monday, october 13, 2003 THE DAILY STAR 5 Jordan 12 to 13 October - Amman - Jordan ECONOMIC FORUM Reform, liberalization challenge Amman conference FORUM HEARS CALLS TO GRASP OPPORTUNITIES OF GLOBALIZATION
2-day business meet begins under tight security with speakers stressing need for closer economic ties and a plea to open up centralized economies, closed political systems
Rana Sabbagh-Gargour and and complementarity.” Pranay Gupte As a result,the world’s 280 million Arabs Special to The Daily Star now realize that their natural depth lies in their surroundings. AMMAN: More than 700 Arab investors, “Geography is the fate of its people, and financers and executives opened a two- day within this context is history created and in- Participants at business conference in Amman on Sunday, teraction ensured,” Abu Zaki said. Al-Iktis- the event amid tight security and calls for forming sadWal Aamal is an independent,private firm included Arab economic groupings to face the chal- specializing in reporting on Arab economies Hariri, Jordan’s lenges of globalization. and private business as well as planning and Prince Faisal Speakers at the Jordan Economic Forum, marketing regional and international busi- Ibn held at the Jordan Inter-Continental Hotel ness and investment conferences. al-Hussein, and dubbed by organizers as the ArabWorld’s “Arab economic cooperation is still well Abu Ragheb, equivalent to the Davos-based World Eco- below aspirations,” he added, referring to Abu Zaki and nomic Forum (WEF), also stressed the need the huge potential for inter-regional trade Haddad for increased pan-Arab economic coopera- and tourism as well as attracting Arab and tion and giving the private sector a key role. foreign investments. They further stressed the need to boost However, Abu Zaki said potential in- inter-Arab economic ties and open up their vestments in many instances were being largely centralized economies and closed scared away by many impediments, chiefly political systems and free the media, to en- the slow economic, administrative and po- sure sustained economic growth and a com- litical reforms across the region. petitive edge in today’s global market. “Political reform remains the most im- But Israel’s ongoing incursion into the portant of these reforms as it creates trans- Gaza Strip and a major explosion that parency when implementing laws and boosts ripped through Baghdad, amid worsening an independent judiciary,” said Abu Zaki. lawlessness since the fall of Baghdad on The meeting is held amid tough security April 9, sent a serious reminder that polit- to protect scores of VIPs, including four ical stability remains key to regional eco- Iraqi ministers and Iraq’s first post-war cen- Hafez, Oil Minister Ibrahim Bahr al-Ulum, “We also hope that they will remove all Officials say that Jordanian lawyers are in Amman recently to assist Jordanians ea- nomic development. tral bank governor, Sinan al-Shebibi. Trade Minister Ali Allawi and Finance Min- legal impediments standing in the way of also helping Iraq rewrite its laws. ger to win sub-contracts in Iraq. Both KBR “There is a dire need for building Arab They are making their largest ever de- ister Kamal al-Kilani, Housing Minister investments, to be able to attract Arab and Amman is facing fierce competition and Bechtel won billions of dollars of con- economic blocs in today’s world that is but at an Arab economic gathering since Baqr al-Zubeidi and Electricity Minister foreign investors,” Haddad said. from Kuwait, Saudi Arabia, Syria, Dubai tracts as part of US efforts to rebuild infra- characterized by giant groupings that are the US administration running Iraq named Ayham al- Samarai.The latter was to unveil In their speeches,Abu Ragheb, Hadad, and Turkey. structure across Iraq.After months of lob- being built,” Jordanian Premier Ali Abu them to an interim governing council that plans for over $6 billion in projects for Abu Zaki and Haidar Murad, the chair- Officials say that though investments bying with Washington and London, Am- Ragheb told the opening session, flanked will run day-to-day affairs until elections 2004. Zubeidi said he would talk about man of Jordan’s Chamber of Commerce, and tourism have been dealt a blow by the man will set up an international training by his Lebanese counterpart, Rafik Hariri. are held in 2004. plans to build 1.5 million flats to meet part discussed Jordan’s potential role as a war on Iraq at a time when the state budget center in the Kingdom for 30,000 new po- “We should also seek to increase coop- These ministers, accompanied by senior of the needs of 5 million Iraqis. gateway for international and Arab busi- is having to cope with losing its subsidized lice recruits in Iraq over the next two years. eration among the various economic sec- aides, are holding private meetings with Gregory Huger, a top executive from the ness leaders seeking a share in Iraq’s post- oil supplies, other sectors, including bank- But many businessmen say the prospects tors in the Arab countries and to open the top officials and mingling with Syrian Trade US firm Bechtel, which so far has the lion’s war reconstruction. ing, transport and trade are reporting brisk for clinching major business deals in Iraq door wide open for the private sector to as- Minister Ghassan Rifai, his Lebanese coun- share in rebuilding Iraq, is also slated to “After the war on Iraq, new realities business since April. are still clouded with uncertainty as Wash- sume a leading role across the region,” he terpart Marwan Hmade, and other leaders brief the forum on the reconstruction pro- have given Jordan additional depth in mak- The bulk of international food aid des- ington grapples with the task of governing added.“This will create Arab markets, with from Saudi Arabia, Kuwait, and 19 Arab gramme in the war-battered country. ing it a regional center for trade, business tined to Iraq is arriving at Jordan’s Red Sea the war-torn country and ensuring securi- advanced products, that are capable of and foreign states. Top officials from the Military jeeps and armoured carriers and investment,” with Iraq, added Abu port of Aqaba, generating millions of dol- ty.A lack of transparency and legal ambi- competing in the international market.” Arab Monetary Fund and the Jeddah-based guarded the main road leading to the five- Zaki. “Jordan is the old and new econom- lars in business for trucks, clearing agents guities remain a source of additional and Though the two-day conference is in- Islamic Development Fund are also attend- star hotel where the meeting is being held. ic partner of Iraq and is a link between the and insurers. Private sector imports and spiraling costs. tended to showcase Jordan’s investment ing the forum. Participants must walk past metal detectors, Mashreq countries and the countries of the non-perishable goods are entering from “As I see things,Arab businessmen will opportunities that have been bolstered by “What is going on behind the closed give up their mobile phones, and undergo Gulf Cooperation Council.” Jordan.Hundreds of businessmen and jour- play a key role in providing services to Iraq, four years of bold economic reforms, the door meetings between the various Arab strict body searches before entering the In addition to its geographic position and nalists are using Jordan to enter Iraq – some but key contracts for infrastructure will go meeting chiefly focuses on Amman’s po- officials and their Iraqi counterparts, and main hall.Tens of plainclothes security men, established economic ties,Amman is capi- taking advantage of the 90-minute, daily to Western firms, led by Bechtel and KBR” tential as a gateway for reconstruction in between the Iraqi private and public sector some with specially trained black police talizing on its services-based economy and humanitarian flights shuttling between the said one Arab executive who asked to re- neighboring Iraq. The Jordan Investment representatives, and the business leaders, is dogs, were also checking identity passes. strong historical and political links with two capitals, or traveling by car on a 10- main anonymous. Board, one of the key organizers, has pre- far more important that what is being said Another organizer, Sami Haddad, head Iraq, an association agreement with the Eu- hour drive. The two-day meeting in Amman comes on pared some 50-investment opportunities in in all public sessions,” one Arab minister of the Middle East and North Africa de- ropean Union, the Arab free-trade agree- Jordanian banks report increasing busi- the heels of key international economic gath- tourism, Information Technology, pharma- told The Daily Star. partment at the International Finance Cor- ment, a free trade agreement with the US, ness, opening up letters of credit for Iraqi erings that have given Jordan a strong boost ceuticals and construction. “We are all eager to see what they have poration, said the IFC would support Iraq’s the first between Washington and an Arab imports or channeling private Iraqi money this year.They include an extraordinary ses- Raouf Abu Zaki, from the Beirut-based to tell us about business prospects in Iraq reconstruction, and that Iraqi ministers he country,and a new duty-free Aqaba Special abroad. Many private food suppliers have sion of the WEF, and two key Iraq recon- Al-Iktissad Wal Aamal Group, another or- and where their country is heading.” met recently had assured him of the coun- Economic Zone. Jordan is also considering won hefty contracts to feed the coalition struction conferences, partly organized by ganizer of the event, said world events over Key speakers at Monday’s meeting from cil’s desire to initiate “seismic reforms” to plans to set up a free trade zone near the forces in Iraq. the US-led administration running Iraq to re- the past two years have underlined the “im- Iraq’s interim government were scheduled boost the role of the private sector and Iraq border to help Arab and international Kellogg, Brown and Root (KBR), a Sub- ward Jordan for its “positive engagement” portance of Arab economic cooperation to include Planning Minister Mehdi al- curb unemployment. traders move goods into Iraq. sidiary of Halliburton Co.,opened an office with Washington over the last few years.
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SUNDAY’S PROGRAM-12 October 10:00 - 10:30 Opening Ceremony: Mr. Raouf Abou Zaki, General Manager,Al-Iktissad Wal-Aamal Group Jordan urges Arab investors to Mr.Al Ain Haider Murad, Chairman, Jordan Chamber of Commerce Mr. Sami Haddad, Director, Middle East and North Africa,International Finance Corporation (IFC) HE Ali Abu El-Ragheb, Prime Minister of Jordan
Session I - 10:45 - 11:45 Economic Outlook of Jordan Session’s Chairman: HE Dr. Micheal Marto, Minister of Finance, Jordan consider projects in kingdom Speakers: HE Dr. Omaya Toukan, Governor, Central Bank of Jordan Dr. Jassim Al Manai, Director General Chairman of the Board,Arab Monetary Fund OPPORTUNITIES INCLUDE WATER, ENERGY, TOURISM SECTORS Dr.Adel Al Kodah, Chairman of Executive Privatization Unit, Prime Ministry of Jordan Antonello Ricci, Senior Loan Officer, EIB - European Investment Bank Ministers encourage the international community. Session II - 12:00 - 13:00 Outlook for Trade and Investment Under the project, a desali- Session’s Chairman: HE Dr. Ghassan El Rifai, Minister of Trade, Syria participation in plans Touring ancient ruins nation plan and the infrastruc- Speakers: to stop depletion of ture to carry freshwater to ur- HE Dr. Mohammad Al-Halaiqah, Deputy Prime Minister for Economic Affairs and Minister of ban centers could be imple- Administrative Development, Jordan Dead Sea’s resources mented “and financed by the Mr.Azzam Al Showaihat, Chairman,The American Chamber of Commerce in Jordan private sector on a BOT basis.” Mr. Fahad R. H.Al Ibrahim, Director General,The Inter-Arab Investment Guarantee Corporation Nasser said the 10-year mas- Rana Sabbagh-Gargour ter plan for water investments 13:15 - 15:00 Lunch hosted by the Chairman of CCC, Mr. Said Khoury at Intercontinental Hotel Special to The Daily Star in Jordan also provided oppor- tunities for manufacturing var- Session III 15:15 - 16:15 Investment Opportunities in Infrastructure and Industry AMMAN: Jordan on Sunday ious equipment, machinery Session’s Chairman: HE Dr. Hatem Al-Halawani, Chairman, Jordan Chamber of Industry urged Arab investors at a pan- and materials for local and re- Speakers: Arab economic forum in Am- gional markets, including steel HE Dr. Mohamed Al Batayneh, Minister of Energy and Mineral Resources, Jordan man to look into mutli-million and poly-ethylene pipes and HE Dr. Hazim El-Naser, Minister of Water and Irrigation, Jordan dollar projects up for grabs in fittings, water pumps, water HE Dr. Mohammad Abou Hamour, Minister of Industry and Trade and Supply, Jordan water, electricity, tourism, in- saving devices and spare parts. Mr. Samer S. Khoury, Executive Vice President, CCC frastructure and industry. He said investment in phase Mr. Sahel Majali, Chairman and Managing Director, MID Contracting Company Water Minister Hazim al- two of a major plan to develop Nasser,Energy and Mineral Re- the eastern coast of the Dead Session IV: 16:30 – 17:15 Investment Opportunities in Tourism sources Minister Mohammed Sea, the lowest point on earth, Session’s Chairman: HE Samer Tawil, Minister of Tourism and Antiquities, Jordan Batayneh, and Industry, Trade for touristic and curative pur- Speakers: and Supply Minister Mo- poses, was currently under Mr. Micheal Nazzal, President, Jordan Hotels Association, Jordan hammed Abu Hammour urged preparation. Four hotels have Dr. Othman Aidi, President, Inter Arab Union for Hotels & Tourism over 500 Arab investors and sprung up along the coast; two businessmen attending the Jor- are under construction while (Parallel Session): Investment Opportunities in Telecommunication and IT dan Economic Forum to do agreements for the building of Session’s Chairman: Dr. Shabib Ammari, Chairman, Jordan Telecom business in the kingdom. six others have just been Speakers: “Water scarcity represents signed.All of these projects are Mr. Marwan Jouma, Chairman, Information Technology Association Jordan - INTAJ one of the major challenges fac- expected to cost $500 million. Dr. Saad Al Barrak, Managing Director & GMof MTC Mobile Telecommunication Co., Kuwait ing Jordan,” said Nasser, as he In a separate briefing, Mr. Charbel Fakhoury, General Manager Levant Region, Microsoft highlighted 53 projects worth Batayneh detailed major ener- Dr. Hisham El Sherif, Chairman, IT Investments $2.5 billion that are part of a wa- gy projects under consideration Mr. Mohamed Al Sharekh, Chairman, al Alamiah Group ter sector investment program to meet an increase in demand for 2002-11. It is intended to from more investments and 17:45-18:30- Interactive session with HE Rafic Hariri, President of Council of Ministers of Lebanon yield about 500 million cubic from a population growing at meters of water per year in a Tourists enjoy the Greco-Roman theatre at Umm domestic and foreign investors enjoy considerable 2.8 percent a year. 18:45 Special Ceremony to honor the Lifetime Achievements of:: country that depends primarily Qais, in northwest Jordan, once known as Roman growth potential, though the industry has been hurt These projects include the ex- Mr. Zuhair Khoury, Chairman,The Housing Bank for Trade and Finance on rainfall – Jordan’s only re- Gadara. This was the scene of Jesus’ miracle of the by recent regional conflicts. Jordan’s tourism sector pansion of the Jordan Petroleum Mr.Abdel Hamid Shoman, Chief Executive Officer and Deputy Chairman,Arab Bank newable source for drinking, ir- Gadarene swine. The tourism sector is one where is closely linked to those of neighboring countries. Refinery Company, whose mo- Mr. Ibrahim Dabdoub, Chief Executive Officer, National Bank of Kuwait rigation and municipal use. nopoly ends in 2008, a regional He said private sector partic- gas transmission pipeline pro- 20:45 Dinner at the Dead Sea hosted by The Prime Minister of Jordan, HE Ali Abu El-Ragheb ipation projects included the ject, electricity generation pro- $350 million Dissi-Amman wa- 1940s, and most households Aqaba, key for the success of a project constitutes a technical, jects, and expanding the capaci- ter conveyance system, on a only get pumped water one day major plan to turn the city into not a political scheme, and ar- ty of existing generators. MONDAY PROGRAM- 13 October build-operate-transfer (BOT) a week. a duty-free area. gues that the Dead Sea’s fate Abu Hammour said over a basis, crucial for the wellbeing Other projects include a The Palestine National Au- cannot wait until the Israeli- decade of IMF/World Bank- Session V: 9:00 – 10:00 : Investment Opportunities in Banking and Financial Markets of the parched central region of joint Israeli-Jordanian $3.5 bil- thority is also a partner to this Palestinian conflict ends. guided economic reforms will Session’s Chairman: Dr. Naaman Azhari, Chairman and General Manager, BLOM Bank Jordan, a mostly desert king- lion plan to build a canal to link regional project, which is op- Nasser said the cost of the end by June 2004, after which Speakers: dom of 5.2 million people with the Red Sea with the Dead Sea posed by Lebanon and Israel as project is significant and cannot Jordan would have achieved Mr. Jalil Tarif, Executive Director,Amman Stock Exchange limited natural resources. and stop the rapid depletion of inappropriate at a time when Is- be financed by the riparian par- fiscal and monetary stability, Dr. Henry Azzam, Chief Executive Officer, Jordan Investment Trust, Jordan The amount of water avail- the Dead Sea’s resources, and a raelis are besieging and almost ties alone, as it requires an ini- contained budget deficits, low- able for each person has plum- scheme to desalinate water in daily killing Palestinians. Jor- tial investment of almost $1 bil- ered its foreign and domestic Session VI: 10:15 – 11:15 : Investment Opportunities and Free Zones meted 94 percent since the the southern Red Sea port of dan, however, insists such a lion,which could be financed by debt, and increased exports. Session’s Chairman: HE Hamdi S.Al Tabbaa, Chairman, Jordanian Businessmen Association Speakers: Mrs. Reem Badran, Chief Executive Officer, Jordan Investment Board, Jordan Mr. Emre Berkin,Vice President, Europe Middle East and Africa, Microsoft REPORTER’S NOTEBOOK Dr.Ali Al-Madadha, Director General,The Free Zones Corporation, Jordan Eng.Amer Majali, General Manager, Jordan Industrial Estate Corporation-JIEC Mr.Akram Abu Hamdan,National Resources Investment & Development Corporation 'MAWARED' Dr. Bilal M.Al Bashir, Commissioner for Environment, Regulation and Enforcement,ASEZA Jordanian business meet draws smiles and networkers Session VII: 11:45 - 14:45 Doing Business in Iraq Like-minded folk flock to Amman conference in search of opportunities, contacts Chairman: HE Dr. Mohammad Al-Halaiqah, Dep PM Eco Affairs & Min.Administrative Dev.
11:45 – 12:30 A) Economy, Trade and Investment: AMMAN: There are more than translates everything into Eng- very focused on economic de- their brethren at international tunities.At a lunch given by Said HE Dr. Mehdi Al Hafedh, Minister of Planning and International Cooperation, Iraq 700 participants from near and lish.That means no breather for velopment in Jordan and Iraq.” gatherings.These guards – both Khoury, chairman of the Con- HE Dr. Kamel Al Gaylani, Minister of Finance, Iraq far at the Jordan Economic Fo- her – except between sessions Awwad, who says she likes to male and female – actually solidated Contractors Company HE Dr. Sinan Al Chbabi, Governor, Central Bank of Iraq rum here, and thousands of – and little room for error. write when she isn’t translating smile, a tad apologetically, – quite possibly the biggest con- Dr. Fakhri Rashan, Director of External Relations, Ministry of Commerce words have been uttered this When the microphones packed professionally, is an important when they scrutinize the con- struction organization in the first day about economic up on the dais during one ses- element in making this confer- tents of bags and briefcases.As Middle East – Muawia H. Zabi- 12:45 – 13:30 B) Power and Infrastructure Sector: growth, business opportunities sion this morning and Awwad, ence work smoothly.The orga- delegates walk through metal an, chairman of the Beit al-Mal HE Bian Baker Soulaghe Al Zubaidi, Minister of Reconstruction and Housing, Iraq and sustainable development like the audience, could not nizers have assembled an im- detectors, they are politely Saving and Investment for Hous- HE Mr.Aiham Al Sammarae, Minister of Electricity, Iraq in the Middle East. It would be hear a word, she profusely pressive corps of helpers – most- asked to remove mobile ing Company, turned to Hassan Mr. Gregory F. Huger, Manager, Institutional Strengthening, Bechtel safe to say that nobody has fol- apologized to her listeners – ly young Jordanians who cheer- phones and metal objects from F. Beidas, managing director of lowed every word. even though the microphones fully assist with providing ID their person so as not to set off Beirut’s Arab Bureau for Com- 13:45 – 14:30 C) Private Sector: Except Rana Awwad. were hardly her responsibility. badges to participants, answer- the alarm.When the alarm does merce and Real Estate, and said: Mr.Tarek Ben Halim, Deputy Director, Private Sector Development, CPA She mans the translation It seemed inappropriate to ing questions about sessions go off every now and then, the “Even if I get no business out of Mr. Mohamad Dragh, Chairman, Commercial Bank of Iraq and Board Member,Assn. of Banks in Iraq booth in the cavernous Grand ask her if she was enjoying the and events such as lunches and guards pat down the offender – this conference,just meeting you Mr.Thamer Al Sheikhali, Charn. Iraqi Businessmen Association Ballroom of the Hotel Inter- show. But a visitor ventured to dinners, and attending to the but again with a smile. and others like you is enough. Continental, where the two- enquire if there was anything occasional irritable guest. This is a conference of smiles. This is all about networking.” 14:45 - 16:00 Lunch hosted by International Finance Corporation (IFC) at Intercontinental Hotel day conference is being held. special that caught her fancy. Even the security guards at That’s because those who’ve Beidas smiled and replied: Virtually all the speeches and “It’s the diversity of what the Inter-Continental seem re- gathered here appear to be seek- “This is about forming new 18:00 - 19:00 Interactive session with The Prime Minister of Jordan, HE Ali Abu El-Ragheb discussions are in Arabic, and people are saying,” Awwad markably devoid of the grim ex- ing others who share common friendships so that we can all do Awwad, a young Jordanian, said. “The speakers all seem pressions habitually worn by ground: seeking business oppor- good business together.” – P.G.
INTERVIEW CCC is at forefront of Mideast construction Panelists: Region needs more investment Participants encourage tackling local problems before making trade agreements 50 percent of company’s revenues are generated by the Arab world countries of the Middle East From its beginnings in 1952, tional contracting companies, (the United States and Europe) and North Africa get less than when three young entrepre- both in the Arab world and in oth- are not present in that market. $20 billion annual in foreign di- neurs, the late Kamel Abdul- er countries. Most infrastructure We face competition from rect investment. Rahman, Hasib Sabbagh and projects in the Arab world are car- neighboring countries, such as “There’s no question that the Said Khoury, joined forces to ried out by Arab construction India, Pakistan and Turkey as private sector will have to play create one of the first Arab companies. But, when it comes to well as from Far East countries, a key role in energizing Arab construction companies, to more complicated projects such as such as Malaysia,Singapore and economies,” Ibrahim said. today, Consolidated Contrac- oil refineries and energy projects, Korea and recently from China. One member of the audi- tors Company (CCC) has be- we need foreign technical assis- At least 60 percent of Mid- ence, responding to a reference come the largest engineering tance, which could be provided dle Eastern construction pro- by one of the speakers about and construction company in through cooperation and joint jects are carried out directly by the importance of internation- the Middle East. CCC now ventures with foreign companies. Arab contractors or indirectly al trade agreements, riposted: operates in more than 30 through sub-contracting. “Before we talk about interna- countries spread over four Q -Some people say that 70 per- tional agreements, we should continents, embracing the Samer Khoury: “2003 will be cent of contracting projects in the Q -What role do you foresee for tackle our local problems.” ambitions and welfare of over better than the previous year” region goes to foreign compa- Arab construction companies These problems were identi- 35,000 employees. The Arab nies. Is it true and why? And how in the reconstruction of Iraq? fied by participants as the need world is the source of 50 per- Q -How do you evaluate CCC’s do you evaluate the size of the for wider educational and em- cent of the total turnover performance during 2002 and Arab contracting sector and con- A -Unfortunately, the chances ployment opportunities, better of CCC. the first half of 2003? And sequently, the standard of com- of non-Iraqi Arab contractors to healthcare, more attention to Two of the founding mem- what are the major projects the panies working in that sector? obtain contracts in Iraq are youth, and a freer investment bers are presently leading the company has contracted? weak for two reasons: climate in Arab countries. Group, Hassib Sabbagh as A - According to Engineering First, the US government fo- “It’s an exciting opportunity Chairman and Said Khoury as A-CCC performed well in News Records magazine,the to- cuses on giving projects to US to exchange ideas at an exciting President. Today CCC contin- 2002, if we take into account tal volume of construction pro- companies mainly and sub- time for the region,” said Isam ues the same style of manage- the Gulf War and other eco- jects worldwide in 2003 was contracting to local companies. M. Abdelkhaliq, managing di- ment based on mutual trust nomic setbacks in the world. $300 billion, with a 15 percent Second, many Arab contrac- rector of the Arab Orient Insur- with clients, and smooth com- Also, our performance in 2003 share for the Middle East. I be- tors are still waiting for the ance Company. He specifically munication between locations is better than that of the previ- lieve that the Middle East mar- United Nations to supervise re- cited the potential opening up and departments of the Group ous year. We expect gross rev- ket is not enormous compared construction projects in Iraq, to of Iraq for business. which augment its regional and enue of $1.45 billion. We also with other markets.Major play- avoid being seen as collaborat- The sentiment was echoed by international status. CCC has have contracts worth more ers in the construction sector ing with the occupation forces. Mohammed H.Dragh,chairman always been at the forefront of than $2billion that are current- Beirut Port: Audience members asked why Arabs find it difficult to do business with one another of the Commercial Bank of Iraq. the adoption of new construc- ly being executed. “We are starting to build a tion technology to improve ef- CCC has won 6 major pro- CCC’S MAJOR PROJECTS WON IN 2003 AMMAN: At a session at the nomic growth could only be tru- development, Mohammed al- new Iraq,” he said. “A meeting ficiency, and provide more jects worth about US$860 mil- Jordan Economic Forum Sun- ly spurred by removing bureau- Halaiqah; Azzam al-Showaihat, like this creates more opportu- Project Country Approx. Value ($million) rapid execution while ensuring lion for 2003. day about trade and invest- cratic barriers and other imped- chairman of the American nities for access for us. We are high quality performance. Q-How do you evaluate the role ment, all anybody wanted to iments to the private sector. Chamber of Commerce in Jor- hoping more people will start CCC is and aims to continue to of Arab construction companies Khalifah Sports Stadium Qatar 150 know was why was it so diffi- There was no disagreement dan, and Fahad R. H. coming to do business in Iraq.” be second to none. in infrastructure projects car- Nadd al-Homr Tunnel/Beirut Dubai 200 cult for Arabs to do business from the dais, however.The ses- Ibrahim,director general of the And what about the com- In a Q&A, Samer Khoury, ried out in Arab countries? Qatif Gas Project Saudi Arabia 200 with one another. sion, chaired by Syria’s trade Inter-Arab Investment Guaran- plaints from participants that Executive Vice-President of Oman Refinery Oman 150 The implication was that even minister, Ghassan al-Rifai, also tee Corporation. Arabs found it difficult to do Operations of the CCC Group, A-Arab contractors have made Shah Deniz Pipeline Azerbaijan 100 as Jordan and other Middle East featured Jordan’s deputy prime They agreed that the region business with one another? provides us with insight into good progress and are now capa- Liquid Gas Plant Equatorial Guinea 60 countries invited more invest- minister for economic affairs simply needed more invest- “We will make it less com- the company’s operations. ble of competing with interna- ment, in the final analysis, eco- and minister of administrative ment. It is estimated that the 24 plicated,” Dragh said. – P.G. monday, october 13, 2003 JORDAN ECONOMIC FORUM THE DAILY STAR 7
COMMENTARY BY RAMI G. KHOURI Forum attracts high-powered bankers Attract investors with LUCRATIVE LOANS TO JORDAN – AND TO IRAQ – ON THE AGENDA both money and merit
Frequent reference to ‘London Club’ stance, Egypt and Algeria not The place and the people ciently advanced to make long ago fashioned deferred are starting to look rather Jordan an attractive base highlights Iraqi indebtedness and casts payment agreements with the familiar: at various fine ho- for foreign investors.The le- shadow over future of financial transactions London Club. tels and conference centers gal and administrative sys- But complicating the Iraq in Jordan, top regional tem is sufficiently transpar- situation is the fact that Iraq al- bankers and businesspeo- ent and competent to allow Pranay Gupte indebtedness to foreign gov- ready has a deferred payment ple gather with govern- efficiency-minded foreign Daily Star staff ernments – estimated variously agreement in place – dating ment officials and interna- investors to put their mon- at $100 billion to $125 billion back to the end of the Iraq-Iran tional finance and devel- ey here.And the labor and AMMAN: The Jordan Econom- – has garnered the most public- war in the late 1980s. It was put opment experts to explore managerial force is suffi- ic Forum has attracted dozens ity.But bankers assembled here in place taking into considera- investment opportunities ciently skilled to allow for of high-powered bankers from in Amman are saying it’s time tion the oil-rich country’s ex- within Jordan, along with the introduction of ad- the Middle East and Europe. that the question of Iraq’s oblig- pected future oil revenues. In Jordan’s potential as a vanced new economic en- They are here to assess pros- ations to private banks be- other words, its resources were gateway to other Arab terprises, especially those pects of not only making lucra- comes a more prominent issue. a sort of collateral. markets. in the Information Technol- tive loans to Jordan but, per- As debts go,those obligations So what happens now? No- Several such gatherings ogy field. haps more significantly,of lend- are relatively modest – maybe body can say for sure.The ques- have taken place in Jordan Jordan is not as efficient ing to the giant next door, Iraq. $3 billion to $4 billion. Still, say tion of Iraq’s debts to foreign in recent years, and others and modern as Dubai, not But most any conversation the bankers, there are few signs governments has come to the will follow for sure. as financially lucrative as with these bankers about Iraq that Iraqi officials want to open forefront because of a major Jordan’s experience in Saudi Arabia, not as politi- brings forth reference to two the subject for discussion. donors conference later this this respect is worth study- cally open as Lebanon, not words: “London Club.” The club “We have no idea when the month in Madrid. Some coun- ing, because it offers some isn’t one of those grand edifices Iraqis will start talking about tries, such as Russia, have indi- useful lessons in the inter- Political change along Pall Mall in the British this,” said Damien Hadji Dim- cated that they would be will- play between those political capital, somber buildings where itriou, general manager for the ing to write off part of their and economic forces that will continue powerful men – and some wo- Middle East and Asia of the governmental loans to Iraq. will define the Middle at a relatively men – discreetly do deals over Paris-based Union de Banques And, indeed, some interna- East’s future well-being. sherry. It isn’t even a building. Arabes et Francaises. tional banks have probably al- Two aspects of Jordan’s slow pace The London Club is a grouping Dimitriou, like other global ready written off their Iraqi economy deserve special at- of international private banks bankers attending the forum, loans on their books – without tention: its recent high lev- as sophisticated in banking who lend to developing coun- believes that international necessarily making this public. els of growth and its long- as Bahrain, not as large a tries. It convenes mostly when banks are unlikely to start dis- But the bankers clearly term ability to secure sub- market as Egypt and not as the banks are in trouble because cussing new lending to Iraq un- want accountability. And this stantial financial aid sup- well-endowed in natural re- their clients are delinquent with less the question of old loans is means that Iraqi officials need port from foreign govern- sources as Iraq or Syria. their debt repayments. settled. Typically, countries in to show a willingness to sit ments.The reasons for these But it is probably the only Iraq is grossly delinquent trouble work out repayment down with the London Club two achievements may well Arab country that offers with its debts, both to private plans with lenders, just as indi- before any fresh private loans BLOM Bank’s Nisrin Bajjani, Adnan Ahmed al-Sallakh, Naaman Azhari, Saad Azhari, and Gladys chart the way forward for the complete package of banks and to governments. Its vidual consumers do. For in- to Iraq are forthcoming. Younes pose for the camera at the Jordan Economic Forum Jordan’s economy, and political, economic and lo- should also interest other gistical needs that are es- Middle Eastern or develop- sential for any regional or ing countries at similar foreign investor. stages of their growth. Moving to the next level Perhaps the single most of sustained economic Lebanese prime minister urges Arab important lesson that Jor- growth and wealth-creation dan’s economic track record will require paying even holds for itself and for oth- more attention to the re- ers is that human develop- quirements of the two par- governments to lower trade barriers ment – increasing people’s ties that will always deter- skills and opportunities – mine a country’s growth po- Hariri calls for greater cooperation among Middle East countries must always form the core tential: its own citizens and of any economic strategy. foreign investors. Jordan’s Jordan’s very survival, let track record to date sug- AMMAN: Lebanese Prime better trade among Arab coun- alone its economic viability, gests that the leadership Minister Rafik Hariri urged tries. To illustrate his concern, was questioned repeatedly recognizes the political, Arab governments Sunday to he produced a piece of paper in the 1950s and 60s. But it economic and social com- work speedily to lower trade and dramatically tore it up. persists and flourishes in plaints made by Jordanians, barriers so as to facilitate better “We don’t need to reform several sectors primarily be- especially about the impact movement of goods and ser- these procedures,” he declared, cause national strategies of economic belt-tighten- vices across what he said were “we need to remove them.” have fostered in most Jor- ing, corruption, urban-rural often impenetrable borders. He added: “Why is that a car danian citizens the sense disparities, and the quality “We have to come face-to- can move easily throughout that – despite legitimate and depth of the democra- face with the fact that Arab coun- Europe without any problem, complaints or grievances – tizing political system. tries are not opening their mar- and a car journey from Beirut their lives improve steadily. Political change will kets for other Arab countries,” to Damascus takes so much The state’s traditional probably continue to hap- Hariri told the Jordan Economic fuss? What are we afraid of?” heavy focus on human de- pen at a relatively slow Forum here, drawing applause He said that lowering trade velopment and infrastruc- pace, which most Jordani- from hundreds of Arab and oth- barriers between Arab coun- ture investments – mainly ans seem to accept – if the er businessmen, diplomats and tries would ease the movement education, health, power, democratization process academicians gathered at the of capital between them. In water and transport, and continues and does not Jordan Inter-Continental Hotel. turn, he suggested, there would usually funded by loans or stall. One option the gov-
“It’s the foreigner from be more job creation. AFP/Khalil MAzrawi grants from abroad – has ernment should consider is whom we import.Why not from “The Arab world is facing the Hariri and his delegation arrive at the opening of the two-day transformed the relatively to shift the focus of democ- one another as Arabs? We need biggest problem in its history – forum on investment opportunities in Jordan small Jordanian labor force ratization from the national to sit down and discuss how to unemployment among its into a dynamic element in level to regional and local Fakhoury: IT is linked with general economic development remove these barriers.” young people,” Hariri said. markets,” he said. “But each wide center in Beirut that the development of the institutions, which is likely His remarks echoed a grow- A World Bank report pub- Arab country has its vested in- would issue certification of to elicit much greater citi- ing concern among Arab econo- lished last month said that av- terests and sectors to protect. drugs and thus regulate the in- Human zen participation. mists and decision makers that erage unemployment in MENA And very often the private sec- dustry to consumers’ benefit. A recent study conduct- Varying agendas meet local economies in the Middle countries hovered around 15 tor in those countries puts “I hereby invite health min- development must ed by the World Bank in East and North Africa were not percent,but many businessmen pressure on governments for isters to meet and settle this is- be central to four countries – Bang- being sufficiently supportive of at the forum here said that the such protection. sue,” he said. ladesh, China, India, and in session on IT one another. Indeed, several real figure could be higher. “Goods should be able to The prime minister did not economic strategy Pakistan – is relevant for questioners at the prime minis- Hariri warned that unless move from Damascus to Beirut end his presentation on an up- Jordan and the entire re- Telecommunications seen as region’s hope ter’s session asked why it was Arab governments urgently at- with the same ease as they beat note. When asked by a country but also of the oil- gion’s quest to attract for- that there was considerable du- tended to the problem, they move from Damascus to Alep- member of the audience about producing states in the eign investors. It shows that plication of goods production faced heightened instability. po,” Hariri said. Lebanon’s incipient entry into Gulf. these four Asian countries Pranay Gupte Fakhoury spoke from the when countries could better al- Repeatedly during his 45- He specifically cited the the World Trade Organization, Having achieved its ini- had similar per capita GDP Daily Star staff podium about how telecommu- locate resources and manpower minute appearance, Hariri pharmaceutical industry,which Hariri replied: “It’s to my sor- tial development stage of in 1990, but within a nications and IT couldn’t be de- by improved specialization. highlighted his concern about he said resisted openness in row that we’re able to conclude providing for the basic decade China’s growth AMMAN: At the Jordan Eco- veloped in isolation from the Hariri also told his audience government protectionism. many Arab countries. Hariri agreements with world bodies needs of its population, es- rocketed; Bangladesh and nomic Forum here, there are, in rest of a country’s economy. that he was alarmed at the grow- “People in charge must be said that he was open to the but not with other Arab coun- pecially in health and edu- India grew moderately; and effect,four kinds of conferences “It’s most important that a gov- ing bureaucratic obstacles to courageous enough to open idea of creating an industry- tries.” – P.G. cation, the Jordanian econ- Pakistan not at all. going on simultaneously.One is ernment address human re- omy now seeks to achieve One reason is how each the kind that Veronique Ledru sources and education,” the Mi- high growth rates that country took advantage of of the European Union attend- crosoft executive said. “We would allow it to move opportunities afforded by ed Monday afternoon, a session need proper legislation, proper from stability to prosperity. globalization, with those on investment opportunities in tax laws.The entrepreneurship The recent high annual real who integrated with the telecommunications and infor- mentality must be welcomed.” Leaders honor 3 prominent Arab bankers growth rates of nearly five global economy growing at mation technology. She was in And Jordan was right there percent, along with sus- a faster rate.Yet global the audience, an avid listener waiting for investment, added Businessmen recognized for outstanding lifetime achievements tained export increases and trade integration alone does who’s also in Jordan to develop Shabib Ammari, chairman of rising foreign reserves, sug- not explain the different a network of investment pro- Jordan Telecom.He pointed out gest that this is achievable – growth rates. motion agencies on behalf of that the country had 3,800 kilo- Rana Sabbagh-Gargour in Amman Monday morning to the West Bank and the Gaza after completing intensive but only if Jordan can at- The World Bank’s study the EU group known as Anima. meters of fiber optic cables and Special to The Daily Star promote investment opportu- Strip, and the March 2003 US- courses at Midland Bank/Lon- tract sufficient foreign in- says that trade liberaliza- Then there’s the conference in a telecommunications network nities in Jordan and look into led war on Iraq that toppled the don in domestic and overseas vestments to generate new tion must be complemented which Microsoft’s general man- that was among the most ad- AMMAN: Some of the Middle the Kingdom’s position as a regime of Iraqi President Sad- banking. Later, he attended jobs and move the economy by a sound investment cli- ager for the Eastern Mediter- vanced in the region. In fact, he East’s top business leaders and launch pad for doing post-war dam Hussein on April 9. several training courses in In- into increasingly high-value mate if developing coun- ranean, Charbel Fakhoury, par- suggested, by expanding the government officials came to- business in war-torn Iraq. Born in 1926 in the southern ternational Banking at Morgan industries. tries are to achieve high ticipated: the same session as telecommunications and IT gether at a regional ceremony These three Arab men, in Jordanian town of Karak, long Guaranty, New York. He also Two other factors help growth rates. Foreign in- that attended by Ledru, except sectors, Jordan could harness in Amman on Sunday to honor their own ways, have con- a hotbed for political activism chairs the Strategic Planning explain Jordan’s sound eco- vestors are deeply interest- that Fakhoury was a featured the talents of thousands of the lifetime achievements of tributed to improving the state when political parties were Committee, the High Asset Li- nomic track record. One is ed in a country’s institu- speaker,one of the many experts skilled young people who were three prominent Arab bankers. of the Arab world and support- banned between 1958 and ability Management Commit- that it has always been able tions, policies, and regula- that attracted some 700 dele- now leaving their country, Zuhair Khoury, Chairman of ing efforts to integrate it more 1992, Khoury has been at the tee, the Central Credit Com- to promote and exploit its tions.They look at local gates, who each paid $350 to at- drawn by jobs elsewhere. the Jordan-based Housing Bank effectively into the global econ- helm of the bank since 1973. mittee as well as the Informa- favorable geographic loca- government bureaucratic tend and listen. Saad al-Barrak,managing di- for Trade and Finance, Abdel omy, against the backdrop of He is a self-made father of three tion Systems Committee. tion as a gateway to others and corruption levels, and And there was Cherine Rady rector of MTC Mobile of Hamid Shoman, Chief Execu- political and economic uncer- who climbed up the banking Dabdoub, a media-shy pro- in the region: It has been a the efficiency of infrastruc- of Egypt, an economist with Kuwait, agreed with Ammari tive Officer and Deputy Chair- tainty gripping the region for ladder and helped transform fessional who was born in tourism gateway to the holy ture and financial services. EFG-Hermes Holding, SAE. about Jordan’s potential. Not- man of the Arab Bank, and years, according to delegates. the institution from a small spe- Palestine, joined the Kuwait sites in Palestine for numer- Foreign investors will often She came to the forum as part ing that his company had in- Ibrahim Dabdoub, Chief Execu- The three also enabled their cialized bank into a regional National Bank shortly after he ous decades, it played the shy away from a country if of a research project on Jor- vested $450 million to develop tive Officer of the National institutions to retain leadership one with branches in four Arab graduated in 1961 and has over role of a service gateway to they feel they will not re- dan’s economy. a mobile service called Fastlink, Bank of Kuwait, were recog- countries: Algeria, Tunisia, four decades of experience in the industries of the Gulf re- ceive reliable services, even Her meetings mostly con- he said that, along with Bah- nized for their outstanding lead- Arab banks ‘should Bahrain and Syria. banking.Dabdoub,who holds a gion when they were still in routine issues like clear- sisted of looking out for partic- rain, Jordan had the Arab ership abilities, management He also supervised its trans- Masters degree from Stanford developing in the 1970s and ing imports, telecommuni- ipants who could assist her with world’s most sophisticated tele- skills, and professional integrity. not be less important formation from a JD 12 million University, starts his day at the 80s, it serviced Iraq in the cations, airports and insur- her project. communications network. The prize, in its fourth year, than those in the rest bank in 1977, specializing in bank at 6.30 a.m.every day,set- 1980s and today it seeks ance. If services are unreli- There’s Dareen Salman, in- Indeed, the Kuwaiti added, is organized by the Al-Iqtissad housing loans, to a fully- ting an example for the rest of again to exploit its many able, then so will be sales, vestment and business analysis so promising was the telecom- Wal Aamal group, a Beirut- of the world’ fledged commercial institution his employees. links with Iraqi society. exports and income, the manager of Gaza Power Gen- munications scene that with based independent, private in 1997, with a capital of over “Our (Arab) banks should The second reason is that study found. erating Pvt. Ltd. She’s come grater market penetration the company that specializes in re- in the local and regional com- JD 100 million. The bank has not be less important than Jordan has broadly always The lesson for Jordan, from her base in Dubai to take Arab world’s telecommunica- porting on Arab economies and mercial and financial centers, a partners in Iran, Kuwait, Qatar, those in the rest of the world,” struck an appropriate bal- other countries in the Mid- in everything, but particularly tions market could rise in value private business,as well as plan- reality that helped their banks Oman and Libya. he told the latest edition of the ance among the political, dle East and potential for- to observe how this first-time to $11 billion annually, from ning and marketing regional dock into the 21st century with Khoury is head of the Jordan Arab business magazine, Al- economic and logistical is- eign investors seems to be forum has been put together. the current $7 billion, within a and international business and considerably more credibility Banking Association and a Iqtissad Wal-Aamal. “We have sues that matter to eco- clear: Political stability, de- So she’s been consulting all few years. investment conferences. and sustainability. board member in many com- the expertise and our countries nomic investors. Investors veloped human resources, sorts of people who can offer But, of course, these were all Jordanian Prime Minister Ali They had to face the chal- mercial, banking and invest- are awash with liquidity,” he don’t come to Jordan be- economic opportunity, ser- insights into how an audience hopes expressed, not blue- Abu Ragheb and his Lebanese lenges resulting from the Sept. ment funds. explained. “But the problem cause they make more vice efficiency and the rule of diverse backgrounds from a prints for investment. counterpart, Rafik Hariri, 11, 2001 attacks on the US Shoman, a member of the remains in our economic sys- money here than other of law comprise the pack- host of countries can be assem- When the session ended, shook hands with the three which cut growth rates in the third generation of the family tems, as these banks cannot be lands.They come because age that attracts investors, bled in pursuit of a focused con- Veronique Ledru went back to proud winners, winning ap- world economy.They each took that founded the bank in islands of calm amidst” an oth- the country’s several attrac- drives economies and ference theme: more invest- contemplating her investment plause from their families and measures to reduce the impact Jerusalem in 1930, holds a erwise turbulent region.” tions provide a reliable makes countries prosper. ment for the region. promotion projects; Charbel hundreds of businessmen and of these attacks on the opera- Bachelors Degree in Business He is an active member of package that is not avail- This is likely the main rea- These four participants with Fakhoury kept answering investors attending the Jordan tions of their institutions. Administration from the Amer- the board of directors of a new able in other countries of son that Jordan keeps hold- four varying agendas were queries from potential partners; Economic Forum. Before that, they had to deal ican University of Beirut Arab Business Council that was the region: The political ing gatherings for investors, briefly united Monday after- Cherine Rady pondered over The Forum has been orga- with major political tensions (1970). He was unanimously started at the World Economic system is sufficiently par- and why the investors keep noon by the all-encompassing her next step in researching Jor- nized by Al-Iqtissad Wal Aamal, gripping the region for the last elected by the board of the Arab Forum in Jordan in June, aiming ticipatory and liberal to coming back again and theme of telecommunications dan’s economy. And Dareen the Jordan Investment Board, decade, including the 1990 Bank in May 2001 as Deputy to promote cooperative action provide a stable political again. and IT. It is a theme that partic- Salman? She was on the phone and the International Finance Gulf War sparked by Iraq’s in- Chairman and Chief Executive among top Arab corporate lead- environment.The econo- ipants of all ilks clearly see as to her office,no doubt reporting Corporation (IFC). vasion of Kuwait, the outbreak Officer of the Bank. ers in order to enhance the com- my’s integration into the re- Rami G. Khouri is executive the region’s great hope. on what had transpired. The two-day forum opened of the Palestinian intifada in He joined Arab Bank in 1971 petitiveness of the Arab region. gion and the world is suffi- editor of THE DAILY STAR 8 THE DAILY STAR JORDAN ECONOMIC FORUM monday, october 13, 2003
INTERVIEW Jordan Investment Board: ‘one stop shop’ for investors DEDICATED TO ENCOURAGING AND FACILITATING INVESTMENT IN THE HASHEMITE KINGDOM
reached US$540 million operational pro- pand their businesses. CEO Reem Badran jects and $120 million in the pipeline, and Q: In light of President Bush's recent re- explains JIB’s contribution created around 23,000 jobs,with a total ex- marks in making the Middle East region a port volume to the US of $541 million end free trade zone with the US, how will Jor- to the economy and of 2002. The FTA does not supersede or dan be affected by this given that its exist- eliminate the QIZ initiative. The QIZ ini- ing favoured regional status will diminish ? future direction tiative currently grants immediate tariff and quota-free access to the U.S. market to A: Actually, there a lot of institutions, goods that are produced in the QIZ’s and whether it be NGO’s, Government or the Q: Since the establishment of the JIB in meet specific rules of origin requirements. private sector covering various aspects of 1995, what have been the role and ser- Under the FTA,tariffs and quotas for many these agreements.As the JIB, we launched vices provided by the JIB? goods are phased out over time, and rules several workshops that covered general in- of origin require 35% Jordanian content. formation and technical information on the A: Since its creation by the government Thus for some high-tariff goods, producing possibilities to utilize the Free Trade Agree- of Jordan in 1995, Jordan Investment in QIZ’s will retain an advantage. For in- ment with the US.We have also launched Board has been dedicated to encouraging stance, many goods face U.S. tariffs of up to publications that deal with certain sectors and facilitating investment in Jordan. 30%. Under the FTA,tariffs on these goods of the agreement in tandem with private With the overarching goal of achieving JIB’s newly would be reduced over ten years, and Jor- sector publications to ensure that there was development and modernization of the built head danian exports would have to meet the no overlap or time and money wasted. economy, the management and staff of office in central 35% Jordanian content level or 20% from The whole idea is to ensure that these the Jordan Investment Board has placed Amman Jordan and 15% from the USA. Under the advantages are made clear when choosing improvement of the investment environ- QIZ initiative, those same goods would en- to invest within Jordan. We distributed ment, and service to the investor at the joy immediate elimination of tariffs and thousands of copies of our publication that top of its agenda. quotas, and would require a lower level of covers all the benefits of the FTA with the The JIB is responsible for marketing Jor- Jordanian inputs. Thus in this case, in- US and we also have a comprehensive Reem Badran: “accomplished many goals” dan internationally, creating linkages be- vestors has two options to export their website that has direct links to the text of tween national and foreign companies products to the U.S market. the agreement.We are providing facts, fig- And I would like to announce here that the through joint ventures, assisting investors at ures and numbers, which mean much Higher Investment Council has just ap- all stages of the investment cycle, and acting Q: Given the recent Iraq War and the on- more to an investor than just saying come proved to include the IT Incubators and the as a contact or liaison between investors and going Palestian Intifada, how is Jordan and invest in Jordan, we have great opportuni- Airline Academy with other sectors bene- other government bodies whose services are the JIB coping with these crises and to ties.Another important development was fiting from the promotion law and its ex- needed by the investor. JIB is a ‘one-stop what extent has its economy been affect- an awareness campaign about the Free emptions. shop’providing the following services: ed? Have there been many projects put on Trade Agreement held in December in Last but not least, U.S. Secretary of State Provides exemptions on customs duties hold or cancelled due to these crisises and Washington DC and in a number of Arab Colin L. Powell and the Jordanian Foreign and deductions on income tax. what actions are you undertaking to countries when HM King Abdullah II Minister exchanged on May 13, 2003, in- Identifies investment opportunities and restart them? joined us online via video conferencing struments of ratification for a Bilateral In- facilitates registration and licensing of in- and spoke directly to the investors who vestment Treaty (BIT) between the two coun- vestment projects A: Internally, we do not have any prob- were gathered in the capitals which gave tries. This exchange brought the treaty into Gathers investment data and technical in- lems and when we speak of turmoil,we are the entire exercise a deeper dimension. full force after a period of 30 days. The Treaty formation and shares them with interested really talking about the region around us. Concerning the EU, we have been in provides Jordanian investors in the US and investors cient to invest in Jordan.This is a continu- Jordan continues to surpass its neigh- We have Iraq, Israel and Palestine around discussions with EU leaders in Brussels re- U.S. investors in Jordan with the highest stan- Assists the investor in finding a location ally evolving challenge .We are certain that bors in rankings by other international au- us, so when investors look at Jordan, they cently as the EU-Jordan Association dard of international protection for the secu- for business operations when an investor chooses Jordan as his/her thorities as well.A recent study carried out also look at the region, so we are facing Agreement came into force on May 1, this rity of their investments. In particular, the Arranges meetings between potential pri- place to establish their investments, they by the Heritage Foundation/Wall Street many issues on investor confidence.Look- year. We really need to do more analysis Treaty affords national treatment to investors vate sector partners and government officials. will stay and expand, which is good for the Journal Index of Economic Freedom, a ing at investments on a yearly scale, they on what industries and markets are valu- in the partner countries, ensuring that US Provides ongoing support and problem company and Jordan alike.We would like broad indicator of economic freedom in have slightly dipped in comparison to last able to potential investors. We have now companies in Jordan and Jordanian compa- solving for the project once it is established to view Jordan as an epicenter for investors 161 countries – ranked Jordan 45th world- year’s, whereas, we expected investments established a joint working committee to nies in the US are treated as favorably as their to do business within the whole region.We wide.Among the 18 countries in the Mid- to rise by 10% this year. However, we are pinpoint the advantages and also to in- competitors. It also imposes limits on expro- Q: What have been the major achievements regard the investor as our partner. dle East and North Africa, Jordan ranked still working hard in terms of our promo- crease domestic awareness within Jordan priation and compensation for expropriation, of the JIB till now and can you see your his- 3rd , and only Bahrain and the UAE re- tional campaign to ensure Jordan is con- and the EU also. This will start soon and guarantees of free transfer of earnings from torical role changing or expanding? Q: From a regional perspective, what in- ported higher scores of 2 and 2.1, respec- stantly in the mind of investors. Impor- for the moment, and until that is realized, investments,and affords investors recourse to vestment advantages are available in Jor- tively. In a report covering Jordan's bank- tantly, when foreign investors do arrive in we are concentrating on the FTA with internationally accepted dispute settlement A: During recent years, we have accom- dan, compared to other regional countries. ing system, Moody's, a global credit rating Jordan, they are surprised at the high lev- the US. mechanisms.The treaty is the most recent in plished many of our goals, both internally How has the government been proactive in agency, offered global comparisons that el of stability we have maintained within a series of ground-breaking economic deals and within the international markets also. providing this and what new appealing indicated the strength of each country 's this country. They often arrive with mis- Q: What are some investment opportuni- between the US and Jordan. These include a Being part of the WTO has been of huge laws can we expect in the future? banks.Among the 77 countries surveyed, conceptions of Jordan due to the region ties available in Jordan today? bilateral FTA and a state of the art "Open benefit to us, particularly in the area of at- Jordan ranked 31st but among the Arab and often admit to the high level of safe- Skies" civil aviation agreement. tracting investors, in that they regard our A: Much progress has been made in the countries, Jordan's banks took the lead. ty that exists within the nation. Once the A: Currently JIB is promoting for seven The Treaty underscores U.S. support for rules and regulations to be of internation- last four years, and Jordan finds itself investors come I am very satisfied with the major sectors: IT, Pharmaceuticals, Gar- Jordan’s continuing efforts under the lead- al standards. However, that is not to say today among the more attractive invest- Q: How has the development of QIZ's views and opinions they take back to their ments and Apparel, Dead Sea Cosmetics, ership of King Abdullah to transform its that our work is done.We are still working ment sites in the Middle East.A recent and the FTA with the USA contributed to respective countries, but the challenge at Mining and Tourism, Hospitals and Health economy,to increase the role of the private very hard in cutting down bureaucracy and study by the Stanford Research Institute, the Jordanian economy in terms of jobs the moment is to change misconceptions Care.In addition to these potential sectors, sector, and to create an investor-friendly providing accurate and timely information for example, states that, “Jordan’s overall created and export dollars? Do you see and convince the investor of the unique there are many opportunities in the gov- business climate. to the investor, which is critical in this score in the commercial policy matrix is this contribution growing? How will opportunities that await them in Jordan. ernment privatization projects, but what All of this hard work would never be ac- world of globalization.As you know, time 77%, the highest in the region, which QIZs fare once the FTA fully takes effect. One important fact is that those who have I would like to say here that we have pre- complished and succeed without the inspi- is money.We know where we want to be represents an attractive and ‘Business already started investing within the coun- pared fifty pre-feasibility studies in a num- ration and the support of HM King Abdul- and that is to make it easier and more effi- Friendly’ policy environment.” A:Total amount of investments in the QIZ try did expand are actually seeking to ex- ber of sectors to assist potential investors. lah II.