AIM OF THE COMPANY Lotus Projects is a reputable entity in the Republic of Yemen.  Lotus Projects today enters into joint venture projects, provides finance for various specialized projects, as well as provides valuable advice to interested investors on both the legal and practical approach of conducting business in the Republic of Yemen.   Whether engaged as a consultant or as a partner, Lotus Projects will insure the following:   -         The right entities are initially contacted within Yemen -         The right personnel are contacted to insure effective response -         To ensure and conclude memorandums of understanding and minutes of meetings during the various visits -         To conclude and finalize the contract between the parties -         To ensure the implementation of the contract -         To insure that the necessary letters of credit or payments are made -         Render assistance in settling amicably any disputes or differences which may arise between the contracting parties -         To provide valuable information to potential investors and companies about their potential counterparts, including their financial position, company profiles, previous undertakings and reputation in Yemen -         To provide information on trade and exchange regulations related to the import of the corresponding goods, customs duties, stevedoring, logistics and storage expenses in the ports of Yemen -         To liaise resolving any potential disputes with the counterparts -         To provide technical feedback observation made by the counterparts on the goods sold or the services rendered -         To provide assistance and facilities to the companies visiting the country to negotiate or conclude any arrangement, including during the implementation stage -         To provide technical and commercial assistance during the contract period to resolve any problems that may arise from time to time -         To introduce the companies’ products and services to the Yemen market -         To register companies before various government authorities and pre-qualify them to enable them to participate in tenders in Yemen     POTENTIAL AREAS FOR INVESTMENT IN THE REPUBLIC OF YEMEN  Aden Port and Free Zone  The establishment of the General Investment Authority and the Yemen Free Zone Public Authority (YFZPA) in 1991 has helped considerably in attracting the local and foreign investment needed for industrial development.  The industrial park, which will be developed on a 1,550 hectare area adjacent to the new container terminal, will offer duty-free warehousing, assembly and light manufacturing, import/export processing storage and distribution, modern buildings, covered refrigerated and open storage sites with full communications, security and utilities infrastructure. Import and export restrictions will not be applied to goods brought into and exported from the zone. Projects operating within the zone are free to transfer capital and profits abroad, while the nationalization and confiscation of these projects is prohibited.    Oil and Gas  In 1984, commercial quantities of oil were found in the Ma’rib region. Production began in 1986 and quickly reached 200,000 barrels a day (bbl/d).  At the end of 1993, another important new field, the Masila block, was discovered, raising production to 350,000 bbl/d in 1996. In 1997.  The Yemeni government is looking for foreign investors to make new discoveries and maintain production levels.  At the beginning of 1997, a major development for Liquefied Natural Gas (LNG) was launched to exploit the Ma’rib gas cap. Total of France was selected to lead the consortium of six companies, shareholders of Yemen LNG Co. Ltd, the company in charge of implementing the project.    Industry  Industry contributes 12-13% of GNP (Gross National Product), employing 10% of the working population. Heavy industry is mostly government owned, although the private sector is encouraged to participate in joint ventures and light industries such as food processing, textiles, cosmetics, leather goods, fertilizers and cigarettes.    Agriculture  Agriculture accounted for 17% of GDP in 1996, although less than 2% of the land area is cultivated. The sector employs 60% of the working population. The main crops include sorghum, wheat, barley, maize, millet, sesame, cotton, coffee, vegetables, dates, fruit and tobacco.