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Jordanian exports to Saudi Arabia rose by 17.1% in 2023

By - Mar 19,2024 - Last updated at Mar 19,2024

Jordanian exports to Saudi Arabia rose in 2023 to JD984 million by an increase of 7.1 per cent (JT file photo)

AMMAN — Jordanian exports to Saudi Arabia rose in 2023 to JD984 million, by an increase of 7.1 per cent, compared to JD840 million in 2022, topping the list of Jordanian exports to countries of the Greater Arab Free Trade Area.

Jordan's imports from Saudi Arabia decreased in 2023 by 11.6 per cent to reach JD2.591 billion, compared to JD2.932 billion in 2022, Al Mamlaka TV, reported.

According to data issued by the Department of Statistics, the trade volume between Jordan and Saudi Arabia reached about JD3.575 billion in 2023, compared to JD3.772 billion in 2022. Jordan's trade deficit with Saudi Arabia decreased in 2023 to reach about JD1.607 billion, compared to JD2.092 billion in 2022.

Chairman of the Jordan Chamber of Commerce Khalil Hajj Tawfiq said that Jordan enjoys significant opportunities in Saudi Arabia, through participation in several economic sectors, including information technology, construction, and services. 

He noted that these opportunities come within the framework of the economic renaissance, witnessed by Riyadh and other cities, such as the NEOM city project.

Haj Tawfiq said that an official visit to Tabuk will take place after the blessed month of Ramadan to explore cooperation and networking opportunities between Aqaba and NEOM cities, in addition to meetings on the sidelines of the Arab Businessmen and Investors Conference in Riyadh, which will bring together large economic delegations from both countries.

He pointed out that within the framework of enhancing bilateral cooperation, a twining agreement will be signed between some major chambers of commerce, such as the Riyadh Chamber, to exchange experiences and explore joint investment opportunities. He noted that Saudi Arabia was in 2022 Jordan's largest trading partner.

He also mentioned that the completion of the formation of the Saudi-Jordanian Business Council, which includes representatives of various economic sectors in both countries, will be announced soon.

Jordan exports to Saudi Arabia include meat, poultry eggs, and roasted coffee, while Saudi imports include petroleum products and derivatives, various types of milk and dried dates.

Red Sea crisis reduces Ramadan cheer for war-torn Yemen

By - Mar 17,2024 - Last updated at Mar 17,2024

TAEZ, Yemen — Months of missile attacks across the Red Sea are casting a shadow over Ramadan in war-torn Yemen, contributing to rising prices as many struggle to afford the holy month's traditional daily feasts.

In Taez, a city that has been besieged for years by Yemen's Houthi rebels, father-of-five Amin Ghaleb leaves a grocery store empty-handed after haggling fruitlessly with the shopkeeper.

"I can't afford to buy anything," the 50-year-old tells AFP, frowning as he folds his money into his pocket.

It's a familiar tale in the Arabian Peninsula's poorest country, already brought to its knees by nine years of war between the Iran-backed Houthis and a Saudi-led coalition.

Over the past four months, the Houthis have been harassing shipping in the Red Sea in protest at Israel's war against Hamas, triggering American and British reprisal strikes.

The conflict in the commercially vital seaway has pushed up the cost of importing goods, exacerbating runaway inflation and raising fears that, after years of economic crisis, food supplies could run out.

"Prices have doubled and goods are priced either in Saudi riyal or the dollar," said Ghaleb, a government employee who earns about $35 a month.

"How am I supposed to pay rent, electricity, gas, water, food, breakfast, dinner, lunch or clothing for the children?" he asked.

 

Slow sales

 

Ramadan, when Muslims break their day-long fasts with large evening meals, usually means brisk business for Yemen's shops.

But in a Taez market, customers were few and far between. Shopkeepers were standing idly by, displaying vegetables, herbs and grains in straw baskets outside their stores.

"We are being affected by the poor sales," said Yousif Abduljaleel, a Taez merchant. "Some of our products are spoiling."

Taez's residents have suffered shortages of water, food and humanitarian aid since the Huthis blocked all major roads connecting the city with the rest of the country in 2015. 

Concern is now spreading among its inhabitants about the impact of the Red Sea attacks on bringing goods into Yemen, which imports 90 per cent of its food and has one of the world's most malnourished populations.

"Yemeni ports could stop receiving goods because of the high risk" of Houthi attacks, said Abdulwase Al Fatki, a Taez resident.

"This has created fears that food stocks will run out," Fatki added. 

Mohammed Al Basha, a Yemen expert for the US-based Navanti research group, said staple goods have become more expensive during Ramadan in areas controlled by Yemen's internationally recognised government.

The price hikes are "affected by the ongoing Red Sea crisis" but also linked to higher demand during Ramadan, reduced humanitarian assistance and a worsening economy, Basha said.

 

'No purchasing power' 

 

In the rebel-held port city of Hodeida, northwest of Taez, which has been hit by several US and UK reprisal strikes, residents are also worried.

"There is no purchasing power," said Abdulrahman Salam, a Hodeida merchant. 

"If the crisis escalates the prices are going to rise even more," he warned. 

Meanwhile for Hodeidah's fishermen, their job has become a deadly trade. 

Moussa Kulaim, a 50-year-old father of two has been catching fish since he was 12, earning between $4 and $40 for a day's catch.

But these days he is mostly coming up dry due to difficulty navigating Yemen's highly militarised waters.

"It is the only source of livelihood for me and my children," Kulaim told AFP.

"Despite the problems we are facing at sea, we enter for the sake of our livelihood and the livelihood of our children," he said.

"We don't want war, we don't want trouble."

Jordanian companies mark 4.1 per cent growth in QFC

By - Mar 17,2024 - Last updated at Mar 17,2024

A total of 125 Jordanian companies are currently operating under the Qatar Financial Centre umbrella, marking a growth rate of 4.1 per cent compared with the close of 2023 (Petra photo)

AMMAN — A total of 125 Jordanian companies are currently operating under the Qatar Financial Centre (QFC) umbrella, marking a growth rate of 4.1 per cent compared with the close of 2023.

The QFC, recognised as one of the largest and most distinguished financial and trade hubs in the Middle East and North Africa, continues to see an expanding presence of Jordanian companies, as reported by the Jordan News Agency, Petra.

These Jordanian entities, spanning a broad array of industries such as services, fintech, banking, asset management, IT, hospitality, professional services and trade, are actively engaged with the centre.

The Kingdom's prominence within the QFC landscape is evident, where it ranks second after Qatar in the number of companies operating within the Gulf nation's centre.

The QFC offers strategic advantages that have enhanced its appeal to Jordanian businesses seeking to expand abroad, including 100 per cent foreign ownership, streamlined licensing procedures via a unified e-platform, and a favourable corporate tax system.

The QFC fosters an environment conducive to international trade and investment, providing seamless profit repatriation, transparent regulatory frameworks, and efficient dispute resolution mechanisms.

Currently, the QFC oversees assets exceed 120 billion Qatari riyals ($32.9 billion). The centre boasts a diverse ecosystem of approximately 2,000 local and international companies, collectively employing over 12,000 professionals across various sectors.

The QFC’s activities encompass critical sectors such as health, education, investment, media, sports, retail, logistics, digital services, finance, real estate, and energy, according to Petra.

El Salvador stashes $406m in Bitcoin in 'cold wallet' — Bukele

Total of investment is 5,689.7 Bitcoin

By - Mar 17,2024 - Last updated at Mar 17,2024

As the coronavirus pandemic has caused a surge in online payments, central banks are mulling virtual currencies to rival cryptocurrencies like Bitcoin (AFP file photo)

SAN SALVADOR — El Salvador's President Nayib Bukele said recently that his country has stored more than $400 million in Bitcoin in an offline "cold wallet" as the cryptocurrency forges new record highs. 

"We've decided to transfer a big chunk of our bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory," Bukele said on social media site X. 

"You can call it our first bitcoin piggy bank," he added.

The cold wallet protects cryptocurrency investments by keeping them offline to prevent hacking attacks.

Bukele shared a screenshot of the investment showing a total of 5,689.7 Bitcoin, with a valuation of $406.6 million.

El Salvador became the first country in the world to legally circulate Bitcoin as legal tender on par with the US dollar in September 2021. 

"It's not much, but it's honest work," Bukele said about the cold wallet initiative. 

Bitcoin surpassed $73,000 this week — before shedding some of its gains — in a rampant rise after US authorities eased mainstream investor access to the cryptocurrency. 

Other cryptocurrencies such as ether or ethereum have also registered increases in their price. 

Eighty-eight per cent of Salvadorans did not use Bitcoin in their transactions in 2023, according to a survey by the private Central American University in January. 

Bukele has sought to use Bitcoin to pull in overseas remittances at a lower cost, and for Salvadorans, 70 per cent of whom operate outside the financial system, to become more banked.

Industrial Policy 2024-2028 outlines series of targets to revitalise industrial sector

By - Mar 17,2024 - Last updated at Mar 17,2024

The 2024-2028 Industrial Policy Document, approves by the government last month, has outlined a series of targets aimed at revitalising the country’s industrial sector (Petra photo)

AMMAN — The 2024-2028 Industrial Policy Document, approved by the government last month, has outlined a series of targets aimed at revitalising the country’s industrial sector. These include achieving an annual growth rate of 2.03 per cent in value-added and a 3.4 per cent increase in employment opportunities for Jordanians in the industrial sector.

The strategic plan also sets a goal to expand the number of exported products to more than $5 million and diversify the export portfolio to include 66 distinct products by 2028, as reported by the Jordan News Agency, Petra.

The plan also aims to diversify product offerings, enhance value-added manufacturing processes, and bolster competitiveness and productivity. Key strategies include optimising the use of raw materials, fortifying national value chains, and elevating quality standards across industries.

The document also highlighted the industrial sector’s growth of 10.2 per cent between 2000 and 2008, followed by a slowdown between 2009 and 2019, with the annual growth rate plummeting to a mere 1.8 per cent. This decline resulted in the manufacturing sector’s share of the national economy shrinking to 17.4 per cent by 2022, down from 21.2 per cent in 2008.

The document also addressed the challenges faced by the sector over the past 15 years, including the struggle to meet the rising domestic demand for manufactured goods, which has led to a widening trade deficit, in addition to the global financial crisis, regional instability, and the COVID-19 pandemic.

The document also noted that while employment in the industrial sector increased by 2.5 per cent between 2010 and 2019, this growth was insufficient to accommodate the influx of new entrants into the labour market.

It also reported that the textile and clothing sector emerged as the largest contributor to job creation among the industrial sectors, although 70 per cent of these jobs were filled by foreign workers.

Despite these hurdles, the sector has succeeded in reducing the energy intensity of production, positioning Jordan as a regional leader in this regard. Carbon dioxide emissions decreased from 2,075 kilotonnes in 2011 to 1,573 kilotonnes in 2019, despite the growth in value-added manufacturing.

The document also highlights the concentration of industrial exports in a limited number of products and markets. In 2010, 66 per cent of the sector’s exports were destined for markets in the MENA region by 46 per cent and the US by 20 per cent.

AstraZeneca buys French biotech firm Amolyt for $1b

By - Mar 14,2024 - Last updated at Mar 14,2024

The offices of British-Swedish multinational pharmaceutical and biopharmaceutical company AstraZeneca Plc. in Macclesfield, England, on July 21, 2020 (AFP file photo)

LONDON — Anglo-Swedish pharmaceuticals giant AstraZeneca on Thursday agreed to buy French biotech specialist Amolyt Pharma for about $1 billion, expanding further into the field of rare drugs.

"AstraZeneca... has entered into a definitive agreement to acquire Amolyt Pharma, a clinical-stage biotechnology company focused on developing novel treatments for rare endocrine diseases," it said in a statement.

The London-listed group added that the transaction would bolster its rare diseases division Alexion.

It will pay $800 million upfront for the Lyon-based company, plus an additional payment of $250 million payable after a specified regulatory milestone is reached.

"We enthusiastically welcome the proposed acquisition of Amolyt by AstraZeneca, an organisation that shares our dedication to delivering life-changing treatments to people living with rare diseases," added Amolyt Pharma Chief Executive Thierry Abribat. "This agreement offers the opportunity to meaningfully advance our pipeline therapies."

AstraZeneca's share price was up 0.1 per cent in early morning London trading following the news.

"The deal adds weight behind Astra's rare disease division," said Sophie Lund-Yates, lead equity analyst at stockbroker Hargreaves Lansdown, noting that Amoly is developing a treatment for an endocrine disorder which is in the final phase of clinical trials.

"This addition to the pipeline looks to be potentially lucrative."

The transaction is expected to close by the end of the third quarter.

Zara owner Inditex posts record profit

By - Mar 13,2024 - Last updated at Mar 13,2024

People pass by a Zara shop announcing discounts on the first day of the winter sales in Barcelona on January 7, 2017 (AFP photo)

ARTEIXO, Spain — Zara owner Inditex, the world's biggest fashion retailer, promised shareholders a record dividend on Wednesday after posting its highest-ever profits last year despite a complicated global backdrop.

The fashion giant, which has seen a strong performance on Spain's stock market over the past year, posted net profits of 5.4 billion euros ($5.9 billion), up 30 per cent from 4.1 billion euros in 2022 which was also a record.

The figure, which follows a solid fourth quarter, was in line with the expectations of analysts polled by financial data firm FactSet, who predicted profits of 5.36 billion euros.

Inditex has been able "to take advantage of the opportunities to keep growing profitably", said Oscar Garcia Maceiras, chief executive of the company which is based in the northwestern Galicia region.

The group, which since early 2022 has been headed by Marta Ortega, daughter of multi-billionaire founder Amancio Ortega, pointed to dynamic sales which hit a record 35.9 billion euros in 2023, a 10.4 per cent increase from the previous year.

Inditex, whose eight brands include Pull&Bear and upmarket label Massimo Dutti, notably benefited from consumers' taste for shopping online which rose by 16 per cent to reach 9.1 billion euros.

Given the results, the retail giant said it would pay shareholders a dividend of 1.54 euros, a 28 per cent increase from 2022, and the highest in the group's history.

It also expressed optimism about 2024, given that sales have continued to grow in recent weeks, up 11 per cent year-on-year for the period from February 1 to March 11.

Inditex's results are at odds with the difficulties experienced by many other fast fashion retailers, some of which have been forced to close or lay off staff in recent months, notably in France, like Kookai and Paris fashion brand Naf Naf.

The sector is facing heightened competition from the rise of ultra-low-cost brands like Chinese platform Shein and Ireland's Primark which have unsettled traditional low-cost clothing chains.

It has also been hit by geopolitical tensions, notably in the Red Sea where global shipping has been disrupted by Houthi rebel attacks and by persistently high inflation, which has weighed on purchasing power.

But such pressures seem to have had little impact on Inditex which has posted a string of records and performed well on Madrid's Ibex 35 stock exchange.

The fashion giant — which launched its "Pre-Owned" second-hand clothes platform in around 15 countries in December — has seen its share value grow by more than 40 per cent to reach 40 euros over the past year.

That has raised its market capitalisation to more than 127 billion euros, confirming its position as global leader ahead of Japan's Fast Retailing, owner of Uniqlo and Sweden's H&M, currently in a rocky period after a disappointing 2023.

"The group's domination of the apparel retail market is more visible than ever," Bank of America analysts said late last year, saying retailer had entered "a virtuous cycle fuelling significant market share gain at industry leading margins".

Italy plans 1-b-euro AI investment fund

By - Mar 12,2024 - Last updated at Mar 12,2024

ROME — Italian Prime Minister Giorgia Meloni on Tuesday announced a 1-billion-euro investment fund to promote artificial intelligence projects and called for "ethical rules" to govern the technology's use.

She was speaking at an event in Rome, two days before her country hosts a meeting of G7 technology ministers where AI will be top of the agenda.

The new investment fund, which would include new money as well as existing funds, was intended as seed money to attract further investment, she said, with the goal of creating "an Italian way to develop AI".

Meloni said Italy was also working on its own legislation, complementary to the EU's world-first law currently under development, to "establish some principles" and also identify how to boost homegrown companies.

"It is a technology which can unleash all its positive potential only if its development moves within a perimeter of ethical rules which put the person, their rights and needs, at the centre," she said.

The rapid development of AI has become a topic of global concern, turbocharged by the 2022 launch of ChatGPT, a generative programme by Microsoft's OpenAI that can pen stories, create pictures, write computer code and more from simple text prompts.

Meloni has said AI will be a priority of Italy's presidency this year of the Group of Seven (G7) richest countries.

At a meeting of G7 ministers in Verona and Trento on Thursday and Friday, Rome hopes to work towards a "toolkit for the ethical and human-centred development and use of all AI systems in the public sector".

It is also seeking to develop "appropriate mechanisms for voluntary monitoring" of the adoption of a non-binding code of conduct agreed by G7 powers last year for companies developing the most advanced AI systems.

Most markets push higher as US inflation data looms

By - Mar 12,2024 - Last updated at Mar 12,2024

Gas prices are displayed at a Shell petrol station on October 2, 2023, in Alhambra, California (AFP photo)

HONG KONG — Equity markets mostly rose on Tuesday following the previous day's sell-off, with focus on the release of US inflation data that could play a key role in the Federal Reserve's decision-making on cutting interest rates.

The broadly upbeat performance came despite a tepid showing on Wall Street, and with analysts warning the recent rally across equities could stall as investors lock in profits and assess the outlook for monetary policy.

There is a lot of nervousness on trading floors ahead of the February consumer price index report due later in the day after a surprise uptick in January that dented hopes the central bank would begin cutting rates sooner rather than later.

Futures traders are now betting on three reductions this year, compared with the six forecast at the start of the year.

"It is imperative to avoid a repeat of the last CPI release," said SPI Asset Management's Stephen Innes.

"Another report similar to January's could raise doubts about the Fed's rate cut wisdom in 2024. If the inflation dragon shows up again, it will not sit well with risk appetite."

Hong Kong pressed ahead with its recent advance, climbing more than three per cent, helped by fresh buying of tech firms and following above-forecast Chinese inflation data at the weekend that soothed worries about the country's economy.

Electronics giant Xiaomi surged more than 10 per cent after saying it will start deliveries of its first electric vehicle by the end of this month.

There were also gains in Sydney, Seoul, Singapore, Taipei, Mumbai and Manila.

However, Tokyo fell again as speculation swirls that the Bank of Japan will next week shift away from its ultra-loose monetary policy that has helped strengthen the yen.

Shanghai, Wellington and Bangkok also fell.

London, Paris and Frankfurt rose at the open.

Traders brushed off a broadly negative day on Wall Street, where investors have pushed equities to multiple record highs this year, and analysts suggested the rally could peter out.

"Stocks are likely overdue for some consolidation or even an extended period of modest declines at some point in the year," Anthony Saglimbene at Ameriprise said.

"Without a meaningful shift in the fundamental picture, we suspect investors would welcome such a downdraft and treat the event as a buying opportunity."

The prospect of US interest rates coming down this year has played a role in pushing bitcoin to new record highs, with the cryptocurrency peaking at $72,880.

Moves by US authorities and now regulators in Britain to allow exchange-traded funds for the unit have also provided support, opening it up to new classes of investors.

Bitcoin zooms to record beyond $72,000

By - Mar 12,2024 - Last updated at Mar 12,2024

This illustration photo taken on July 19, 2021 in Istanbul shows a physical banknote and coin imitations of the Bitcoin crypto currency (AFP photo)

LONDON — Bitcoin raced to an all-time peak above $72,000 Monday as the world's most popular cryptocurrency won further support on greater trading accessibility and dollar weakness.

The virtual unit struck $72,234 as dealers also eyed an upcoming industry event that traditionally boosts bitcoin's price.

Monday's spurt extended last week's record-breaking run when the currency bulldozed its way past the previous November 2021 pinnacle of $68,991.

Bitcoin won further support Monday after Britain's Financial Conduct Authority (FCA) watchdog said it would join US regulators by allowing the creation of crypto-related securities.

US authorities earlier this year gave the green light to exchange-traded funds (ETFs) pegged to Bitcoin's spot price, making it easier for mainstream investors to add the unit to their portfolio.

 

Crypto 'going mainstream' 

 

"This [FCA statement] suggests that crypto is going mainstream, and not just bitcoin but also other established coins," XTB analyst Kathleen Brooks told AFP.

"We know that the demand is there, and this comes on the back of $10 billion of inflows into Bitcoin ETFs in the United States."

ETFs are widely regarded by commentators as proof of burgeoning crypto interest from institutional investors, further buoying investor enthusiasm.

Bitcoin is created — or "mined" — as a reward when powerful computers solve complex problems to validate transactions made on the blockchain.

But the reward given to Bitcoin "miners" — those who contribute to the creation of the blockchain by validating transactions — is about to be divided by two.

Next month's so-called "halving" has lent strong support to the unit's price in recent days and weeks by tightening supplies.

"Bitcoin has surged to a fresh all time high, boosted by strong ETF inflows and ahead of the April halving event," said City Index analyst Fiona Cincotta.

"The crypto market has skyrocketed 350 per cent from its 2022 low and shows little sign of stopping after the doors have been opened to institutional investors and as retail investors experience FOMO," she said in reference to a 'fear of missing out'.

Cincotta predicted that $100,000 could become "the next natural target" but sounded a note of caution.

"Bitcoin is extremely volatile and could drop just as quickly as it has risen," she warned.

 

Who created bitcoin? 

 

Momentum came also from the weaker dollar as Friday's US jobs data firmed expectations that the Federal Reserve remained on track to start cutting interest rates in June.

At its current price, bitcoin has soared almost 70 per cent since January, when it stood at about $43,000.

However, it slumped to $15,000 in November 2022 following the collapse of crypto exchange FTX.

The digital currency has a finite number of units. Bitcoin's creator Satoshi Nakamoto has limited the maximum number of Bitcoins to 21 million.

An ongoing court case in London is seeking to determine whether Australian computer scientist Craig Wright invented Bitcoin.

Wright says that he is Nakamoto, author of a white paper that introduced the cryptocurrency to the world in 2008.

Crypto Open Patent Alliance, a non-profit organisation set up to keep cryptocurrency technology free from patents, is suing Wright over the claims.

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