Business

AMMAN — Chief Executive Officer of Amman Stock Exchange (ASE) Mazen Wathaifi said that 95.2 per cent out of 169 listed companies have provided the ASE with their audited annual financial statements for the period ended 31/12/2022 during the specified period in the Directives of Listing Securities ended on 31/3/2023, through the e-disclosure System XBRL. 

This high percentage reflects the compliance of listed companies with the laws and regulations, and the compliance of such companies with the principles of transparency and disclosure, said a statement posted on the ASE website.

The profits after tax attributed to shareholders for the public shareholding companies listed on ASE that provided the stock exchange with its financial statements amounted to JD2421.9 million, compared with JD1305.9 million for the same companies of year 2021, an increase of 85.5 per cent.

These profits are unprecedented historically by these companies. The profits before tax amounted to JD3348.6 million for the year 2022, compared with JD1815.3 million for the year 2021, which represents an increase of 84.5 per cent.

At the sector level, the profits after tax attributed to shareholders of companies for the industrial sector amounted to JD1347.5 million for the year 2022 compared with JD576.8 million for the year 2021, which represents an increase of 133.6 per cent. 

As for services sector these profits amounted to JD241.9 million for the year 2022, compared with JD117.7 million for the year 2021, an increase of 105.6 per cent. And for the financial sector the profits showed a value of JD832.6 million for the year 2022 compared with JD611.5 million for the year 2021, an increase of 36.2 per cent.

Wathaifi added that all listed companies on the ASE should provide their audited annual financial statements within the specified period, according to the Directives for Listing Securities on the ASE.

Wathaifi said that the ASE posts these financial statements on the ASE website under Circulars and Disclosures/annual reports window.

He added that four companies namely, the Arab Assurers Insurance, Winter Valley Tourism Investment, Afaq for Energy and Afaq Holding for Investment & Real Estate Development have failed to provide the ASE with their audited annual financial statements for the period ended on 31/12/2022 during the specified period.

Accordingly, the ASE suspended their shares from trading as of Sunday 02/04/2023. The trading in these company’s shares will remain suspended until they provide the ASE with the required financial statements.

Wathaifi also indicated that the ASE will continue suspending the trading in shares of Al Aanabel International for Islamic Investments (holding) and transport & investment barter company, for failing to provide the ASE with their previous financial statements, in addition to the annual financial statements for the period ended 31/12/2022, noting that the shares of these companies shall continue to be available for trading in the unlisted securities market.  

With regard to the companies that were granted a period to comply with listing conditions in the second market, Wathaifi mentioned that two companies namely Arab Union International Insurance Company and International Brokerage & Financial Markets have failed to provide the ASE with their audited annual financial statements for the year 2022  within the specified period.

Accordingly, the ASE will suspend and delist the shares of Arab Union International Insurance Company from the ASE, and shall be allowed for trading at the over-the-counter (OTC) market.

Also, the ASE will delist the shares of international brokerage and financial markets, and continue its trading at the OTC market, by virtue of the provisions of Article (17/a/5) of the directives for listing securities. 

AMMAN — Huawei released its 2022 annual report on Friday which indicates steady operations throughout 2022. The company generated $92.37 billion in revenue and $5.12 billion in net profits. 

Huawei continues to strengthen investment in research and development (R&D), with an annual expenditure of $23.22 billion in 2022, representing 25.1 per cent of the company's annual revenue and bringing its total R&D expenditure over the past 10 years to more than $140.55 billion, according to a Huawei statement. 

Eric Xu, Huawei's rotating chairman, said at the annual report conference: "In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei's operations."

"In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers. 

We also went to great lengths to grow the harvest — generating a steady stream of revenue to sustain our survival and lay the groundwork for future development," he said. 

Sabrina Meng, Huawei's CFO, said: "Despite substantial pressure in 2022, our overall business results were in line with forecast. At the end of 2022, our liability ratio was 58.9 per cent and our net cash balance was $25.35 billion. In addition, our balance of total assets reached $0.15 trillion, largely composed of current assets such as cash, short-term investments, and operating assets. Our financial position remains solid, with strong resilience and flexibility. In 2022, our total R&D spending was CNY 23.22 billion, representing 25.1 per cent of our total revenue."

In 2022, revenue from Huawei's carrier, enterprise and consumer businesses amounted to $40.84 billion, $19.15 billion, and $30.84 billion, respectively.

"2023 will be crucial to Huawei's sustainable survival and development," Xu noted. 

LONDON — The UK economy performed slightly better than thought in the final quarter of last year, revised data showed on Friday, but analysts warned of recession risks as inflation remains sky high.

The Office for National Statistics (ONS) said the economy grew 0.1 per cent in the October-December period after an initial estimate showing flat output.

Either way, the UK narrowly avoided falling into recession at the end of 2022 despite a cost-of-living crisis.

"The economy performed a little more strongly... than previously estimated, with later data showing telecommunications, construction and manufacturing all faring better than initially thought," noted ONS director of economic statistics, Darren Morgan.

He added that households saved more in the last quarter, with finances boosted by government support to pay sky-high energy bills.

"Meanwhile, the UK's balance of payments deficit with the rest of the world narrowed, driven by increased foreign earnings by UK companies, particularly in the energy sector," he added.

Oil and gas prices soared last year as supplies tightened following the invasion of Ukraine by key energy producer Russia.

That largely contributed to inflation soaring worldwide in 2022, with UK consumer prices reaching a four-decade high above 11 per cent.

After dipping at the end of last year and start of 2023, British inflation rose back to 10.4 per cent in February.

Recession in 2023? 

"The final quarter GDP data suggested the economy was even more resilient in 2022 than we previously thought, as the government absorbed some of the hit to households from high inflation," Ruth Gregory, deputy chief UK economist at Capital Economics, said following Friday's data. 

"But we still think that about two-thirds of the drag of higher interest rates has yet to be felt and that the economy will slip into a recession involving a peak to trough fall of about 1 per cent this year." 

Other economists believe the UK will avoid recession in 2023, matching a prediction from the government.

The Bank of England (BoE), which has aggressively raised its interest rate several times over more than a year in a bid to cool inflation, has expressed hope the UK will swerve recession, which refers to at least two quarters of contraction in a row.

Separate data Friday from major mortgage provider Nationwide showed UK house prices slid 3.1 per cent year-on-year in March, as BoE interest-rate hikes took their toll.

That was the biggest decline since 2009 when the global financial crisis was still in full flow.

Retail lenders tend to match the central bank's increases to borrowing costs, resulting in higher repayments on home loans.

Pay rises 

With inflation still elevated, Britain on Friday said its minimum wage would jump by a record 9.7 per cent from Saturday.

April also sees the country's state pension leap by a record amount, at more than 10 per cent.

It comes as Britain continues to face mass strike action by thousands of public and private sector workers battling for pay rises that match the surge in inflation.

The latest walkout Friday saw the start of a 10-day strike by about 1,400 security guards at Heathrow airport, forcing the cancellation of several flights to and from London's main hub.

BRUSSELS — The European Union reached a deal Thursday to almost double the share of renewables in the 27-nation bloc's energy consumption by 2030 amid efforts to become carbon neutral and ditch Russian fossil fuels.

The provisional political agreement, which was reached after nightlong negotiations between the EU parliament and states, seeks to raise the share of renewable energy to 42.5 per cent, from 22 per cent today.

The EU has set an ambitious target to become a "climate neutral" economy by 2050, with net-zero greenhouse gas emissions.

The move also comes as it has sought to slash dependence on Russian fossil fuels after Moscow cut gas supplies last year and the bloc placed bans on seaborne crude and other petroleum products from the country.

"Renewable energy will... contribute to our energy sovereignty by reducing fossil fuel imports," European Commission Vice President Frans Timmermans said, adding it would also mean cheaper energy for consumers and business.

But environmental groups criticised the agreement, saying it did not go far enough.

"A mandatory 45 per cent target would already be weak and outdated... anything lower than 45 per cent simply shows European disunity and lack of ambition," said Cosimo Tansini, policy officer for renewable energy at the European Environmental Bureau.

Cutting red tape 

The deal is a compromise between the 45 per cent share for renewables that was sought by EU lawmakers and the European Commission, the EU's executive branch, and the 40 per cent preferred by the states.

The previous target for 2030 had been set at 32 per cent.

The deal says member states should, however, make every effort to achieve 45 per cent.

The proposed directive also seeks cutting red tape for renewable energy projects.

The goal is to "fast-track the deployment of renewable energies" as part of the EU's plan "to become independent from Russian fossil fuels, after Russia's invasion of Ukraine", said a statement from the Council of the EU which represents the bloc's governments.

Companies have complained that red tape has slowed the development of such infrastructure.

Nuclear debate 

The agreement includes hydrogen, nuclear power and biomass on the list of sources of renewable energy along with solar and wind technology.

Biomass derives from organic material such as trees, plants and urban waste, and includes the burning of wood to produce electricity.

Scandinavian countries defend the practice, but it is criticised by environmental groups over concerns about its impact on forests.

Pascal Canfin, chairman of the European Parliament's environment committee, said the agreement sets strict rules on using biomass.

"The use of biomass is better regulated even if the parliament wanted to go further," Canfin, of the centrist Renew political group, said.

Markus Pieper, of the right-wing European People's Party, said the agreement makes biomass "100 per cent green".

Canfin said the deal also "recognises the specific role of nuclear [energy] which is neither green nor a fossil fuel".

The inclusion of nuclear power was hotly debated in recent weeks.

Major nuclear energy producer France and its allies wanted "low-carbon hydrogen", which is made using nuclear energy, to have the same status as hydrogen made from renewables such as solar and wind power.

A group led by Germany had been opposed to including hydrogen produced from nuclear power over concerns it would slow investments in renewables.

A deal was finally reached after Sweden, which holds the rotating EU presidency, proposed a compromise.

Canfin said the deal means that France will be able to use nuclear energy and not be forced to build renewables infrastructure to produce hydrogen for industry and transport.

"It was an absolute condition for France to support the final agreement," Canfin said.

AMMAN — The board of directors of Orange Jordan, represented by Shabib Ammari, invited several ministers, key figures, and media representatives to an iftar banquet to celebrate Orange Jordan’s achievements, led by Thierry Marigny, the company’s CEO who is leaving after five years, according to a statement from the company. 

The board also welcomed the new CEO, Philippe Mansour, who will join officially on April 1.

During the iftar banquet, Ammari thanked Thierry Marigny for his contributions to Orange Jordan and its vital role in driving progress in the Kingdom.

Ammari highlighted some of the company’s most notable achievements under Thierry’s leadership, such as digital transformation, the agreement with the Telecommunications Regulatory Commission to pave the way for 5G, the Orange Solar Farms project, and the company’s active role during the COVID pandemic.

Orange Jordan’s corporate social responsibility strategy witnessed “massive developments” over the past years, including the launch of the Orange Digital Village in Amman, Aqaba, and other governorates. 

The company’s free digital programmes expanded to more than 50 locations across Jordan to empower youth for the job market and entrepreneurship.

Marigny thanked Orange Jordan’s board of directors, executive committee, partners and guests. “I am happy with Orange’s achievement and positive impact in Jordan, digitally and socially, and I am certain that the company will continue to move forward under the new CEO," he said.

As the Chief Strategy Officer of the Orange Group and Chief of Staff to the Group CEO, Mansour has significant expertise in the telecom market. He holds a master’s degree in engineering from the Ecole Polytechnique and hold the title of Engineer in Chief of the French Corps des Mines.

Mansour occupied several roles in the industrial, telecommunications and energy sectors, and in high-level public administrations, such as the Budget Directorate, the Treasury and the Permanent Mission of France to the United Nations in New York before joining the Orange Group in 2018.

RIYADH — Undeterred by a crowded Gulf market, Saudi Arabia is going all in on an aggressive aviation expansion, with a massive jet order and the launch of a new national carrier.

The project aligns with a bid to remake the once closed-off kingdom as a business and tourism magnet, but analysts say that even with official backing, its path to success is complicated.

This month Crown Prince Mohammed Bin Salman, Saudi Arabia's de facto ruler, unveiled Riyadh Air, the new airline which is intended to transform the capital into "a gateway to the world", according to state media.

Two days later, officials said Riyadh Air and Saudia, the kingdom's existing flag-carrier based in Jeddah, would purchase 78 Boeing 787 Dreamliner jets.

The deal, which the White House valued at "nearly $37 billion" with options for up to 121 planes, constitutes the fifth largest by commercial value in Boeing's history.

Riyadh Air's chief executive, Tony Douglas, told AFP that the airline would serve the international, regional and domestic markets — putting it in direct competition with Gulf heavyweights Emirates and Qatar Airways.

That raises hard questions about how Riyadh Air will grab market share, especially at a time when long-haul non-stop flights that avoid the Middle East altogether are on the rise, said independent aviation analyst Alex Macheras.

"Replicating and then building on the successful business models of Gulf airline neighbours is going to be tricky in a crowded market where passengers are spoilt for choice," Macheras said.

New role for Riyadh 

Saudia, also known as Saudi Arabian Airlines, was founded in 1945, receiving its first jet as a gift from US president Franklin Roosevelt.

At the time, instead of Riyadh, foreigners were more likely to enter the kingdom via Jeddah on the Red Sea coast, which remains the "Gateway to Mecca", welcoming millions of Muslims performing the hajj and umrah pilgrimages each year.

Foreign embassies did not relocate to Riyadh, in central Saudi Arabia, until the 1980s.

These days, however, Riyadh is at the heart of Prince Mohammed's "Vision 2030" reform agenda intended to help transition the world's biggest crude oil exporter away from fossil fuels.

Officials talk it up as a rival to Gulf business hub Dubai, predicting that its current population of 8 million will balloon to 15-20 million by 2030.

Last November, officials announced plans for a new airport in Riyadh that is set to accommodate 120 million travellers per year by 2030, up from roughly 35 million today.

The projected growth makes Saudia's current model — in which it effectively has two hubs, Jeddah and Riyadh — untenable, Saudi Finance Minister Mohammed Al Jadaan told AFP.

"Jeddah alone needs one airline to concentrate on it with the hajj and umrah... So you need an airline that is focused on Riyadh," Jadaan said.

The new airline and airport reflect a mentality of "if you build it, they will come", said Robert Mogielnicki of the Arab Gulf States Institute in Washington.

"The question of what the demand side of this equation looks like has yet to be settled, but the Saudis must be pretty confident to push ahead with such a massive aircraft order," he said.

'Late to the party' 

The convenient location of airports in the Middle East — well-placed for flights to Europe, Asia and Africa — has helped fuel their rise as major hubs.

The trade group Airports Council International predicts the region's airports will see 1.1 billion passengers by 2040, up from 405 million in 2019.

Apart from Riyadh Air, Saudi Arabia is also launching NEOM Airlines, to be based in the planned $500 billion futuristic megacity of the same name.

Klaus Goersch, the airline's CEO, wrote in a recent blog post that it "will be operational at the end of 2024" and that NEOM itself could eventually become "a global aviation hub".

Saudi Arabia's expansion strategy hinges partly on tapping its roughly 35 million-strong population, which officials see as a major advantage over less-populated rivals like the United Arab Emirates and Qatar.

But according to analyst Macheras, the Boeing order suggests Riyadh Air's vision is "long-haul driven, which is consistent with its goals of operating as a transit hub carrier".

Competitors are taking note.

"Riyadh Air will certainly eat up part of the market share in the region and the Asian markets in particular," said an official at Qatar Airways, requesting anonymity because he was not authorised to speak to the media.

"We are poised to face a tycoon-to-be."

Perhaps Riyadh Air's biggest advantage is its owner — the deep-pocketed Saudi sovereign wealth fund, which Macheras said will "cushion what will inevitably be an incredibly capital-heavy first phase" ahead of inaugural flights in early 2025.

"It's clear the airline, although late to the party, thinks there is room for one more at the table," he said.

MANAMA — With a multibillion dollar economic revamp in full swing, tiny Bahrain is vying to keep pace with its Gulf neighbours after more than a decade beset by political unrest.

It's a difficult path for the island nation that is a neighbour to gas-rich Qatar and connected by a causeway to Saudi Arabia, a key ally and the world's biggest oil exporter.

The United Arab Emirates, another regional powerhouse with well-developed trade, tourism and financial industries alongside its large oil sector, is just a short flight away.

Bahrain has witnessed turbulence since the crushing of an uprising in 2011 but has since begun a modernising facelift, instigating economic and fiscal reforms.

Extensive land reclamations are literally changing the shape of the country, while a host of gleaming new buildings dot the skyline and cranes work above nascent housing developments.

The small, non-OPEC oil producer, is seeking to decrease its reliance on its oil sector which accounts for 80 per cent of revenues, much of that from refining.

"The principles are clear: We want to grow. We want to grow faster than the world," Khalid Ibrahim Humaidan, head of the government's Economic Development Board, told reporters this month in Manama, the capital.

An unexpected boost could come from the announcement of diplomatic ties between Saudi Arabia and Shiite-majority Iran, which Bahrain accused of stoking unrest during the 2011 protests.

"In an optimistic scenario, the Saudi-Iran rapprochement would gather pace and create a more conducive environment for political conciliation within Bahrain which in turn could derisk the economy," Gulf Economist Justin Alexander, director of consultancy group Khalij Economics, told AFP.

Building spree 

Bahrain, a monarchy whose Cabinet is appointed by the king, boasts a rich commercial tradition dating back to its days as a flourishing pearling centre.

Consisting of one large island and about 30 smaller ones, it was a British protectorate until 1971, becoming a financial hub that initially led its neighbours in terms of economic diversification.

Increased regional competition, mainly from Dubai and Doha, but also political instability and economic challenges, especially after global oil prices plunged in 2014, have all hurt Bahrain.

The 2011 uprising, inspired by revolutions sweeping the region, ended in a crackdown against demonstrators who had demanded an elected government.

Sunni-ruled Bahrain, assailing the movement as a plot by Shiite theocracy Iran, banned opposition parties and jailed political opponents, drawing harsh international criticism.

In 2018, wealthier Gulf countries agreed to support Bahrain's economic goals with $10 billion in loans, giving rise to the current building spree.

As well as land reclamations for new housing projects and skyscrapers around Manama, Bahrain is building diving centres including an underwater park.

A new $1 billion passenger terminal at its international airport opened last year, doubling annual capacity to 14 million passengers.

Bahrain has also built one of the region's biggest conference centres, aiming to attract international events and visitors.

Investors' concern 

The country's financial planners aim to balance the national budget by next year, with its Economic Vision 2030 focused on reducing reliance on oil and gas and developing finance, logistics and tourism.

Many visitors to Bahrain stream across the 25 kilometre King Fahd Causeway from Saudi Arabia where alcohol is banned, unlike its more laid-back neighbour.

Manama wants tourism to contribute 11.4 per cent of GDP by 2026, up from around seven percent currently.

Last year, real GDP increased 4.9 per cent, the kingdom's highest growth since 2013, the finance ministry said on Monday.

"We're confident that we will continue going down that path and achieve the results that we desire," said Humaidan, who spoke as Bahrain hosted its annual Formula One Grand Prix, an event it has held since 2004.

With a footprint the size of New York City, Bahrain is a Western ally and hosts the US Navy's Fifth Fleet and a smaller British base.

The kingdom of 1.4 million, half of whom are foreigners, enjoys a strategic location along shipping routes — making it an important logistics hub, but also placing it at the heart of regional conflicts.

"Bahrain has tried to develop new sectors, such as fintech... However, since the 2011 protests and crackdown, the tensions in Bahrain's society have become a concern for investors," said Alexander.

But after the Chinese-brokered deal to end Iran and Saudi Arabia's seven-year rift, Tehran said it would also welcome restoring ties with Manama.

At the same time, Bahrain's Crown Prince Salman Bin Hamad Al-Khalifa, 53, who was appointed prime minister in 2020, is among a new generation of Western-educated Gulf leaders positioning themselves as a force for change.

BEIJING — Alibaba announced Tuesday that it would split into six business groups in one of the most significant overhauls of a leading Chinese tech firm to date.

The Hangzhou-based firm is one of China's most prominent tech giants, with business operations spanning cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence.

Daniel Zhang, the company's chairman and CEO, said in a statement that the restructuring would enable each separate business to pursue its own fundraising and public listing plans.

Alibaba claimed the moves were intended to "unlock shareholder value and foster market competitiveness".

Under the new arrangement, each of the six newly established units will be managed by its own CEO and board of directors.

A key exception to the restructuring is Taobao Tmall Commerce Group — the operator of one of China's top online purchasing platforms — which will remain wholly owned by Alibaba Group.

Zhang will remain in his post as CEO of the company, although day-to-day operations of the individual business units will be ceded to the new management bodies.

The company said the new structure would bring greater market visibility to the value of its diverse business operations.

These changes will not affect Alibaba shares currently listed in New York and Hong Kong, the firm said.

Aiming for a more "nimble structure", the reorganisation will also involve cuts to the firm's middle and back office functions.

Recent years have seen the Internet giant face unprecedented headwinds as Beijing has imposed tighter restrictions on the domestic tech industry.

Combined revenue at China's internet companies shrank by just over 1 per cent to 1.46 trillion yuan ($212 billion) in 2022, the first contraction in almost a decade, according to data from the Ministry of Industry and Information Technology.

Alibaba founder Jack Ma has kept a low profile since late 2020, when a speech he made attacking Chinese regulators was followed by Beijing pulling the plug on Alibaba affiliate Ant Group's planned IPO.

Having ballooned into a sprawling corporate behemoth since its founding in 1999, the company has been seeking new ways to drive growth and reinvigorate its development.

Referring to the plan as a "transformation", Zhang said in the statement that it would make Alibaba "more agile, enhance decision-making, and enable faster responses to market changes".

Ma has been spotted around the world over the past two years, but made a rare public appearance in China on Monday after his fall from grace.

The celebrity entrepreneur has recently emphasised the need for Alibaba to embrace artificial intelligence technology, as new tools such as ChatGPT appear poised to reshape the global industry.