of Planning.

Data for 1994 are based on the general population census of that year; 1998 and 1999 data based on Ministry of Planning estimates.

Table A.7.Distribution of Employment (Age 10 Years and Over) by Sectors in Urban and Rural Areas, 1998(In percent unless otherwise specified)
UrbanRuralTotal Employment
SectorMaleFemaleTotalMaleFemaleTotalMaleFemaleTotal
Government38.758.341.214.51.310.919.76.816.5
Administration29.949.332.412.61.29.416.35.813.7
Other8.89.08.82.00.21.53.51.02.9
Private sector59.539.757.084.497.788.079 092.182.3
National58.838.356.283.997.687.778.691.981.9
Foreign0.71.40.80.40.10.30.50.20.4
Mixed0.60.70.60.20.00.20.30.10.2
Cooperative0.40.40.40.10.20.20.20.20.2
Other0.91.00.90.80.70.80.80.80.8
Total100.0100.0100.0100.0100.0100.0100.0100.0100.0
Total (thousand)669.499.3768.72,453.7931.03,384.73,123.11,030.34,153.4
Source: General Statistics Organization, 1998 Household Expenditure Survey.
Source: General Statistics Organization, 1998 Household Expenditure Survey.
Table A.8.Household Income and Expenditure, 1998(Yemeni Rials, unless otherwise specified)
UrbanRuralTotal
Average household income36,98826,65429,035
Average household member income5,0243,7634,096
Average household expenditure on food20,72719,81820,026
Average household expenditure on nonfood17,6249,56211,421
Ratio of household income to expenditure (in percent)96.490.792.3
Memorandum items:
Average household size (persons)7.117.087.09
Illiteracy rate (in percent)27.4756.5749.47
Median age of population (in years)15.914.214.6
Source: Central Statistics Organization, 1998 Household Expenditure Survey
Source: Central Statistics Organization, 1998 Household Expenditure Survey
Table A.9.Distribution of Population (10 Years and Over) by Education Level, Region, and Gender, 1994, 1998(in percent of total)
19941998
UrbanRuralMaleFemaleTotalUrbanRuralMaleFemaleTotal
Illiterate34.263.536.776.356.027.556.628.270.949.5
Read and write33.424.536.916.126.838.230.344.420.032.2
Primary9.25.49.43.16.35.42.84.52.33.4
Combined level2.50.81.60.81.21.50.91.20.91.0
Preparatory8.23.57.41.84.710.95.210.23.06.6
Pre-secondary diploma0.90.30.80.10.51.10.41.00.20.6
Secondary7.71.64.91.33.210.32.87.22.04.6
Post-high school diploma0.80.20.60.10.41.40.61.30.20.8
University and above3.10.41.70.41.13.30.52.00.61.3
Total100100100100100100100100100100
Total (thousand)2,4177,0404,8534,6049,4572,5818,0095,3035,28710,590
Sources: Central Statistics Organization; General Population Census, 1994; and Household Expenditure Survey 1998.
Sources: Central Statistics Organization; General Population Census, 1994; and Household Expenditure Survey 1998.
Table A.10.Crude Oil Summary, 1994–99(In thousands of barrels per day)
199419951996199719981999
A Total net output1334342344360367389
Marib185168162149129116
Masila149174177190201207
Jannan4201948
East Shabwa1617
Ayad111
B. Companies’ exports154155137137177158
Marib695753495247
Masila8598627910477
Jannah228820
East Shabwa1313
Ayad111
1. Companies’ net output share107110117118100112
Marib828181756156
Masila252835413547
Jannah21237
East Shabwa12
Ayad000
2. Cost recovery8885605610775
Marib281612122118
Masila606947386931
Jannah16513
East Shabwa1112
Ayad111
3. Income tax414140373028
Marib414140373028
Masila000000
Jannah0000
East Shabwa00
Ayad000
C. Government exports135123129150112146
D. Government sates to refineries456478737785
Average oil export price (US$/bbl)151720181219
Export revenue (million US$)1,6151,7351,9761,9451,2292,131
Companies8629571,0189337581,138
Government7537789581,012471993
Source: Ministry of Oil and Mineral Resources.

Net of miscellaneous oil field uses.

Including YICOM share.

Source: Ministry of Oil and Mineral Resources.

Net of miscellaneous oil field uses.

Including YICOM share.

Table A.11.Oil Exploration Blocks Awarded in 1996–99
Block

Number
Company LicensedYear AwardedSelected Terms of Contract
13Bakrie1996
R2Bakrie1996
S1Vintage/TransGlobe1997150 km2 of 3-d seismic data to be acquired and three wells to be drilled over the first 2½-year phase, at estimated minimum cost US$11 million.
S2Preussag1997Block had just been relinquished by consortium of Oxy/Amerada Hess/Mol.
9Cal Valley Petroleum1997US$8 million to be spent during the initial three-year exploration period.
31Oil and Gas Mine Co.1997US$20 million to be spent on the two blocks (31 and 41) including the acquisition of 800 km of 2-d seismic data and the drilling of two exploration wells
41Oil and Gas Mine Co.1997
49MOL1997Minimum expenditure of US$8 million, including 300 km of seismic acquisition and two exploration wells over three years.
50Kerr-McGee/Canadian Oxy/YGCOG1997Current stakes are 47.5 percent, 47.5 percent, and 5 percent, respectively.
51Kerr-McGee/Canadian Oxy/YGCOG1997Current stakes are 47.5 percent, 47.5 percent, and 5 percent, respectively.
53Dove/YGCOG1997Stakes: 75 percent and 25 percent respectively.
11CanadianOxy1998At least US$ 11.5 million to be spent over seven years.
12CanadianOxy1998At least US$ 11.5 million to be spent over seven years.
36CanadianOxy1998At least US$ 11.5 million to be spent over seven years.
43First Calgary Petroleum/ Ocean Energy1998Expenditure set at US$7.5 million for each of the two 2½-year periods
48MOL1998A minimum of US$ 15 million to be spent over three years; work program to include acquisition of 500 km of 2-d seismic data and the drilling of two exploration wells.
54CanadianOxy1998At least US$ 11.5 million to be spent over seven years.
15Oil Search/Muhammad Al-Otaiba Group1999A minimum US$10 million to be invested in the first phase, two exploration wells to be drilled, and geological studies to be conducted.
2Agip/Sonatrach1999The Algerian Sonatrach has a 40 percent interest in the block
20Adair International Oil and Gas Inc./PIE1999Seismic operations to have begun in 2000; two exploratory wells and a minimum of US$ 16.8 million to be spent in two exploratory periods.
Sources: Arab Oil Directory; and Ministry of Oil and Mineral resources.
Sources: Arab Oil Directory; and Ministry of Oil and Mineral resources.
Table A.12.Domestic Consumption of Petroleum Products, 1994–99
199419951996199719981999
(Millions of liters)
Total petroleum products3,6533,9274,0334,1554,0433,911
Gasoline1,3321,4581,3911,4201,3221,107
Diesel1,0231,0831,1751,2731,2151,302
Kerosene147172169163150140
Aviation fuel93102939399111
Fuel oil589808909909938898
LPG468303297297318353
(Percent change)
Total petroleum products−7.67.52.730−2.7−3.3
Gasoline0.29.5−4.62.1−6.9−16.2
Diesel−1.45.98.48.4−4.67.1
Kerosene−9.017.0−1.7−3.4−8.0−6.7
Aviation fuel−11.08.7−8.0−0.56.212.6
Fuel oil−27.637.212.40.03.2−4.3
LPG−28.5−35.2−2.20.07.210.8
Source: Ministry of Finance.
Source: Ministry of Finance.
Table A.13.Output of Industrial Products, 1994–991
199419951996199719981999
Electricity (million kwh)2,1592,3692,4572,4822,5572,633
Extractive industries
Salt (thousand tons)11871135136147149
Quarried stone (thousand cubic meters)2,8232,3972,4372,4972,547
Gypsum (thousand tons)991009799102103
Food, beverage, and tobacco industries
Bread (thousand tons)7178159162170179
Biscuits and confectioneries (thousand tons)696864654344
Ghee and edible oils (thousand tons)9997106108108109
Soft drinks (million liters)675134354546
Mineral water (thousand cubic meters)1148176775657
Vimto drink (thousand of liters)1,6022,9632,7182,491
Ice (thousand tons)365458596161
Milk and products (million liters)686647485455
Ice cream (tons)1442,0541,6321,6651,7151,749
Cigarettes (million units)5,4236,5406,7406,8006,0405,859
Textile industries
Underwear (thousand pieces)360278287293
Woolen pullover (thousand pieces)0280
Weaving (million meters)75555
Ginning (thousand tons)1122
Metallic industries
Household utensils (tons)7476042,4341,7401,7751,793
Barrels (thousands)433723730
Doors and windows (thousand square meters)604690703
Metallic scrubbers (tons)1231105253
Stationary engines (thousands)283132
Metal suitcases (thousands)5010
Beds (thousands)1
Nonmetallic industries
Cement (thousand tons)8981,1001,0701,0381,2071,231
Red bricks (thousands)14,03314,31914,60514,89715,120
Cement bricks (thousands)81,11885,31587,02189,00090,780
Tiles (millions)93481837372
Marble (thousand square meters)117583838688
Chemical industries
Plastic footwear (thousand pairs)597777
Foam rubber (tons)1,6421,9181,5561,572
Household utensils (tons)9854,7303,8303,873
Buckets (tons)1,3871,5321,8041,840
Water cubes (tons)8135,9173,7213,759
Plastic sheets (tons)4,7865,67310,15110,354
Plastic tubes (tons)4,3077,6407,2647,409
Paint (thousand liters)7,7529,8828,3318,2477,137
Soap (thousand tons)3032242320
Perfume (thousand ounces)1,049900901919
Oxygen gas (thousand cubic meters)1101170
Heat insulation (tons)1213
Fuel gas (thousand tons)233313298325
Paper and printing
Paper tissues (tons)4551,0821,9171,9361,9481,967
School books (tons)6,8076,9444,0147,0637,204
Cartons (thousand tons)121211111314
Source: Central Statistics Organization.

Data for 1998–99 are provisional, as compilation of the underlying data is not yet completed.

Source: Central Statistics Organization.

Data for 1998–99 are provisional, as compilation of the underlying data is not yet completed.

Table A.14.Production, Area, and Yield of Major Crops, 1994–991(Production in thousand metric tons; area in thousand hectares; and yield in tons per hectare)
199419951996199719981999
Cereals (total)
Production802.0810.2663.9646.2833.3687.0
Area734.7733.2704.2720.2770.4770.4
Sorghum and millet
Production567.9575.5461.4469.8609.8479.2
Area585.5582.2552.6567.8609.7609.7
Yield1.01.00.80.81.00.8
Wheat
Production171.0170.9148.9129.2167.4154.4
Area100.4101.6102.8103.6111.3111.3
Yield1.71.71.41.21.51.4
Barley
Production63.163.853.647.256.253.4
Area48.849.548.848.849.449.4
Yield1.31.31.11.01.11.1
Legumes
Production68.370.467.366.178.073.1
Area54.254.253.957.162.562.5
Yield1.31.31.21.21.21.2
Potatoes
Production181.0184.5182.8195.6196.5198.8
Area13.213.614.215.415.615.6
Yield13.713.612.912.712.612.7
Vegetables
Production464.8484.3520.4522.0550.7567.0
Area38.139.943.143.946.246.2
Yield12.212.112.111.911.912.3
Grapes, dates, and other fruits
Production360.7402.2391.3469.4554 5588.0
Area70.474.978.980.984.184.1
Grapes
Production146.4150.698.0150.2154.9159.1
Area20.721.121.221.222.122.1
Yield7.17.14.67.17.07.2
Dates
Production20.623.224.226.226.929.1
Area16.618.619.420.120.620.6
Yield1.21.21.21.31.31.4
Other fruits
Production193.7228.4269.1293.0373.0399.8
Area33.135.238.339.641.441.4
Yield5.96.57.07.49.09.7
Coffee
Production8.59.010.610.311.311.3
Area25.127.329.231.632.032.0
Yield0.30.30.40.30.40.4
Tobacco
Production7.28.18.610.211.511.5
Area3.64.04.25.05.45.4
Yield2.02.02.02.02.12.1
Sesame
Production12.114.015.016.417.517.5
Area20.423.126.029.530.330.3
Yield0.60.60.60.60.60.6
Alfalfa
Production158.6166.0177.1192.5222.9222.9
Area20.421.422.523.724.524.5
Yield7.87.87.98.19.19.1
Sources: Ministry of Agriculture; and Central Statistics Organization.

Data for 1999 are preliminary.

Sources: Ministry of Agriculture; and Central Statistics Organization.

Data for 1999 are preliminary.

Table A.15.Noncrop Primary Production, 1994–99(In thousands of metric tons)
199419951996199719981999
Total meat and milk220.4241.3253.0261.1274.9280.4
Meat39.840.641.643.145.346.2
Poultry30.147.255.556.361.462.6
Milk150.5153.5155.8161.7168.2171.6
Eggs (millions)351.0358.0367.0495.0600.0612.0
Total fish catch81.985.9103.7115.6127.6137.3
Surface water fish80.384.394.393.5104.9111.2
Deep water fish0.10.16.712.412.114.5
Other aquatic catch1.51.52.79.710.611.6
Sources: Central Statistics Organization and Ministry of Agriculture.
Sources: Central Statistics Organization and Ministry of Agriculture.
Table A.16.Consumer Price Index for Urban Areas, 1994–991
December
199419951996199719981999
(December 1994 = 100)
Overall index100.0157.2200.0214.1239.6264.0
Foodstuff100.0146.8187.4199.6231.6257.3
Housing100.0169.7232.2246.1269.2296.4
Clothing100.0207.8250.4280.3248.7258.2
Others100.0180.1197.9212.7236.0254.4
(Changes in percent)
Overall indexn.a.57.227.27.111.910.2
Foodstuffn.a.46.827.76.516.111.1
Housingn.a.69.736.86.88.510.1
Clothingn.a.107.820.511.9−11.33.8
Othersn.a.80.19.97.511.07.8
Sources: Central Statistics Organization; and IMF staff estimates.

The CPI is based on consumption shares from the 1992 Household Budget Survey and consists of a weighted average of the price Indices for Sana’a and Aden. The numbers are end-of-period.

Sources: Central Statistics Organization; and IMF staff estimates.

The CPI is based on consumption shares from the 1992 Household Budget Survey and consists of a weighted average of the price Indices for Sana’a and Aden. The numbers are end-of-period.

Table A.17.Domestic Retail Prices for Petroleum Products and Electricity, 1995–2000
Jan.Aug.Apr.Jul.Sep.Jul.Jun.Apr.
19951995199619971997199819992000
(In Yemeni rials per liter, unless otherwise indicated)
Gasoline6.012.019.325.025.035.035.035.0
Diesel3.03.06.06.010.010.010.010.0
Fuel oil11.73.07.07.011.011.013.013.0
Fuel oil22.55.07.07.011.011.013.013.0
Kerosene3.03.08.513.013.015.016.016.0
Aviation fuel35.012.513.513.513.513.525.035.0
LPG (12.5 kg cylinder)50.0120.0165.0165.0165.0200.0200.0200.0
Electricity (per kWh)2.072.075.405.405.808.708.708.70
(In U.S. dollars per liter, unless otherwise indicated)
Gasoline0.050.160.150.190.190.260.220.22
Diesel0.020.040.050.050.080.070.060.06
Fuel oil10.010.040.050.050.080.080.080.08
Fuel oil20.020.070.050.050.080.080.080.08
Kerosene0.020.040.070.100.100.110.100.10
Aviation fuel0.040.160.100.100.100.100.160.22
LPG (12.5 kg cylinder)0.411.581.281.271.251.461.251.24
Electricity (per kWh)0.020.030.040.040.040.060.050.05
Memorandum item;
Exchange rate (YR1s/US$)4120.576.0129.0130.2132.5137.0160.5161.0
Sources: Ministry of Oil and Mineral Resources: and IMF staff estimates.

For electricity plants.

For cement plants.

In May 1999, aviation fuel prices were increased above world market levels and were to be maintained at levels exceeding international prices, which explains the increase implemented in April 2000.

End-period free market exchange rate for the relevant month.

Sources: Ministry of Oil and Mineral Resources: and IMF staff estimates.

For electricity plants.

For cement plants.

In May 1999, aviation fuel prices were increased above world market levels and were to be maintained at levels exceeding international prices, which explains the increase implemented in April 2000.

End-period free market exchange rate for the relevant month.

Table A.18.Summary of Central Government Finances, 1994–99
199419951996199719981999
(In millions of rials)
Total revenue and grants37,53895,296251,899279,459225,959338,253
Total revenue36,68193,676250,029274,659222,620328,394
Oil and gas revenue10,78645,621176,192188,415117,772210,598
Crude oil exports9,19431,55998,824128,99973,002134,854
Domestic oil and gas1,59214,06277,36859,41644,77075,744
NonOil revenue25,89548,05573,83786,243104,848117,796
Tax20,26739,00658,83469,57078,85285,419
Nontax5,6289,05015,00316,67325,99632,377
Grants (cash)8561,6201,8704,8003,3399,859
Total expenditure and net lending84,741125,040279,594295,882280,080340,872
Current expenditure77,243109,992233,065238,067227,496281,376
Civilian wages and salaries28,43535,75447,66452,39064,28778,341
Materials and services5,2787,50716,24124,87225,63232,527
Defense (wage and non wage)28,26332,91239,17051,33452,24761,548
Interest obligations8,4717,28723,51020,01831,56243,570
Domestic (net)6,5841,4599,6157,88222,45932,260
External1,8875,82813,89512,1369,10311,310
Explicit subsidies016,49791,24465,50425,70226,116
Wheat and flour011,46551,96438,59225,7024,329
Petroleum products05,03237,30024,751021,787
Electricity: transfer to PEC001,9802,16100
Current transfers6,7967,44611,28013,54118,68028,278
Of which:
Public enterprises1,9061,7812,4704,0254,9706,455
Civil service pension fund003002,2302,736
Social welfare fund005001,7004,3885,946
Development operation and
maintenance fund0002,0002,0002,300
Other102,5893,9568,4087,3868,696
Development expenditure7,49815,04846,52957,81552,58459,496
Ministry of Planning5,52610,38137,67544,44336,813
Capital transfers1,9724,6678,85411,87215,135
Public works0001,500636
Net lending000000
Overall balance (commitment)−47,203−29,744−27,695−16,424−54,121−2,619
Rescheduled and pending interest
obligations1,4394,4569,7219,2854,0041,317
Domestic arrears0022,341−8,573−17,705−3,000
Overall balance (cash)−45,764−25,2884,367−15,712−67,822−4,302
Financing46,29325,342−4,83715,64767,865441
External (net)416−7352,8512,74010,08924,668
Bilateral and multilateral loans (net)−8,222−28,111−59,446−8,597−8,6544,211
Disbursements9862,15115,79019,61521,98036,060
Amortization obligations−9,208−30,262−75,236−28,212−30,634−31,850
Amortization arrears8,63827,37662,297−698−5530
Rescheduled amortization00019,89719,29720,458
Payment of late interest and short-term
arrears (Paris Club and other)000−2,23700
Domestic (net)45,87826,078−7,68812,90757,776−24,228
Bank45,87824,914−10,747−1,15828,280−46,888
Central bank46,94922,412−17,371−28,76426,464−50,616
Commercial banks−1,0712,5026,62427,6061,8163,727
Nonbank01,1643,06014,06529,49622,660
Discrepancy52955−470−6543−3,861
(In percent of GDP)
Overall balance (commitment)−17.4−6.6−3.9−1.9−6.3−0.2
Overall balance (cash)−16.9−5.60.6−1.8−7.9−0.4
Primary cash balance2−14.3−5.02.6−0.6−4.73.9
Public sector savings−15.0−3.62.44.3−0.64.4
Total revenue and grants13.921.135.932.826.431.8
Total revenue13.520.735.632.226.030.9
Oil and gas revenue4.010.125.122.113.819.8
Crude oil exports3.47.014.115.18.512.7
Domestic oil and gas0.63.111.07.05.27.1
Non-Oil revenue9.610.610.510.112.211.1
Tax revenue7.58.68.48.29.28.0
Nontax revenue2.12.02.12.03.03.0
Grants0.30.40.30.60.40.9
Total expenditure and net lending31.327.739.834.732.732.1
Current expenditure28.524.433.227.926.626.5
Civilian wages and salaries10.57.96.86.17.57.4
Materials and services1.91.72.32.93.03.1
Defense10.47.35.66.06.15.8
Of which:
Wages and salaries8.55.13.83.53.83.6
Interest obligations3.11.63.32.33.74.1
Domestic (net)2.40.31.40.92.63.0
External0.71.32.01.41.11.1
Explicit subsidies0.03.713.07.73.02.5
Wheat and flour0.02.57.44.53.00.4
Petroleum0.01.15.32.90.02.0
Electricity0.00.00.30.30.00.0
Current transfers2.51.61.61.62.22.7
Public enterprises0.70.40.40.50.6
Civil service pension fund0.00.00.00.30.3
Social welfare fund0.00.00.10.20.50.6
Development expenditure2.83.36.66.86.15.6
Ministry of Planning2.07.35.45.24.3
Capital transfers0.71.01.31.41.8
Public works0.00.00.00.20.1
Net lending0.00.00.00.00.00.0
Financing17.15.6−0.71.87.90.0
External (net)0.2−0.20.40.31.22.3
Domestic (net)16.95.8−1.11.56.7−2.3
Bank16.95.5−1.5−0.13.3−4.4
Central bank17.35.0−2.5−3.43.1−4.8
Commercial banks−0.40.60.93.20.20.4
Nonbank0.00.30.41.63.42.1
Discrepancy0.20.0−0.10.00.0−0.4
Sources: Ministry of Finance: Central Bank of Yemen; and IMF staff estimates.

Allocations to the Agriculture and Roads Maintenance Funds, development operation and maintenance and other items.

Overall balance, excluding interest obligations.

Sources: Ministry of Finance: Central Bank of Yemen; and IMF staff estimates.

Allocations to the Agriculture and Roads Maintenance Funds, development operation and maintenance and other items.

Overall balance, excluding interest obligations.

Table A.19.Composition of Central Government Revenues, 1994–99
199419951996199719981999
(In millions of Yemeni rials)
Total revenue36,68193,676250,029274,659222,620328,394
Oil revenue10,78645,621176,192188,415117,772210,598
Crude oil export receipts9,19431,55998,824128,99973,002134,854
Domestic oil and gas revenues1,59214,06277,36859,41644,77075,744
Of which:
Payment for past excess cost recovery0016,290000
Non-oil revenue25,89548,05573,83786,243104,848117,796
Tax revenue20,26739,00658,83469,57078,85285,419
Customs duties7,44016,80426,29425,81424,12125,703
Taxes on goods and services4,3949,99615,18021,22624,97424,419
Taxes on income3,7865,5538,76510,68513,09316,389
Corporate profits tax3,1284,2625,8048,31813,15614,498
Stamp taxes11,1011,8589731,177797
Zakat001,3161,4891,9062,255
Zakat equivalent on foreign companies00428548
Real estate transfer tax418533460776757943
Nontax revenue5,6289,05015,00316,67325,99632,377
Profit transfers2,5145,4716,7728,71216,67719,376
CBY13,00013,750
Commercial banks1091031382271253
Aden refinery2006511,18025520010
YPC1,4023881403867531,499
Non-oil nonfinancial public enterprises8034,3295,3147,8442,7124,064
Cement2,9643,4715,3971,0791,329
Post and telecommunications200300789574700
Ports370685875635946
Airlines500530
Other7468587784221,089
Fees and charges1,2482,9784,4814,3496,695
Construction268690277282357
Security2631881,3166781019
Educational207414233129228
Foreign oil company exploration fees00252130169
Vehicle fees00427443530596
Consular fees00778382187210
Delayed military service fee00230305453510
Other25101,6869682,0002,752
Other nontax revenue1,8666003,7503,6122,624
Fines and forfeitures231236350
Asset sales115432,580814
Foreign oil company signature bonuses3605001,211882
Other1,484321320928
(In percent of GDP)
Total revenue13.520.735.632.226.030.9
Oil revenue4.010.125.122.113.819.8
Crude oil exports3.47.014.115.18.512.7
Domestic oil and gas revenues0.63.111.07.05.27.1
Payment for past excess cost recovery0.00.02.30.00.00.0
Non-oil revenue9.610.610.510.112.211.1
Tax revenue7.58.68.48.29.28.0
Customs duties2.73.73.73.02.82.4
Taxes on goods and services1.62.22.22.52.92.3
Taxes on income1.41.21.21.31.51.5
Corporate profits tax1.20.90.81.01.51.4
Nontax revenue2.12.02.12.03.03.0
Profit transfers0.91.21.01.01.91.8
Non-oil public enterprises0.31.00.80.90.30.4
Fees and charges0.50.70.60.50.8
Other nontax revenue0.70.10.50.40.3
Memorandum item
GDP at market prices (in millions YRls)270,900451,530702,112852,897855,9451,063,557
Sources: Ministry of Finance; Central Bank of Yemen; and IMF staff estimates.

Includes Zakat for 1993–95.

For l994–96, includes fees not attributed to entries specified above.

Sources: Ministry of Finance; Central Bank of Yemen; and IMF staff estimates.

Includes Zakat for 1993–95.

For l994–96, includes fees not attributed to entries specified above.

Table A.20.Composition of Central Government Expenditure, 1994–99
19941995199619971998Prel.

1999
(In millions of Yemeni rials)
Total expenditure and net lending84,741125,040279,594295,882280,080340,872
Current expenditures77,243109,992233,065238,067227,496281,376
Civilian wages and salaries28,43535,75447,66452,39064,28778,341
Materials and services5,2787,50716,24124,87225,63232,527
Agricultural and road maintenance funds07291,8702,3812,7321,856
Defense28,26332,91239,17051,33452,24761,548
Salaries23,00023,12326,41929,80332,46438,659
Nonsalary5,2639,79012,75121,53119,78322,889
Interest obligations8,4717,28723,51020,01831,56243,570
Domestic (net)6,5841,4599,6157,88222,45932,260
External1,8875,82813,89512,1369,10311,310
Of which:
Parliamentary and judiciary expenses01,8602,0862,9684,0235,945
Accounting and audit authority000474538746
Election committee0002,58593150
Explicit subsidies016,49791,24465,50425,70226,116
Wheat and flour011,46551,96438,59225,7024,329
Petroleum products05,03237,30024,751021,787
Consumer subsidy053032,29519,067021,787
Unsettled claims04,5025,0055,68400
Electricity; transfer to PEC001,9802,16100
Current transfers6,7967,44611,28013,54118,68028,278
Public enterprises1,9061,7812,4704,0254,9706,455
Social welfare1,9542,7802,8214,0216,709
Of which:
Social welfare fund005001,7004,3885,946
Regular pension contributions52773702,2302,736
Pension supplements00000
Transfers to civil service pension fund0030000
Medical grants133320302650604
Social and sports activities1,0261,2701,3001,078
Other1,2505594,0871,536
Development operation and
maintenance fund0002,0002,0002,300
Development expenditure7,49815,04846,52957,81552,58459,496
Ministry of Planning5,52610,38137,67544,44336,813
Capital transfers1,9724,6678,85411,87215,135
Public works10001,500636
Net lending000000
Memorandum item: GDP292,279488,509702,112852,897855,9451,063,557
(In percent of GDP)
Total expenditure and net lending29.025.639.834.732.732.1
Current expenditure26.422.533.227.926.626.5
Civilian wages and salaries9.77.36.86.17.57.4
Materials and services1.81.52.32.93.03.1
Defense9.76.75.66.06.15.8
Of which:
Salaries7.94.73 83.53.83.6
Interest obligations2.91.53.32.33.74.1
Domestic2.30.31.40.92.63.0
External0.61.22.01.41.11.1
Explicit subsidies0.03.413.07.73.02.5
Wheat and flour0.02.37.44.53.00.4
Petroleum products0.01.05.32.90.02.0
Electricity0.00.00.30.30.00.0
Current transfers2.31.51.61.62.22.7
Development expenditure2.63.16.66.86.15.6
Ministry of Planning1.92.15.45.24 3
Sources: Ministry of Finance; Central Bank of Yemen: and IMF staff estimates.

Related to the IDA public works project.

Sources: Ministry of Finance; Central Bank of Yemen: and IMF staff estimates.

Related to the IDA public works project.

Table A.21.Current and Capital Transfers to Public Enterprises, 1994–98(In millions of Yemeni rials)
199419951996119971998
Current transfers1,9061,7802,9003,9844,967
Broadcasting and Television Corporation3133721,0171,2601,599
Mineral Exploration Organization7978153163191
Oil Exploration Corporation96107145237253
Organization for Agricultural Research140148202233318
Rural Development Organization525172102140
Al-Thawra Hospital237331430883781
Touhama Development Organization9096157157198
Yemen News Agency525768107145
Other agricultural and industrial enterprises162180109155333
Others685360547280697
Financial support for troubled enterprises000407312
Capital transfers1,9725,08411,95015,135
Broadcasting and Television Corporation28936486338
Civil Aviation and Meteorology Authority6084323622
National Water and Sewerage Corporation19801,4063,009
Postal Service Organization75266460
Public Authority for Rural Electricity and Water36903,1302,587
Public Electricity Corporation2563,9355,5217,201
Rural Areas Development Organization930150115
Al-Thawra Hospital2610380139
Yemen Company for Oil Investment in Jannah00400400
Aden Free Zone Authority0091107
Other8670299557
Total3,8786,8642,90015,93420,102
Source: Ministry of Finance.

The data for 1996 predate the data presented in Tables 13 and 15. No detailed data are available for the updated aggregate figures In Tables 13 and 15.

Source: Ministry of Finance.

The data for 1996 predate the data presented in Tables 13 and 15. No detailed data are available for the updated aggregate figures In Tables 13 and 15.

Table A.22.Monetary Survey, 1994–99(In millions of Yemeni rials; end of period)
199419951996199719981999
Broad money206,190248,265269,551298,388333,350379,294
Money139,709164,135156,698166,384179,927207,197
Currency111,006129,114120,477126,904139,668166,924
Demand deposits28,70335,02136,22139,48040,25940,273
Quasi-money20,84728,53048,97955,59457,43160,430
Foreign currency deposits45,63555,59963,87576,41095,992111,668
Foreign assets (net)22,95338,899103,344145,177112,532200,029
Central bank (net)1,62419,78487,51493,63754,789136,286
Assets4,28831,107131,445160,249138,927237,687
Liabilities2,66411,32343,93166,61384,136101,401
Commercial banks (net)21,32919,11515,83051,54057,74363,743
Assets49,15143,08842,45359,47264,85770,991
Liabilities27,82223,97326,6247,9327,1147,248
Domestic assets (net)183,237209,366166,208153,212220,818179,266
Claims on government (net)178,447205,003187,310164,156219,768173,468
Central bank (net)195,274222,309204,901158,304185,160135,181
Claims199,074231,842221,520175,864201,724159,621
Budget financing181,197209,342199,057171,234196,702153,962
Counterpart to YBRD claims on CBY17,87722,50022,4634,6305,0225,659
Deposits3,8009,53316,62017,56016,56424,440
Commercial banks (net)−2,3331696,79334,39836,21539,942
Claims3901,2956,96334,87336,26739,972
Deposits2,7231,1271714745230
Total budget financing (net) excluding YBRD175,064199,977189,230188,072216,352169,464
Pension fund term deposits at CBY14,49417,47524,38328,5461,6071,655
Claims on nongovernment sector27,24634,87524,60536,07155,63063,970
Private sector17,61923,86522,35834,38054,20562,426
Rials13,68418,84017,21224,63140,21242,948
Foreign currency3,9355,0255,1469,74913,99319,478
Public enterprises9,43310,8262,0661,5031,120895
Rials2,4492,0521,9211,3081,120895
Foreign currency6,9848,77414519600
Mixed enterprises194185181188305649
Valuation adjustment−25,374−17,207−11,856−14,900−14,399−10,430
Other items (net)2,917−13,305−33,851−32,116−40,181−47,742
Capital and reserves−3,429−5,201−7,269−11,362−23,729−28,762
Other (net)6,346−8,104−26,582−20,754−16,452−18,980
Memorandum items:
Rial broad money160,555192,666205,676221,978237,358267,627
(In millions of US. dollars)
Total net foreign currency position197.4388.8578.1663.3356.6832.6
Central bank−28.2244.9535.2585.0269.6740.0
Of which:
Net foreign assets135.2395.4689.6717.7386.7853.3
Foreign currency deposits−153.2−252.9−263.6−223.9−266.5−303.1
Commercial banks225.7143.943.078.387.092.6
Of which:
Net foreign assets211.2150.4124.7395.1407.5399.1
Foreign currency deposits−437.3−395.0−390.1−491.8−600.7−625.3
YBRD claims on Central Bank of Yemen177.0177.0177.035.535.435.4
Official exchange rate (end-period)12.050.0126.9130.5141.7159.7
Free market exchange rate (end-period)101.0127.1126.9130.5141.7159.7
Source: Central Bank of Yemen.
Source: Central Bank of Yemen.
Table A.23.Factors Affecting Domestic Liquidity, 1994–99
199419951996199719981999
(Changes in end-year stocks, in millions of Yemeni rials)
Broad money53,06842,07521,28628,83734,96245,944
Money36,35424,427−7,4379,68613,54327,269
Currency31,98718,109−8,6386,42712,76527,255
Demand deposits4,3686,3181,2003,25977914
Quasi-money3,4397,68320,4486,6161,8363,000
Foreign currency deposits13,2749,9658,27512,53519,58215,676
Net foreign assets11,21215,94664,44541,833−32,64587,496
Central bank (net)1,78518,16067,7306,123−38,84881,497
Commercial banks (net)9,427−2,214−3,28535,7116,2036,000
Net domestic assets41,85626,129−43,158−12,99667,606−41,552
Claims on government (net)48,36126,555−17,693−23,15455,611−46,300
Of which:
Central bank (net)52,83527,035−17,408−46,59726,856−49,979
Total budget financing (net)46,94922,412−17,371−28,76426,464−50,616
Counterpart to Yemen Bank for
Reconstruction and Development
claims on the Central Bank of Yemen5,8864,623−37−17,833393637
Commercial banks (net)−1,0712,5026,62427,6061,8163,727
Claims on nongovernment sector11,1217,629−10,27111,46719,5598,340
Private sector4,9666,246−1,50712,02219,8258,221
Public enterprises6,1071,393−8,760−563−383−225
Mixed enterprises48−9−58117344
Valuation adjustments−19,5218,1675,351−3,04500
Other items (net)1,896−16,222−20,5471,736−7,564−3,592
Capital and reserves−832−1,772−2,068−4,0935013,969
Other2,728−14,450−18,4795,828−8,065−7,561
(Changes in percent of broad money)(Changes in percent)
Broad money34.720.48.610.711.713.8
Money23.711.8−3.03.64.58.2
Currency20.98.8−3.52.44.38.2
Demand deposits2.93.10.51.20.30.0
Quasi-money2.23.78.22.50.60.9
Foreign currency deposits8.74.83.34.76.64.7
Net foreign assets7.37.726.015.5−10.926.2
Central bank (net)1.28.827.32.3−13.024.4
Commercial banks (net)6.2−1.1−1.313.22.11.8
Net domestic assets27.3127−17.4−4.822.7−12.5
Claims on government (net)31.612.9−7.1−8.618.6−13.9
Of which:
Total budget financing (net)30.710.9−7.0−10.78.9−15.2
Claims on nongovernment sector7.33.7−4.14.36.62.5
Private sector3.23.0−0.64.56.62.5
Public enterprises4.00.7−3.5−0.2−0.1−0.1
Mixed enterprises0.00.00.00.00.00.1
Valuation adjustments−12.74.02.2−1.10.20.0
Other items (net)1.2−7.9−8.30.6−2.5−1.1
Capital and reserves−0.5−0.9−0.8−l.50.21.2
Other1.8−7.0−7.42.2−2.7−2.3
Memorandum items:
Rial broad money33.020.06.87.96.912.8
Currency40.516.3−6.75.310.119.5
Rial demand deposits17.922.03.49.02.00.0
Rial quasi-money19.836.971.713.53.35.2
Claims on private sector39.235.4−6.353.857.715.2
Rials37.7−8.643.163.36.8
Foreign currency27.72489.543.539.2
U.S. dollar equivalent1.52.684.332.123.5
(Ratios to rial broad money)
Currency0.690.670.590.570.590.62
Rial demand deposits0.180.180.180.180.170.15
Rial quasi-money0.130.150.240.250.240.23
Source: Central Bank of Yemen
Source: Central Bank of Yemen
Table A.24.Balance Sheet of the Central Bank, 1994–99
199419951996199719981999
(In Yemeni Rials)
Foreign assets4,28831,107131,445160,249138,927237,687
Gold, silver, and foreign currency2801,7676,3915,3595,9466,945
Foreign exchange held abroad3,42526,586106,524132,240107,635192,319
Foreign securities0012,4591513,43610,180
SDR holdings5832,7536,07222,50021,91028,243
IMF reserve position (IMF record)000000
Claims on government199,074231,842221,520175,864201,724159,621
Of which:
Budget financing181,197209,342199,057171,234196,702153,962
Counterpart to YBRD claims117,87722,50022,4634,6305,0225,659
Claims on public enterprises57010501,108895
Other assets2,37511,5829,84011,34417,34024,652
Claims on commercial banks4094544900
Fixed and other assets2,33511,4889,78611,29517,34024,652
Assets = Liabilities205,794274,531362,815347,507359,099422,854
Foreign liabilities2,66411,32343,93166,61384,138101,401
Of which:
AMF6112,9027,46911,49811,53015,571
IMF0015,30032,71347,46465,233
Other2,0538,42121,16222,40225,14420,597
Reserve money143,481163,963179,575154,837175,223211,621
Currency outside banks111,006129,114120,477126,904139,668166,924
Currency with banks1,9401,8841,9082,6522,6632,160
Commercial banks deposits30,53532,96557,19025,28232,89242,538
Rials30,34428,11144,71615,58414,89920,564
Foreign currency1924,81112,4759,69817,99321,974
Government deposits3,8009,53316,62017,56016,56424,440
Rials3,6167,07810,00910,2897,6569,807
Foreign currency1842,4566,6107,2718,90814,633
Public enterprise deposits7,98522,23329,42132,79927,75422,556
Demand deposits3,31312,0368,86910,6068,76910,624
Time deposits3,2084,8066,1909,9488,117137
Foreign currency deposits1,4645,39014,36312,24610,86811,795
Social security fund deposits14,49417,47524,38328,5461,6071,655
Public sector13,08115,75722,00826,298
Private sector1,4121,7182,3762,248
Other liabilities33,37050,00468,88647,15353,81361,181
SDR allocation5002,1385,2355,0735,7236,300
Claims of YBRD117,87722,50022,4634,6305,0225,659
Exchange valuation account2,7374,25411,81412,27213,2319,194
Capital and reserves600600600600600600
Other liabilities11,65720,51228,77424,52229,23639,428
(In millions of US. dollars)
Memorandum items:
Net foreign assets135395690718387853
Foreign currency deposits153253264224267303
Net foreign currency position−28245535585270740
Central bank gross foreign assets3576221,0361,2289801,488
Central bank own gross foreign assets3555849371,1548531,351
Source: Central Bank of Yemen.

Foreign currency claims originally equivalent to US$177 million valued at the He market exchange rate, reduced to US$35 in 1997.

Source: Central Bank of Yemen.

Foreign currency claims originally equivalent to US$177 million valued at the He market exchange rate, reduced to US$35 in 1997.

Table A.25.Balance Sheet of the Commercial Banks, 1994–991
199419951996199719981999
(In millions of Yemeni rials)
Foreign assets49,15143,08842,45359,47264,85770,991
Foreign currency5,2205,3162,5773,9143,8774,206
Balances with banks abroad43,38736,86338,55454,32060,34266,726
Claims on nonresidents1270000
Foreign investments4179101,3221,23863859
Reserves32,89944,05559,90328,05235,71443,630
Currency1,9401,8841,9082,6522,6632,160
Deposits with central bank30,95942,17157,99525,40033,05141,470
Rials30,93729,98445,45915,59215,28319,912
Foreign currency2212,18712,5369,80317,76821,558
(in millions of U.S. dollars)0969975125135
Claims on government3901,2956,96334,87336,2670
Treasury bills8736,62234,54936,2670
Credit to government390422342324039,972
Claims on nongovernment sector27,18934,87524,59536,02100
Credit to public enterprises9,37610,8262,0561,453120
Rials2,3922,0521,9111,2571263,075
Foreign currency6,9848,77414519600
Credit to private sector17,61923,86522,35834,38000
Rials13,68418,84017,21224,63100
Foreign currency3,9355,0255,1469,74954,20562,426
Credit to mixed enterprises19418518118813,99319,478
Other assets49,24454,83145,33833,070305649
Interbranch accounts (net)1490015100
YBRD claims on CBY217,87722,50022,4634,63020,70024,477
Other assets331,21832,33122,87528,28902
Rials8,23911,06420,73124,31010,7745,659
Foreign currency20,39121,3172,1433,97915,67718,815
Assets = Liabilities158,873178,145179,252191,48700
Of which:
in foreign currency98,422112,96684,88687,83400
Foreign liabilities27,82223,97326,6247,9327,114127,094
Deposits of foreign banks1,2685681,0694401,2650
Of which:
in local currency20186647,248
Nonresidents deposits2,4632,4212,7662,0411,265772
Of which:
in local currency1,2501,1111,6921,13142
Borrowing from foreign banks24,09120,98422,7885,451950947
Demand deposits25,39022,98527,35328,87531,4900
Quasi-money deposits17,63923,72442,78945,64749,31329,649
Time deposits8,77512,41524,38023,98524,9240
Savings deposits7,6539,33314,74718,12220,70560,293
Earmarked deposits1,2101,9773,6613,5403,68430,427
Foreign currency deposits44,17150,20949,51264,16585,1244,185
(in millions of U.S. dollars)4373953904916010
Government deposits2,7231,12717147452625
Rials1,750729115296470
Foreign currency97339756178530
Other liabilities41,12956,12732,80444,39500
Credit from central bank424526230
Rials945212345,052
Foreign currency33004032
Capital and reserves2,8294,6016,66910,76223,12932
Interbranch accounts (net)01,3811,0260820
Other liabilities15,62137,18925,06230,97914,5650
Rials10,61515,96420,12124,5049,5340
Foreign currency3,90121,2254,9416,4765,03115,623
Exchange valuation22,63712,953422,6281,1685,403
Total liabilities158,873178,145179,252191,487173,093161,553
Of which:
in foreign currency75,63094,67579,43577,61793,63214,338
(In millions of US. dollars)
Memorandum items;
Net foreign currency position2261444378870
Net foreign assets38832730243144393
Foreign currency deposits (net)163183259352356435
(In percent of total assets)
Foreign assets31.024.024.031.031.029.0
Treasury bills0.00.04.018.017.017.0
Loans17.020.014.019.026.026.0
Reserves21.025.033.015.017.018.0
Other assets31.031.025.017.010.010.0
Source: Central Bank of Yemen.

Foreign asset, liability, and currency components are evaluated at the free market exchange rate of all periods.

foreign currency claims equivalent to US$177 million over 1993–96 and reduced to US$35 million in 1997.

Also includes nonperforming loans.

Source: Central Bank of Yemen.

Foreign asset, liability, and currency components are evaluated at the free market exchange rate of all periods.

foreign currency claims equivalent to US$177 million over 1993–96 and reduced to US$35 million in 1997.

Also includes nonperforming loans.

Table A.26.Interest Rates, 1994–991(In percent end-period rates)
199419951996199719981999
Central bank lending rates
Government9.024.124.016.017.120.0
Public enterprises17.024.126.020.020.023.0
Commercial banks16.024.123.516.520.023.0
Commercial bank lending rates
Maximum rate17.0
Rate range25–3225–3215–2117–2423–28
Commercial bank (minimum/benchmark)
Deposit rates2
Savings deposits10.520.020.011.015.018.0
Three-month time deposits12.020.020.0
Six-month time deposits13.021.021.0
Nine-month time deposits14.021.521.5
One-year time deposits15.022.022.0
Specialized banks’ lending rates3
Short term7.07.07.07.0
Medium and long term9–1110–127–117–11
Treasury bill average interest rate on
successful bids
One-monthn.a23.1n.a.n.a.n.a.n.a.
Three-monthn.a.n.a.24.812.917.518.1
Six-monthn.a.n.a.25.512.517.717.4
Twelve-monthn.a.n.a.n.a.13.317.816.2
Source: Central Bank of Yemen.

Prior to July 1995, a fixed interest rate structure applied to all loans and deposit rates. The mandated minimum deposit rates were not enforced and effective deposit rates were 3–5 percent. Interest rate reform in July 1995 freed interest rates, eliminated concessional loan rates, and enforced benchmark minimum commercial bank deposit rates.

In May 1997, the benchmark system was narrowed to one minimum rate for savings accounts.

As of June 1998, all specialized banks have adopted the interest rate structure applying to commercial banks.

Source: Central Bank of Yemen.

Prior to July 1995, a fixed interest rate structure applied to all loans and deposit rates. The mandated minimum deposit rates were not enforced and effective deposit rates were 3–5 percent. Interest rate reform in July 1995 freed interest rates, eliminated concessional loan rates, and enforced benchmark minimum commercial bank deposit rates.

In May 1997, the benchmark system was narrowed to one minimum rate for savings accounts.

As of June 1998, all specialized banks have adopted the interest rate structure applying to commercial banks.

Table A.27.Distribution of Commercial Bank Credit to the Nongovernment Sector,1 1994–99(End of period)
199419951996199719981999
(in millions of Yemeni rials)
Short-term loans and advances16,26431,24222,67633,05831,417.933,647.4
Agriculture and fisheries35137135113038.6121.2
Industry8423,6023,1028,7583,271.02,628.6
Construction655.71,881.4
Export financing1617243267.8167.2
Import financing4,4054,9964,6346,5359,105.39,390.6
Trade in manufactured goods1,8612,8817,0387,6368,767.44,711.1
Other8,64319,3227,5509,9559,312.114,747.3
Medium- and long-term loans1,0853,4481,7382,7744,844.14,724.8
Investments29,706.313,443.6
Total17,34934,69024,41435,83245,968.351,815.8
(In percent of total)
Short-term loans and advances949093926865
Agriculture and fisheries211000
Industry510132475
Construction14
Export financing10010
Import financing251419182018
Trade in manufactured goods1182921199
Other505631282028
Medium- and long-term loans61078119
Investments22126
Source: Central Bank of Yemen.

Prior to 1998, a different classification was adopted, which explains gaps in the data for the period 1994–97

Investments refer to lending by Islamic banks on Islamic principles.

Source: Central Bank of Yemen.

Prior to 1998, a different classification was adopted, which explains gaps in the data for the period 1994–97

Investments refer to lending by Islamic banks on Islamic principles.

Table A.28.Commercial and Specialized Banks as of December 31, 1999
Date of

Establishment
Head

Office

Location
Capital

(Millions of

Yemeni rials)
ShareholdersShareholding

(Percent)
Total

Branches1
Commercial banks:
Yemen Bank for Reconstruction and Development (YBRD)1962Sana’a1,000.0Government5137
Yemeni private49
National Bank of Yemen1969Aden1,915.0Government10031
United Bank Ltd.1972Sana’a1,000.0Branch of United Bank (Pakistan)1002
Arab Bank PLC.1972Sana’a1,043.0Branch of Arab Bank (Jordan)1006
Banque Indosuez1975Sana’a1,304.5Branch of Banque Indosuez (France)1005
Yemen Commercial Bank1993Sana’a1,145.0Yemeni Private1005
Yemen-Kuwait Bank for Trade and Investment1979Sana’a774.5Yemeni private1001
International Bank of Yemen1980Sana’a906.0Yemeni private755
Saudi Arabian Banks25
Rafidain Bank1982Sana’a60.0Branch of Rafidain Bank (Iraq)1001
Islamic banks:
Islamic Bank for Finance and Investment1995Sana’a925.0Yemeni private21002
Altadamon Islamic Bank1996Sana’a1,500.0Yemeni private21008
Saba Islamic Bank1997Sana’a1,159.0Yemeni private21003
AlWatani1998Sana’a750.0Yemeni private1004
Specialized banks:
Industrial Bank of Yemen1976Sana’a96.5Government70
Yemeni private30
Housing Credit Bank1977Sana’a200.0Government70
Yemeni private30
Cooperative and Agricultural Credit1982Sana’a293.0Government8734
Yemeni cooperatives13
Source; Central Bank of Yemen.

Including head office.

With some foreign minority shareholders.

Source; Central Bank of Yemen.

Including head office.

With some foreign minority shareholders.

Table A.29.Indicators of Banking System Financial Soundness, 1997–991(In percent)
199719981999
Portfolio quality:
Problem loans/total loans55.246.158.5
Problem loans/total assets11.510.213.0
Provisions against problem loans/problem loans21.727.831.0
Total capital and reserves/problem loans46.283.062.0
Portfolio performance:
Average return on assets1.00.91.0
Average return on equity13.015.014.0
Capital adequacy:
Total capital and reserves/total assets5.38.58.1
Risk-weighted capital adequacy ratio0.62.55.2
Exposure to exchange rate risk:
Total foreign currency assets (in billions of rials)88.4109.3127.4
Total foreign currency liabilities (in billions of rials)78.297.8112.8
Net exposure/total capital and reserves10065.377.7
Foreign credits/foreign deposits15.216.019.0
Estimated exposure to real estate market:
Total real estate loans/total loans0.32.05.2
Total construction loans/total loans0.31.93.3
Source: Central Bank of Yemen.

Data refer to the commercial banking system in aggregates, and exclude specialized banks.

Source: Central Bank of Yemen.

Data refer to the commercial banking system in aggregates, and exclude specialized banks.

Table A.30.Balance of Payments, 1994–99
19941995199619971998Prel.

1999
(In millions of U.S. dollars)
Trade balance302.1−11.0−30.8−132.6−726.824.5
Exports, fob.1,824.01,937.22,262.82,274.01,501.12,464.4
Crude oil1,615.41,735.01,976.21,944.91,228.72,131.2
Government share753.1777.5958.41,012.2470.7993.0
Oil companies’ share862.3957.51,017.7932.7758.01,138.2
Oil products177.8133.4209.8199.2140.8193.7
Non-oil exports130.868.876.8129.9131.5139.5
Imports1,521.9−1,948.2−2,293.5−2,406.5−2,227.8−2,439.9
Oil products, f.o.b.−207.9−172.0−176.5−165.3−116 9−174.3
Oil sector capital goods, c.i.f.−172.8−113.7−95.9−84.5−66.0−70.8
Other imports, f.o.b−1,141.2−1,662.5−2,021.1−2,156.7−2,044.9−2,194.8
Food−427.4−687.2−915.5−915.9−787.2−806.7
Nonfood713.8−975.3−1,105.6−1,240.8−1,257.7−1,388.1
Services, net−474.6−411.1−369.7−469.9−397.5−488.8
Transportation, net−52.5−46.9−50.0−93.4−96.7−92.6
Freight and insurance, net−120.3−206.5−233.4−305.2−284.2−311.4
Tourism, net18.549.954.969.779.041.6
Oil processing fees, receipts5.06.06.28.08.08.0
Other services, net13.0−3.5−3.0−3.7−5.0−31.8
Oil companies’ foreign expenditures,
payments−326.9−202.9−130.6−118.5−80.0−80.0
Government services, net−11.4−7.2−13.8−26.7−18.6−22.6
Income−578.6−499.1−681.6−630.6−359.2−654.7
Compensation of employees−53.4−47.9−47.7−29.7−31.0−27.0
Investment income−525.2−451.2−633.9−600.9−328.2−627.7
Current transfers1,117.01,103.91,188.41,255.61,253.51,314.1
General government transfers, net71.340.060.289.459.190.9
Cash grants0.00.027.537.120.239.0
Grants-in-kind72.943.340.054.043.955.6
Payments−1.6−3.3−7.3−1.7−5.0−3.7
Workers’ remittances, net1,042.71,063.91,122.61,156.91,190.71,223.2
Other transfers (oil signature bonus)3.00.05.69.33.80.0
Current account balance365.9182.7106.322.6−230.0195.1
Capital account−641.0−876.3−397.134.4−206.6−74.1
Medium- and long-term loans, net−684.6−694.1−520.7−66.5−63.727.0
Pipeline, net−684.6−694.1−520.7−66.5−63.727.0
Disbursements82.153.1138.3151.7161.8231.5
Bilateral8.92.21.34.127.15.0
Multilateral73.250.9137.0147.6134.7226.6
Suppliers’ credits0.00.00.00.00.00.0
Amortization obligations−766.7−747.2−659.0−218.2−225.4−204.5
Bilateral−656.1−641.6−550.4−151.5−162.5−150.0
Multilateral−46.2−49.2−64.6−66.7−62.9−54.5
Short-term oil trade credits, net1.3−32.5−63.763.570.7−119.4
Oil sector direct investment, net15.8−217.7−60.1−138.5−266.7−318.8
Oil sector loans−1.50.00.00.00.00.0
Wheat import financing, net28.068.0167.4−79.3−187.20.0
Private capital, net0.00.080.0255.1240.2337.1
Errors and omissions−503.7655.3−334.059.6−26.6198.8
Overall balance−778.8−38.3−624.9116.5−463.1319.9
Financing778.838.3624.9−116.5463.1−319.9
Net reserves changes (increase -)−79.4−713.0−36.9−296.7317.1−458.5
Official−148.6−260.1−294.2−26.9330.0−466.8
Commercial banks69.2−452.9257.3−269.7−12.98.3
Debt relief0.00.093.46,048.1113.682.5
Change in overdue obligations (increase +)1858.2751.3568.4−5,867.932.456.2
(In percent of GDP)
Current account5.62.81.70.3−3.72.9
Exports28.029.935.234.523.836.1
Crude oil24.826.830.729.519.531.2
Imports−23.4−30.1−35.7−36.5−35.4−35.7
Capital account−9.8−13.5−6.20.5−3.3−1.1
Overall balance−12.0−0.6−9.71.8−7.44.7
(In millions of U.S. dollars, unless otherwise indicated)
Current account including grants (percent of GDP)5.62.81.70.3−3.72.9
Of which:
Official grants (percent of GDP)1.10.60.91.40.91.3
Central bank own gross foreign reserves23575259371,1528531,351
(Months of imports)32.93.14.65.34.26.0
Official external debt410,87611,01711,1355,3595,3735,490
(In percent of GDP)167170173818580
Debt service (percent of exports of goods and services)4
Obligations basis474232131710
Actual37910148
Change in outstanding IMF credit
(increase +)001211308574
Source: Central Bank of Yemen.

Includes debt to non-Paris Club creditors under discussion to ensure comparable treatment.

Includes central bank SDR holdings, foreign exchange held abroad, foreign securities, gold, silver, and foreign currencies; excludes commercial bank required foreign exchange reserves with the central bank against their foreign currency deposits.

Imports are c.i.f for current year and exclude imports of oil sector capital goods.

Public and publicly guaranteed debt including central bank foreign liabilities. Debt and debt service reflect the 1996 and 1997 Paris Club rescheduling, including the SO percent upfront discount provided by the Russian Federation.

Source: Central Bank of Yemen.

Includes debt to non-Paris Club creditors under discussion to ensure comparable treatment.

Includes central bank SDR holdings, foreign exchange held abroad, foreign securities, gold, silver, and foreign currencies; excludes commercial bank required foreign exchange reserves with the central bank against their foreign currency deposits.

Imports are c.i.f for current year and exclude imports of oil sector capital goods.

Public and publicly guaranteed debt including central bank foreign liabilities. Debt and debt service reflect the 1996 and 1997 Paris Club rescheduling, including the SO percent upfront discount provided by the Russian Federation.

Table A.31.Composition of Exports and Reexports, 1994–991
19941995199619971998Prel.

1999
(In millions of Yemeni rials)
Crude oil219,40171,271224,140251,436166,953331,993
Petroleum products29343,63723,80425,74819,13430,428
Other exports and reexports1,2374,5229,65916,79817,86917,014
Coffee4531,0961,9851,7602,6581,953
Fish1034711,3924,8522,4011,912
Hides and skins1131636021,2021,137841
Fruits and vegetables22128334674664709
Honey316780223192148
Metal ore27306317578430245
Perfumes and cosmetics6083198378750225
Other4292,2094,7537,1329,63810,961
Total, f.o.b.21,57379,431257,603293,982203,956379,435
(In millions of U.S. dollars)3
Crude oil21,615.41,735.01,976.21,944.91,228.72,131.2
Petroleum products277.8133.4209.8199.2140.8195.4
Other exports and reexports103.0111.785.1130.3131.6109.2
Coffee37.727.117.514.019.612.5
Fish8.511.612.337.517.712.3
Hides and skins9.44.05.39.38.45.4
Fruits and vegetables1.93.22.95.24.94.5
Honey2.61.60.71.71.41.0
Metal ore2.37.52.84.53.21.6
Perfumes and cosmetics5.02.11.72.95.51.4
Other35.754.541.955.270.970.5
Total, f.o.b.1,796.21,980.12,271.12,274.41,501.12,435.8
Sources: Central Statistics Organization; Ministry of Oil and Mineral Resources.

Customs data except for crude oil. includes oil companies’ share of crude oil exports.

Data provided by Ministry of Oil and Mineral Resources and Aden Refinery. Excludes reexports from Aden Refinery under processing arrangements, and includes oil companies’ share of crude oil exports.

Converted from Yemeni rials at the average customs exchange rate.

Sources: Central Statistics Organization; Ministry of Oil and Mineral Resources.

Customs data except for crude oil. includes oil companies’ share of crude oil exports.

Data provided by Ministry of Oil and Mineral Resources and Aden Refinery. Excludes reexports from Aden Refinery under processing arrangements, and includes oil companies’ share of crude oil exports.

Converted from Yemeni rials at the average customs exchange rate.

Table A.32.Direction of Exports and Reexports, 1994–991,2(In percent of total)
19941995199619971998Prel.

1999
Arab countries19.411.97.33.711.03.9
Djibouti0.10.10.10.30.70.2
Egypt6.96.51.40.02.00.3
Kuwait0.90.30.11.34.00.8
Saudi Arabia4.01.71.91.22.20.4
United Arab Emirates1.51.00.40.50.80.3
Other6.12.33.40.41.31.9
Africa1.03.23.11.92.70.2
Ethiopia0.70.10.10.20.00.1
South Africa0.03.02.21.62.40.0
Other0.30.20.80.10.30.1
Asia42.761.855.875.967.089.0
China, People’s Republic of2.523.320.630.624.928.8
Singapore14.310.13.62.75.98.6
South Korea20.81.917.819.111.314.5
Thailand0.06.813.016.922.125.5
Other5.119.70.86.62.811.6
Industrial countries33.313.722.313.118.35.5
France3.10.52.42.81.50.2
Germany0.00.00.00.12.10.1
Italy2.40.33.63.20.80.2
Japan13.312.312.55.33.71.1
Netherlands1.10.20.00.00.40.0
United Kingdom0.10.10.20.32.70.1
United States12.30.20.40.25.60.5
Other1.00.13.21.21.53.3
Other countries3.08.611.45.41.00.0
Of which:
Brazil1.88.611.45.40.00.0
Bulgaria1.20.00.00.00.00.0
Bunkering (ships)0.00.00.00.00.00.0
Bunkering (aircraft)0.30.00.00.00.00.0
Not classified0.30.70.00.00.01.4
Total, f.o.b.100.0100.0100.0100.0100.0100.0
Sources: Central Statistics Organization; Ministry of Oil and Mineral Resources; and IMF staff estimates.

Customs data except for crude oil. Includes oil companies’ share of crude oil exports.

Excludes reexports from Aden Refinery under processing arrangements.

Sources: Central Statistics Organization; Ministry of Oil and Mineral Resources; and IMF staff estimates.

Customs data except for crude oil. Includes oil companies’ share of crude oil exports.

Excludes reexports from Aden Refinery under processing arrangements.

Table A.33.Composition of Imports, 1994–99 1,2(in millions of U.S. dollars)
19941995199619971998Prel.

1999
Food and live animals450.3542.8941.3802.0776.2555.5
Meat and live animals70.948.839.548.880.069.1
Live animals31.424.213.417.737.533.9
Meat and meat products39.524.626.131.142.535.2
Dairy products and eggs50.336.261.375.383.953.2
Cereals and their products3198.5315.2648.7445.9414.5263.3
Vegetables and fruits29.426.840.041.050.531.1
Sugar and its products, and honey59.180.1111.9137.498.6105.7
Coffee, tea, and spices20.720.519.118.318.213
Other21.315.220.835.330.520.2
Beverages and tobacco32.732.433.235.843.636.4
Beverages0.70.91.74.89.85.1
Tobacco32.031.531.531.033.831.3
Raw materials41.443.845.551.748.633.6
Oilseeds7.14.37.115.511.47.7
Wood and cork26.730.426.024.726.718.9
Other7.69.212.311.510.57
Minerals, fuels, and lubricants3236.3121.3165.8223.4139.4113.6
Animal and vegetable oils26.466.750.873.18355.2
Chemicals107.8126.3136.2166.5211.1130.4
Manufactured goods, classified
by materials296.3353.3298.8353.1374.9234.0
Rubber manufactures28.932.932.538.333.521.6
Wood and cork14.011.410.516.418.66.5
Paper manufactures27.642.334.634.548.632.1
Textiles33.637.233.837.238.125.8
Nonmetallic mineral
manufactures39.039.745.744.444.128.6
Iron and steel96.7117.183.0107.0115.873.7
Metal manufactures34.052.440.848.948.427.9
Other22.520.317.826.427.817.8
Machinery and transport
equipment285.5355.2373.1424.9525.1312.8
Machinery192.9245.3244.1316.7396.6235.6
Road vehicles87.1101.8120.7103.0106.571.1
Other transport equipment5.55.15.35.3226.1
Other0.00.00.0000
Miscellaneous manufactured
articles80.096.783.896.9114.461.5
Furniture3.77.48.56.88.65.8
Clothing27.122.415.720.025.911.5
Footwear9.19.87.610.611.24.7
Professional and scientific
instruments9.48.29.412.824.113
Other30.748.942.646.744.626.5
Other commodities0.10.41.04.411.32.9
Total imports, c.i.f.1,556.91,739.02,129.52,231.82,327.61,535.9
Source: Central Statistics Organization.

Customs data. Excludes oil company investment goods imports, The sharp fall recorded for total imports in 1999 reflects preliminary and incomplete data reports for the year.

Converted from Yemeni rial data at the average customs exchange rate, except for mineral fuels and lubricants, which are converted at the official rate.

Data for 1994–96 are Central Bank of Yemen estimates.

Source: Central Statistics Organization.

Customs data. Excludes oil company investment goods imports, The sharp fall recorded for total imports in 1999 reflects preliminary and incomplete data reports for the year.

Converted from Yemeni rial data at the average customs exchange rate, except for mineral fuels and lubricants, which are converted at the official rate.

Data for 1994–96 are Central Bank of Yemen estimates.

Table A.34.Sources of Imports, 1994–991(in percent of total)
19941995199619971998Prel.

1999
Arab countries27.224.927.627.228.834.5
Djibouti2.20.40.81.31.41.8
Egypt1.21.01.91.01.21.2
Jordan0.61.01.20.90.70.6
Kuwait0.32.84.24.02.34.6
Saudi Arabia9.87.49.19.411.710.2
Somalia1.31.11.00.91.72.1
United Arab Emirates9.910.87.78.5911.7
Other1.90.41.71.20.32.3
Asia20.318.424.824.118.320.1
China, People’s Republic of2.02.73.53.43.12.8
Hong Kong SAR0.50.60.50.40.40.2
India1.41.23.82.62.22.5
Malaysia4.54.95.63.50.43.6
Singapore3.42.72.01.73.23.7
South Korea1.31.11.81.61.91.5
Thailand0.80.53.11.41.32
Other6.44.74.59.55.83.8
Industrial countries44.528.045.146.947.143.1
Australia2.30.30.92.02.44.8
Austria