Business

AMMAN — Although only 10 per cent of Jordan’s trade is with India, the figure is still significant, and hosting “one of the global economic giants” will lead to more venues of cooperation, said a senior official on Sunday.

Addressing a seminar titled “India — Surging Ahead”, Minister of State for Economic Affairs Yusuf Mansur said: “India’s economic success story is based on willpower more so than resources. India decided to be inclusive, to include all to participate in the economic process.”

“In Jordan…, we have made reforms, aimed at inclusiveness, speeding up investments whether domestic or foreign. Now we are making reforms that are aimed at quick wins and successes, not for us, but for the private sector, because it’s our belief that it’s the private sector that drives the economy,” the minister said, addressing Jordanian and Indian businesspeople.

“Where there’s a wealthy private sector, likewise there will be a wealthy government,” Mansur noted at the seminar, organised by the Indian embassy in Jordan in cooperation with the Jordanian Businessmen Association (JBA).

In spite of the refugee burden, Jordan’s economy remains resilient. An economy that has absorbed 20 per cent of its population in refugees within four years is capable of sustaining itself, the minister said.

“We will be looking for speedy recovery... That’s our motto for this era,” he indicated. 

Citing the Jordan Compact, which was adopted at the London donor conference last February and which details donors’ pledges to Jordan and the Kingdom’s commitments towards the Syrian refugees, the minister urged the business community to use the opportunity at hand to invest in Jordan.

He urged businessmen to benefit from the recently adopted relaxed rules of origin for Jordanian exports to Europe, keeping in mind that 15 per cent of the manpower should be Syrian. 

In her opening remarks, Indian Ambassador to Jordan Shubhdarshini Tripathi, highlighted investment-friendly measures adopted in India. Underscoring a 7.6 per cent growth rate, macro-economic stability and shrinking inflation, she said India recorded an almost 40 per cent increase in foreign direct investments in the last fiscal year. Also, $55 billion have been invested in India in the same period, she added.

Regarding Indo-Jordanian trade ties, Tripathi said both countries need to diversify trade, noting that “aggressive steps” need to be taken in this regard.

“We have two major raw materials available with us, the first is the synergies and the complementarities that we share between India and Jordan, which can be worked at, and second is the goodwill, which already exists,” she noted.

The joint trade volume stood at $2.2 billion in 2015, according to embassy figures. 

Addressing the seminar, Senator Munther Haddadin said despite all constraints, Jordan “is an exception” in the region in terms of law and stability. He urged the business community to invest in Jordan and benefit from its human resources and geographic central location.

At the event, Abdul Halim Abdin, JBA secretary general said although Jordan has many trade agreements with the West and the EU, many industries in Jordan are small and medium-scale enterprises which are interested in investing in India and vice versa. He encouraged further work in the sector.

RIYADH — Saudi Oil Minister Khalid Al-Falih said on Sunday that the current cycle of falling crude prices is close to an end as market fundamentals improve.

Oil prices are currently hovering at around $50 per barrel after hitting a 10-year low of less than $30 in January, down from a peak of more than $100 in mid-2014.

"The current down cycle is nearing an end," Falih told a joint press conference with his Russian counterpart Alexander Novak on Sunday after a Gulf ministerial meeting in Riyadh.

"Market fundamentals, in terms of supply and demand, have begun to improve," Falih said, adding: "We are optimistic that oil prices will continue to improve in the future."

Qatar's energy minister, Mohammed Al Sada, whose country holds the rotating presidency of the OPEC oil exporting cartel, also said the "difficult phase is over".

"Although the market is heading to being balanced, it needs our joint effort, and we all agreed that we need to take measures to bring back this balance," he said. 

Novak said he and his Gulf counterparts had discussed ways to "develop the best mechanism to solve the issue of stabilisation".

"We have reached an unprecedented level in our relations and cooperation" with Saudi Arabia, he told reporters, adding that he agreed with Falih "to continue to work and remain in continuous contact to achieve... concrete mechanisms".

OPEC has invited Russia and key non-members to a meeting later this month as the cartel and Moscow seek to tighten cooperation to boost historically low crude prices.

The invitation was announced after a meeting between top OPEC energy ministers and Novak in Istanbul, aimed at advancing joint efforts to bolster oil prices whose lows have hurt the highly dependent economies of crude producers.

The cartel and Russia will meet on Monday, ahead of the OPEC technical meeting in Vienna on October 28-29, to which Russia and others have been invited.

Last month at a meeting in Algiers, the cartel agreed its first production cut in eight years, although it remains to be seen how this will be complied with and implemented.

President Nicolas Maduro of OPEC member Venezuela was in Riyadh on Sunday for talks a day after calling in Iran for increased cooperation between oil-rich nations to stabilise prices.

Maduro, who is also due to visit Qatar on a Middle East tour, currently faces an economic and political crisis at home, compounded by the collapsing price of oil.

BRUSSELS — The head of the European parliament and Canada's trade minister held last-ditch talks Saturday, aimed at salvaging a trade deal threatened by a Belgian region's refusal to sign on.

EU assembly chief Martin Schulz also planned an 11th-hour huddle with Paul Magnette, head of Wallonia's Socialist government which is blocking the agreement between Ottawa and the 28-nation European Union.

The Brussels meetings are aimed at "reviving CETA talks. We can't stop at the last mile", Schulz wrote on Twitter, referring to the agreement's name.

CETA would link the EU market of 500 million people with the world's 10th biggest economy.

"We have done our job, it's now up to the European Union to finish theirs," countered Canada's Chrystia Freeland after the talks with Schulz, adding that she was returning to Toronto on Saturday.

"I really hope that the Europeans can bring it to a conclusion and that I can come back in a few days with my prime minister to sign the agreement," she said, cited by Belgium's Belga news agency. 

The accord was initially scheduled to be signed next Thursday with Prime Minister Justin Trudeau in Brussels — and Schulz said that that date remained in the diary.

"The problems are on the Europeans' table and we have to try to resolve them," he said. "This meeting was very constructive and will perhaps be decisive.” 

"I remain optimistic."

Canada blasted the European Union on Friday as incapable of signing international agreements, as talks to persuade Wallonia to sign up to the huge trade deal broke down.

Freeland's comments fed into warnings that the EU, beset by rising anti-globalisation sentiment, may never be able to land any other deals including one with the United States.

"It seems obvious to me, to Canada, that the European Union is incapable now of having an international agreement, even with a country with such European values as Canada, and even with a country as kind and patient as Canada," Freeland said Friday.

'Democracy takes time' 

Wallonia's government chief Magnette told AFP on Friday that his Belgian region needed more time but that there was still scope for an agreement.

"Democracy takes a little time,” Magnette said. "I wasn't asking for months, but you can't carry out a parliamentary process in two days."

The Walloon parliament earlier this week refused to let the federal Belgian government approve the deal between Canada and the European Union, which needs to be backed by all 28 EU member states.

Belgium has seven elected assemblies: the geographic regions of Wallonia, Flanders and Brussels; the three linguistic communities; as well as a parliament and senate at the federal level.

EU Trade Commissioner Cecilia Malmstroem said she was still hopeful a deal could be reached.

"We have engaged wholeheartedly with Wallonia the last days. Truly sad talks have been halted. Still hope to find solution in order to sign CETA," the Swede said on Twitter.

The Comprehensive Economic and Trade Agreement (CETA) with Canada is opposed by anti-globalisation groups who say it is a test model to push through an even more controversial EU-US trade deal called TTIP, talks on which have also stalled.

There have been protests against both deals in several cities.

Magnette on Friday pointed in particular to a highly controversial investment protection scheme buried in the deal that has drawn the fury of activists, and which is also involved in TTIP.

Wallonia enjoyed support from activist groups like Greenpeace which charged that the deal risked satisfying "corporate greed" and trampling on people's rights and health standards on both sides of the Atlantic.

British Prime Minister Theresa May on Friday dismissed warnings that the EU-Canada deal raised serious questions about whether London could strike a similar agreement after Brexit.

AMMAN — The Jordan Investor Confidence Index dropped in July by 1.38 points, to 91.20 from 92.58 points in June this year. 

The Jordan Investor Confidence Index is a monthly-issued index, published by the Jordan Strategy Forum. It seeks to measure the confidence of investors operating in the Jordanian market through three aspects: confidence in the Jordanian currency along with the monetary system, in the real economy, and in the Amman Stock Exchange (ASE).

Two of the three sub-indices witnessed declines in July 2016, according to a forum statement. 

Confidence in the monetary system sub-index dropped by 0.74 points from 91.94 points in June to 91.2 in July. This change resulted from a slight decrease in the Central Bank of Jordan’s foreign reserves, which reached JD11,955 million in July, the statement revealed. 

The sub-index of confidence in the ASE dropped by 0.81 points in July, settling at 97.16 points in comparison with 97.97 points in June. 

As for confidence in the real economy sub-index, it rose by 0.18 points in July 2016, reaching 102.85 points compared with 102.67 points in the previous month. 

Although the capital of registered companies decreased to JD5 million from JD8.4 million in June, all other indicators within this pillar increased. 

The number of companies registered went up to 442 companies in July from 404 companies in June. 

The private sector credit to total deposits’ ratio has also witnessed a slight increase. Furthermore, construction activity improved slightly, as the number of construction permits as well as the total tax collected on real estate increased. 

Moreover, the manufacturing quantity production index increased by 1.7 points to reach 164.9 points in July. This rise was attributed to an increase in the production index of the mining and quarrying sector, as well as the electricity, gas, steam, and air conditions supply sector, according to the forum’s statement. 

AMMAN — The government is committed to supporting the industrial sector and working to solve its problems, Minister of Industry, Trade and Supply Yarub Qudah said on Saturday. Meeting with board members of the chamber of industry, Qudah highlighted the importance of boosting cooperation between the public and private sectors to achieve the best results possible in light of the recently adopted plan by the EU to simplify the rules of origin for made-in-Jordan products, the Jordan News Agency, Petra, reported.

Qudah requested the formation of a committee, to include representatives from the ministry and the industrial sector, so as to draw up a technical support programme that can improve factories' technical capabilities and improve product quality. This way, they will have better chances of penetrating EU markets, he noted. The industrial sector faces several challenges, mainly the lack of sufficient manpower, besides exporting-related obstacles, Jordan Chamber of Industry President Adnan Abul Ragheb indicated at the meeting. 

AMMAN —Jordan Investment Commission (JIC) President Thabet Al Wir on Saturday expressed the commission’s readiness to assist Greek investors to set up their own investment projects in Jordan as he called for further commercial and economic cooperation between the two countries.

At a meeting with a delegation of Greek businessmen, he urged them to benefit from investment opportunities available in promising economic sectors in the Kingdom, mainly in the pharmaceutical, information and communication technology, transport, mining, medical tourism, infrastructure, energy, industrial and agricultural sectors, the Jordan News Agency, Petra, reported.

Demetrios Matthews, head of the Greek delegation, expressed hope that the joint trade volume between Amman and Athens will further increase as he commended the Kingdom's stability and legislative reform. 

BRUSSELS — European Union President Donald Tusk warned the bloc would be incapable of negotiating new trade deals if Belgium failed to approve the accord with Canada by Friday.

The deal, known as CETA, "could be our last free trade agreement, if we are not able to convince people that we negotiate to protect their interests", Tusk said as he arrived on Thursday for a two-day EU summit to discuss trade issues.

Tusk spoke as the head of the Belgian region of Wallonia still refused to sign off on the EU-Canada trade accord and asked that a signature next week with Canadian premier Justin Trudeau be delayed indefinitely.

"I hope that Belgium will once again prove that it is a true champion in compromise making, that on Friday we will have an agreement that paves the way for CETA," Tusk said.

The parliament of the region of Wallonia last week voted to block CETA, meaning that Belgium cannot sign up to the pact and leaving the deal in limbo after seven years of negotiations.

Paul Magnette, the outspoken head of government of Wallonia, has said differences remained too wide on a contested investor protection system that has become a hot-button issue for the anti-free trade movement.

EU leaders fear that if CETA were to fail, it would send a signal to the world that it is difficult if not impossible to reach trade deals with Europe.

The struggle to close the deal is also a worry for Britain, with many seeing CETA as a potential model for EU ties with the UK after Brexit.

CETA is opposed by a wide array of groups, who say it is a test model to push through the even more controversial EU-US trade deal called TTIP, still in negotiation.

Activists believe both deals threaten environmental and consumer protection and offer unfair benefits to multinationals.

KUWAIT CITY — A Dubai-based investor group led by the head of property giant Emaar on Thursday completed the nearly $2.4 billion acquisition of a majority stake in Kuwaiti food company Americana, Kuwait's stock exchange said.

Emaar Chairman Mohamed Al Abbar's investment firm Adeptio and Kuwait's Al Khair National for Stocks and Real Estate signed the deal for a 66.8 per cent stake in Americana worth 711.5 million Kuwaiti dinars, the bourse said in a statement.

Al Khair manages equity and real estate stakes for Kuwait's wealthiest business family, Al Kharafi.

Established in 1964, Americana is the parent group that brought to the Middle East more than a dozen major food brands like Pizza Hut, KFC, Costa Coffee and TGI Friday's.

The bourse said Adeptio paid 10 per cent of the value of the deal and will pay the rest on Sunday.

Under Kuwaiti law, Adeptio is obliged to offer the same price to the holders of the remaining 33.2 per cent stake.

The 268.5 million shares were sold for 2.65 dinars ($8.8) per share, the bourse statement said.

Americana owns more than 1,690 outlets and employs 63,000 workers in the Middle East and North Africa region. It also has 17 factories and produces various food products.

RIYADH — Saudi Arabia plans to raise up to $17.5 billion from its first international bond issue, Bloomberg News reported on Wednesday, citing two people familiar with the offering.

It would make the Saudi issue the largest ever from an emerging-market nation, said Bloomberg News, whose sources were not identified.

The figure exceeds the $15 billion which an analyst had previously told AFP could be the value of the issue.

Experts say it should attract strong buyer interest.

The kingdom, the world’s largest oil exporter, projected a deficit of $87 billion this year after a fall in oil revenues, which still accounts for most of its income.

To cover the shortfall, Saudi Arabia has imposed unprecedented subsidy cuts, slowed government projects, and in September cut Cabinet ministers’ salaries, among other measures.

The kingdom last week began meetings with potential investors ahead of the bond issue.

According to the sources cited by Bloomberg News, the kingdom plans to sell dollar-denominated five-year bonds yielding about 140 basis points above United States Treasuries with similar maturity.

Saudi Arabia will also issue 10-year notes and 30-year securities at a premium, the report said.

Christopher Dembik, global head of macroeconomic research at France’s Saxo Bank, told AFP the kingdom’s offer “is going to arouse strong interest on the part of investors” desperately looking for yield.

“Although the country can legitimately hope to borrow at an attractive rate, it will be certainly slightly above that of its neighbours because of its less favourable sovereign debt rating and a recent global trend towards higher sovereign rates,” he said.

Saudi Arabia has already issued domestic bonds but that has led to a tightening of bank liquidity, according to Patrick Dennis, lead Middle East economist at Oxford Economics in London.

“So that’s the main reason why they’re now borrowing overseas,” he told AFP.

Saudi banks’ loan-to-deposit ratio rose for the fifth consecutive month in August, reaching 90.8 per cent, because of faster growth in credit relative to deposits, Riyadh’s Jadwa Investment said in a report this month.

AMMAN — The Jordan Investment Commission (JIC) on Tuesday held  the first meeting of the preparatory committee for the Jordanian-Japanese Business Forum, which is slated for October 27. 

At the meeting, JIC President Thabet Al Wir commended Japan’s support for the Kingdom in the fields of investment, trade and economy and highlighted the importance of the upcoming forum.

The forum will focus on ways to achieve further growth in Jordan and in the Middle East and North Africa market, he noted.

It will also highlight the country’s favourable investment environment and its strategic position, rendering it a business hub from which industrial products can penetrate MENA and European markets, especially in light of the recently adopted plan by the EU to simplify the rules of origin for made-in-Jordan products, Wir said. 

The forum will also highlight the role of the Hashemite leadership in entrenching security and stability, in spite of difficult surrounding regional conditions.

It will showcase promising investment opportunities available in the Kingdom in the fields of information and communication technology, pharmaceuticals, therapeutic tourism and agriculture, Wir added. 

The Jordanian-Japanese Business Forum will be held on the sidelines of His Majesty King Abdullah’s state visit to Japan on October 26, according to a JIC statement.