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Arab Potash Company to distribute cash dividends at a rate of 150%

By - Apr 30,2014 - Last updated at Apr 30,2014

AMMAN — Arab Potash Company (APC) will be distributing cash dividends to shareholders at a rate of 150 per cent as authorised by a general assembly meeting this week.

According to an APC disclosure to the Amman Stock Exchange, the shareholders also agreed that  both APC and Jordan Bromine Company have a joint liability in the natural gas purchase deal  as recommended by the board of directors.

APC Chairman Jamal Al Sarayreh indicated in the company’s 57th annual report that the gas deal was extremely necessary to check high energy and electricity costs arising especially from expensive heavy oil fuel.

By securing natural gas by 2016 for 15 years from Nobel Energy, the chairman pointed out that APC will be able to cut potash production cost by JD11 per tonne. 

“For APC to maintain competitiveness, it became a matter of survival  that we seek solutions to curb high production costs,” Sarayreh wrote in a foreword, noting that the company could not have a say in the international prices of potash.

He indicated that due to high energy costs, APC was forced last year to close the salt and magnesia plants and, consequently, dismiss hundreds of workers.       

Sarayreh explained that besides lower international prices of potash, APC suffered in 2013 from a 30 per cent increase in energy prices, a 9 per cent rise in water charges and a 9 per cent in labour costs.

With all these challenges, APC generated a JD130.7 million net profit last year compared to JD198.8 million in 2012. Sales came at JD521.2 million, down from JD586.3 million.

The high production cost showed in JD337.9 million that was incurred in 2013 compared to JD285.6 million in the previous year during which  the sales were much higher.

According to the annual report, APC paid JD25.9 million to the state treasury as mining fees.

In terms of volume, APC production was down from 1.8 million tonnes in 2012 to 1.74 million tonnes last year, although the company described the 2013 level as 100 per cent in line with output plan. 

Experts discuss evaluation practices

By - Apr 29,2014 - Last updated at Apr 29,2014

AMMAN — Experts from 12 countries discussed this week generalising evaluation theoretically and practically in the Middle East and North Africa (MENA). 

Several sessions and workshops focused on evaluating development based on facts and evidence and best practices in evaluation, according to a statement sent from the Ministry of Planning and International Cooperation to The Jordan Times. 

The aim of the conference, Middle East and North Africa Evaluation Network (EvalMENA) held on Monday in Amman, was to learn prioritising, raise performance and enhance institutional governance and decision making mechanisms.

Planning and International Cooperation Minister Ibrahim Saif said  attention should not be paid only to finance development projects from aid, but also to finance productive investment projects, especially under the current circumstances prevailing in the region.

“This can be achieved by effective evaluation of the development programmes and practices to improve these communities and raise their performance in the future,” the statement quoted him as saying. 

The best practices underlined the importance of development through an effective agenda which is based on improving local and regional evaluation efficiencies and expertise. 

“Middle East and North Africa region is undergoing profound transformations. The evaluation profession is called into play an important role in shouldering these transformations towards an inclusive and equitable better future, otherwise the whole region will get constantly entangled in a never-ending spiral of social unrest,” Saif said.

War-ravaged Syria may face worst wheat harvest in 40 years

By - Apr 29,2014 - Last updated at Apr 29,2014

AMMAN/ABU DHABI — War and drought have crippled Syria's wheat crop, with some experts now forecasting output of the staple food could fall to around a third of pre-war levels, and possibly even below one million tonnes for the first time in 40 years.

Agricultural experts, traders and Syrian farmers who talked to Reuters gave crop estimates ranging from one million tonnes to 1.7 million at best, a more pessimistic range than that given by the United Nations earlier this month.

Before the war, Syria produced around 3.5 million tonnes of wheat on average, enough to satisfy local demand and usually permit substantial exports, thanks in part to irrigation from the Euphrates River that waters its vast eastern desert.

The last time its wheat harvest failed to exceed one million tonnes was in 1973, although catastrophic droughts have pushed the crop close to that level in 1989 and 2008.

"This year the maximum that Syria will reach in terms of local wheat production will not exceed one million tonnes," a Middle East-based commodities trade source with knowledge of Syrian grain markets said.

"One of the main factors limiting production is that it is becoming increasingly difficult to produce it given the extent of the war. There is genuine fear on the ground in traditional production areas and the risks are high," he indicated

The UN's World Food Programme (WFP) had cited an estimate of 1.7 million to 2 million tonnes for this year and said that rainfall relied on for crops in Syria's northwestern region was less than half of the average since September.

"There are a host of factors, starting from the start of ploughing to soil fertilisation to harvesting and transport and marketing, and the whole process is disrupted, all is reduced to a minimum level," Hillal Mohammad, a UN agricultural expert based in Amman, said.

Before the war, the Syrian government typically bought around 2.5 million tonnes of wheat each year to distribute to bakeries that feed the public subsidised bread, and to bolster its strategic reserve.

Government purchases of domestic wheat have declined and are expected to fall further as chaos caused by civil war and drought hurt the state's ability to secure supplies.

Nearly a third of Syrians have either fled the country or are displaced within it, and swathes of territory are in the hands of rebels fighting to overthrow President Bashar Assad, where the government food distribution system has crumbled.

The agriculture ministry told state media earlier this month that wheat was being grown on 1.2 million hectares of land but did not give an estimate of how much would be produced or bought by the government. Syria typically planted 1.7 million hectares before the war, according to the US Department of Agriculture.

Experts doubt the Damascus government's ability to forecast figures accurately, citing the difficulty of gaining access to most crop growing areas.

"It's difficult for agricultural officials in a country where state organs have effectively lost administrative control of large swathes of territory in the main grain producing Jazira area to assess the crop sown in these areas, let alone estimate production," said an agricultural expert with close knowledge of Syria, who spoke on condition he not be identified.

Agriculture ministry officials declined to comment on the matter when contacted by Reuters.

Yusef Abu Ahmed, a farmer in Atma, a northern village near the Turkish border, said by telephone that the length of wheat stalks was about 20 centimetres compared with 80 centimetres in normal years.

Some farmers have pumped underground water to compensate for poor rain, but the high cost of diesel has limited that choice for others in the western agricultural belt of Idlib, Aleppo and Homs, where wheat production is mostly rain-fed.

"Our wheat straw will end up being used for grazing because of the poor rain this season," said Ibrahim Al Sheikh, a 36 year-old farmer in the plains of Halazoun, in rebel held northwestern Syria.

 

Disruptions to state procurement

 

With drought hitting its rain-fed wheat crop in the west, the hope for Syria seems to lie in its irrigated crop lands in the east, which before the crisis constituted almost 60-70 per cent of the country's total wheat production.

Some local farmers told Reuters they have sown large tracts of land using elaborate irrigation canals and dams that preceded the crisis, and have escaped widespread damage.

The agriculture ministry says it set aside 80 billion Syrian pounds ($539.88 million) to buy wheat and barley this season.

Still, even with the funds for procurement set aside and with irrigated lands escaping the drought, the government is not guaranteed to get its hands on the production.

"Even if there is production, marketing is severely disrupted," Mohammad indicated. "It's getting worse for farmers getting seed and fertilisers etc, and for the state's elaborate procurement system, with collection and gathering centres almost no longer functioning." 

In many parts of Syria's main eastern breadbasket area known as Al Jazira, which spans Hasaka, Deir Al Zour and Raqqa provinces, the government is not in control. The area around the now rebel-held city of Raqqa alone produces around a quarter of the national harvest.

One local resident from a farming family said the militant Islamic State of Iraq and the Levant that governs Raqqa and its rural hinterland have told farmers they are free to dispose their wheat as they choose, even selling it to Turkish traders.

Government officials do have good access to areas in Hasaka, Hama and some areas in the northeastern part of the country near the Kurdish-held Qamishli city, another agricultural expert said on condition of anonymity. But the situation in the country overall remains murky. 

Interior ministry to facilitate permits, security procedures

By - Apr 29,2014 - Last updated at Apr 29,2014

AMMAN –– The Ministry of Interior will ease security procedures for investors as well as measures related to labour permits, a government official said Tuesday. 

According to a statement issued by the Jordan Industrial Estates Corporation (JIEC), director of the interior ministry's local development directorate Raed Odwan said the ministry plans to sign an agreement with the corporation soon to relax security measures for non-Jordanian investors in a bid to boost investments in the Kingdom. 

Odwan was quoted by the statement as saying that the agreement would be in line with the ministry's strategy to achieve economic development, particularly in governorates. 

The statement said the official made the remarks as he was attending a visit by JIEC Director General Loay Sehwail to Balqa Governorate. 

Sehwail revealed that JIEC has floated a tender to design an industrial estate in Balqa, noting that it will be built on 221 dunums. 

Sehwail said the corporation has attracted a total of 21 investments in the industrial sector during the first quarter of 2014, with an estimated value of JD69 million. 

The investments are projected to create 3,500 jobs, he added. 

According to the JIEC chief, the value of investments in industrial estates reached JD2.29 billion by the end of 2013 compared with JD2.1 billion in 2012. 

The investments are expected to create 40,000 employment opportunities, he added.

Private sector wants real, not superficial, planning role

By - Apr 29,2014 - Last updated at Apr 29,2014

AMMAN –– The private sector wants to be involved in the Kingdom’s long-term economic development plan the government is working on in response to directives by His Majesty King Abdullah. 

Representatives of the sector warned they will not play a superficial role in the plan, stressing that they should be real partners in economic decisions as they are the largest  contributors to the state treasury. 

Concluding a two-day dialogue session on Tuesday to discuss the letter King Abdullah sent to Prime Minister Abdullah Ensour late March, leading economists, former decision makers and businesspeople urged the government to draw up a clear 10-year goal-oriented plan for the economy. 

During the session, hosted by the Amman Chamber of Commerce (ACC), participants issued a number of recommendations, which they said would lead to a stronger economic performance. 

“Addressing budget constraints should not be the only focus of government decisions, but also employment and the development of governorates should be taken into account,” the participants emphasised, calling for more stability in legislations in order to protect local and foreign investments. 

Recommendations announced by ACC President Issa Murad  called on the government to stop competing with the private sector for financing from local banks as such demand, according to them, pushed up "sharply" the cost of loans for private companies. 

They also stressed the need to establish a development bank in cooperation with the private sector to extend long-term loans at affordable interest rates. 

According to the experts, the government should work on cutting the size of the public sector by 2 per cent annually so spending on government salaries would be down by 20 per cent in 10 years. 

Improving the transportation infrastructure was also among the recommendations, besides underlining the importance of linking higher education with market labour needs. 

The participants urged supporting the agricultural sector to be able to meet domestic food consumption and lower the cost of imports. 

The participants made tens of recommendations, among which was also the need to cancel some independent government agencies and to merge some with other entities that perform relatively similar duties.      

Beware financial intermediaries, Central Bank of Jordan tells public

By - Apr 28,2014 - Last updated at Apr 28,2014

AMMAN — The Central Bank of Jordan (CBJ) on Monday warned against dealing with local companies that claim to mediate with commercial banks in return of money. In a statement, the CBJ said some companies have announced readiness to present loans for citizens and mediate with commercial banks to obtain loans in return of fees, stressing that these companies are not licensed.  The CBJ underlined that banks are banned from dealing with such entities, noting that they are only allowed to extend loans according to their credit policy. People who wish to obtain a loan should directly head to the bank, according to the CBJ.

Housing Bank ups Q1 pretax profit by 13.8%

By - Apr 28,2014 - Last updated at Apr 28,2014

AMMAN — The Housing Bank announced in a press statement on Monday that pre-tax profit amounted to JD41 million during the first quarter (Q1) of 2014, 13.8 per cent higher than the JD36 million generated during the first quarter of last year.

According to the statement, after-tax net profit came at JD31.3 million, a 20.9 per cent increase over the JD25.9 million posted during the January-March period of 2012.

Chairman Michel Marto pointed out that interest and commission income rose by 7.2 per cent to JD75.4 million, and that  total assets increased by 3.2 per cent to JD7.5 billion by the end of March 2014. 

“Customer deposits balance rose by 3.4 per cent to JD5.3 billion, credit facilities portfolio increased by 4 per cent to JD3.1 billion, and equity rights by 2.8 per cent to JD1.1 billion,” Marto indicated in the statement.

The bank’s performance indicators showed capital adequacy ratio at 18.5 per cent, and liquidity at 158 per cent.

Efficiency index (expenses-to-income ratio) was about 41.8 per cent, according to the statement.

Marto concluded that the branches in Bahrain and Palestine and the subordinate banks in Algeria and Britain have achieved good results and that the International Bank for Trade and Finance/ Syria kept consistency and its achievement was compared with the performance of other banks there.

Two new branches were opened during the first quarter of this year  bringing the total in Jordan to 121 besides 204 ATMs after adding five ATMs.

Ensour, Halawani and Zeybekci advance Jordanian-Turkish ties

By , - Apr 28,2014 - Last updated at Apr 28,2014

AMMAN — Deputising for His Majesty King Abdullah, Prime Minister Abdullah Ensour on Monday received in his office Turkish Economy Minister Nihat Zeybekci and the accompanying delegation of businessmen and Turkish private sector representatives. 

Ensour and Zeybekci discussed ways of boosting economic relations between the two countries. 

The premier welcomed the Turkish private sector to benefit from the investment opportunities in Jordan, and the possibility of being a gateway for Turkish products to reach the region’s markets. 

Zeybekci said the talks come in follow-up to His Majesty’s visit to Turkey in March 2013 so as to benefit from the incentives provided by the Kingdom.

Separately, Industry, Trade and Supply Minister Hatem Halawani on Monday commended the Jordanian-Turkish Partnership Council as a partnership agreement to establish a free trade zone between Jordan and Turkey. 

The partnership between the two countries started in 1980s and continued to develop until the trade exchange reached $855.2 million, with Turkish investments in the Kingdom reaching $114 million. 

The council aims at developing cooperation between the two countries, especially at the economic and commercial levels.

Earlier on Monday, Zeybekci and Halawani  attended the official opening ceremony  of the Kibar  Industry Mafraq plant.

 Kibar Industry Co., which is an affiliate of Kibar Holding, started operating  in Jordan on an area of 65,000-square-metres with 10,000-square-metre indoor area, in the city of Mafraq. 

The site is Kibar’s 4th plant manufacturing sandwich panel. The investment is part of the Assan Panel Group, which is the leading sandwich panel manufacturer in Turkey.

 The plant’s foundations were laid at the beginning of 2012, and it now has the highest capacity product line in the Middle East with a production capacity of 4.5 million square metres.

The plant manufactures roof and façade sandwich panels with polyurethane and polyisocyanurate insulation providing high fire-resistance as well as sandwich panels up to 20 centimetres thickness for cold storages.

Prime minister affirms Jordan’s sound economic position

By - Apr 28,2014 - Last updated at Apr 28,2014

AMMAN —  Prime Minister Abdullah Ensour affirmed on Monday Jordan’s sound economic position.

Inaugurating a regional conference on small- and medium-size enterprises (SMEs), the premier pointed to local economic indicators and foreign currency reserves as solid proof of real economic growth which accelerated from 2.3 per cent at the end of 2010 to 2.8 per cent last year.

Stressing that the Kingdom was no longer in the economic danger zone, he mentioned that foreign currency reserves went up from $6.6 billion in 2012 to around $12 billion at the end of last year and that the remittances of expatriates have gone up noticeably.

As such, Ensour noted that funds are sufficient to cover the country’s imports for a period of about seven months compared to less than four months during 2012.

The premier expressed appreciation of all the countries that supported the Kingdom during the difficult conditions, especially those related to the Syrian crisis.   

Ensour highlighted SMEs’ contribution for the development process, stressing the importance of the conference and the need to arrive at applicable recommendations that can help in providing a decent life for Jordanians.   

Last month, the government formed a higher committee to deal with financing SMEs, Ensour indicated, noting that the committee was entrusted with supporting SMEs in all possible ways.

Addressing the attendance, Industry and Trade Minister Hatem Halawani highlighted the government’s efforts to eliminate obstacles facing economy sector and SMEs, in particular. 

Jordan Chamber of Industry Chairman Ayman Hatahet highlighted the role of SMEs in dealing with the issue of unemployment, emphasising the role of the private sector in achieving comprehensive and sustainable development. 

 Entitled “Chambers of Industry and Trade and Business Organisations…Vehicles for Change,” the conference seeks to demonstrate best global practices and to assist SMEs in reaching finance sources. 

More than 99 per cent of Jordanian companies are SMEs, accounting for 40 per cent of the gross domestic product and hiring 70 per cent of the overall work force.

Out of 156,000 SMEs, 18,000 are industrial. 

Around 300 lecturers and other participants from Kuwait, Egypt, Turkey, Bahrain, United Arab Emirates, Denmark, and Malaysia besides Jordan are taking part in the conference, organised by the Jordan Chamber of Industry, in cooperation with the Confederation of Danish Industry and the Arab Planning Institute.   

Decision imposing customs duties on exempted goods angers traders

By - Apr 28,2014 - Last updated at Apr 28,2014

AMMAN — Amman Chamber of Commerce (ACC) on Sunday expressed total shock over a decision, issued in the Official Gazette, imposing customs duties on exempted goods without taking the views of the commercial sector. In a statement, ACC President Haidar Murad said the decision will place additional financial and tax burdens on merchants and importers. According to the Official Gazette,  one per cent of the value of the already exempted goods will be levied in customs duties, provided that the amount is no less than JD25 and does not exceed JD2,000.  Murad said the government should re-consider the decision and stop it right away, until it is completely nullified.

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