FDI Inflows To Remain Muted

October 2008 | Economic Analysis

Yemen has fared rather poorly as far as attracting foreign direct investment (FDI) is concerned, and unless or until the security situation markedly picks up we do not envision this state of affairs significantly altering. Indeed, on October 1, Foreign Minister Abu Bakr al-Qirbi said that terrorism by al-Qaeda and other extremist groups has cost the Yemeni economy more than US$2bn. It is unclear how Qirbi arrived at this figure or over what time frame he was referring to. However, considering that we forecast nominal GDP to come in at US$25.6bn in 2008, with GDP per capita a shade under

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