Somaliland
SOMALILAND: Indhadeero Group hits back over Arab investor deportation claims
May 12, 2010 · 29 Comments
HARGEISA (Somalilandpress) — Indhadeero Group, a prominent trading company in Somaliland has dismissed reports on Wednesday that a wealthy Arab livestock trader, who was invited to the country on their behave has been denied access by Hargeisa.
Mr. Adan H. Yusuf, the chief executive of Indha-Deero Group’s livestock department rejected the report by Haatuf newspaper, that Arab investor Mohammed Qaid Sa’eed, also known as Abu Yasser was deported from Somaliland.
“Haatuf’s publication that Abu Yasser has been forced out of the country is nothing but a fabrication and shameful lies,” he said in a press release he issued today.
“Abu Yasser is a wealthy Arab, he arrived in the country on Friday with legal visa on invitations from the national firm, Indhadeero Group, who have close trading ties with Abu Yasser. The purpose of his visit was to strengthen the existing trade in the livestock sector, to overview the existing markets and to conduct meetings with Somaliland traders,” it added.
Mr. Adan said Abu Yasser met with Somaliland livestock traders apart from the Saudi millionaire, Al-Jabiri, whom he says wants to enjoy monopoly powers.
“In the four-day visit that was planned, he met with Somaliland livestock investors, except al Jabiry, who wants to buy a fixed $32 a head for sheep, when in reality its worth $60. He visited all livestock markets in Hargeisa, Burao and Berbera. He flew out on Monday from Egal International airport’s VIP lounge at his own will, with dignity and liberty. He was warmly farewelled by members of the government after finishing his business here,” the statement said.
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The chief executive also declared Somaliland investors have agreed to terms on a new contract with Abu Yasser, the following points were agreed:
- to provide 600,000 heads of sheep and goats during the Holy month of Ramadan for Saudi Arabia alone.
- 800,000 heads of sheep and goats during the pilgrimage (Hajj) on requests of the Islamic Bank.
He also said, Abu Yasser has established new viable market for Somaliland livestock in the countries of Jordan and Egypt mainly for the camel and cattle trade that will be exported from the port of Berbera. He concluded by accusing Haatuf newspaper of misleading the public and declaring an open war on the free market.
The local newspaper, Haatuf, said Mr. Abu Yasser was arrested yesterday afternoon while in the town of Burao and forced on a Jubba airlines that hook him back to Djibouti. No independent source has so far verified the allegations.
Abu Yasser is a Yemeni immigrant residing in the Kingdom of Saudi Arabia and owns a group of companies in the agriculture sector and livestock production. In 2007, he established a state-of-the-art regional quarantine and livestock facility in Djibouti costing $75 million. However, ever since Saudi Arabia declared Somali livestock to be Rift Valley Fever free in October of 2008, he has been pursuing contract with Somaliland, which has higher head of goat and sheep than Djibouti.
Mr Yasser has tried to lure Somaliland traders to export their livestock through his facility in Djibouti but this back-fired when in 2007 Somaliland government signed a deal with Saudi investor, Suleiman al Jabiry. He completed a livestock quarantine centre in Berbera worth US$5 million in January 2009. Few days later, Saudi Arabia took the first patch of animals from his facility after completely lifting a nine-year ban on livestock imports from Somaliland and Somalia.
In January of 2010, Somaliland’s livestock minister, Mr. Idiris Ibrahim Abdi and Mr Suleiman laid the first foundation stone for the second Al-Jabiri quarantine station in Berbera designed house more than 1.5 million heads. This move has reportedly angered Mr. Abu Yasser, who criticized Somaliland’s livestock quality spreading allegations against the Berbera facilities on Al-Riyadh, a Saudi newspaper.
The Saudi Arabian Agriculture minister, Dr. Fahd bin Abdulrahman Balghunaim rebuked the allegations insisting they lifted the ban after receiving a report from the World Organisation for Animal Health, OIE, who had sent expert technicians to Berbera facility. According to sources, the Yemeni investor and the transitional government of Somalia teamed up to convince the Saudi government to reinstate the ban.
Many Saudi experts in Somaliland believe the lift of Somaliland’s livestock had little to do with the so called “OIE” report because the ban was never about Rift Valley Fever at the first place but a political motive. They added, the Saudis action was to protect Saudi consumers by controlling prices in Saudi markets and never about Rift Valley Fever. This claims are supported by a report that stated, the Riyadh municipality issued a fixed price of US$350 per sheep during Eid Al-Adha in November of 2009, blaming the escalating prices on “demand created by less supply from exporting countries”. In order to keep prices low, the Somali animals were too good to be ignored any more, the so called ban was hurting ordinary Saudis pockets as much as the Somalis.
Livestock is the prime income of Somaliland and is said to be worth an estimated US$250 million annually. The main trading countries are Saudi Arabia, United Arab Emirates and Yemen. The Somali sheep is occasionally referred to as Berbera blackhead since it was from port of Berbera it was first introduced to the Middle East.
Indhadeero Group is a Somaliland public company that operates a numerous retail, industrial, real estate, shipping lines, transport, hotels, energy and livestock chains. The company was founded in 1960 by Abdi Awad Ali (AAA) and have been in the livestock trade since 1970.
Unless president Dahir Rayale Kahin and his cabinet review their deal with Al Jabiry, very soon they too will give in to public pressure like the Saudi government. Somaliland livestock vendors want a fair-go while Saudi consumers want a quality red meat at reasonable price – both can be achieved if the governments stopped interfering with free the markets.
Somaliland is a pastoral society and born free. One man should not decide the fate of 3.5 million people who have always traded their animals freely even under dictator Mohamed Siad Bare.
Source: Somalilandpress | Wednesday, May 12, 2010
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Tags: Abdi Awad Ali, Berbera, Indhadeero Group, Livestock, Somaliland, Trade
Readers Comments (29)
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As ordinary Somalilanders we certainly welcome the move by Indhadeero Group companies and Mr Yasser. However, if it's true that he was behind the false and damaging report on Al Riyad newspaper, we urge Mr Yasser to come clean and learn to accept things, we dont always win.
He could have starved thousands of people and it's shameful.
Competition is something we support, Somalilanders have always been capitalists and we urge the government of Rayale to rethink about dealing with Mr Jabiri alone. This is why Somaliland revenue will not increase from its current.
I also heard Pakistan wants to invest in Somaliland livestock for animal hides, livestock and other products in return Pakistan wants provide Somaliland whatever it imports from Asia such as rice, sugars, coffee, tools, etc.
A Pakistani delegation is due to arrive soon in Berbera including a team of journalists who will train Somaliland media houses (election reporting etc).
It is only for Mr yasser to compensate the people of somaliland for the lose of $250 million X how many years this greed scandal was going on plus the fasle propaganda which really hurts us and the econmy for so many years through the drought which nearly wipe out the animals Mr yasser is a multi billionaire 1 of the richest in the world and for he to do this to one of the porest nation on earth is a real shock what kind of muslim is he and why why don't the government of somaliland teach him a lesson in order to prevent him or some else repeat this greed ambition again very dissapoint with djbouti, yeman ,saudi arabia unacceptable.
Why are we sooo obsess with the primitive livestock trade? Can't we find new markets and be less dependent on Saudi Arabia?
This is beyond belief and it amazes me that our economy is still heavily relent on the Saudi gov (princes), who at any moment can change the fate and destiny of many Somalis!
What a shame!!!!
I agree with you Nas 100%. I have stated time and again on the dependency on Saudi Arabia. They squeezed the life out of Somalilanders when we really needed help from Muslim Countries. As you said: they did it once, could do it again.
We need to lay out plan A and plan B, diversify into new areas, and explore other markets for our livestocks.
You make it sound so easy, and that S/land merchants are too naive to see that.
I think they should hire you :D
I think Gobaad and Nas are forgetting that we are still stuck (98%) with Somalia.In everything we do they want to have a say. The article mentions POLITICS playing a part in this issue.Why would Saudis listen to us ''Nobodies'' when they can listen to the apparently more 'safer-to-trade-with' Somalia. (Somalia is also a Muslim country like Somaliland you know, so I dont think Saudis can discriminate against us on the basis of religion)
Our livestock market is still the important income, unless we are Recognised, then we can easily enter, even open up, new more finiancially stable markets. Until then, I think we should be grateful and thank Allah for this :) and every blessing that comes our way.
Given that the country (Somaliland) is still in infancy stage they can’t revamp their economy that easily. Hopefully at the country matures and gain some sort of recognition they can expand their economy. The key to a healthy and prosperous economy is incremental steps not on emotions.
Articles like this only show how condescending diaspora members can be, you have idea you can make something out the country then by all means do, talk is cheap.
Am not just all talk and I am certainly focusing in finding innovative ways in creating jobs, new markets, businesses and wealth for my people back home.
Why of course you are, can you share us with any that made a penny so far ?
p.s.You should be thankful for the livestock industry in Somaliland it financed your education directly or indirectly :)
lol, Naliye totally agree with on this! we need to be realistic.
There is nothing wrong with the livestock market, just because other countries have industrial market doesnt mean we need that. You (Nas) are one of those people who see things from a tiny window but dont actually see how things work.
Every country uses its own resources to it's own advantages, livestock is not the problem, the problem Somaliland has are services. Most countries used their resources whether be oil, gas, tools, agriculture or other things to create services.
Go to CIA-fact book and compare Africa with the developed world, the thing that will stand out is services. Lets take Australia an example, which is based entirely on commodities such as iron ore, coal, gold exports.
AUSTRALIA:
GDP – composition by sector:
Field info displayed for all countries in alpha order.
agriculture: 3.8%
industry: 24.9%
services: 71.3% (2009 est.) —- notice 71%
Now lets compare it with our neighbour: Ethiopia.
ETHIOPIA:
GDP – composition by sector:
Field info displayed for all countries in alpha order.
agriculture: 43.8%
industry: 13.2%
services: 43% (2009 est.) — notice its good but not there yet.
In this case would you say Ethiopia needs to increase it's industry or it's services?
Services translate to qualified and higher education, and with higher education and services our people can create any market.
Services = qualified workers, what Somaliland needs is not new "industry" but it needs to create a work force and trade unions, create service based education system including apprenticeships, laboring, etc.
The other things will fall in the right places
Has China created so-called "services" to become the world's largest and fastest growing economy in the world? I do not think so….
And how has China elevated 500 million+plus of its citizens out of poverty and during the 30 year period of radical economical reform, helped create thousands of millionaires and countless billionaires…..? was it due to the "service" sector…… or manufacturing? A leading industry for economic growth and poverty reduction!
Also not forgetting Taiwan…my favourite de-facto country, yes! it is a de facto nation that is no recognise BUT yet it has one of the world's best economies and educated nation in the world!!
S/Land economy can earn more foreign currency, GDP growth and most importantly offer employment if our nation becomes less dependent in livestock and focus in developing new industries like mining, fishing/seafood exports, meat processing and many other sectors!
Yes, they might be small at the beginning and shall take time for growth however, everything starts small….but will become big….ask Taiwan, an unrecognized nation like S/Land!
Yes China did create the so-called "services". China exports two things and those things, 90% is services, 10% name and those things can be summed up in three words "MADE IN CHINA". It's not that they own those "things they make" but they can make it for cheaper and faster and more efficient —–> Services, 10% = the name (Made in China).
China was built on that foundation.
And that service is based on the idea that "Chinese are qualified labourers" and qualification translates to services. If Somaliland had work force capable of doing any job, they wouldnt be herding livestock, the only reason they have livestock is because that's the only thing they know how to maintain, grow, stock, etc.
If they had other skills they would have created service based economy.
Somaliland needs work force that is more robus than those in the region that gives edge over their competitors.
You dont just create different industries without qualification and skills.
you are truly unbelievable and there is no point to argue with you!
If someone is unable able to distinguish the difference between "service" sector & the manufacturing sector…then this is more than a joke!!
p.s. the key reason why China's manufacturing sector was/and still is a success is due to its cheap labour force, very low wages and low skilled education.
A qualified labourer is someone with trade skills such a plumber, builder, electrician etc And NOT an employee in a factory floor who is just doing a simple repetitive task!
We are not arguing its called discussion — as you know your entitle to your own opinion but I disagree with you saying we should just get rid off livestock market.
Do you know "industrialized" nations such as Australia and NZ still relay on livestock and is worth billions of dollars?
Instead of saying let's get rid off it because we cant relay on Arabs, why dont you say, let's improve it and meet consumers (Arabs) needs if your not happy to satisfy the client than you dont know business.
Arabs have right to demand quality healthy meat. Let's meet the target and commit with nations such as Australia and NZ.
It's all about services, Australia is exporting it's meat to Arabia and we aint because Australia has better services than us including quarantine measures and other practices.
However we could hit them hard because our meat is organic (fed naturally) and we dont travel our meat for days on a crowded ship. We could take it to Arabia within hours.
Imagine we could do it in two hours compared to Australia's say 48+ hour journey? Who would you prefer?
There are plenty of alternative and better markets instead of the Gulf Arab and in particular Saudi market, which accounts for over 90% of our earnings.
Do you know the meaning of spread risk, diversify, target segmentation, segments and most importantly being less dependent.
Understand the 10 YEAR!! livestock ban against S/Land was politically motivated and was due health risk.
10 years ago alarm bells should have be rigging and we should have woken up!!!!
Industies have made the world powers what they are today, Kayse. I work for the UNIDO the industrial development branch of the UN. Before a nation/economy can embark on providing services, they need to strengthen their industrial cpacities in order to not only export goods but s that they can sufficiently feed their own populations. Providing services is the last stage of development. Industries need to be established ino rder to provide the citizens with jobs and generate income for the country. Kayse, you are trying to put the cart before the horse. Nas is 100 percent right. Services will come later. Do not fall into the trap of the developed countries who believe that third world countries can leapfrog past the primary stages of industrialization. Would you build the roof of your house before you build the foundation? I think not. Similarily, we need to diversify our industries and manufacturing capacities. Though somalis are entrepeneurs, they often lack innovation. We need to open other markets for our livestock such as Malaysia, Indonesia and Turkey fellow musli countries that are more develped and advanced than the Saudis.
nas, and qurey i"ll agree with you brothers your 100% right and its really alarming to hear that the saudi's are again on our door step..these were the same fools who left us to die lets not foget that.they hated our life stock and they were one one to build up a false propaganda aganist somalilander along wit indian an all saying ther animals got deases then why deal with them now…..there are many other good Muslim countrys in the world who in need of our livestock badly its just that they really dont know how to go get it since the wrong massage is set out on us everytime.So what mr qurey said is the real deal we need to lookin into the wants of other countrys like turkey,indonesia ,malaysia and pak ..insted of tryin to please a arab we should try avoidin em and give it to those who respect us .i persoanly hate these arab fools coz everytime i hear about an arab the 90's war jumps into ma brain …we somalilander need to ask ourself a question "were did these so called arabs go wen we needed them the most" turst me there devil in disguise..pak's got some real deal for us and we need to think like real thinker's
The goverment of somaliland seriously needs to make a Thinktank for somaliland …we got people with brains but the goverment doe's not know what to do with them or how to use them .. the "know how" is still missing. Mr Reyale form a Thinktank for somaliland most of ya problem are gonna be solved by them trust me ..and yes i should be one among em coz you need a arab hater like me in that tinktank coz i know them like the know my Shoes
viva somaliland baby ..to hell with the Arabs,afta all this time now's the time they show up one after the other first the kings son come's to "sheikh" now its these fools.lol//-)
I totally disagree with you guys and the reason Somaliland is not recognized is because its run by guys who have the same mentality as you guys.
If it was me basically I would increase the skills of the people. If right now you open these called industries you think is magic, none of the people there can do the job so you are forced to import workers from abroad.
Already you will see this in the telecom industry and many other areas, Its skill shortage. If Somaliland can boost it's skills and services, many people would come here and open a business which would lead to recognition (interest).
But now people dont have skills, even if you have resources you cant work for BP, Shell etc, so what can these companies do? They would spend more money educating and increasing the skill levels than investing, so its better for them to go else where. This is what is blocking Somaliland.
No skills no services = you dont exist to the corporate world = Somaliland.
Basically Somaliland needs to establish new institutions such as Labor Institution that trains and creates a work force, not only that they teach workers about work ethnics, rights, etc, business schools (support Abaarso Tech and make it even bigger).
What is the point of going industrial when there are no workers? So many have opened small factories in Somaliland most of them have either collapsed or make no profits. Take for example that soft drink factory in Sheikh Aw-Barkhadle…its ghost town. You need workers that pump the cash back into the country and circulate not foreigner workers that drain the little economy.
I believe we have priorities in reverse manner. We are putting the cart in front of the horse. We talking about foregin investments, trading internationally, world recoginition, etc. These are all good. However, it would be far important to think to the best for local affairs that need correction. Start with the people and erradicate their addiction to QAT, once that is solved everything else will fall in place.
kayse a agrreg with you about the service sector….but you need money to train and educate….the livestock will bring hard currency do you understand.
then with this we could invest by training and forming veterinair, traders, economist
for now we need to find new market stop depending an old market (arabs)
we need a second trade center in berbera for a new market.
we need stop blaming the arabs for our own
I agree 100% tha Indhadeero Group is Somalilander and so called Al jabiri and Abu yasir are not. Let indhadeero Group do the business 'cause he can and will and the Somalilanders in general will benefit. I want to say one word to the government of Somaliland close the damned Aljabiri facility in Berbera. he needs
to learn how to respect. VIVA Indhadeero group.