Our comprehensive assessment of Yemen's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Yemen, as well as the latest industry developments that could impact Yemen's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Yemen before your competitors.
Yemen Country Risk
Uncertainty over the health of Sultan Qaboos bin Said al-Said, who has governed Oman since 1970, is bringing the succession question to the fore. We see major risks in the succession process. Governance is set to become more unpredictable in the future, and the Omani political system - with the Sultan enjoying all-encompassing powers - is largely unsustainable in its current form.
Tightening liquidity conditions, public spending cuts, and weak export growth will present headwinds for Oman's economy and corporate sector over 2016. Growth will weaken to 2.3% in real terms, compared to the annualised rate of 3.5% recorded between 2010 and 2014.
The fall in oil prices will leave Oman posting budget and current account deficits for years. While the country can rely on the debt...
Yemen Industry Coverage (3)
Defence & Security
Yemen Defence & Security
BMI View: Yemen remains wholly reliant on defence imports to meet the requirements of its armed forces, as the country does not produce any military equipment domestically. Moreover, Yemen depends on foreign aid to fund defence procurement amid deteriorating economic conditions. Nevertheless, demand for military products remains strong in the country amid the ongoing conflict between pro-government forces and the Houthi-Saleh alliance, rising Islamist extremism and growing calls for southern independence. We expect Yemen to procure counterinsurgency equipment in the land and air segments over the short-to-medium term; however, in the long term it may seek to develop maritime capabilities in order to strengthen protection of strategic sea...
BMI View: The ongoing security and political instability in Yemen has brought the economy to a virtual standstill. The ongoing civil war has put the precious hydrocarbons sector into meltdown, severely affecting public income. In an environment so hostile to investment, development and operations, we expect the construction sector to remain deflated through to 2017-2018, when only volatile and muted recovery can begin.
Latest Updates And Structural Trends
A resolution to the conflict in Yemen is still far off, but progress is being made which may result in a de-escalation of the fighting, at least temporarily. Over the long term we highlight the absence of a financially viable Yemeni state unless substantial overseas support is forthcoming.
We maintain a pessimistic view of construction industry growth, with an...
Oil & Gas
Yemen Oil & Gas
BMI View: Yemen's oil and gas industry remains at a standstill as virtually all oil and gas companies and facilities have suspended their operations due to the ongoing civil war in the country. With no resolution of the conflict in sight, we expect above-ground risks to continue weighing on near-term production and challenge investment prospects over the longer term.