The role of the private sector in the development process in the Republic of Yemen During the period 2012-2021

Abstract

Yemen is among the countries that began to pay significant attention to the private sector after the 1990s. This was evident in laws and regulations, the liberalization of the economy through the activation of market mechanisms, the state's relinquishment of all productive activities, and the liberalization of foreign trade. This was known as the economic reform programs, which began in 1995. This research aimed to identify the role played by the private sector, the extent of its contribution to economic activity in Yemen, and the difficulties it faces in fulfilling its developmental role. This research aims to develop a future vision and a number of findings and recommendations that will contribute to the development of the private sector in Yemen. The descriptive analytical approach was used to diagnose the current situation of the size and contribution of the private sector to economic activity, as well as the difficulties and challenges facing the private sector in our Yemeni society, by relying on collecting data through statistics published by the Central Statistical Organization or published by some official and private bodies. The research came out with a number of results, the most important of which are: The private sector's contribution to real GDP increased, representing 68.8% of the national economy in 2021. The percentage of workers in the informal sector reached 81% of the working population. Employment in the informal private sector has been shown to be more dependent on kinship or personal relationships than on contractual arrangements with workers that include formal guarantees such as retirement rights, insurance, and other workers' rights.