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Historical Jordanian-Saudi ties growing

Mar 25,2017 - Last updated at Mar 25,2017

Jordanians are delighted with Saudi King Salman Bin Abdulaziz’s visit and meeting with His Majesty King Abdullah, which is proof of the deep-rooted relations between the two kingdoms.

These ties are a role model that can be built on to enhance cooperation and joint action among Arab countries and to activate previous agreements and decisions.

There is increasing interest in developing Jordanian-Saudi relations, especially in the economic field, to serve mutual interests, benefit from the historical ties, and enhance the role of the private sector in both countries to boost bilateral trade and implement more investment projects.

Jordan values the continuous support the Gulf countries, especially Saudi Arabia, have been lending the Kingdom to help it face various challenges, implement comprehensive reforms and improve public services.

The Saudi contribution to the Gulf Development Fund had an effective impact on supporting Jordan’s economy and implementing priority projects, and currently, economic ties are being institutionalised through the establishment of an investment fund and the Jordanian-Saudi shareholding company, which will help implement joint investments projects.

There is no doubt that the Saudi aid has a direct impact on the quality and number of services in different fields, on improving infrastructure, and activating businesses through implementing capital projects that were funded through the Gulf grant and direct Saudi support.

Saudi Arabia is Jordan’s top partner. The value of bilateral trade reached $5 billion in 2016. 

Saudi Arabia is the 3rd largest importer of Jordanian products, after the US and Iraq, and Jordan imports most of its oil needs from Saudi Arabia.

Saudi Arabia’ main imports from Jordan are pharmaceuticals, air conditioning units and foodstuff.

The volume of Saudi investments that have benefited from the Jordanian Investment Law since 1995 until 2016 reached $3 billion, accounting for 54 per cent of the total Gulf investment.

Jordan, led by His Majesty King Abdullah, values boosting economic cooperation with Saudi Arabia. 

Recently, the two countries established the Saudi-Jordanian Business Council, which comprises the Jordanian and Saudi chambers of commerce and industry.

Jordan and Saudi Arabia coordinate continuously at economic and political levels, and both countries support the implementation of decisions taken during pan-Arab economic summits as part of the endeavours to establish a joint Arab market by 2020.

The generous Saudi stance in support of Jordan is known; examples are the JD200 million Saudi deposits in the Central Bank of Jordan during the 1989 economic crisis, as well as the 100,000 barrels of oil Saudi Arabia gave Jordan in 2003 after the stoppage of Iraqi oil.

The ties in the new era will entail switching from direct monetary aid to sustainable investment that enhances the overall development process.

Enhanced Saudi Arabian investment in Jordan is an effective way of implementing projects that have been difficult to execute so far due to lack of foreign aid, investor reluctance and regional instability.

 

 

The writer is senator and president of the Amman Chamber of Commerce. He contributed this article to The Jordan Times.

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