2. Hadhramout – Mukalla Branch Republic Of Yemen Ministry Of Industry & Trade

4. Commercial and Industrial Activity In Hadramout, Coastal Regions

5. Dear gentlemen, We welcome you in your second country Yemen and in Hadramout Governorate. We wish you a pleasant stay and we are so grateful to you for your visit. We hope that this visit will be the first step for a good relationship between the Malaysian and the Yemeni businessmen. Hadhramout is known for trading and manufacturing since ancient times. Hadramys traders were well known all over the world. There were many types of small industries and handicrafts that met the local market such as: gold. silver, wood, clay, lime cream, bricks, agricultural tools and fishing tools. Modern Industries are recently established. Most of them are also to meet the local consumption.The number of factories registered in our region is currently 55 factories. They are mainly in the following fields: -

6. 1. Fiber Glass Boats, Fish Tanks and Water Tanks Factories.

7. 2. Fish Canning Factories.

8. 3. Building Materials Factories (Tiles, marble, red bricks, cement bricks, stones and asphalt ect).

9. 4. Soft Drinks and Treated Portable Water Factories.

10. 5. Margarine and Cooking Oil Factories.

11. 6. Plastic Pipes Factories.

12. 7. Plastic Bags Factories.

13. 8. Polystyrene Boxes Factories.

14. 9. Wood Industries ( Furniture+ Building Construction )

15. 10. Manufacturing Iron and Aluminum in Different Shapes.

16. It is noticeable that most of these factories depend on the imported materials except the fish canning factories and building material factories depend on the local materials. The industrial production value in Hadhramout was 18372 million Yemeni Rails in 2006 1. Cement Factory with a capacity of 1,200,000 tons per year There are two big projects under construction:

17. 2. Iron Steal Factory with a capacity of 350000 tons per year.

18. Fish industries are the most important exporting industries in the governorate. There are about 20 companies,which are close to the neighboring cities,for preparing fish to be exported ( fresh and frozen ) with the exception of the three fish canning factories that process and can fish like Tuna. There are two main sources in Hadhramout for providing raw materials to establish exporting factories. One is the fish wealth and the other is the agriculture sector in Hadhramout valley. (The non petroleum raw materials are not yet explored). For the time being, most of the fish wealth and agricultural products are exported in a form of raw products( fresh and frozen). For this reason they cannot compete in the neighboring markets. There is an urgent need to improve the quality of the exported products and to improve the processing, packaging and classifying of these exported products.

19. The following products are the most probably to start with :- Fish

20. Honey and its relevant products Dates

21. Tomatoes Vegetables + Fruits

22. Fresh Lemon There is also an urgent need to increase the added value through processing some of these products and then exporting them as ready made products rather than raw materials.

23. The commercial activity in the governorate has increased in the previous years. The statistics shows that it is still increasing. 2007z2006ItemsNo 503264Commercial Establishments registered in the year 1 129105Total number of companies registered up to the year 2 74,5366,76Imported Goods through Mukalla port (Million Dollar) 3 1300,0001200,000Goods, unloaded in Mukalla port. Ton)4 1,63,5Total Exports through Mukalla port ( Million Dollars ) 5

24. We have to mention that most of the needs of Hadramout Markets are imported through Aden and Hodieda ports. This is because of the present small capacity of Mukalla port. Exports of frozen fish are also done through Aden port, while fresh fish is exported through Sana'a Airport. We are looking forward that the governorate will has a big development in future, especially after constructing the new Mukalla port and discovering the non-petroleum metal resources.

25. Khalid Awadh Ghanem General Manager Ministry of Industry & Trading Hadramout – Mukalla Branch