Business

AMMAN — The Amman Chamber of Commerce (ACC) issued 12,772 certificates of origin during the first fourth months of 2015. United Arab Emirates accounted for the highest share with 2,529, followed by 2,165 for Saudi Arabia, and 1,092 for Iraq, ACC statistics showed.

According to the data, the value of goods exported via the ACC  totalled JD402 million during January-April 2015 compared to JD542 million during the same period in 2014. Exports to Iraq topped the list, at JD147 million, follwed by JD82 million to the UAE, and JD29 million to Saudi Arabia. 

LONDON — Oil prices rose to 2015 highs on Wednesday, as a month-long rally gained further impetus from the first fall in US crude stocks since the beginning of January.

Brent crude was up $1.60 to $69.12 a barrel by 1442 GMT, after hitting a 2015 peak of $69.63.

US crude traded $1.54 higher at $61.89 a barrel, near an intraday high of $62.58.

"Bulls are in control of the market," said Tamas Varga and Stephen Brennock, analysts at London brokerage PVM Oil Associates, in a note on Wednesday.

The US government's Energy Information Administration (EIA) said crude stocks fell 3.88 million barrels to 487.03 million barrels, the first stock draw since the beginning of January and more than double the 1.5 million barrel draw reported by the American Petroleum Institute on Tuesday.

Stocks at the key delivery point of Cushing, Oklahoma fell for a second straight week by 12,000 barrels to 61.67 million barrels, easing fears of storage hitting tank tops.

"It's a big bullish crude draw," said Dominick Chirichella, senior partner at the Energy Management Institute in New York. "Lower imports seem to be the main driver for the draw down." 

Oil prices also had support from the dollar, which fell by more than a per cent against a basket of currencies, on course for a fourth straight weekly loss.

A weaker dollar makes dollar-priced commodities such as crude oil more attractive for holders of other currencies.

While Yemen is only a small oil producer, it sits on major shipping routes and any conflict involving its neighbour Saudi Arabia, the world's leading oil exporter, shakes the market.

Oil's rise in May followed a 20 per cent rally for Brent and 25 per cent for US crude prices in April, despite indications that the Organisation of the Petroleum Exporting Countries (OPEC) may keep production unchanged at current high levels at a meeting next month.

While oil futures rebound with vigour, traders warned of a deep disconnect with the physical market where a lack of demand has left tens of millions of barrels unsold.

Analysts from London-based Energy Aspects consultancy said the bull market would run out of momentum, citing "dire" fundamentals in the near term.

"We maintain our view that even though $70 seems likely in the short term, a downward correction is still on the cards," they said in a note.

While oil futures prices rebound with vigor as analysts cite strong demand, the physical crude market tells a much more cautionary tale.

Tens of millions of barrels are struggling to find buyers in Europe with traders of West African, Azeri and North Sea crude blaming poor demand.

The deep disconnect between the oil futures and physical markets looks similar to the events of June 2014 when the physical market weakness became a precursor for a futures price crash.

"Being large physical buyers of crude we have a direct pulse of the market and feel immediately when it is well supplied, as is happening now," Dario Scaffardi, executive vice resident and general manager of independent Italian refiner Saras, told Reuters.

 "In the short-term, futures prices do not necessarily reflect accurately the physical market," he said.

Benchmark Brent oil futures prices more than halved between June 2014 and January 2015 after OPEC refused to cut output and instead chose to undercut more expensive producers, including a booming US shale oil sector.

But since January's lows of $46 per barrel, prices have risen back to $69 per barrel on Wednesday on fears the output in the United States would fall deeper than expected and on signs of a faster-than-expected demand rise across the world.

However, data from OPEC and the International Energy Agency show the world is still pumping 1.5 million barrels per day more crude than it consumes. Traders say they are seeing increased evidence of crude barrels struggling to find a home.

Traders in Azeri Light crude, usually one of Europe's favourite grades due to its high quality, said some 10 cargoes from the May tanker loading programme are struggling to find buyers, just two days before June volumes are due to go into the market.

As a result, the Azeri price premium to benchmark dated Brent is the weakest since December, when it hit a five year low.

In the North Sea, Norwegian Ekofisk crude fell to its weakest since August last year due to a significant number of unsold May cargoes, despite June programme already trading.

The worst situation, however, is in Angolan and Nigerian crude, which has struggled in the past two years due to the US oil boom.

Traders said around 80 million barrels of Nigerian and Angolan crude oil are on the market with at least a dozen May-loading cargoes still available.

Indian refiners, which had bought large quantities of Nigerian oil in March and April, are now turning to cheaper Iraqi Basra and Venezuelan crudes.

"Near term oil market fundamentals continue to look dire, particularly in the Atlantic Basin, with Nigerian, Mediterranean and North Sea differentials all weak," analysts from Energy Aspect said on Wednesday.

Pushing the mythic rock uphill

There is no guarantee oil futures will definitely follow the physical market as they did after June 2014.

A number of unknowns could take oil prices either way. A failure to reach a nuclear deal between Iran and the West in June will reduce the likelihood of increased supplies from the Islamic Republic and therefore give prices some support.

The ex-boss of BP, Tony Hayward, said last month the withdrawal of capital and workforce from the US shale oil industry was so steep that a new oil price bull market may come much quicker than expected.

Others argue that shale producers have become much more efficient in recent months and can switch production back on as soon as prices reach $70 per barrel.

The head of oil trading house Vitol, the world's largest, Ian Taylor, said he saw another dip in oil prices soon.

On the demand side, the biggest unknown is whether China will resume buying large volumes of oil for its strategic reserve in the second half of the year.

However, an increasing number of market watchers agree that the fundamentals point to what should be a more bearish market, at least until either supply is cut or demand increases.

"We cannot help but compare the current price strength to the myth of Sisyphus," said Tamas Varga from PVM oil brokerage.

"The top of the current bull mountain might not be close but unless there is a fundamental change in the physical supply/demand balance, the rock might start rolling back down shortly again just like it did in the second half of 2008 and 2014 only for the bulls to start the arduous uphill battle all over again," he added.

DOHA — Qatar is to build seven "cities" to house more than a quarter of a million migrant labourers building major infrastructure and projects for the 2022 World Cup, officials said Tuesday.

Government officials said all seven should be built by the end of 2016 and that the largest, "Labour City" for 70,000 people and complete with its own 24,000-seat cricket stadium, will begin housing workers in the next few weeks.

The move to construct more modern facilities comes amid continued criticism of the accommodation provided by Qatar for the vast number of migrant workers and with Doha admitting that sub-standard and illegal living conditions are still being used.

In total, 258,000 workers, some 25 per cent of Qatar's migrant labourer population, will be housed, officials said. Abdullah Bin Saleh Al Khulaifi, labour and social affairs minister, described the new accommodation centres as the "future".

"That's the blueprint," he said of Labour City. "There are in the pipeline [several] cities around the nation. I know our people want to have better accommodation for their labourers."

Khulaifi added that Qatar has effectively doubled its number of housing inspectors to 300, and that should increase to 400 soon.

DUBAI — Gulf oil exporters must reduce spending, including subsidies and diversify their economies to cope with lower revenues caused by the sharp drop in crude prices, the International Monetary Fund (IMF) said.

The wealthy monarchies, however, should "not react in a knee-jerk way to lower oil prices", the IMF Middle East and Central Asia chief Masood Ahmed told AFP in an interview Monday.

They would be better off to "adjust gradually" using the large financial reserves they have accumulated during several years of bumper oil receipts, he said in Dubai. 

But as oil prices have dropped lower than budgeted breakeven levels, "it is important that they gradually, but in a determined way... reduce their spending [and] consolidate their fiscal position," Ahmed added.

Oil prices have shed half of their value since June 2014, and are expected to be lower than the breakeven point for Gulf countries in the next three to four years.

The Gulf Cooperation Council (GCC) includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE), economies all heavily dependent on energy revenues. 

A combined budget surplus for 2014 of $76 billion (68.5 billion euros) is expected to turn into a deficit of $113 billion this year, the IMF indicated in its latest regional report. 

"They need to act to reinforce their efforts to diversify their economies to become less dependent on oil," said Ahmed, pointing out that many have already taken such measures.

"The UAE is more advanced in terms of diversification. The others also are in varying degrees trying to encourage private sector activity outside the oil area," he added. 

Curb subsidies 

GCC countries were also urged to cut energy subsidies in a bid to minimise public spending and trigger a change in consumer behaviour.

"Most GCC countries still have the domestic sale price for energy products below the international prices... We think that over time it is important to tackle the issue of energy subsidies to reduce them," Ahmed stressed.

Gulf states should also contain salary growth in the public sector, which usually employs nationals as opposed to the private sector that depends on millions of foreigners.

In addition, GCC countries would need to prioritise investment projects that "most advance the development agenda”, said Ahmed.

Oil-export revenues for GCC countries are forecast to be $280 billion lower this year than a year ago.

With the exception of gas-rich Qatar and Kuwait, all GCC states are expected to face budget deficits this year, said Ahmed, noting that this could persist for two or three years.

"The important thing to recognise is that GCC countries have built up financial buffers that put them in a very strong position to be able to use these savings to finance expenditure and to have a gradual decrease in spending over the coming years," he added.

This in turn would minimise the economic impact of the drop in oil prices.  

GCC states are estimated to have foreign reserves of about $2.5 trillion.

"The impact on [economic] growth is quite limited," said Ahmed.

The IMF has forecast GCC countries to grow as a group at 3.4 per cent in 2015, one percent down from earlier predictions, mainly because of a slowdown in non-oil growth in response to lower oil prices. 

The forecast did not account for fallout from the conflict in Yemen, where a Saudi-led coalition launched in March an air campaign against Iran-backed Shiite rebels in support of exiled President Abdel Rabbo Mansour Hadi.

Ahmed said it was too early to assess the impact of the campaign on Saudi Arabia, which is leading daily air strikes, but said the kingdom's financial buffers will help meet the cost.

"It will be one source of additional pressure," he said, adding however that the "Saudi government has the financial reserves to be able to underwrite the budget deficit."   

Separately, Saudi Arabia is restructuring the world's biggest energy company, Saudi Aramco, in a move apparently aimed at letting it operate more at arm's length from the powerful oil ministry.

Analysts expected technocrats to get a freer hand in running the state-owned giant. Some said the restructuring might be the first step in a shake-up of the Saudi energy sector and could possibly pave the way for a prince to take over the ministry itself, which is traditionally run by industry experts rather than members of the royal family.

Citing unnamed sources, Saudi-owned Al Arabiya TV reported on Friday that Aramco would be separated from the oil ministry of the top member of the Organisation of Petroleum Exporting Countries (OPEC). Aramco officials could not be immediately reached for comment but Arabiya's reports closely reflect official thinking.

According to Mohammad Al Sabban, a former senior adviser to oil minister Ali Al Naimi, the move would strengthen Aramco. 

"This decision will bring more flexibility to the company to take decisions on a commercial basis, and keep full financial control," he said.

Conventional thinking is that the ruling Al Saud family views the oil minister's job as so important that giving it to a prince might upset the dynasty's delicate balance of power and risk leaving oil policy hostage to princely politicking.

But Ehsan Ul-Haq, oil analyst at KBC Energy Economics, said it was highly likely that Prince Abdul Aziz Bin Salman, a son of King Salman, could be appointed to replace 79-year-old Naimi, who has been oil minister since 1995.

The king promoted Prince Abdul Aziz, long a member of Saudi Arabia's OPEC delegation, to deputy oil minister from assistant oil minister earlier this year. Some diplomatic and Saudi sources have suggested his years of experience might overcome the hurdles to a royal becoming oil minister.

"They are trying to rearrange Aramco and restructure the whole company. They are also trying to restructure the oil ministry and name Prince Abdul Aziz as minister of energy," said an industry source in Saudi Arabia.

"So that way, Aramco will be totally business-oriented, not an arm of the petroleum ministry," he added.

Major reshuffle 

Aramco was once US-based and run by Americans but has long been a Saudi state corporation. It dwarfs all others in the industry, with crude reserves of 265 billion barrels, more than 15 per cent of all global oil deposits.

It produces over 10 million barrels per day, three times as much as the world's largest listed oil company, ExxonMobil , while its reserves are more than 10 times bigger. If Aramco were ever to go public, it would probably become the first company to be valued at $1 trillion or more.

As part of a major reshuffle on Wednesday, King Salman moved Khalid Al Falih from chief executive to chairman of Aramco and also appointed him health minister, changes that may indicate Falih will not become oil minister, Ul-Haq said.

"[Falih's] shift to the health ministry suggests that he might not follow Naimi. His appointment to the chairman of Aramco, on the other hand, is only ceremonial," he added.

Aramco's senior vice-president Amin Al Nasser has been named acting chief executive until further notice, the company said on its Twitter account on Friday. Earlier, it had posted a statement saying Aramco has a new 10-member supreme council headed by the kingdom's deputy crown prince.

"The Saudi Supreme Economic Council agrees on Deputy Crown Prince Mohammed Bin Salman's vision of restructuring oil giant Aramco," Arabiya reported on its Twitter account. "Restructuring of Saudi Aramco includes separation from the petroleum ministry."

The Supreme Economic Council, formed by King Salman earlier this year, replaces the Supreme Petroleum Council, which used to help set the kingdom's oil policy.

The new council is headed by Deputy Crown Prince Mohammed, another son of the king, a move seen by analysts as laying the ground for a generational shift in how Riyadh develops its energy and economic strategies.

The main tenets of Saudi oil policy, including maintaining the ability to stabilise markets via an expensive spare-capacity cushion and a reluctance to interfere in the market for political reasons, are set by the top members of the ruling Al Saud family.

Oil minister Naimi, who has seen several oil price crashes during his tenure, was the driving force behind OPEC's decision in November not to cut production to support prices, which have halved since June 2014, but rather maintain its market share.

On Thursday, Naimi was quoted as saying that King Salman's appointment of two new heirs would help stabilise world oil markets by strengthening political stability in the kingdom.  

DUBAI — Dubai attracted more than 13 million visitors last year, official figures released on Monday showed, as the cash-flush emirate looks to reap the rewards of its growing tourism sector.

A total of 13.2 million foreigners headed to Dubai in 2014, an increase of 8.2 per cent compared with the previous year, its tourism department said. It said it hoped to attract 20 million tourists a year to Dubai by 2020, when the city will host a World Expo.

Figures released in March showed that hotels in the emirate posted a 9.8 per cent rise in revenues to $6.5 billion (5.8 billion euros) last year — the sector's best annual result since the 2009 financial crisis.

Turmoil in most of the traditional tourism destinations across the Middle East appears to have helped Dubai capitalise on its reputation as a safe haven for tourists and businesses.

Dubai's economy contracted 2.4 per cent in 2009 when it rattled global markets over its debt crisis before receiving a $10-billion bailout from Abu Dhabi, its oil-rich partner in the Emirates, and reaching restructuring deals with lenders.

AMMAN — Accumulated losses at Consultant and Investment Group, the public shareholding company that operates the Istishari Hospital in Amman are about 51 per cent of the paid-up capital as they reached JD11.23 million at the end of March 2015.

According to auditor Deloitte and Touche (Middle East)-Jordan, the company is also in a liquidity bind with a JD1.4 million deficit in working capital.

"These figures raise concern about the ability of the company to continue [operations], consequently depending on the success of future activities and executing the management's plan to rectify the financial position," Deloitte wrote in a review report.

The profit and loss statement at the end of this year's the first quarter showed a decline in gross profit to JD400,000 from JD700,000 at the end of March 2014, reflecting lower operational earnings which were down to JD2.8 million (JD3.1 million at the end of March 2014).

After taking into consideration administrative and selling expenses, finance costs and depreciation, the net result for the first three months of 2015 was a JD500,000 (200,000) loss.

In 2014, the loss was JD1.6 million, 220 per cent more than the JD500,000 posted in 2013. 

According to the company's balance sheet as of March 31, 2015, net receivables amounted to JD1.7 million (JD1.9 million on March 31, 2015), after setting aside JD3.2 million in both quarters as provisions for doubtful assets.

In other words, gross receivables before deductions were JD4.9 million (JD5.1 million), including JD2 million in both periods owed to the company by the Libyan government and Libyan hospitals.

The Palestinian Authority and the Jordanian Ministry of Health were the other two debtors specified in the list as owing the company JD400,000 and JD200,000 respectively.

Although these amounts owed by the Libyan, Palestinian and Jordanian parties have been due for more than 360 days, the company allocated only JD1.6 million as provisions for doubtful assets , including JD1 million to cover the Libyan debts.

"We could not verify the Libyan receivables because the company's management was unable to specify the party that should be contacted in light of the conditions prevailing in that country," the auditor said.

Deloitte also was unable to determine if the JD2.2 million, representing JD3.2 in total provisions for doubtful assets less the JD1 million provision for Libyan dues, were enough.

It noted in this regard that no statement could show the tenor of the JD2.9 million, that represent the JD4.9 million in receivables less the JD2 million of Libyan dues.

In the company's 19th annual report, Chairman Mazen Albashir listed difficult economic conditions, an increase in indebtedness, weak liquidity and limited bed capacity at the Istishari Hospital as main challenges.

"The considerable increase in electricity charges and in the cost of fuel was beyond expectations and greatly impacted our 2014 financial performance as the rise in expenses was not offset by higher hospital charges," the chairman said.

He added: "The challenges we faced in 2014 were immense in terms of operational costs which went up due to higher energy prices."

Albashir indicated that energy prices last year were 21 per cent above the level in 2013,  resulting in a JD1.24 million bill that represented 12 per cent of the 2014 total operational costs.

According to the chairman, the remaining operational costs surged by JD900,000, or 10 per cent above the amount in 2013, due to salary increases, higher prices of medicines and medical supplies besides costly maintenance.         

He attributed the cash liquidity squeeze on the inability to collect the dues from Libya and Palestine because of  political considerations despite intensive efforts to that end.

To address the various constraints, the auditor mentioned that the company's management intends to restructure the capital by writing off the accumulated losses against the issuance premium, amounting to JD2.4 million, and increasing the capital which has been raised several times before and now stands at JD22 million.

"The plan is to recommend to the general assembly of shareholders an increase in the company's capital by around JD8 million through a public flotation," the auditor said.

In the annual report's foreword, the chairman stressed that the path to financial improvement and profitability was to implement a previous resolution, adopted by the shareholders, to increase the company's capital for the hospital's expansion.

"First steps were buying the lands adjacent to the hospital in order for the expansion plan to proceed," he indicated. "To ensure the success, it is imperative that the capital be restructured and losses be written off through raising the capital."

Notes accompanying the balance sheet as of March 31,2015 show that the company obtained in 2012 a JD2.8 million loan from Bank of Jordan to partly pay for purchases of lands surrounding the hospital within the plan for future expansion. The last instalment of this loan is due in 2016.

Combined with another JD2 million credit, known as advances under current account, the company's outstanding bank debt stood at JD2.4 million at the end of this year's first quarter

This indebtedness burdened the company with JD300,000 in financing costs last year.

Other financial data valued the company's capital investment as of December 31, 2014 at JD15.3 million and the  property and equipment a as of  March 31, 2015 at JD15 million.

Noting that annual operational earnings hovered around JD13 million in the last two years, a breakdown of last year's income reveals that revenue from medical interventions was highest at JD3.6 million, followed by JD3.2 million from other unspecified departments.

The income from the pharmacy totaled JD2.5 million, from medical supplies JD2.4 million, and from hospital admissions JD1.4 million.    

Bank of Jordan, Capital Bank and Tawfiq Shaker Khader Fakhoury top the list of shareholders as they respectively own 35.6 per cent, 13.3 per cent and 8.9 per cent of Consultant and Investment Group, whose workforce comprises 560 employees manning the Istishari Hospital.

BEIRUT — Lebanon's land exports to Gulf Arab markets have been choked off, leaving millions of dollars in goods stranded after the closure of a vital crossing on the Syrian-Jordanian border last month.

The Nasib border point was the last remaining gateway for Lebanese truck drivers transporting agricultural and industrial products to Iraq and Gulf countries.

After Syrian rebels seized Nasib on April 1, these exports came to an abrupt halt.

"Exports by land have stopped entirely," said Ahmad Alam, whose company exports Lebanese fruit and vegetables to Arab countries.

Goods transported overland made up 35 per cent of all of Lebanon's exports, economic analyst Nassib Ghobril indicated.

According to customs authorities, Lebanese exports to Gulf Cooperation Council states in 2014 amounted to $920 million (821 million euros). Another $256 million was exported to Iraq.

But all those potential exports are now effectively stuck in Lebanon, he remarked.

"The Nasib crossing was the only way for Lebanese products to be exported by land. Since it closed, there are no more land crossings now," Ghobril said.

Before the Syrian crisis erupted in 2011, Lebanese products travelled frequently through Lebanon's neighbour, then on to Iraq to the east or to Jordan and Saudi Arabia in the Gulf to the south.

The agriculture ministry says that agricultural products make up 6 per cent of gross domestic product and 17 per cent of total exports.

Agriculture hit hardest

As Syria's war worsened, its border crossings with Iraq closed, leaving Lebanese truckers with only one option: Nasib.

Omar Al Ali, head of Lebanon's Refrigerated Truckers Syndicate, indicated that about 250 trucks would cross from Lebanon into Syria every day before the conflict.

That number dropped to 120 daily because of growing instability along Syria's major highways, and with Nasib closed, just a few trucks destined for the shrinking Syrian market only leave Lebanon every day.

Although one crossing along the Syria-Iraq border remains open, Ali said it is too dangerous to use.

According to Ghobril, Lebanon's land exports have been affected the most by the Syrian crisis, apart from tourism.

Road closures have hit agricultural exports the hardest, since they rely predominantly on land routes and cannot be easily transported by air or sea.

"Our trucks transported our agricultural and industrial products. This is what carried Lebanon's economy," Ali said, adding that the losses could be in the millions of dollars.

"Now we have 900 refrigerated trucks that are just sitting inside Lebanon," with others stuck in the Gulf, he told AFP.

Alam said he lost at least $1 million in the three weeks after Nasib's closure.

According to the agriculture ministry, the sector employs 20 to 30 per cent of the Lebanese workforce.

Livelihood on hold

Many truckers can now be found discussing their plight at their syndicate's offices in Bar Elias in east Lebanon.

Khaled Araji, 55, is just one of hundreds of Lebanese who used to drive goods through Syria to the Gulf, and whose livelihood has now on hold indefinitely.

"I just spend my time in the house. I've worked in this business for more than 30 years, and if I don't see the [truck's] refrigerator every day, I can't relax. This job is in my blood," Araji said.

According to Ali, truck drivers made $1,500 a month "to provide for their families by generating activity in other sectors. All of this has stopped now”.

To make up for routes through Syria being closed, the Beirut government is looking at exporting these goods by sea.

According to Ghobril, this alternative "requires more time than by land, and it's definitely more expensive, but it's still better than nothing".

But Alam downplayed the effectiveness of maritime transport, saying some green produce would not stay fresh long enough for the journey.

In his warehouse in Bar Elias, young men and girls pack oranges, apples and fresh lettuce, whose prices have dramatically dropped, into crates and boxes for export by air.

As the peak harvest seasons in August and September draw closer, exporters and truckers are hoping for a speedy solution to the problem.

But Agriculture Minister Akram Chehayeb, speaking after a Cabinet meeting on the crisis last week, was not hopeful.

"Unfortunately, we have become an island," he said.

Separately, hundreds of Jordanian importers and exporters lost millions of dollars worth of goods when rebels pillaged the vast free trade zone that straddled the Jordanian-Syrian border, most of it on the Syrian side.

Car importer Mohammed Bustnje says he was among the lucky ones, losing only tens of thousands of dollars when looters sacked his offices and made off with televisions, air conditioning units, even doors and windows.

Bustnje said he had had a premonition there would be trouble at the 700-hectare Jordanian-Syrian Free Zone, and moved all the vehicles he had warehoused there into Jordan.

"Thank God," he said, "because the rest of the importers lost hundreds of cars" in looting after rebels seized the Syrian side of the crossing.

Nabil Romman, chairman of the Jordanian investment commission for the zone which contains not only warehouses but even assembly plants for some goods, said there were more than 1,000 traders doing business there — Syrians, Jordanians, even Iraqis — with a combined inventory of more than $1 billion (917 million euros).

He estimated that $100 million in goods was stolen.

Knock-on effect 

More recently, however, the security situation has become more stable, there are reports that Jordanian traders are now able to get into the zone and are gradually bringing goods out.

Romman said the "Nasib crossing is a vital artery between us and Europe. Seventy per cent of what we eat, of everything we import and export, passed through Syria”.

Goods were brought in and exported by sea from Lebanon, or even travelled overland through Turkey farther north.

Mohammed Daud, president of the Jordanian truckers' union, estimates that the long-term damage from lost trade with not only Syria, but also Iraq, could reach $500 million.

He said around 2,500 trucks crossed the Syrian border daily before the civil war. That number was down to "a couple hundred when the border was closed. Now it is zero”.

Prime Minister Abdullah Nsur said recently week that Jordan was in a "state of siege".

Not only is it effectively cut off from Syria to the north, it has also seen commerce with Iraq severely curtailed because of the conflict between the government and the Daesh group there.

Economist Mazen Al Rashid said "the longer the borders are closed, the more serious the consequences will be for the Jordanian economy".

"The decline in exports could exacerbate the trade deficit, which would force Jordan to borrow more to cover the difference," he added.

Economist Yussef Mansur said the only solution now is to consider trade by sea.

OMAHA, Nebraska — Billionaire investor Warren Buffett said on Saturday that stock prices would appear expensive if interest rates normalised from their ultra-low levels.

"If we get back to normal interest rates, stocks at these prices will look high," said Buffett, speaking at the annual shareholders' meeting of his sprawling conglomerate Berkshire Hathaway Inc.

Buffett, one of the world's most famous investors, is widely followed for his advice on finance and life. 

While he often emphasizes the importance of not basing long-term investing decisions on short-term economic expectations, his views on the US and global economies carry significant weight well beyond Berkshire Hathaway's shareholders.

Regarding the Federal Reserve's (Fed) loose monetary policy, Buffett said he could not have predicted that rates would remain this low for this long without becoming a problem.

"So far, I have been wrong on interest rates. It's so hard for me to see how, if you toss money from helicopters that eventually you don't have inflation, but we haven't," he indicated.

The Fed is currently weighing raising rates from their near-zero levels of the financial crisis era, even as questions remain about the strength of growth in the world's biggest economy.

The current US economic environment will not influence potential acquisitions at Berkshire Hathaway, Buffett remarked.

Berkshire tends to hold companies for decades, or forever, as Buffett has said in the past, making the short-term economic outlook less valuable as a predictor of a company's success than longer-term trends.

"Any company that has an economist certainly has one employee too many," he added.

He also said about the greenback: "I think the dollar will be the world's reserve currency 50 years from now."

Nevertheless, Buffett praised China as a rising superpower, saying the country's population had "found a way to unlock their potential".

Charlie Munger, Berkshire Hathaway's vice chairman, echoed that sentiment, noting China's drive against corruption and its relationship with the United States.

"It's very important that we like and trust one another," Munger said.

China surpassed Japan to become the world's second-largest economy in 2010. US President Barack Obama has "pivoted" to Asia, placing much of the focus of American foreign policy on that continent as China becomes more influential on the world stage.

Buffett noted problems in the United States, as well, including concerns about income inequality. "I don't have anything against raising the minimum wage but I don't think we can do it in a significant enough way without creating a lot of distortions."

He said he favours using the earned income tax credit to help struggling households.

Income inequality has already emerged as a major issue in the 2016 presidential election, with both Republican and Democratic contenders highlighting middle-class insecurities.

OMAHA, Nebraska — Berkshire Hathaway Inc. shareholders on Saturday celebrated Warren Buffett's 50th anniversary running the conglomerate, as the billionaire expressed optimism the company would thrive over the long haul, even after he is gone.

Buffett and his second-in-command, Charlie Munger, fielded five hours of questions from shareholders, analysts and journalists at Berkshire's annual meeting, including some that criticised the business practices of firms that Berkshire owns or works with, such as Brazil's 3G Capital.

The meeting had a more festive air this year, with one of the more than 40,000 people who attended shouting out "Warren and Charlie, we love you" at the start of the main event of what Buffett calls "Woodstock for capitalists".

"It's not Disneyland, it's Warrenland," said David Rolfe, chief investment officer of Wedgewood Partners Inc.

Berkshire holds more than 80 companies including the Burlington Northern railroad, Geico car insurance, Benjamin Moore paint, Dairy Queen ice cream, Fruit of the Loom underwear, See's candies and owns more than $115 billion of stocks.

Its breadth and depth, which includes $63.7 billion of cash, has given Berkshire a strong balance sheet that Buffett noted will help it thrive should the economy, propped up by low interest rates that many expect to rise soon, heads south.

"We will be very willing to act if economic turbulence of any kind occurs, and will be prepared, and most people won't be," he said. He denied that Berkshire needed special regulatory oversight by possibly having become too big to fail. 

Succession 

Buffett gave no hints about who would succeed him. He also alluded in one answer to his writing another of his popular letters to shareholders next February, suggesting no intention to leave soon.

Yet he said he would not want someone whose sole background is in investments to become chief executive. "I would not want to put someone in charge of Berkshire with only investing experience and not any operational experience."

Buffett also offered ringing praise for the turnaround at Burlington Northern, Berkshire's largest non-insurance unit, which was plagued last year by service delays.

"The improvement has been huge, and I want to thank Matt Rose and Carl Ice for their really extraordinary performance," he said, referring to the railroad's executive chairman and chief executive.

Rose, considered by some a potential Berkshire chief executive officer (CEO) candidate, was not mentioned by Buffett in his annual letter, which led some to believe his standing had been lowered.

Other potential CEO candidates include insurance executive Ajit Jain, whose decision to join Berkshire three decades ago was hailed by Buffett as one of the "luckiest" events he experienced, and Berkshire Hathaway Energy chief Gregory Abel, who talked at the meeting about renewable energy. He was the only person other than Buffett and Munger to field a question.

Ken Shubin Stein, founder of Spencer Capital Management LLC in New York, said having a CEO with an operational background "makes sense since the CEO needs to work with the investment team and understand their use of capital for investments, versus using the capital for investing in acquisitions”.

3G defended 

As is usually the case, no major controversy has been hanging over Berkshire.

But Buffett did get two questions that led him to praise 3G Capital, which critics say ruthlessly cuts jobs at companies it acquires. In 2013, Berkshire and 3G bought H.J. Heinz Co, which is now buying Kraft Foods Group Inc.

"The 3G people have been successful in building marvelous businesses," Buffett said. "I don't know of any company that has a policy that says we're going to have a lot more people than they need."

Buffett also defended Berkshire's Clayton Homes manufactured homes unit, which was criticised in a recent Seattle Times article for predatory sales practices that can trap low-income borrowers in homes they cannot afford.

"I make no apologies whatsoever for Clayton's lending terms," he said, adding that Clayton itself faces losses when borrowers default.

Buffett also said he expects a contentious contract dispute between Berkshire's luxury aircraft unit NetJets and its pilots to be resolved, and said he had "no anti-union agenda whatsoever". Some of the pilots picketed outside the meeting.

Addressing a question about Berkshire's stakes in companies including Coca-Cola Co that sell highly sugared products, Buffett said companies can change as consumer tastes evolve.

Alluding to his own well-publicised fondness for junk food, he said: "If I had been eating broccoli and Brussels sprouts all my life, I don't think I would live as long."

Buffett also said the euro currency "can and probably should survive", but that "real changes" would probably be required.

Munger, for his part, said European leaders created a "flawed system" that was "probably unwise" by letting countries that were too weak adopt the currency. 

Devotees lined up early 

Berkshire's annual meeting is Omaha's top annual draw other than baseball's College World Series — reflected in hotel rooms that can fetch more than $400 a night and that often sell out nearly a year in advance.

Devoted and sleep-deprived shareholders began lining up outside the venue hours before doors opened at 7 am.

Kyle Cleeton, a research analyst for an investment firm, may have gotten there first, saying he showed up at 10 pm the night before.

"I wanted to be first in line," he said. "You're not sure how many more years you're going to have."

Bill Guenther, a state forester from Brattleboro, Vermont, said, "I'm one who likes a good seat." He arrived at 1:04 am despite having last year suffered a major foot injury when he collided with another shareholder as he tried to get that good seat.

"My girlfriend said, 'You're not going to do this again,' and I said, 'I have to, it's the 50th year.'"

AMMAN — Net after-tax profit generated by Jordan Telecom Group (JTG) during the first quarter of 2015 amounted to JD8.6 million, 30.1 per cent lower than the JD12.3 million recorded during the same period of 2014.

According to the financial statement as of March 31,2015 disclosed to the Amman Stock Exchange, the operational income after deducting administrative, selling, marketing and other expenses as well as depreciation and amortisation,  dropped by 27.7 per cent from JD14.8 million at the end of March 2014 to JD10.7 million at the end of March 2015.

Noting that net earnings amounted to JD79.8 million and that cost of services was JD35 million during the first quarter of this year, the gross profit came at JD44.8 million compared to JD45.1 million during the first quarter of 2014 when net earnings totalled JD84.6 million and the cost of services stood at JD39.5 million.

A breakdown of the earnings indicates that Orange Fixed contributed JD32.9 million at the end of March 2015, (JD36.7 million end of March 2014); Orange Mobile supplied JD34 million (JD36.1 million); Orange Internet brought in JD12.8 million (JD11.8 million).

The balance sheet at the end of the first quarter of 2015 shows total assets at JD596 million compared to JD599.3 million at the end of the first quarter of 2014.

Of the total, JD354.7 million are current assets (JD305.9 million) and JD241.2 million (JD293.4 million) are fixed assets.

JTG earned JD1 million in income from its short-term deposits at banks which totaled around JD101.4 million at the end of March 2015. The group earned JD2.1 million from JD190.2 million in bank deposits at the end of March 2014.

The March 2015 balance sheet also showed total liabilities at JD232.8 million of which JD3.9 million were long-term debt, compared to JD4.3 million long-term debt at the end of March 2014 when total liabilities amounted to JD244.8 million.