Half of Yemeni businesswomen bankrupt
English - Sunday 07 June 2020 الساعة 06:12 pm
Sanaa, Newsyemen, Private:
An economic study said that 42% of Yemeni businesswomen affected their companies from the war, and suffered material damage, in addition to the loss of capital and the lack of electricity and fuel.
The study, entitled "The Repercussions of the War on Women Workforce", showed that women-owned companies represented only 4% of all companies before the conflict, but were more affected by the war than male-owned companies.
Female entrepreneurs found it more difficult than their male counterparts to access bank accounts in dollars, according to a study by the United Nations Development Program.
Research indicates that the war affected women in the workforce more than men, where male employment decreased by 11%, while female employment decreased by 28%, while women's employment in Sanaa decreased by 43% because the private sector was severely affected.
The Houthi militia's tax practice and its policy of destroying the business environment have driven hundreds of Yemeni companies into bankruptcy and liquidation of their businesses, after decades of their contributions to development, which deepening the wounds of the national economy.
In its report "Macroeconomic Prospects for the Middle East to 2025", the International Center for Research and International Markets revealed that Yemen recorded a net liquidation of $ 282 million in 2019, expecting that foreign investment in the country will remain negatively affected by the devastating business climate expected during the next five years.
The liquidation of companies comes when the owner of the company decides to leave his business permanently, and with the completion of the liquidation work, the legal status of the company ends and it is no longer in existence and its official records are folded.
The war triggered by the Houthi militia has caused material damage to companies and public infrastructure, insecurity, fuel shortages, power outages, and a sharp decline in economic productivity.
The public and private sectors alike laid off a large number of workers, according to one study. As of October 2015, 41% of public and private sector companies laid off 55% of the total workforce in both sectors.
Merchants have been blackmailed by the Houthi militia for years, paying customs twice, and they pay taxes in double and illegal terms, as well as illegal royalties they pay almost daily.
Yemen's ease of doing business index fell to its lowest level in 6 years, registering ranked 187 out of 190 countries in 2019, according to the Business Performance Environment Report 2019.
Yemen came among the four lowest countries on the map of the business performance environment in the world, down 58 points, from 129th in 2013 to 187th in 2019, which makes it difficult for Yemen to attract foreign investment and restore the national migrant capital and foreign companies that left the country.
By comparing the ranking of Yemen with the countries of the MENA region, Yemen ranked lowest in the ease of doing business at the regional level. Yemen ranked lower than countries in similar conflicts, such as Syria and Libya.
