Riyadh (South24) 

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The Saudi-Yemeni Business Council has reached an initial agreement to establish three joint companies with the aim of enhancing economic cooperation between Saudi Arabia and Yemen. 

The agreement came during a meeting held on Sunday in Mecca, that saw the participation of more than 300 Saudi and Yemeni investors, according to reports by the Yemeni Saba Agency and Saudi Okaz newspaper.

The Saudi-Yemeni Business Council (official)

Abdullah bin Marei bin Mahfouz, the council chairman on the Saudi side, stated that the proposed companies include one on renewable energy with a capital of $100 million to generate electricity using solar energy in Yemen, a communications company that relies on the Starlink network, and another for exhibitions and conferences with the aim of marketing Saudi products and organizing exhibitions that contribute to the reconstruction of Yemen.

Bin Mahfouz, a Saudi billionaire of Hadrami origin, explained that this step comes under the ambit of six initiatives launched by the council to promote trade and investment cooperation between the two countries, noting that the initiatives aim to explore new opportunities in sectors such as energy, agriculture, livestock and exports.

رغم التحديات الإقليمية وصعوبة تحقيق العدالة والأمن والسلام في #الجمهورية_اليمنية، نجح رجال الأعمال من #السعودية و #اليمن في بناء جسر اقتصادي للسلام، وبفضل الله ثم مكرمة خادم الحرمين الشريفين بمشروع (#التصحيح_التجاري). عمل واجتهد #مجلس_الأعمال_السعودي_اليمني التواصل والتنسيق مع… pic.twitter.com/3v7Qr0MliD

— Binmahfouz - بن محفوظ الكندي (@binmahfouz_67) December 23, 2024

For his part, Abdul Majeed Al-Saadi, the chairman of the Yemeni side of the council, praised the new investment system in the Kingdom, explaining that the volume of Yemeni investments in the Saudi market amounts to 18 billion riyals, making it the third largest foreign investment among Arab countries and the 13th globally. 

رئيس مجلس الأعمال السعودي اليمني عبد المجيد السعدي: بلغ حجم الاستثمار اليمني في المملكة 20 مليارريال #نشرة_النهار | #الإخبارية pic.twitter.com/Z9xMXkZfUF

— قناة الإخبارية (@alekhbariyatv) December 22, 2024

The initiatives discussed by the council include developing border crossings between the two countries by improving infrastructure and logistics services, and establishing quarantines to inspect Yemeni agricultural and animal products to increase exports to the Kingdom.

It was also proposed to establish smart food cities in the border areas with the aim of improving food security and supporting economic sustainability through the use of natural resources and modern technologies.

In addition, the discussions addressed banking and credit challenges facing Saudi and Yemeni traders, as the council called for developing the Yemeni banking system and opening channels of cooperation with Saudi banks to facilitate trade and investment exchange.

According to the Okaz report, the current volume of trade exchange between the two countries amounts to 6.3 billion riyals, with Yemeni imports comprising only about 655 million riyals, which highlights the need to improve supply chains and diversify investment opportunities.