Yemen Business Information

How is Doing Business in Yemen different from Doing Business in the US

There are many cultural differences between doing business in Yemen and the United States. This does not apply only to business matters but also to education and health. Yemen is located on the southern tip of the Arabian Peninsula; it is bordered by Saudi Arabia, Oman and the Red Sea. Until recently most of its inhabitants were nomads who lived in the desert in tents.

Due to large urbanization projects in the recent past, about half of the Yemeni population now lives in houses, the rest continue to roam the desert and mountains to the South. Most of its citizens do not know how to read and write and many of them only speak native dialects while they follow Muslim beliefs and customs. They are not trusting people especially if you are a foreigner and even worst if you are not Muslim.

Most businesses in the cities are family owned. Even though Yemen has great oil and gas supplies, the wealth and power are spread very thin and kept under close watch. This is a poor country where progress has just arrived and it is taking them a long time to wake up to it. Banks and businesses close at noon for lunch and again for their prayers. Even with all these problems and situations a businessman has to get used to, it is not a bad place to invest in.

Yemen has great laws protecting foreign investment and property and they also have excellent financial incentives for long time investors and new businesses. The problem with Yemen is that you have to know someone who is in a position of power to be able to get things done effectively. This would of course include any paper work and necessary legal documents. Government officials will probably not be shy in asking for compensation to push the paperwork along either.

There are many differences between doing business in the United States and Yemen but it is possible, with a little patience to work with them. The first noticeable difference is the cultural and religious customs, older men are greatly respected and listened too, and younger men need to prove themselves before their elders. Most businesses are owned by families and even though it is their children who have gone to business schools it is still the parents making all the decisions and dealing with any proposals.

You cannot arrive in a Yemeni place of business and introduce yourself as a possible client or provider or business associate who wants to speak with the owner or person in charge. They will not let you in and you will not speak with anyone either. It is necessary that you be introduced to them by a person they trust and have confidence in. It will also take a couple of social visits before they agree to listen to your business proposals too. This is again a trust issue.

Communications are not a problem, if you speak the language, internet and cellular phones are readily available and they work much in the same way they do in the United States. The problem is with them, they would rather travel and meet with you in person or have you travel to see them instead of sending an email or using a telephone. They like to look into your eyes when discussing business. They also enjoy bargaining and discussing matters over and over again.

The majority of companies and businesses in the private sector have their own interpreters and translators available for fluid communication. It is always a good idea to bring your won, to make sure theirs is translating what you say correctly. Problems arise when you have to deal with government agencies or offices, they do not have translators available and they will not trust the one that comes with you. It will be necessary to pay someone who is supposed to be neutral to translate any conversation between you and the official or clerk.

The wheels of state and government offices turn ever so slowly unless you grease them properly. Every step of the way you will have to complete and sign many documents which you then have to present to a clerk who will tell you to come back in two days so you can take it to another who will take five days to look at it and so on and so forth. There is nothing you can do about this. Doing business is Yemen takes patience and it takes persistence, that is the greatest difference with doing business in the United States, the opportunities are really there but you have to fins the way to get in the door before you are accepted by them.