South Arabia

Signing a preliminary memorandum of understanding to reduce marine insurance fees in liberated ports

The Minister of Transport, Dr. Abdel Salam Humaid, and the Assistant Secretary-General of the United Nations, the Regional Director of the United Nations Development Program, Abdullah Al-Dardari, signed on Sunday, a preliminary memorandum of understanding to reduce the cost of marine insurance for ships coming to the liberated ports.

The memorandum of understanding stipulated the establishment of an insurance deposit in the Insurance Protection Club in London with the aim of reducing insurance fees on ships which have doubled to 16 times the normal situation, due to war conditions, in addition to attracting international shipping lines and commercial ships to the port of Aden and the liberated ports, which is reflected in the reduction of costs, shipping of goods, services and merchandise.

The minister said that this agreement is preliminary, to be followed by a final agreement that will be signed in early September of this year, noting that its aim is to adopt an insurance deposit of $50 million in cooperation with the United Nations Development Program to mitigate insurance fees for the risks of war on ships and ships coming to the liberated Yemeni ports.

Minister Humaid reviewed the difficulties facing the maritime transport sector as a result of the increase in marine insurance on the movement of commercial and economic activity due to the war that was ignited by the Iran-backed Houthi militia and the escalatory measures by targeting economic facilities, including the bombing of oil export ports.

In turn, the Assistant Secretary-General of the United Nations and the Regional Director for the Arab Region stated that the United Nations supports reconstruction projects and achieving recovery, economic recovery and development, stressing work to move from the stage of steadfastness to advancement in various aspects.

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