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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 Arab World’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.