Since Yemen became a member of IFC in 1970, the Corporation has committed more than $127 million of its own funds in the country. During fiscal year 2007, IFC committed $91 million in three projects, compared to $25 million during the previous fiscal year. IFC has also approved engaging, for the first time, globally, a local Islamic Bank in Yemen, into its Global Trade Finance Program.
Yemen is a frontier, post-conflict nation and remains high on IFC’s list of intervention countries. The country faces high unemployment rates and slow economic growth, which arise mainly from a complicated policy framework, insufficient access to finance, and limited private sector competitiveness. Yemen clearly has potential in certain areas, including an advantageous geographic position with good deep-sea ports and excellent mineral resources.
As the Yemeni government encourages the private sector to grow, including in the areas of ports, refineries, building materials, and hospitals, IFC’s focus is on developing the financial, banking, leasing, trade finance, and microfinance sectors.
