"Yemen Infrastructure Report Q3 2016" Published

From: Fast Market Research, Inc.
Published: Tue Jul 05 2016

The ongoing security and political instability in Yemen has brought the economy to a virtual standstill. The ongoing civil war has put the precious hydrocarbons sector into meltdown, severely affecting public income. In an environment so hostile to investment, development and operations, we expect the construction sector to remain deflated through to 2017-2018, when only volatile and muted recovery can begin.

Latest Updates And Structural Trends

A resolution to the conflict in Yemen is still far off, but progress is being made which may result in a de-escalation of the fighting, at least temporarily. Over the long term we highlight the absence of a financially viable Yemeni state unless substantial overseas support is forthcoming.

Full Report Details at
- http://www.fastmr.com/prod/1191686_yemen_infrastructure_report.aspx?afid=301

We maintain a pessimistic view of construction industry growth, with an estimate for 2015 of -22.1% in 2015 and a forecast of about -6% in 2016, with only a modest base affected recovery expected from 2017-2018. We forecast a deep economic recession until 2019.

The Yemeni hydrocarbons sector is at a virtual standstill, with pipelines and refineries under frequent attacks. In 2017 we expect the country to become a net oil importer.

While little, if any, infrastructure development is ongoing, Saudi Arabia announced plans in September to bypass the Hormuz Strait by building a water canal through Yemen to the Persian Gulf.

Significant reconstruction and the recommencement of delayed projects are a rare bright spot on the horizon, with Middle Eastern and Asian investors likely to lead the recovery.

Risk/Reward Index

Yemen remains firmly at the bottom of our infrastructure RRI again this quarter, ranking 14 th out of 14 countries.

Political uncertainty and a worsening security environment have forced Yemen's score yet further to a derisory 21.6, largely on the back of an ever more difficult environment in which to operate and record returns.

To put this into a regional context, the country above Yemen is Libya with a score of 39.9, followed by Iraq with 41.1 and Iran with 42.3.

The country scores below the regional average in all categories, scoring just 17.8 for rewards and 30.6 for risks, while regional averages are 52.7 and 55.9, respectively.

The Yemen Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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