The Republic of Yemen has adopted an economic policy based on free market mechanisms that aim to raise the level of private sector's involvement in the economy, redefine the role of the state in economic activity, and work to establish the rule of law ,build the institutional infrastructure, the remove obstacles facing the sector, and ensuring economic stability and encourage the private sector to play a leading role in the development process and achieve economic growth, through a set of financial, monetary and administrative policies and procedures that encourage free trade, and worked to reform tax legislation, customs, investment and judiciary to improve the overall climate investment, in addition to the implementation of the privatization program designed to expand the areas of economic activities and attract national and foreign funds.
The Yemeni economy is nascent in many areas; Yemen is thus , undergoing its initial stages in the process of economic and social development. This imposes significant burden especially with regard to the establishment of the infrastructure requirements of production and service sectors together. The focus of efforts has been devoted in recent times to infrastructural projects. However, investment in the Republic of Yemen is facing many fundamental problems, most importantly is funding due to limited resources of Yemen, Yemen is actively seeking ways to encourage and attract local and foreign investments to participate in the development of a legal infrastructure that can boost the economy and attract investment.
Free Zone represents the economic gateway of Yemen and the junction of Asia and Africa has been declared the city of Aden as a free zone in the year 1991 and issued the Law on free zones in the year 1993. The free zone gains strategic importance due to the location advantage of the port of Aden geographical as it is located directly on the main trade route around the world and the Middle East to Europe and America and is characterized by the possibility of providing transit services to East Africa and the Red Sea and Indian sub-continent and , Arabian Gulf. The storage and distribution area is suitable for Africa and the Red Sea and Arabian Gulf and represents a suitable storage area for the red, Arab seas and gulf.