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‘Increasing, diversifying exports basket answer to Jordan’s economic woes’

Gov’t measures not reaping results so far, economist says

By - Jul 01,2018 - Last updated at Jul 01,2018

AMMAN — Jordanian exports must be given special attention due to their impact on real economic growth and the reduction of unemployment rates, a study issued by the Jordan Strategy Forum (JSF) said recently, calling on the Kingdom to “diversify and increase the sophistication of its exports basket, as this is the only robust determinant of growth among standard growth factors”.

Entitled “The Jordanian Economy: The Challenge of Economic Growth and Development”, the report analyses the relationships between real GDP growth, public capital spending, exports and employment levels, considering that “the Jordanian challenge is to promote a real and sustainable economic growth, large enough to reduce the existing high unemployment rates”.

“The strong economic growth witnessed during the period between 1976 and 1979 has never been repeated,” the study said, adding that “more disappointing is the fact that since the healthy economic growth in 2000-2008, the performance of the national economy remains modest”.

“Growth remained low in the last quarter of the past year and it is unlikely that better results will be achieved in the first quarter of this year, proving that the results of the government’s actions have not yet emerged,” Economist Isam Qadamani told The Jordan Times in a recent interview.

“This is a reality that must be recognised not only because the economy needs to achieve higher growth rates, but also because it is not able to keep up with the population growth — even if the presence of Syrian refugees is excluded,” the economist added. 

Official figures indicate that total public spending to GDP ratio has fallen from 43.7 per cent (1976-1985) to 29.9 per cent (2016-2017), the study pointed out, warning that the involvement of the government in the national economy has been decreasing in the context of a slow economic growth, high unemployment rates and a young population pyramid. 

However, the overall results of the study appeared to be rather optimistic, showing that real GDP increases by JD1.14 per each JD1 invested in capital spending.

A stronger impact was recorded on the influence of exports in the GDP, with each JD1 worth of exports accounting for an increase by JD2.89 in the real GDP. 

In addition, the study found that the impact of real GDP growth on employment levels is positive, with the number of employed people increasing by a 0.6 per cent as a result o a 1 per cent rise on the real GDP.

“The Jordanian economy must achieve historically high and consistent real economic growth in order to reduce the hitherto high unemployment rates,” JSF Director of Research Ghassan Omet told The Jordan Times, explaining that “to a accomplish this, real exports and capital spending must increase at much faster rates than before”.

Considering the findings, the forum emphasised the importance of capital spending in promoting growth, “especially if well spent on public services like health, education, and transport”.

In this regard, the report highlighted that “a number of factors determine the impact of capital spending on real economic growth”, pointing out to the propensity to import, public debt, and marginal propensity to consume as factors to be considered. 

The study concluded that the government must “prioritise” and “quantify” Jordan’s needs for public goods’ investment projects in a comprehensive manner, adding that “if this is to translate into short-term trust, medium-term jobs and long-term competitiveness, growth, development, and confidence, this commitment must be well chosen and translated into action on the ground quickly”.

“The problem of the stimulus plan is the lack of funding,” Qadamani commented, noting that “the government hopes to cooperate with the local, Arab and international private sectors on innovative solutions that ensure that their results will turn into real growth — taking into consideration the budget deficit and the tax threshold”.

Average global fuel prices to be announced weekly

Move aims to acquaint citizens with global prices fluctuation

By - Jul 01,2018 - Last updated at Jul 01,2018

The government’s fuel pricing committee postponed the announcement of the July oil derivatives prices (Photo by Osama Aqarbeh)

AMMAN — The Energy Ministry will announce the average price of oil derivatives and the Brent crude oil on a weekly basis as of July 1, aiming to acquaint citizens with the global prices’ fluctuation, Energy Ministry Hala Zawati said on Sunday.

In a ministry statement carried by the Jordan News Agency, Petra, Zawati said that these global prices are the basis used to calculate the local prices of oil derivatives, noting that local rates depend on the prices of oil derivatives in reference markets for the previous 30 days.

The minister reviewed the prices of a barrel of crude Brent oil in the past three months, where it stood at $71.8 in April, $76.93 in May and $74.33 in June.

The government’s fuel pricing committee, which convenes monthly to announce the prices, on Saturday decided to postpone the announcement of the July oil derivatives prices until the government announces its fuel pricing mechanisms, which it had pledged to share “clearly and transparently” with the public.

Currently, the prices of oil derivatives are JD0.851 per litre for unleaded 90-octane gasoline, JD1.05 per litre for unleaded 95-octane gasoline and JD0.615 per litre for diesel and kerosene, while the gas cylinder price stands at JD7.

Also on Saturday, members of the Energy and Minerals Regulatory Commission announced an increase of 7 fils per Kilowatt-hour (kWh) to the electricity tariffs, which will be applied as on July 1 for all sectors and segments of the population, excluding households that consume 300 kWh or less per month.

Zawati said that the average price of unleaded 90-octane gasoline, for example, in reference markets in April stood at $644.77 per tonne, before increasing to $724.2 for one tonne in May, and dropped to $693.58 for each tonne in June, according to Petra.

Friends of Dead Sea Society denies claims of Israel’s chemical pollution of site

By - Jul 01,2018 - Last updated at Jul 01,2018

A leak at a bromine factory in Israel contaminated the Dead Sea’s water in mid-June (File photo)

AMMAN — The friends of the Dead Sea Society on Sunday denied news reports claiming that the Dead Sea’s water was polluted due to chemical leaks from the Israeli side of the salty lake.

News reports circulated on the social media and WhatsApp messaging application this week claimed that the Dead Sea water had been contaminated by poisonous chemicals that leaked from the Israeli shore, urging people to avoid swimming in its water.

Friends of the Dead Sea Society’s spokesperson Mona Nimri stated that, while it is true that a chemical leak occurred on the Israeli side of the Dead Sea in June, claims that the chemicals leaked into the Dead Sea and contaminated it were “baseless”.

In mid-June, Israeli newspapers reported that a leak from a bromine factory near the Dead Sea had happened, prompting authorities to instruct residents of nearby communities to stay indoors. The Israeli media said that the leak situation was addressed after two hours.

Photos in Israeli media then showed formation of clouds of orange gas over the site of the leak at the bromine factory.

“The society released its statement on Sunday to assure the public that the gas leak did not affect Jordan, especially as local authorities inspected the area at the time of the leak to make sure that Jordan’s part of the Dead Sea was not affected,” Nimri told The Jordan Times.

The Ministry of Environment was not available for comment when contacted by The Jordan Times on Sunday.

Princess Dana attends ‘Because I Care’ foundation’s charitable event

By - Jul 01,2018 - Last updated at Jul 01,2018

AMMAN — HRH Princess Dana on Saturday attended a charitable event organised by “Because I Care” foundation to support charitable activities, the Jordan News Agency, Petra, reported.

During the event the princess stressed the importance of the society’s role in preserving heritage to create a generation that is connected to its culture and able to innovate. She underscored the need to raise the awareness of students and enhance the cultural and heritage education.

State Minister for Media Affairs Jumana Ghunaimat and Culture Minister Basmah Nsour attended the event. “Because I care” is a volunteerism non-profit organisation specialised in women issues and networking at the Jordanian level.

GDP rises by 1.9 per cent in first quarter of 2018

By - Jul 01,2018 - Last updated at Jul 01,2018

AMMAN — The Gross Domestic Product (GDP) rose by 1.9 per cent in the 1st quarter of 2018, the Jordan News Agency, Petra, reported on Sunday.

The Department of Statistics (DOS) said that most productive sectors achieved positive growth during the first quarter of 2018, compared with the same quarter of 2017.

The social and personal services sector hit the highest growth of 4.1 per cent, followed by the agriculture sector by 3.5 per cent, then finance, insurance and real estate by 3 per cent, in addition to the extractive industries, transport, storage and communications sectors by 2.2 per cent, electricity and water by 2.5 per cent, and finally the wholesale and retail trade, hotels and restaurants sector by 1.6 per cent, DOS data showed.

‘Industry, trade chambers union draft law halted to relaunch dialogue with sectors’

By - Jul 01,2018 - Last updated at Jul 01,2018

AMMAN — Minister of Industry, Trade and Supply Tareq Hammouri on Sunday said that the draft law of the union of industry and trade chambers will be halted to relaunch dialogue with both sectors.

During a meeting with representatives of the trade sector, organised by the Jordan Chamber of Commerce (JCC), Hammouri pledged to have effective partnership and dialogue, and not to take any decision before consultations with sector representatives, the Jordan News Agency, Petra, reported.

The minister stressed that the commercial sector is an effective partner in the national economy through importing the Kingdom’s needs of various commodities.

JCC President Nael Kabariti highlighted the importance for reconsidering the tax burden on the sector, which is among the biggest taxpayer categories.

‘Brutally murdered’ couple found in valley near home in Irbid

No motive or suspects identified yet, investigation ongoing

By - Jul 01,2018 - Last updated at Jul 01,2018

AMMAN — Police on Saturday said they are investigating the brutal murder of a married couple in Irbid, whose bodies were found in a valley in Irbid Governorate over the weekend.

The victims, a 39-year-old man and his 32-year-old wife, were found dead in a valley near their home in Taibeh at dawn on Friday with multiple stab wounds to their bodies, a senior official source said.

“We still do not have a motive or any suspects in this brutal slaying of this married couple,” Police Spokesperson Lt. Col. Amer Sartawi told The Jordan Times.

The police official added that investigators have collected evidence from the scene and intensified their efforts to solve this murder.

A second source told The Jordan Times that police are currently questioning family members and neighbours.

“Police are focusing their investigations on some very close relatives of the deceased couple,” the second source said.

Meanwhile, an autopsy performed on the victims on Saturday by a team of pathologists headed by Ali Shotar indicated that the husband received a blow to the head and was stabbed five times, a senior medical source said, while the wife was stabbed over 12 times on different parts of her body, the medical source told The Jordan Times

The couple is survived by three daughters, official sources said.

Initiative promotes cycling in Jordan as alternative means for transport

By - Jul 01,2018 - Last updated at Jun 30,2018

Several Jordanians joined the first activity of 'Cycle Initiative' on Thursday at Al Hussein Youth City in Amman with the aim of promoting a culture of cycling (Photo by Osama Aqarbeh)

AMMAN — Rawan Abu Al Rob took a two-hour trip to Amman to join a cycling event not only "to have fun", but also because she plans to make cycling her new means of  transportation in her local area.

Residing in Sheikh Hussein area located in northern Ghor, the young Jordanian said she decided to take part in the cycling event that was held inside Sports City, Amman, because she and her fellow friends are in need of bicycles.

“I learned about Cycle Initiative through Masar Al Khair organisation. We are in need of bicycles in my area, because the infrastructure is not suitable for cycling and public transport is difficult to come by,” she told The Jordan Times in an interview at Al Hussein Youth City on June 28.

Abu Al Rob was among several Jordanians who joined the first event of Cycle Initiative, organised by Boost in cooperation with Massar Al Khair, on Thursday with the aim of promoting a culture of cycling.

Batoul Arnaout, founder of Boost, said the ongoing initiative aims at providing Jordanians who cannot afford to buy a bicycle with the opportunity to cycle.

“There are many factors that negatively affect people’s demand for cycling such unsuitable infrastructure, the younger generation's attachment to video games, and the fact that cycling is very expensive,” she told The Jordan Times.

She noted that the initiative is  visiting a specific area every Saturday and allowing people to ride bicycles for free.

“If we receive more bicycles, we will later leave the bicycles at the site to give people a chance to continue cycling in their own time,” she added.

Anwar Jadoa, a 25-year-old Jordanian and another resident of Ghor, commended the initiative.

“Cycling is expensive so we are hoping to receive our own bicycles. It is difficult to commute where we live due to a lack of means of transportation and I am forced most of the time to travel on foot,” she explained.

Mohammad Suwalim , a member of Massar Al Khair initiative, said they are planning to implement this initiative beyond Amman because transportation is even more difficult outside the capital.

Atef Al Ruwaidan, general director of Al Hussein Youth City, said they decided to host such an initiative because they wanted to support the youth and make the city a hub for cyclists.

“There are areas that are designed for cycling inside [Al Hussein Youth City] so we always urge the youth to head to the park to ride bicycles,” he added.

The event was attended by of Youth Minister Makram Qaisi, who joined attendees in the cycling activity and voiced his full support for similar initiatives.

No legal obligation on Jordan to receive more refugees — pundits

By - Jun 30,2018 - Last updated at Jun 30,2018

AMMAN — As tens of thousands flee violence and air strikes from Syria’s Daraa to Jordan’s border, experts say the entire international community needs to rise to the challenge and develop solutions that address the situation, but not at Jordan’s expense.

Calls on Jordan, which is home to 1.3 million Syrian refugees, to admit additional refugees coming from Daraa mounted in recent days as the Syrian army and its allies intensify strikes against southern parts of Syria.

Jordan should not be left to handle the situation alone, the experts said.

Jordan is not a signatory to the 1951 Refugee Convention, which asserts that a refugee should not be returned to a country where they face serious threats to their life or freedom,  noted Musa Shteiwi, director of the University of Jordan’s (UJ) Centre of Strategic Studies (CSS). 

He said this principle is now considered a customary rule of international law

“In spite of this, Jordan has opened its borders since the start of the crisis in Syria and is home to 1.3 million Syrian refugees… Jordan has done more than enough, and the international community needs to listen this time and take action,” he told The Jordan Times.

The Kingdom has serious “economic and security concerns, and has never given up on its humanitarian role. But this time, Amman is keen on sending a message to the entire world that it cannot tolerate the situation anymore”, he said.

The solution to the current crisis in southern Syria needs to be based on relocating displaced Syrians within Syria, he said.

“The Syrian regime controls the majority of Syrian territories, and the UN and the international powers need to work for a solution to provide Syrians fleeing the violence with some places inside Syria where they can deliver aid to them,” he added.

“The crisis in Syria is an Arab, regional and humanitarian issue, and it is not only Jordan’s job to handle it,” he added.

Jamal Al Shalabi, a professor of political science at the Hashemite University, said the Kingdom’s leadership is keen on delivering a message to the world that it has had enough.

“Jordan feels let down by the Arab and foreign states, as it did not receive all the pledged aid over the past years,” he told The Jordan Times.

“The closure of the borders with Syria is a warning that there is a humanitarian crisis that Jordan cannot handle single-handedly … Jordan has fears of the infiltration of radicals and extremists, and there is also an economic burden on the country,” he added.

He described the decision to keep the borders sealed as a “rational” one in a political, security and sovereignty sense. 

“It is time, maybe, for the opposition in Syria to start talking with the regime and reaching settlements,” Shalabi added.

On social media, Jordanians launched several campaigns calling for the Kingdom’s borders to be opened to Syrians from Daraa. 

“We are all aware of #Jordan’s economic and security situation, but we cannot at this time of humanitarian crises at #Daraa with heavy bombardment to close the borders. At least, let us offer children and the vulnerable a “Safe Passage”!and YES, there are children,” Asma Jahamah (@Asma_Jahama) tweeted on Saturday.

The hashtag “#OpenTheBorders” has been trending in Jordan in recent days, with hundreds voicing support for letting in Syrians coming from Daraa.

Kawthar (@Kawthar_khalil) tweeted: “Opening the borders has other consequences and implications, this is why it is the job of all Arab and Islamic states and the foreign community to help in solving this humanitarian crisis.”

MaisAbdelhaleem (@maisabdelhaleem) agreed.

“#OpenTheBorders is not a call for Jordan but for the international community to ensure refuge for all people fleeing war and conflict! Create safe passage for them to safety! Jordan is the nearest neighbour,” she tweeted.

NisrinAlqatarneh‏ (@Nisreensq_) tweeted: “Proud to be Jordanian, despite the horrible economic situation in my country and our government’s call to close the borders, we Jordanians stand by our vow to welcome anyone in need of refuge and demand to open the borders, and vow to share our food with refugees.”

Army starts facilitating relief aid to displaced Syrians

FM meets UN chief in New York, to meet Russian peer

By - Jun 30,2018 - Last updated at Jul 01,2018

Smoke rises above a rebel-held town east of the city of Daraa during air strikes by Syrian regime forces on Saturday (AFP photo)

AMMAN — Minister of State for Media Affairs and Government Spokesperson Jumana Ghunaimat said on Saturday that the Jordan Armed Forces-Arab Army had begun to send convoys of humanitarian aid to the Syrian people affected by the situation inside Syria, the Jordan News Agency, Petra, reported.

Ghunaimat explained that this step comes in line with Jordan’s stand to support the Syrian brothers, strengthen their ability to endure difficult humanitarian conditions and enable them to bear the suffering caused by a new military offensive against their territories.

She also stressed the need for the international community to shoulder its responsibilities towards the situation in the south of Syria, to scale up its efforts to help the Syrian people and to find a political solution that guarantees the restoration of security and stability in Syria.

She called on international relief organisations and the international community to send humanitarian assistance to the Syrian people inside Syria.

On Friday, Ghunaimat  said that demanding Jordan open its borders to new Syrian refugees is something the Kingdom cannot respond to. She added that Jordan fully understands the difficult humanitarian situation in southern Syria and is aware of the extent of suffering, pain and danger afflicting Syrians.

She said that Jordan welcomes any agreement to bring calm and protect the lives of civilians, especially women and children, pointing out non-stop efforts with all parties to halt military escalation, the Jordan News Agency, Petra, reported.

Ghunaimat reiterated that Jordan welcomes any solution that would stop the bloodshed and displacement of more Syrian civilians.

The minister said that Jordan calls on world powers, the international community and relief organisations to play their role in assisting and to protecting Syrians and to provide a formula that protects both them and the interests of Jordan.

“Jordan hopes that the United Nations will take practical steps to help displaced people and provide them with their living needs, especially in the provision of water, food and medical supplies,” she added.

She emphasised that Jordan’s efforts are ongoing with all parties to call for a cessation of violence in southern Syria, pointing out that the Kingdom is ready to help the Syrian people.

Ghunaimat said she was surprised that some parties blame the human tragedy suffered by the brothers in Syria on the Kingdom, noting that the decision to stop the violence and killing is  necessary and that everyone should be moving in this direction.

The minister added that the Kingdom, with its limited resources and a suffocating economic crisis, cannot withstand the burden of additional Syrian refugees, but said the country is fully prepared to cooperate with the United Nations to play its role without opening the border.

As part of Jordan’s diplomatic efforts to address the situation, Foreign Minister Ayman Safadi stressed on Friday that Jordan is following up on efforts to achieve a ceasefire in southern Syria, in order to protect the Syrian people and provide them with aid inside their country, the Jordan News Agency, Petra, reported.

During a meeting with UN Secretary General António Guterres in New York, Safadi underscored the importance of the international community’s obligation to uphold its humanitarian responsibilities towards the Syrian people.

Safadi noted that Jordan would continue providing “all possible assistance to the brotherly Syrian people”.

Guterres voiced appreciation for Jordan’s humanitarian role towards the Syrian refugees.

The foreign minister and the UN chief also discussed developments related to the Palestinian issue.

The minister reiterated the Kingdom’s “constant stance that the end of Israeli occupation and the establishment of a Palestinian state with East Jerusalem as its capital will guarantee a comprehensive and lasting peace”, Petra said. 

Addressing the economic crisis that faces the UNRWA, both officials stressed the need to provide support for the UN relief agency and to ensure it is able to continue performing its duties.

Following the meeting, Safadi told the press that Jordan is a party to the three-way de-escalation zone agreement in southern Syria, which was created following a deal with the US and Russia last year.

“The Kingdom has exerted great efforts to maintain the ceasefire; however, things have developed in an unfavourable way and now we have no choice but to continue working with all parties to break in-fighting, protect civilians and deliver aid to them inside Syria,” the minister said, as quoted by Petra.

Safadi said that Jordanian-Russian communications have not stopped leading up to his meeting with Russian counterpart Sergey Lavrov, slated for July 4. He added that the current objective is to achieve a ceasefire, preserve the coherence of Syria and seek a political solution, since military solutions would never bring about peace. 

On Jordan’s decision to not open the border for refugees, the diplomat said that Jordan already has 1.3 million Syrian refugees and has reached its maximum capacity. He added that the UN is able to work within Syria to help the Syrian people.

Jordan is communicating with all players and will accept any solution to which the Syrians agree, as it is their country and their own issue, he said. 

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