The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.
Political stability in Yemen has deteriorated quickly. Large-scale anti-regime protests have turned violent, and the government has responded with a brutal crackdown on protestors, resulting in dozens of deaths. The country held an election on February 25 2012, which saw Abd Rabbuh Mansur al-Hadi, the sole candidate, take power. Prior to this election, former President Ali Abdullah Saleh, transferred his power to Vice President Abd Rabbuh Mansur al-Hadi, following a proposed agreement by the Gulf Cooperation Council. Meanwhile, militant Islamist forces in the south of the country - most notably, al-Qaeda in the Arabian Peninsula (AQAP) - have been clashing with the Yemeni army and have taken control of several small towns in the region. This unrest is having a serious impact on both the economy and the infrastructure sector.Developments include:
• Security concerns are impacting the country's oil supply, which is causing severe economic problems. Indeed, in October 2011, the supply of oil through Yemen's Marib pipeline, which links the Marib fields to the offshore Ras Issa terminal in the Red Sea, has come to a complete halt following a series of explosions. The oil pipeline has been repeatedly attacked and this has raised questions as to whether the military will be mobilised to protect the pipeline. The government of Yemen considered military action to safeguard and repair the main oil pipeline, which was damaged by local tribesmen in mid-March 2011.
• Security issues have also impacted Sana'a International Airport. The al-Daylami airbase outside the Yemeni capital, Sana'a, was hit by a large explosion on October 30 2011 that led to the shutdown of Sana'a International Airport by authorities as a precautionary measure, according to government officials. It is reported that explosive devices were placed inside 12 fighter jets at the airbase, which is situated near the airport, and the attack resulted in the destruction of three aircraft. The authorities rerouted flights to Aden Airport situated in the south of the country.
• On a positive note, in September 2011, the cabinet agreed a US$21mn loan deal with the Islamic Development Ban. The loan will be used to finance water enhancement projects in the capital Sana'a. This will involve enhancing the water supply network and upgrading the administrative capacities of Sana'as Local Corporation for Water and Sanitation. BMI takes a bearish view on the country's construction industry and we estimate that in 2011 it contracted by a staggering 20%. This represents a sharp slowdown from growth rates of 6.1% and 5.8% over 2008 and 2009 respectively. The contraction is expected to continue in 2012, due to the fractious political climate and the impact this will have on the economy. In 2012, we expect the construction market to stand at YER338.5bn (US$1.4bn). Indeed, the on-going political conflict in Yemen is likely to continue dragging on the country's economic prospects throughout the year.
Click for Report details:Yemen Infrastructure Report Q2 2012