Business

AMMAN — The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, on Wednesday announced its first direct equity investment in a wind energy venture, the Jordan Wind Project Company (JWPC), the developer of the Tafileh Wind Project in Jordan.

APICORP’s 20 per cent equity stake in the project also marks its first equity investment in the country, according to an APICORP statement.

JWPC’s seeks to have clean energy account for 20 per cent of the country’s overall power generation by 2021, thus developing new and sustainable energy sources as part of the country’s energy mix.

The $287 million 117-megawatt wind farm, connected to the national grid, accounts for 12 per cent of Jordan’s total operating renewable energy generation, generating around 350GWh of clean energy, annually, which can be used to power 83,000 homes.

Tafileh Wind Farm is owned and operated by the Jordan Wind Project Company PSC (JWPC), in which Abu Dhabi’s renewable energy firm Masdar owns a 50 per cent stake. APICORP and Tamasuk Holding, the infrastructure and development arm of Al Blagha Holding for Investments Co., partnered to acquire the remaining 50 per cent stake, owning 20 per cent and 30 per cent stakes, respectively.

Commenting on this new tie-up, Ahmed Ali Attiga, chief executive officer of APICORP said: “We are proud to partner in the Jordan Wind Project Company, one of the MENA region’s pioneering energy companies. This equity investment affirms APICORP’s position as a trusted partner to the region’s energy sector and underscores the strategic drive to enhance access to sustainable power, an area in which Jordan continues to be a regional leader. “

“With the Arab world’s abundant wind resources, we see wind power as a viable component and key technology in the region’s future power generation mix, offering a sustainable, cost-effective energy source that will enable wider access to modern electricity to millions of people and spur employment and economic growth,” he added.

Mohammed Al Balwi, chairman of Tamasuk Holding Company noted that the Jordan Wind Project Company is a strategic investment, stressing Tamasuk Holding’s commitment to sustainable infrastructure.

“We are immensely proud of our partnership with leading institutions like Masdar and APICORP. With this investment, we have established a presence in the Kingdom of Jordan and look forward to growing our asset base in sustainable infrastructure investments such as Tafileh Wind Farm,” he said in the statement.

According to the Global Wind Energy Council’s (GWEC) Global Wind Report, published in February, Jordan’s 190 megawatts of wind power capacity trails only Egypt (262 megawatts) and Morocco (216 MW) in the MENA region.

Masdar’s CEO, Mohamed Jameel Al Ramahi expressed his business satisfaction with the new partnership.

“Masdar is pleased to welcome APICORP and Tamasuk Holding as partners in the Jordan Wind Project Company and the Tafileh Wind Farm, the first utility-scale commercial wind project in the Middle East. The involvement of these prestigious entities signals the confidence of the regional investment community in the potential of renewable energy to become a large-scale and reliable provider of the Middle East & North Africa’s power needs. It further illustrates the success of the Hashemite Kingdom of Jordan in diversifying its energy mix, using both wind and solar power,” he noted.

According to Samer Judeh, JWPC chairman, the Tafileh Wind Farm is playing a leading role in responding to the growing energy demand in Jordan, effectively utilising the wind potential in the country.

“The involvement of APICORP and other leading industry players like Masdar and Tamasuk Holding demonstrates the economic viability of this project and validates our vision of generating clean and sustainable energy in Jordan.”

“The investment by APICORP will encourage further investment in renewable energy generation and contribute to the country’s mission of diversifying its domestic energy supply,” he said.

APICORP’s recently issued MENA Energy Investment Outlook 2020-2024 report indicates that the MENA region will need to invest $144b in the power sector to meet energy needs.

Moreover, the GWEC report forecasts that 10.7 gigawatts of wind energy capacity will be installed in the MENA region during the same period, a 167 per cent increase from the current 6 gigawatts currently installed, according to the statement. 

DUBAI — Armies of workers in protective masks are racing to complete the mammoth Dubai Expo 2020 site despite the coronavirus that forced a one-year postponement and created a logistical headache.

The six-month world fair, a milestone for the emirate which has splashed out $8.2 billion on the eye-popping venue in the hope of boosting its soft power and resetting the economy, will now open its doors in October 2021.

But organisers grappling with the complexities of rescheduling the event are intent on delivering the main buildings of the Expo by the original start date.

They are keeping the Expo 2020 name and logo, which is emblazed on everything from billboards to aircraft.

As well as the onset of the scorching Gulf summer, organisers have had to contend with coronavirus infections and layoffs among a large workforce recruited from across the world.

"Of course, the impact of COVID-19 has affected the logistics and the processes of delivering some of the remaining works," said Ahmed Al Khatib, chief development and delivery officer.

But "work continues and some of the pavilions have actually reached a very final stage. 2020 is the year of delivery," he told AFP during a rare visit to the site, which will be mothballed once the major work is done.

Difficult decisions

Once a tangle of concrete and dust, the 4.5 square kilometre venue has now risen from the deserts of Dubai. Many of the buildings' main structures have been completed.

The United Arab Emirates pavilion, built in the shape of a falcon in flight, is only a few feathers away from completion, while the adjacent Saudi Arabian pavilion is now a huge window opening up into the sky.

Tunnels are open and streets have been paved. The sound system and 5G towers have been installed, and transplanted mango and olive trees are flourishing.

Before the coronavirus pandemic, Dubai hoped the largest event ever staged in the Arab world -- billed as the "World's Greatest Show" -- would attract some 25 million visitors.

Since the first "World Expo" was held at London's Crystal Palace in 1851, global fairs have been used to showcase new ideas and technology as well as serving as nation-branding exercises.

With a lavish promotional campaign featuring superstars such as Lionel Messi, Dubai hopes the Expo will be a lifeline for the property, tourism and trade sectors, after years of malaise in the region which has now been aggravated by the global coronavirus-induced slowdown.

Chief Engagement Officer Manal Al Bayat said the postponement approved in May by the governing Bureau International des Expositions had no impact on the "commitment to deliver an Expo that inspires the world".

But as the timeline stretches out, putting pressure on budgets, it has led to layoffs among staff that once thronged the air-conditioned temporary buildings on site.

"Very sadly, a number of Expo employees will be leaving us. Of course, the decision was very difficult taken in (the) context of the postponement and it's difficult because they're members of the tribe," said Al Bayat, without specifying how many jobs were lost.

 Daily challenges

On the vast Expo site south of the city, the pandemic creates daily challenges, as workers converse and share crane boxes, at a time when the UAE is still registering hundreds of new infections every day.

Al Bayat said that among the many precautionary measures are a testing facility built on site and awareness sessions held for workers.

But like many workplaces in the region, infections have emerged.

"We have had some positive cases with our workers as well as with our Expo staff," she said, declining to say how many.

"We ensure that if anyone has tested positive they do not come back until they have tested negative and have been approved by the health authorities to come back to work regardless of whether they are workers or Expo employees".

More than half of the coronavirus cases registered in the six Gulf countries -- which now exceed 355,000 and rising -- are among foreign workers, who often live in cramped conditions that do not allow for social distancing.

Measures to contain the coronavirus pandemic forced Dubai -- which attracted 16.7 million visitors last year -- to close its doors in March. It is aiming to reopen ahead of the start of the tourist season in September, when the summer heat dissipates.

"We believe that Dubai will come back to its number of visitors and we will work closely to achieve the best number of visitors for our Expo," said Al Khatib when asked whether original goals would need to be revised.

"One year of postponement means more... room for improvement," he added optimistically.

DAMASCUS — Syria's central bank devalued the Syrian pound on Wednesday giving in to weeks of depreciation on the black market as new US sanctions took effect.

The central bank raised the official exchange rate from 704 to 1,256 Syrian pounds to the dollar, in a statement published on its social media pages. 

The previous rate had been in force since March.

Earlier this month, the war-torn country's currency hit a record low on the black market of around 3,000 pounds to the dollar, sparking rare protests, before appreciating slightly after an apparent injection of dollars.

On Wednesday, the rate on the parallel market stood at around 2,600 to 2,800 pounds to the dollar, traders told AFP.

The devaluation comes as the United States prepares to implement new sanctions this week under the Caesar Act, targeting foreigners doing business with the Damascus government, as well as reconstruction of the country.

Zaki Mehchy, a senior consulting fellow at the London-based Chatham House think tank, said the central bank was trying to minimise the gap between the official and black market rates.

"It is trying to encourage people to use the official channel instead of the black market," he said.

But the pound would probably continue its slide, punctuated by short periods of appreciation, he said. 

Syria's economy has been battered by nine years of war, and is now reeling from the knock-on effects of a financial crisis in neighbouring Lebanon that has stemmed the flow of dollars into government-held areas.

Analysts have said the recent lows on the black market are likely due to worries ahead of the introduction of new US sanctions, and the sudden fall from grace of tycoon and cousin of the president, Rami Makhlouf, which has set other top businessmen on edge.

The Damascus government has long blamed the country's economic crisis on international sanctions.

Last week, President Bashar Assad sacked his prime minister of four years after criticism of the government's handling of the crisis.

Before the conflict, the exchange rate stood at 47 Syrian pounds to the dollar.

WASHINGTON — The COVID-19 pandemic has unleashed a truly global economic crisis, but countries that rely on services like tourism are suffering the worst damage, International Monetary Fund (IMF) Chief Economist Gita Gopinath said on Tuesday.

Despite the scale of devastation, financial markets are rising, apparently disconnected from world events, Gopinath said in a blog post.

“For the first time since the Great Depression, both advanced and emerging market economies will be in recession in 2020,” she said. “Past crises, as deep and severe as they were, remained confined to smaller segments of the world.”

While most crises hit manufacturing as investment falls, advanced and emerging market economies are seeing a larger impact in services, she said.

In China, which was the first to exit the lockdown, “the recovery of the services sector lags manufacturing as such services as hospitality and travel struggle to regain demand”.

She said pent-up consumer demand might lead to a quick recovery. “However, this is not guaranteed in a health crisis as consumers may change spending behaviour to minimise social interaction, and uncertainty can lead households to save more.”

This is of particular concern for economies that depend on tourism.

The IMF official also noted the “striking divergence of financial markets from the real economy”, possibly buoyed by the massive policy response from governments and central banks.

However, she cautioned that markets could see “sharp corrections” if bad news emerges on economic data or health issues.

Even as countries begin to emerge from lockdowns, “there remains profound uncertainty about the path of the recovery”.

The IMF is due to release its updated World Economic Outlook on June 24 which Gopinath said “is likely to show negative growth rates even worse than previously estimated”.

LONDON — Equities slid on Monday, extending last week's losses on fears that a second wave of virus infections could spark fresh lockdowns and snub out economic recovery.

"Markets around the world have sold off again on heightened fears around a second wave of coronavirus infections and deaths," said Investment Director Russ Mould at stockbroker AJ Bell.

Tokyo tumbled to a loss of 3.5 per cent by the close, Hong Kong slid 2.2 per cent and Shanghai lost 1 per cent on signs that the deadly COVID-19 disease has returned in China amid a resurgence in the United States.

Stocks in Europe dived more than 2 per cent at the open, but later trimmed their losses, as European nations press ahead with easing their strict lockdowns.

Oil prices also extended last week's losses on fears that a second wave could ravage demand for the commodity.

Under pressure 

"It seems a combination of a new spike in COVID-19 cases in Beijing and disappointing Chinese data is weighing on sentiment at the start of the week," noted analyst Craig Erlam at trading firm OANDA.

"The numbers are still very low in the Chinese capital but the risks are high which may explain the apprehension we are seeing in the markets."

Beijing has carried out mass testing and locked down several neighbourhoods after 79 cases were linked to a single wholesale food market in the capital. City official Li Junjie on Monday said cases had also been found at another market.

The city has raced to quash the new outbreak, closing the affected markets, deploying paramilitary police and putting nearby housing estates under lockdown.

That came as more than a dozen US states, including populous Texas and Florida, reported their highest-ever daily case totals, while Rome and Tokyo have also seen fresh spikes.

"It means the virus hasn't lost its infectiousness, it isn't weakening... we shouldn't let down our guard," World Health Organisation Deputy Director Ranieri Guerra told Italian journalists.

AxiCorp analyst Stephen Innes warned that new US infections could be an ominous sign for markets.

"Falling infection rates have provided investors the confidence that the lockdown approach was working, allowing equity investors to look forward to 2021 as impressive monetary and fiscal policy provide a post-pandemic bridge."

"However, rising new daily COVID-19 cases in two of the three most populous states in the US will test that resolve."

Despite the latest equity losses, global stock markets have soared up to 50 per cent from their March troughs thanks to the lifting of stay-at-home orders and trillions of dollars of stimulus by governments and central banks.

On Monday in Europe, Germany, Belgium, France and Greece reopened their borders to EU countries from Monday. Austria will follow on Tuesday and Spain on Sunday.

France on Monday allowed cafes and restaurants to serve customers inside, as well as on terraces.

MADRID — Spanish Prime Minister Pedro Sanchez announced a 3.75 billion-euro aid plan for the car industry, a pillar of its economy that has been badly hit by the coronavirus pandemic.

“The government has worked hand in hand with the sector to develop a comprehensive plan that meets their needs and also serves to achieve an urgent ecological transition,” he said in a television address. 

The plan, which will be officially presented on Monday, “will be financed from a budget of 3.75 billion euros”, he added. 

The plan would set aside money to renew the car fleet, with special attention to electric vehicles. There would be aid for research and innovation and tax incentives to make the sector more competitive.

Aid for the purchase of electric vehicles is in line with the government’s ecological transition plan, which by 2040 aims to have all new vehicles in the country “zero emissions”.

The automotive sector is one of the pillars of the economy of Spain, the second European manufacturer behind Germany. 

It makes up 10 per cent of the gross domestic product (GDP), a fifth of Spain’s exports and directly or indirectly employs two million people, said Sanchez. 

It was also hit hard by the coronavirus pandemic with factories in Spain shut down for several weeks.

Japanese group Nissan recently announced the closure of its factories in Barcelona, affecting 20,000 jobs, directly and indirectly, while US giant Ford announced 350 job losses in its factory in Valencia. 

Other countries have announced automobile aid plans such as France, where President Emmanuel Macron announced in late May a recovery plan for the sector of more than 8 billion euros.

Sanchez also announced that a tourism sector support plan will be presented on Thursday. Tourism, which accounts for 12 per cent of GDP, has been hit badly by the coronavirus crisis. 

BEIRUT — Dozens of demonstrators angered by a deepening economic crisis rallied for a third consecutive day on Saturday after a night of violent riots sparked condemnation from the political elite.

Rallying against the surging cost of living and the government's apparent impotence in the face of the worst economic turmoil since the 1975-1990 civil war, protesters gathered in central Beirut, brandishing flags and chanting slogans.

In the northern city of Tripoli, young men scuffled with security forces who fired rubber bullets to disperse crowds.

The stand-off began after young men blocked a highway to prevent a number of trucks carrying produce destined for Syria from passing through, according to the official National News Agency.

The Lebanese Red Cross said it treated nine people wounded in Tripoli.

The rallies came ahead of a speech by Prime Minister Hassan Diab at 15:00 GMT.

"We are here to demand the formation of a new transitional government" and early parliamentary elections, Nehmat Badreddine, an activist and demonstrator told AFP in central Beirut.

Lebanon is caught in a spiralling economic crisis, including a rapid devaluation of the Lebanese pound, which has triggered a fresh wave of demonstrations since Thursday.

Lebanese media reported that the exchange rate had tumbled to 6,000 per dollar on the black market early on Friday, compared to the official peg of 1,507 in place since 1997.

After a crisis meeting on Friday, President Michel Aoun announced that the central bank would implement measures from Monday including "feeding dollars into the market", in a bid to support the Lebanese pound. 

Despite the government's pledges, roughly 200 young men gathered on mopeds in central Beirut on Friday night. Some of them defaced shop fronts and set fire to stores, causing serious damage.

Security forces fired tear gas to disperse them and some of the young men threw stones and fire crackers back. Tension petered out after midnight. 

In Tripoli, demonstrators threw stones and Molotov cocktails towards soldiers late on Friday and damaged the facades of several banks and shops. Soldiers responded with tear gas.

The next day, Diab called on officials to assess damage in central Beirut.

Former premier Saad Hariri toured the area, condemning vandalism and riots.

Interior minister Mohammed Fahmi said security forces would find those responsible for damaging property in the capital.

Lebanon — one of the most indebted countries in the world with a sovereign debt of more than 170 per cent of gross domestic product — went into default in March.

It started talks with the International Monetary Fund last month in a bid to unlock billions of dollars in financial aid. Dialogue is ongoing.

Unemployment has soared to 35 per cent nationwide.

The country enforced a lockdown in mid-March to stem the spread of the novel coronavirus, dealing a further blow to businesses.