Aden Refineries, Alive Witness of the State Failure

From the largest refinery to a miserable facility due to corruption!
Ali Al-Tawaiti
September 14, 2023

Aden Refineries, Alive Witness of the State Failure

From the largest refinery to a miserable facility due to corruption!
Ali Al-Tawaiti
September 14, 2023
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The State of Kuwait is referred to as a Gulf model in development and economic advancement in terms of planning and strategies it follows to exploit its natural resources and oil industries in refining and other things. For instance, in 2008, Kuwait built the “Al-Zour Refinery” and developed it to become the second refinery in the region, and the ninth refinery in the world, given its production capabilities that reached about 615 thousand barrels per day of fuel oil which is known for its low sulfur content.

Moreover, it is also considered one of the most significant refineries in the region, which gained the attention of the world as a key supplier of fuel and oils to most countries, superior to India, which used to supply many countries in the Gulf, the Middle East, and the continent of Europe. Kuwait plans to expand the refinery to be one of the largest refineries in the world.

The aim of drawing inspiration from the experiences of some countries, such as Kuwait in this article, is to examine the situation of some key similar establishments in Yemen, which is going through difficult conditions and an unprecedented deterioration affecting all economic sectors and institutions. While Yemen, was on of top countries in the region in terms of Institutional building and in some projects, establishments and economic entities, including, for example, the “Aden Refinery” which was inaugurated in 1954, and its oil refining capabilities reached about 100 thousand barrels per day at that time.

  Unfortunately, since the establishment of the refinery, it has been stuck in its place, and is witnessing a continuous decline and deterioration in its production and operational capabilities, to the extent that it has reached to absolute cessation. Despite its important location in the region, this giant Yemeni facility has not undergone any maintenance, renovation or modernization to develop it. Perhaps, if there had been wise and responsible management by the relevant authorities, it would have become one of top refineries in the world.

Everyone against everyone

The questions that arises in this regard will be: What do we lack that prevents us from developing and advancing our institutions, capabilities, companies and facilities to compete with their counterparts in countries of the region and the world? Although Yemen is distinguished by its characteristics and strategic location that make it the closest to the international shipping line? What drives ships to sail past our ports to the Arabian Gulf in order to get supplied by fuel, oils and other services while Yemen, this country with its history, heritage, components and capabilities, laments its luck in spite of all these resources and strategic location! Why did the state did not exploit it to develop some of the country’s strategic facilities, such as refineries, and establish specialized firms in maritime shipping, ship services, etc., all over the coast from Midi to Mahrah?

Although Yemen is among few countries where economic establishments, sectors, and gross domestic product (GDP) are declining, it is the most accelerating of this deterioration; poverty line is expanding, hunger is devouring millions of people, and agriculture, which is considered the largest employer of national labor, is losing workers due to shrinking markets and roads blocking as well as high transportation costs.

It is true that there are many countries in the Gulf and the region, some of which are major producers of oil and liquefied natural gas, but they have risen by exploiting their institutional capabilities and developing their economic facilities. The UAE, for example, has 4 airline companies among the best in the world, and it has oil refineries that are subject to great attention from the state in terms of unceasing development and modernization. In addition, Jabal Ali Port, which is considered one of the most important revenue ports for this country, with revenues exceeding 200 billion dollars per annum. The country also owns one of the best airlines in the world, in addition to the largest fleet for transporting gas in the world. Nonetheless, it was not satisfied with producing and selling it, but it sought to develop its capabilities and wisely utilizes its resources in this field to a great extent. 

There is also the Sultanate of Oman, the neighboring country to Yemen, which is considered a model in exploiting its position in international navigation through the development of its maritime carriage, and its ports are among the most significant seaports in the world. The examples are many, not to mention the kingdom of Saudi Arabia, which possesses splendid economic potentials and resources.

In fact, these countries had not discovered oil yet when Yemen had typical economic establishments in the region, such as the Aden refinery and others. Unfortunately, this giant economic oil refining facility had been destroyed, To the point that the profits and revenues of the Kuwaiti "Al-Zour" refinery have become far greater than the entire exports of Yemen.

As for Yemen, the only thing that we have succeeded in developing and modernizing is conflict, wars and fighting among ourselves, and the problem is that no one knows what we are fighting or fighting about? and what have we gained other than all this destruction that befell the country as a result of these conflicts and wars? Everyone is against everyone! While we feel pity for our country, we feel sorrowful as we watch the progress made by neighboring countries and their focus on construction and development in all fields. 

Mysterious future

Although Yemen is among few countries where economic establishments, sectors, and gross domestic product (GDP) are declining, it is the most accelerating of this deterioration; poverty line is expanding, hunger is devouring millions of people, and agriculture, which is considered the largest employer of national labor, is losing workers due to shrinking markets and roads blocking as well as high transportation costs.

In the past, the Yemeni farmer used to market his products in Yemen, and also exporting them to the Gulf states and many others countries. Now, with the decline in production, farmers can barely market their products in local markets, given the difficulties of transportation, the long lines of traffic, and the blocking of roads, with conveyance costs rising to record levels compared to imported goods, which resulted in huge losses to farmers and agriculture sector in Yemen in general.

The present Yemen seems as if it is located on another planet, isolated from Earth, which includes 200 countries. It is a profound misfortune that the world around us has been developing and building its plans for decades, while Yemen is moving backwards and becoming a mere consumer relying on aid and remittances from Yemenis outside the country.

For these reasons, the future of this country is gloomy and featureless, not to mention the elites and conflicting parties that care only about their personal interest and are controlled by the culture of profit and plunder, while they deprive the people of their salary and their most basic rights. The conflicting parties have overthrown the future of an entire generation, so that the Yemenis have become the only people in the world who work without payment of their salaries for years while citizens pay all kinds of levies, including taxes, zakat, and dozens of different royalties. The only country whose educated people do not find work opportunities, and suffer from the most expensive livelihood in the world.

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