This Paper, issued by SEMC, highlights the state of entrepreneurship in Marib Governorate in light of the economic and social transformations it has experienced since 2015. Continuous waves of internal displacement have contributed to an increase in population density and the expansion of economic activity, particularly in the city of Marib, which has become a hub for commercial and service-related activities. According to official data from the local authority, there were over 19,000 registered economic activities by the end of 2024, a notable growth in economic activity. However, this growth is not always accompanied by an institutional structure or a clear regulatory environment that supports its continuity and development.
Despite this economic dynamism, the entrepreneurial environment in Marib still faces challenges that hinder individuals, especially the youth, from launching new ventures or developing existing ones. Among the most pressing challenges are the absence of a local strategic vision to support entrepreneurship, gaps in the legal and regulatory framework, and the presence of multiple agencies involved in administrative procedures, which affect the clarity of institutional pathways needed to establish businesses. The lack of a specialized commercial court and weak mechanisms for resolving business disputes further add legal barriers for entrepreneurs.
On the financial front, small businesses face significant difficulty in accessing affordable financing, whether from banks or community-based initiatives, in the absence of targeted funding programs for entrepreneurs and the unavailability of simplified guarantees. In addition, a weak entrepreneurial culture, both in the education system and in training programs, limits young people’s ability to develop viable and scalable business ideas. The absence of business incubators or technical and entrepreneurial support centers further weakens the chances of transforming ideas into productive ventures.
Moreover, fragile infrastructure poses another major challenge. Problems related to electricity, internet, and transportation directly affect the stability and efficiency of businesses, particularly in their early stages. This is compounded by poor coordination among government entities, the private sector, and civil society, as well as the absence of clear mechanisms for information and data sharing, factors that limit knowledge-based planning and development.
In light of these challenges, the Paper proposes a set of policy directions to improve the entrepreneurial environment in the governorate. These include the need to develop a local strategic vision aligned with actual economic needs, and to update the legal and regulatory framework to streamline the business establishment process through a unified and transparent system. The Paper also stresses the importance of providing efficient basic infrastructure to support the continuity of economic activities, strengthening vocational training and entrepreneurial education, and establishing business incubators and technical support centers to help develop startups.
Additionally, the Paper calls for improved access to finance, either by developing affordable financial tools through local banks or by partnering with small and medium-sized financing institutions. It emphasizes the need to activate the private sector’s role in supporting the entrepreneurial ecosystem, whether through providing training opportunities or by contributing to the establishment of incubators. In the same context, the Paper highlights the importance of improving mechanisms for collecting and transparently providing economic data on a regular basis to investors and policymakers.
Also, it affirms that developing the entrepreneurial environment in Marib requires integrated efforts from all stakeholders, based on a realistic assessment of the challenges and the adoption of practical, actionable policies within a stable legal and regulatory environment efforts that will ultimately empower entrepreneurs and foster sustainable local growth.
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