Economic and Business news

[MARTYR]

Abu Hammour stresses gov't keenness to support medium-, low-income classes

AMMAN (JT) - Finance Minister Mohammad Abu Hammour on Wednesday said the National Programme for Financial, Economic and Social Reform committed the government to continue the exemption of 12 basic food commodities from customs duties and sales tax. Indicating that despite the exemption from taxes and fees costs the state budget around JD70 million, the official said government subsidise to gas cylinders and bread will also cost the budget a total of JD172 million, indicating the government is committed to?protect the medium- and low-income segments of the Jordanian society.

According to a ministry statement. Abu Hammour stated the exemption from taxes and customs duties include also other 32 basic items in addition to other 31 services exempted from sales tax such as electricity distribution, land and air transportation and education among others.

[MARTYR]

Amman development projects yielding good results - Monarch

AMMAN - His Majesty King Abdullah on Tuesday expressed satisfaction with recent and ongoing development projects in Amman, saying citizens would soon feel the positive impacts of these projects.
Addressing over 1,000 of Amman's community leaders, the King emphasised the need for serious and coordinated efforts to ensure continued achievements in the capital and across the Kingdom.

King Abdullah called Tuesday's meeting the first step in a process of dialogue between community leaders, the government and all public entities aimed at developing the city and enhancing the living conditions of its residents.

His Majesty, who was briefed on the ongoing and upcoming projects and programmes in Amman, pledged to follow up on the implementation of these projects in line with a specific time frame to be agreed upon soon, adding that he will soon inaugurate several projects in the capital.

During a lunch banquet, King Abdullah and the community leaders discussed the capital's main needs in education, health and other fields.

Amman Governor Samir Mubaidin said a total of 53 projects in the areas of health, education and other public services have been implemented over the past three years in the capital, while JD243 million was allocated this year for implementing 171 projects in the area.

However, he said, despite the great strides made in expanding the city's public services over the past few years, some gaps remain.

On education, the governor said there are still 153 rented schools in the capital and 124 schools that operate on a shift system, and called for these two issues to be addressed.

Mubaidin also noted that several areas in Amman remain in need of healthcare centres, while the capital in general requires more youth facilities and a specialised centre for accommodating those with severe disabilities.

He also called for supporting sports and youth clubs in the capital.

Amman Mayor Omar Maani highlighted plans to rehabilitate and develop the capital's downtown and Jabal Al Qalaa areas, expressing hope that these projects will breathe life into these neighbourhoods, attract tourists and enhance business.

The mayor added that the Greater Amman Municipality (GAM) is working on a project to develop public transportation in the capital and encourage its use, which he said will help reduce traffic jams.

Maani added that GAM has begun implementing a plan to rehabilitate and repave the roads in the capital.

The municipality is currently working on dividing its jurisdiction into six or seven regions in order to improve services through decentralisation, he noted.

The mayor stressed that GAM will implement its scheduled projects without facing any financial obstacles.

[MARTYR]

TAG-Org and CIMA to Launch First Global Arabic Certificate in Islamic Finance from a Professional Chartered Accountancy Body

24 July 2010
CIMA and TAG-Org have now been working in partnership for a number of years to bring CIMA and TAG-Org credentials to Jordan, the Gulf states and the wider Arab speaking nations- Dr. Jelly, We are really happy to join forces with CIMA in introducing the TAG-CIMA Arabic version of the CIMA Certificate in Islamic Finance- Mr. Abu-Ghazaleh
The Talal Abu-Ghazaleh CIMA Academy hosted the global launch of the CIMA (Chartered Institute of Management Accountants) Certificate in Islamic Finance in Arabic in Amman on July 22nd at Talal Abu-Ghazaleh Forum/Talal Abu-Ghazaleh College of Business.

The launch of the Arabic certificate marks a major step forward for the Islamic finance industry - it is the first global qualification of its kind to be offered by a professionally chartered accountancy body.

Meanwhile, the two bodies will also cooperate in the Global Business Challenge; a competition in the business field provided by CIMA and will be represented in the Arab region through Talal Abu-Ghazaleh College of Business

The competition is based on case study methodology and will be judged by field experts recommended by TAG-College.

Mr. Robert Jelly, executive director of CIMA Education said: "It is a great honor to be here today in Amman, representing CIMA, the Chartered Institute of Management Accountants, for the launch of the TAG-CIMA Arabic version of the CIMA Certificate in Islamic Finance."

"CIMA and TAG-Org have now been working in partnership for a number of years to bring CIMA and TAG-Org credentials to Jordan, the Gulf states and the wider Arab speaking nations. Cooperation in the fields of business accounting and Islamic finance has been progressing well and I look forward to a growing partnership in years to come. The education and skills development of young people are close to both organizations' hearts - giving young people the opportunity to have sustainable and successful careers from which they can devote their skills and knowledge for the well-being of the companies they work for and of the economies in which they live in," he added.

Mr. Talal Abu-Ghazaleh, chairman and CEO of TAG-Org said:" We are really happy to join forces with CIMA in introducing the TAG-CIMA Arabic version of the CIMA Certificate in Islamic Finance. We believe it will have a positive impact and contribute to the success of the financial sector. Our work will continue to cover all aspects of this certificate, promote it and work on developing it according to our programs."

For more information on the CIMA Certificate in Islamic Finance, please log on to www.tag-cima.com www.cimaglobal.com/islamicfinance.

[MARTYR]

Jordan Dubai Islamic Bank Signs Service Agreement with Global HR Consulting Firm, Hewitt Associates for Enhancing its Human Resource Systems

24 July 2010
Jordan Dubai Islamic Bank and Hewitt Associates (NYSE:HEW) a global HR consulting firm signed an agreement wherein Hewitt will develop a comprehensive Performance Management System and a Long Term Incentive plan for JDIB's employees. These initiatives have been undertaken to make HR systems more scientific, and an employee's experience with JDIB more enriching and long-term oriented. It will help the Bank in setting-up effective HR systems in line with its overall business strategy.
On this occasion Mr. Sami Afghani, CEO of Jordan Dubai Islamic Bank said "Hewitt Associates is considered to be a pioneer in its field, with extensive experience in HR consulting with leading organizations in the region and across the world. We believe that this partnership will significantly benefit the Bank in its efforts to be a model employer. By applying best, international practices in human resource management, we hope to create a conducive work environment to enhance job satisfaction and productivity of employees. This will be a key contributor in the Bank's ambitious journey to achieve its vision."

Mr. David Jones, Market Manager for Hewitt Associates - Middle East said "We are proud to partner with the Jordan Dubai Islamic Bank on this critical HR intervention. It is impressive to see an upcoming institution undertake talent-related initiatives at an early stage, and set the stage for development of a well respected employer brand. Hewitt Associates will leverage its experience with organizations in the Middle East, and our global expertise, assisting the Jordan Dubai Islamic Bank in this journey".

[MARTYR]

Jordanian stock market loses 50 pts this week

AMMAN, July 23 (KUNA) -- Amman Stock Exchange's price index was down 50 points this week, coming to 2,307.9 points from last week's 2,357.5 points.

Market statistics showed that daily average trade this week came to USD 26 million, compared to USD 32 million the previous week, at a decrease of 18.6 percent.

Total volume of trade amounted to USD 130.7 million this week, against USD 160.7 million the week before.

Meanwhile, volume of traded shares stood at 115.4 million, sealed through 27,940 transactions.

As for the individual sectors, the financial sector accounted for the greatest volume of trade this week at 63.4 percent, followed by the services sector at 27 percent, and then the industrial sector at 9.6 percent.

The market's industrial index was down 1.85 percent this week, while the services index dropped 1.1 percent, and the financial index shed 2.32 percent.

Of the 205 companies whose shares saw trading this week, 48 registered profit, while 127 suffered losses.

[MARTYR]

CBJ excess reserves stand at JD3.512 billion

Amman -- The Central Bank of Jordan (CBJ) announced Thursday that the volume of excess reserves is JD3.512 billion including the overnight window deposits after subtracting the amount JD 50 million which is the value of the 35th issuance of Treasury Bonds for 2010.

The volume of required reserves stood at JD1.133 billion, the CBJ added .

The bank said that no overnight repurchase agreements were held with the bank yesterday.

[MARTYR]

Tax incentives seek to 'make Jordan more competitive in ICT'

AMMAN -- New tax incentives for the information and communications technology (ICT) sector aim at making Jordan a regional centre for communication services.
"This is essential in light of increasing competition in other countries," Minister of Information and Communications Technology Marwan Juma said Wednesday.

On Tuesday, the government endorsed a number of tax incentives for companies providing Internet and communications services, under which sales tax was reduced and unified on Internet services at 8 per cent regardless of the technology used or the beneficiary, effective August 1.

Under previous regulations, sales tax on Internet connections was 8 per cent for households and 16 per cent for commercial or business outlets, while the same tax was imposed on wireless Internet. Under the new incentives, the tax levied will be 8 per cent for all three services.

The new rules also exempt exported ICT services from income tax, including computer services, economic feasibility studies and services related to legal, engineering and audit consultation.

At a press conference held yesterday, Juma said that the more incentives given to the IT sector, whose exports reached $209 million in 2009, the more competitive the country will be in attracting investors, noting that the number of workers in the sector reached around 70,000 people as of the end of 2009.

According to Juma, providers of broadband telecommunication services will be exempt from annual fees of JD650,000 if they meet certain conditions, which entail the expansion of their services outside Amman and that the incentives are reflected in price cuts.

"These companies paid tens of millions to obtain operation licences and such incentives will help them continue their services and increase the number of their customers," the minister remarked.

[MARTYR]

Petra projects should benefit local residents, national economy - Rifai

WADI MUSA/MAAN - Prime Minister Samir Rifai on Wednesday underscored the importance of preserving the historical city of Petra while keeping both the national economy and local development in mind.
The prime minister made his remarks at the signing of an agreement on a comprehensive plan for the Petra region covering the next 20 years.

The agreement has been referred to a consortium of Austrian, American and Italian consulting companies, at a cost of JD363,000.

Projects that seek to upgrade the Petra development tourism region are also intended to improve the living conditions of the city's residents, the premier noted.

On allocations for the Petra Development and Tourism Region Authority (PDTRA), he said the government is working in line with the priorities outlined in its action plan, in accordance with the directives of His Majesty King Abdullah.

Funds will be allocated to projects in the region if they are linked to attracting investments, upgrading the city's tourism environment and creating better business opportunities, he told representatives from the PDTRA.

He said the government is working to prepare the 2011 budget and that committees are examining the economic benefits to be yielded from these allocations.

Institutions need to convince the committees that the funds they solicit will support the national economy in order to obtain them, he explained.

Regarding additional recruitment, the premier said: "We must not reach a stage where institutions hire people for the mere sake of recruitment and forget their development role."

He also stressed the importance of providing employment opportunities for the area's residents in line with a clear vision from the PDTRA in this regard.

During the visit, the premier also toured a development project in Wadi Musa Centre being carried out to develop the areas of Wadi Musa and reduce traffic congestion.

Also yesterday, the premier checked on the implementation of several projects in Maan, including the Maan Cultural Centre Project, whose cost is estimated at JD7 million. He also checked on the rehabilitation and expansion of the road from Maan to the industrial area, executed at a cost of JD11 million.

Rifai also visited the National Fodder Project, implemented by the Hashemite Fund for Badia Development in the north of Maan Governorate, about 210km from Amman.

The first phase of the project, implemented over a 50,000-dunum-plot of land, is designed to meet the Kingdom's annual need of barley, which stands at 2,000 tonnes.

The premier also checked on the road leading to Al Hussein University, built recently at a cost of approximately JD6 million. The road was not completed because of lack of funds. At the site, the premier gave instructions that the road be completed at an additional cost of JD1 million.

Rifai paid a visit to the industrial estate in the Maan Development Area, where he was briefed on investment projects launched there.

These include factories for glass, tannery, fertilisers, electric meters, steel and solar energy production, according to Mohammad Salem Turk, the director general of Maan Development Company.

The company is establishing additional hangars on an area of 12,000 square metres to attract more investment, Turk said.

[MARTYR]

Jordan drafts bill on movables as collateral for loans

Amman -- Jordan is cooperating with the International Finance Corporation (IFC) to draft a legal framework that paves the way for movables as collateral for loans to ensure greater access to credit facilities, thus spur growth.

The draft bill aims to give small and medium enterprises (SMEs) that do not have sufficient securities for loans, a room to survive and grow through ensuring funds from banks and other financial institutions.

"The legislation seeks to stimulate the investment and business environment in order to spur economic growth and expand the middle class through creating new means of finance for SMEs", said Maha Ali Secretary General of the Ministry of Industry and Trade.

She explained that individuals and companies would be able to secure credit facilities for their ventures via movables-ledged loans to unleash private enterprise productivity.

The Ministry of Industry and Trade on Wednesday organized in cooperation with the IFC a workshop that brought together government officials and representatives of banks and lending institutions in the Kingdom to discuss the proposed bill.

[MARTYR]

Local investments more than double

AMMAN - Investment volume in the Kingdom increased by 82 per cent during the first six months of this year to JD876.2 million compared to JD479.4 million registered in the same period last year.

According to Jordan Investment Board (JIB), local investments during the January- June period of this year amounted to JD674.8 million, which flowed into hotels and entertainment projects, compared to JD328.6 during the first six months of 2009. Foreign investments totalled JD201.3 million compared to JD150?7 million registered in the first half of last year.

[MARTYR]

Queen Alia International Airport Reports Impressive Growth by 17% Year to Date

21 July 2010
Airport International Group (AIG), the Jordanian company responsible for the expansion, rehabilitation and operation of Queen Alia International Airport (QAIA), announced the airport's traffic results year-to-date, which shows a healthy growth in the airport's overall performance over 2009.
Passenger traffic for the first half of this year reached 2,445,500 passengers, which translates to an impressive 17% increase over 2009. June recorded the highest traffic volumes with 482, 400 passengers for the month. Aircraft movements for the first six months were strong; totaling 29,600 aircraft -- an 11.3% increase over the previous year. In addition to that, Cargo registered 42,850 tons year-to-date with a 9.9% increase over the same period last year.

Commenting on these encouraging results, AIG's Chief Executive Officer Curtis Grad said: "The mid-year results show that QAIA is indeed making substantial strides towards its objective, developing a robust and sustainable regional hub. QAIA is steadily emerging as the airport of choice in the Levant region and these results demonstrate the resilience of the Jordanian market and the effectiveness of the strategies implemented by AIG and its partners."



QAIA recently welcomed additional flight frequency announcements over the last six months, from a broad range of current operating air carriers including Royal Jordanian, Delta, Air Arabia, and new flights by Alitalia, Vueling, airBaltic, Air Arabia- Egypt and Iberia; in addition to new and increased number of charter flights among which is MINT Airways.

The USD750 million rehabilitation and expansion works at QAIA are well underway, including the construction of a new state-of-the-art 100,000 square meter passenger terminal. AIG is a Jordanian company with private shareholding by Invest AD (Abu Dhabi, UAE), Noor Financial Investment Company (Kuwait), Edgo Group (Jordan), Joannou & Paraskevaides (Overseas) Limited (Cyprus), J&P-Avax (Greece) and Aéroports de Paris Management (France).

[MARTYR]

Prime Minister Lays the Keystone of BRT & King Faisal Plaza Development Projects

Prime Minister, Sameer Rifai, recently set the foundation stone for the projects Bus Rapid Transit (BRT), executed by Greater Amman Municipality (GAM) on Queen Rania AL Abdallah Street, and King Faisal Plaza Development in the city center.
The Prime Minister hailed the BRT project, pointing out that it is such a great achievement towards developing the public transportation system in Amman, resolving the traffic jams in the future, and saving on oil and fuel expenditures.

He considered that this project (BRT) reflects the Government's intentions to improve public transportation of the Kingdom, and it is an example to be followed in all Jordanian cities in the future.

On Hawa Amman FM, the Prime Minister stressed on the Government's interest in conserving the archeological sites and renovating them in all the provinces and cities of the Kingdom, and he added that Jordan represents an open museum that shall be kept and maintained.

He also emphasized on the importance of speeding up the execution process of the developmental and municipal services to serve the citizens according to set plans and within determined time schedule.

The Prime Minister was briefed, by the Mayor of Amman, Omar Maani, on the project's goals, marking the beginning of many plans of GAM's regarding the public transportation development in Amman, as well as the phases of implementation of the project.

Maani affirmed that the public transportation system of Amman will witness a radical change within the 4 coming years, and the citizens will sense this improvement in all public transportation elements, whether in the transportation means, the buses, the pavements, and the modern stop stations.

He added that completing the transportation projects in Amman will be a source of pride and an example to follow, embedding a new culture of the public transportation style that motivates the citizens to use it as an organized safe means, with less costs than their private vehicles.

The rehabilitation project on King Faisal Plaza aims at reviving the memories of the place, increasing the urban spaces, protecting archeological sites, bringing the city center back to life, refreshing the commercial movement, and empowering the location on touristic and historical levels.

This project is one of the most important urban spaces in Amman, historically, economically, and archeologically, and it is a complementary part of a series of projects which GAM had set for the city center, aiming at creating urban spaces for the citizens.

GAM is working on the project which needs 10 month to be completed on four phases and a time schedule that serves the public interest.

According to an in depth 18 month study of the project, GAM paid special attention to the details to bring back the glowing stations of the Jordanian political and social memory of King Faisal Plaza.

GAM already commenced the execution of the construction works of BRT project- on two sections of Queen Rania Al Abdallah Street, the first starts from Ad-Dawriyat Al Kharijiyah (highway patrols) on Yajouz intersection, and the other from the University Hospital intersection to the Sahafah (Press) tunnel.

The current construction works represent the first package of the project, and are expected to be finalized within 6 months. The other parts are to be gradually awarded to ensure rapid execution and a safe, smooth traffic movement.

BRT is a public integrated and flexible transportation; it depends on buses, provides rapid and safe service with high reliability especially that it includes buses of big capacity, working on special lanes and within fixed timing, high quality of service, and modern stations that facilitate user's movement in different public transportation means. The capacity of the project exceeds 6,000 passengers per hour, and double deck buses that can hold up to 120 passengers, shuttling upon a frequency less than three minutes.

The project is also distinguished for its modern electronic payment system which enables users pay the fees before entering the bus, information system for the users about the arrival times of the buses, and the route planning service. Modern stations are also to be established for the vehicles.

BRT service is the cornerstone of an advanced integrated transportation network of Amman, and its main goal is to develop metro and rapid buses in the future. GAM is also looking forward to improving the current public transportation services to include modern buses and road furniture.

The BRT project is to be executed on 3 main lines in Amman with 32 km in length, the line extends from Sweileh Circle until Al Mahata (the station), passing through the University of Jordan, Sports City, Al Shaheed (Martyr) Street, and Al Esteklal Street.

The second line starts from Jordan Museum, next to GAM headquarters in Ras El Ein, and ends at the Sports City, passing through Princess Basma Street and the 5th Circle.

While the third line begins at Al Mahata and ends at Al Jumrok (Customs) Circle, passing through Yarmouk Street and the Middle East Square.

The ceremony was attended by the French Ambassador to Amman, Corinne Breuze, the Deputy Mayor, Eng. Amer Al Basheer, the City Manager of Amman, Eng. Ammar Gharaibeh, and Traffic Director, Adnan Freih, in addition to many officials of GAM.

The work areas include restoring the pathways and stairs connecting Faisal Street with Basman and King Ghazi Streets, the meeting point of Chapsogh road with Faisal Street, the works on the middle islands of Faisal Street, splitting it in two sides, right and left, in addition to the middle island between Al Saadeh and Rida Streets, the intersections with the streets: Al Hashemi, Prince Mohemmed (Wadi Al Seer), and King Hussein (Al Salt Street).

The 10 month project on a space area of 17,000 m2, will be executed in 4 stages, the first is allocated to the entrances and sidewalks, and during the working period an area is to be provided to enable the tradesmen and the citizens reach to the commercial sites.

The second phase includes the sidewalk of Faisal Street and the entrances leading to Basman Street. The third will handle Faisal Street, its middle island, and junctions with Chapsogh and Rida Streets. The fourth and final phase is to manage the junction of Faisal Street with Prince Mohammed Street and Al Husseini Mosque.

[yazm1991]

Rise in tourist numbers, revenues driving investment in sector - Afanah

A substantial increase in the number of tourists since the beginning of the year has spurred investment in the country’s tourism sector, a top government official said on Wednesday.

Minister of Tourism and Antiquities Suzanne Afanah said that around 25 hotels are currently under construction at various tourism sites and are expected to receive guests in 2012 and 2013.

Of these hotels, seven will be built on the shores of the Dead Sea, 13 in Petra, and the other five in other areas including Maain Falls and Himmeh Spa.

These hotels, according to the minister, will provide 12,000 direct job opportunities and another 36,000 indirect opportunities.

At a press conference at the Citadel yesterday, the minister also announced the number of visitors to the Kingdom and total tourism revenues in the first nine months of 2010.

Tourism revenues rose by 20 per cent in the first three quarters of the current year, according to tourism ministry figures, to JD1.9 billion from JD1.6 billion in the same period of 2009.

In September 2010, revenues grew to JD222 million, a 20.3 per cent increase compared to JD183 in September 2009.

The ministry figures also showed that 6,460,648 tourists visited the Kingdom during the January-September period, a 19 per cent increase from the first three quarters of 2009, when some 5.414 million visitors came to the country.

Overnight visitors rose by 23 per cent in the period in question, with 3.55 million tourists visiting the country, compared with 2.88 million visitors in the first nine months of 2009.

Some 2.9 million one-day tourists visited the country in the first nine months of the year, a 15 per cent rise from the same period in 2009.

Wadi Rum witnessed the largest increase in tourists, the figures revealed, growing to 189,312 visitors in the first nine months of the year, a 63.6 per cent jump from January-September 2009, when 115,696 tourists visited the site.

According to the figures, Petra registered the highest amount of tourist traffic, with 670,644 tourists visiting the rose-red city in the first nine months of 2010. Jerash was the second-most visited site in the Kingdom, drawing 290,702 tourists during the period in question.

The figures released yesterday also showed that some 2.8 million Jordanians travelled abroad in the January-September period and spent around JD677 million.

[MARTYR]

INVESTBANK Elects New Board and Announces High Growth Rate


Amman, Jordan - INVESTBANK held the ordinary and extraordinary meeting of its Annual General Assembly at King Hussein Club on April 27, 2011.
During the meeting, the General Assembly endorsed the financial statements, final accounts and auditors' report for the year ending December 31, 2010.

Moreover, the meeting witnessed the election of a new Board of Directors for the Bank, which consists of the following members: Madaba Financial Investments Company, Ms. Wijdan Talhouni, Dr. Nabil Qaddumi, Dr. Mohammad Al-Tal, Raouf Abu Jaber & Sons Company, Abdul Rahim & Sons Company (two seats), Mr. Abdul Rahim Jardaneh, Dr. Foti Khamis, Bank of Palestine P.L.C, in addition to Mr. Fahmi Abu Khadra.

Mr. Bisher Jardaneh, chairman of the Board, underlined at the beginning of the meeting the financial results achieved for the year 2010, according to which shareholders equity reached JD107 million, compared to JD93 million in 2009 at a growth rate of 15%.

Meanwhile, the total income reached up to JD34.89 million, compared to JD21.42 million in 2009, an increase of 63%, achieving a net profit of JD10.9 million after tax.

The volume of credit facilities jumped up to JD374 million, compared to JD315 million in 2009, while customer deposits were JD449 million, compared with JD478 million in 2009. The capital adequacy ratio reached 16.64%, compared to the ratio required according to the instructions of the Central Bank of Jordan, is 12%, and according to the Basel Committee 8%.

During his address, Jardaneh tackled the main achievement the Bank has recently accomplished which is a stable classification of the INVESTBANK's long-term foreign currency and (BB), respectively, and the strength of the financial rating of the bank is (BB+).

Other achievements included the launch of the new core banking system, the opening of Mecca Street branch and the expected relocation of the headquarters in the second quarter of 2011.

Meanwhile, during the extraordinary meeting of the General Assembly the shareholders rejected a recommendation by the Board of Directors to distribute bonus shares by 10% of the paid-up capital through the capitalization of profits and retained earnings of JD7.75 million (seven million, seven hundred and fifty thousand dinars).

In conclusion, Jardaneh thanked the INVESTBANK's shareholders, clients, employees for their professional commitment and real support to the Bank's progress and course of development, which enjoys the confidence of each and every one of this family, who are credited for the success of the bank.

He also thanked the Central Bank of Jordan, Ministry of Finance, and all other local institutions for their efforts and active role in supporting the national economy under the wise leadership of His Majesty King Abdullah II, may God protect him.
The new Board of Directors held a meeting where Mr. Bisher Jardaneh was re-elected Chairman of the Board, representing Abdul Rahim Jardaneh & Sons. The Board also elected Mr. Ziad Abu Jaber, the representative of the Raouf Abu Jaber & Sons Company Deputy Chairman of the Board.

In addition, the Board also decided to speed up in the convening of an extraordinary meeting for the general assembly during the next month to take necessary decisions for the purposes of increasing the Bank's capital to one hundred million Jordanian Dinars, according to the requirements of the Central Bank of Jordan.

[MARTYR]

Cloud computing - a driving engine for growth

By Mohammad Ghazal

LAS VEGAS-NEVADA - Cloud computing can help Jordan accelerate its economy and trigger growth in different sectors, according to a key IT expert.
"Resorting to cloud computing can enable the public sector to streamline its spending on IT and thus focus on innovation and providing premium services in different sectors," Chuck Hollis, vice president for the Global Marketing Chief Technology Office at EMC (a leading provider of storage hardware solutions that promote data recovery and improve cloud computing), said in an interview with The Jordan Times on Monday.

His remarks came on the sidelines of the four-day 11th annual EMC World Conference held under the theme "Cloud Meets Big Data", which brought about some 10,000 IT leaders and experts from 103 states from across the world.

In a survey by Gartner earlier this year, cloud computing was ranked number two, as top technology priority, immediately after virtualisation. In 2009, cloud computing ranked 16th, according to Gartner (which "delivers technology research to global technology business leaders to make informed decisions on key initiatives").

"The IT sector is as vital and fundamental for economic growth as other sectors. Creating an information-based economy and a centralised data centre can help the government accelerate economic growth, as cloud computing is cost-effective, flexible and saves money spent on maintenance of equipment," added Hollis.

In Jordan, the use of cloud computing, which is Internet-based computing whereby shared resources are provided on demand, is still weak even though the potential, according to Jordanian experts, is huge.

Hollis agreed.

"There is an interesting and huge opportunity for growth in Jordan and the Middle East. The future is for cloud computing and Jordan and other countries in the region can benefit from the latest technologies and solutions which have been used and tested over the years," he added.

"Cloud computing is the infrastructure needed for accelerating economic growth in all sectors," said Hollis.

Highlighting the importance of cloud computing, Chairman, President and Chief Executive Officer of EMC Corporation Joe Tucci said about 73 per cent of IT budgets of companies and entities across the world are allocated for maintenance, which he labelled as "huge".

Tucci said the volume of data is growing "rapidly" across the world, adding that cloud computing is the "most efficient" way to reduce costs and deal with this growing volume of data.
In a recent interview with The Jordan Times, National Information Technology Centre (NITC) General Manager Nabeel Fayoumi said the government is focusing on the decentralisation of computing and IT-related issues.

Fayoumi, who noted that many countries across the world started to create major data centres to serve their organisations, said the NITC plans to create a data centre this year to serve all public entities.

© Jordan Times 2011

[MARTYR]

King highlights need to upgrade tourist services


AMMAN (JT) - His Majesty King Abdullah on Wednesday stressed the importance of providing quality services and facilities for Arab and foreign tourists visiting Jordan as well as the need to upgrade amenities at border crossings.
During a meeting to discuss the national tourism plan for the summer, the King directed the concerned tourism entities to pay special attention to visitor services to ensure the success of the season, according to a Royal Court statement.

Prime Minister Marouf Bakhit, who was present at the meeting, pointed out that the government has held several meetings with sector representatives to discuss measures to boost tourism.

Arab visitors will be charged the same entrance fees to tourist sites as Jordanians, the premier said, adding that the government has halved the sales tax on tourist services from 16 per cent to 8 per cent in order to ensure the competitiveness of this sector.

In 2010, tourism revenues amounted to JD2.4 billion, representing around 14 per cent of the gross domestic product, according to Minister of Tourism and Antiquities Haifa Abu Ghazaleh, who also attended the meeting.

Earlier on Wednesday, King Abdullah met with the Hashemite Fund for Badia Development board of trustees and underscored his support for economic and social projects implemented by the fund, the statement said.

The King underlined his commitment to developing the different areas of the badia and improving its residents' living standards through the establishment of development projects there.

During yesterday's meeting, the King was briefed on the projects currently implemented by the fund and its future plans for the Southern, Central and Northern Badia, according to the statement.

The fund is working with the local community through 12 cooperative societies on several agricultural projects, Sharifa Zein Bint Nasser, the president of the fund's board of trustees, pointed out.

Twenty-five dunum plots of land are distributed among the societies for fodder cultivation provided that they hire Jordanian workers, she said, adding that proceeds go to the society and the local community.

Sharifa Zein noted that the fund's projects have provided 100 permanent and 200 seasonal job opportunities to date.
She said the main challenge facing the fund is the vast area of land under its jurisdiction, in addition to the long distances between residential areas.

Established in 2003, the fund seeks to improve the socio-economic conditions in the badia by contributing to poverty alleviation and unemployment reduction.

It utilises the badia residents' skills and works to build their capacities through implementing development projects, and supporting various scientific, cultural, social, sports and capacity building activities, according to the fund's website.

Later on Wednesday, King Abdullah and Her Majesty Queen Rania arrived in London on a working visit during which His Majesty is scheduled to hold talks with British Prime Minister David Cameron.

The talks will focus on the latest developments in the Middle East and means to boost bilateral relations.

At the beginning of next week, the King will head to Washington on a working visit during which he will hold talks with US President Barack Obama and several US officials to discuss the latest regional developments and means to achieve peace in the region.

Discussions will also focus on means to develop cooperation between Jordan and the US in the various areas.

HRH Prince Ali was sworn in as Regent on Wednesday

[MARTYR]

Economists, business leaders laud GCC decision


By Omar Obeidat

AMMAN -- Economists and business leaders on Wednesday lauded an announcement by Gulf states welcoming Jordan's request to join the political bloc, saying the move will give a boost to the Kingdom's economy and an added value to Gulf economies.
They noted that by joining the Gulf Cooperation Council (GCC), Jordan will receive further support from the six-country grouping to address its economic and financial woes, while the Gulf countries would also benefit from the highly qualified Jordanian human resources.

Describing the decision as an important and decisive step in transforming Jordan's economy, economist Jawad Anani explained that it will generate more confidence in the Kingdom's economy, expand employment opportunities for Jordanians and boost investments and the tourism sector.

"Being a member of the GCC will give Jordan the feeling that it is part of a large economic bloc," the former Royal Court chief and several-time minister told The Jordan Times yesterday.

Although Jordan shares borders with Gulf countries, Syria, Iraq and Palestine it has always been alone, he said, adding the country can no longer bear the repercussions of negative events in the region without benefiting from the positive aspects.

Commenting on what GCC membership can offer Jordan, the economist said the Kingdom could secure its energy needs by receiving preferential treatment from the oil-rich Gulf states, adding that they may also consider establishing a fund for the country's development.

In terms of how Jordan can benefit the Gulf economies, Anani cited the Kingdom's highly qualified human resources in addition to available investment opportunities that GCC countries can take advantage of.

Economist Mefleh Aqel described the move to accept Jordan as a member of the GCC as one of the most important developments in the past 10 years.

He noted that the feeling of optimism is already evident, referring to the performance of Amman Stock Exchange, where the trading value amounted to JD25.7 million on Wednesday in response to the news, compared to JD11.9 million the previous day.

"Jordan's accession to the GCC will positively impact both sides," Aqel said, indicating that in Jordan the Gulf countries will find a stable state that will support their stability, which will create political and economic integration between all member countries (see story on page 3).

He added that the highly respected and professional human resources available in Jordan can help in the economic development of Gulf states, pointing out that the markets of the GCC countries are the largest in the Arab world and the region, something that will reflect positively on local products.
However, Aqel noted that there are some obstacles that should be removed, particularly customs duties as Jordan imposes tariffs higher than those in the Gulf.

By joining the GCC, Jordan's current account balance as well as the balance of payments will improve due to the expected rise in the number of Jordanians working in the Gulf region, he said, noting that capital flows, such as remittances, and investments will also increase.

Zayyan Zawaneh, a former adviser at the Central Bank of Jordan, the Ministry of Finance and the International Monetary Fund, described the timing of Jordan's anticipated membership in the GCC as "very important" in light of the regional situation.

He explained that Jordan can add an important value to expanding the influence of the Gulf countries in the region, particularly since Iran is trying to impose its domination in the area.

Moreover, the Kingdom has invested in its workforce over the past 60 years to achieve qualified human resources in various fields, including technology, banking, construction, education and health, Zawaneh noted.

He added that Jordan is in dire need of energy supplies and by joining the GCC the country can obtain preferential prices, which can help its economic competitiveness.

The analyst stressed that currently a balance of interests exists between Jordan and the Gulf states, pointing out that what the Kingdom can offer to the bloc, no other country can at present.

"It is a strategic step that can serve the interests of all Arab countries," Zawaneh emphasised.

Business leaders also welcomed the GCC announcement.

Nael Kabariti, president of the Jordan Chamber of Commerce, highlighted the importance of the decision, noting that the world is witnessing a rise in economic blocs such as the EU, the Association of Southeast Asian Nations (ASEAN) and South America's trade bloc (Mercosur).

He noted that Jordan, which enjoys a strategic location between the Gulf, Europe and Africa, can be the gateway to international markets for Gulf products.

"Jordan has the expertise and the qualified professionals, while the Gulf countries are rich in natural resources and enjoy economic fundamentals and financial capabilities... and by being in one bloc they can compete globally," Kabariti said.

Nazzal Armouti, deputy chairman of the Jordan Chamber of Industry, said once Jordan's membership in the GCC is finalised, the entire economy of the country, particularly the industrial sector, will see a big boost.

The move may solve Jordan's biggest challenge, which is energy, he said, noting that if the Kingdom receives oil at discounted prices the competitiveness of local industries will eventually improve.

The economists and private sector representatives agreed that officials should intensify their efforts to speed up the process of becoming a GCC member state and render upcoming talks a success.