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‘Hiccup’ in economic growth expected this year — World Bank

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — After four years of gradual recovery, the Kingdom’s economic growth is expected to slow down this year due to the spillover of security conditions in Syria and Iraq, a World Bank report said on Monday.

Titled “A Hiccup Amidst Sustained Resilience and Committed Reforms — Jordan Economic Monitor for Fall 2015", the report said real growth in the Kingdom’s gross domestic product (GDP) is expected to reach 2.5 per cent, in contrast with 3.1 per cent in 2014, which is the slowest rate since the first half of 2010.

“This setback in growth in the first half of 2015 is due to the closing down of trade channels with Syria and Iraq,” the report said, adding, however, that the low oil prices continue to have a positive effect on the current account deficit and the budget deficit.

This also led to an increase in the investment volume, especially in the diversification of sources of energy, according to the report.

Recent government incentives in regard to the real estate and tourism sectors have had a positive influence that will back growth in 2015, the World Bank said.

Therefore, economic growth rates are expected to register 3.7 per cent and 4 per cent in 2016 and 2017 respectively, the report added.

The report, according to Minister of Planning and International Cooperation Imad Fakhoury, was developed by the World Bank and not the government to enable the executive and the legislative authorities to benefit from its findings.

Speaking at the report’s launch ceremony, Fakhoury said that despite the slowdown in economic growth in the first half of 2015 due to the incidents in neighbouring Syria and Iraq, “we expect” improvements in growth in 2016 and 2017.

These expectations, the minister added, are backed by prudent economic administration.

According to Fakhoury, Jordan is surrounded by regional unrest and challenges, but “we have to be in the lead to counter these challenges… we also need to transform these challenges into opportunities”.

He also stressed that the 2025 Vision will enable Jordan to accelerate action to diversify resources and develop the infrastructure through partnerships with the private sector.

Ahmed Attiga, regional manager and head of mission at the World Bank’s International Finance Cooperation in Jordan and Iraq, said Jordan’s recent launch of the credit bureau is an achievement for the country as it will increase access to finance.

Officially launched last week, the bureau seeks to provide information for creditors on the track records of applicants for credit facilities.

Meanwhile, the report added that Jordan’s hosting of more than 600,000 registered refugees has led to a rise in unemployment in the first half of 2015, at a rate of 12.5 per cent, compared with 11.9 per cent during the same period in 2014.

The current account deficit is expected to reach 7.1 per cent of the GDP for the full year, as the effect of trade disruptions resulting from regional conflicts, the expected flat transfers of expatriates and the decline in foreign grants is forecast to exceed the decline in the energy import bill.

The central government’s fiscal deficit improved in the first seven months of 2015 and is expected to reach 4.1 per cent of the GDP for the full year.

The ratio of total public debt to the GDP is still on the rise, but it is expected to drop in 2016, supported by recovery in growth and a decline in debt burdens brought on by the National Electric Power Company.

The biggest challenge facing Jordan, the report added, lies in handling security repercussions of the crisis in Syria and Iraq. 

The base scenario in the report assumes that the events of the first half of 2015 are temporary, with the exception of repercussions that still weigh on trade. 

 

However, the deterioration in the security situation in the region, followed by a sharp increase in oil prices would exacerbate economic risks.

King, US army chief discuss military cooperation

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — His Majesty King Abdullah on Monday met with US Army Chief of Staff Gen. Mark Milley and discussed with him bilateral cooperation in military fields, a Royal Court statement said. 

They also discussed developments in the region as well as regional and international efforts to combat terrorism. 

Jordan is an active member of a US-led international coalition to fight terrorist groups in Syria and Iraq.

His Majesty the King, who is the Supreme Commander of the Jordan Armed Forcs, has in the past months held a series of meetings with US civil and military officials as part of coordination between the two countries regarding regional threats, especially terrorist groups.

Jordan is also a key recipient of US military assistance. 

 

The Obama administration has requested an estimated $1 billion in US aid ($637 million for economic and $350 million for military) to Jordan for 2016, a move that received support from the Congress.

House dedicates Tuesday’s session to economic policies

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — The Lower House is scheduled to discuss the government's economic policies during Tuesday's oversight session.

The topic of the session has been decided by a number of MPs during the special session on December 6 dedicated to discuss the government's decision to increase prices of gas cylinders and car licensing fees.

The government responded by modifying its decisions, following a controversial “compromise” deal with the House’s general secretariat. 

While the government refused to call it a compromise, some MPs charged that it manipulated the lawmakers at the expense of average citizens. 

At the time, several lawmakers blamed the government’s “money-collecting” policies and lack of vision for the country’s economic woes.

According to well-informed parliamentary sources, the unemployment rates, the energy file and the capital and current expenditures will be among the hot issues MPs will ask the government to comment on.

At the beginning of Tuesday’s session, newly elected MP Sameh Majali will take the oath replacing his brother deputy Eteiwi Majali who passed away in October.

 

Sameh Majali on Saturday won Karak’s 2nd District by-election, receiving 2,548 votes, as announced by the Independent Elections Commission.

MPs, gov’t bickering over fuel pricing

By , - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN – The Lower House Energy Committee on Monday requested the government to come up with a new pricing mechanism for fuel products, accusing it of overcharging consumers for oil derivatives. 

The government responded later in the day by brushing off the accusation and outlining the pricing mechanism.

Head of the committee, MP Raed Khalaileh, told The Jordan Times that the government adds around $43 to the cost of each imported oil barrel before it starts calculating the final price for end users. 

Khalaileh and his panel’s members had met earlier in the day with secretaries general of the ministries of finance, industry and energy, which are in charge of preparing a monthly update of fuel prices.

He said the government imposes $109 on a tonne of imported oil, or around $20 a barrel, and then adds general and special taxes on a barrel. 

The overall extra charges imposed on each barrel are around $43, he said. 

For example, he explained, if the price of oil globally is $40 a barrel, the government would add $43 and make it $83 a barrel before starting its pricing mechanism that include other charges such as costs of maritime shipment, insurance and fuel waste, among other costs.

He quoted the officials attending the hearing as telling the panel that the extra charges go to boost the strategic storage of oil. 

He said that the committee requested the government to prepare another pricing methodology within a month, adding the new mechanism should be transparent and fair to consumers.

In a statement to the Jordan News Agency, Petra, Minister of Energy and Mineral Resources Ibrahim Saif stressed that there are no “unannounced” charges, insisting that the pricing mechanism is transparent and has proven flexible, as shown by the frequent drops in the local prices of fuels after the mechanism was put in place.  

The government says oil derivatives in the domestic market are subject to additional costs set by international markets for the product to reach Aqaba, Jordan’s sole sea port.

These include maritime transportation costs from Singapore on the Mediterranean route, passing through Yanbu Port in Saudi Arabia before reaching Aqaba Port. 

Added to that are the costs of maritime insurance, fuel waste during transportation and the fees paid for letters of credit issued by banks to secure the cargo.
Additional costs in Aqaba include fees collected by Aqaba Ports Corporation, delay fines, and storage and handling costs paid to the Jordan Petroleum Refinery Company (JPRC).

 

Other costs are related to land transportation from JPRC to fuel stations, distribution, fuel station profits, and changes in the value of stored fuel.

PSD initiative raises awareness on protection from cybercrime

By - Dec 21,2015 - Last updated at Dec 22,2015

Public Security Department officers and University of Jordan students and faculty attend a ceremony on campus to launch a PSD anti-cybercrime initiative on Monday (Photo courtesy of Amen FM)

AMMAN — The Public Security Department (PSD) on Monday launched the second initiative of the “I Rise Because I Am Jordanian” campaign to raise awareness on cybercrimes and the dangers of using the Internet without precautions.

The PSD launched the campaign’s second initiative, “Electronic Crimes: The Internet is Your World — Protect Yourself”, at the University of Jordan (UJ) while lectures on the topic were delivered at 15 private and public universities across the Kingdom at the same time.

The initiative is aimed at educating young Jordanians on the safe use of the Internet and social media, Deputy PSD Director for Criminal Investigation Affairs Maj. Gen. Tahsin Momani said. 

UJ Vice President Ghaleb Sweis emphasised the importance of starting such initiatives, which provide Internet users with a better idea of how to protect themselves online.

Captain Hazem Mistarehi, who is also a correspondent of Amen FM, the PSD’s radio station, said the campaign aims at bringing attention to the possible crimes committed on the Internet and to reach out to as many students from all governorates.

“As the use of social media is becoming more common in our society, it is important to highlight the crimes that can be committed online,” he told The Jordan Times.

He added that the reason the campaign started at universities is due to the large number of students using social media and the Internet without realising the dangers they could face.

The campaign will continue with awareness lectures at schools and universities on the topic of cybercrimes, which include hacking, identity theft, extremism, blackmail, libel and fraud, according to Mistarehi.

Omar Obeidat, director of student activities at UJ, said the campaign’s goal is to reach Internet users, starting from Jordanian universities to spread across the country.

“The biggest sector in our society is young people — the students. These citizens are between the ages of 17 and 25,” Obeidat told The Jordan Times.

“The best place to discuss issues like the dangers of the Internet with young Jordanians is on campus, where many of them use the Web for different purposes,” he added.

The first initiative of the "I Rise Because I Am Jordanian" campaign, launched last month, focused on the disadvantages of littering, with around 250,000 bumper stickers that read: “I do not throw trash from the car” distributed to motorists. 

 

The campaign’s main aim is to combat negative behaviours on the street or online that threaten the safety of Jordanians, according to PSD officials.

Jordanian-Omani committee meetings to open Tuesday

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — The ninth session of the joint Jordanian-Omani committee is scheduled to begin in Amman on Tuesday, the Jordan News Agency, Petra, reported.

The session will be chaired by Trade Minsitry Secretary General Yousef Shamali and Omani Finance Ministry Adviser Abdul Malik Bin Abdullah Al Hinai. The two-day session will cover several topics related to enhancing economic cooperation. Shamali voiced Jordan’s interest in developing its relations with Oman.

‘Aid fund to disburse winter support this month’

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — The National Aid Fund (NAF) will disburse monthly aid and winter aid, at a total cost of JD1.5 million, to beneficiaries before the end of the month, NAF President Basma Ishaqat said Monday.

The winter aid, which will be paid only once, is aimed at helping underprivileged families cope with extra expenditures during the cold season, the Jordan News Agency, Petra, quoted Ishaqat as saying.

Couple dies due to gas leak, son in fair condition

By - Dec 21,2015 - Last updated at Dec 21,2015

AMMAN — An Egyptian man and his wife died while their one-year old child suffered breathing difficulties on Monday as a result of a gas leak from the cooker at the kitchen in their house in Manshiet Bani Hassan, according to the Civil Defence Department (CDD) . CDD personnel administered first aid to the child and took him to Mafraq Public Hospital, where his condition was reported as fair.

Cabinet extends deadline for replacing used cars with hybrid vehicles

By - Dec 20,2015 - Last updated at Dec 21,2015

On June 1, the Cabinet decided to reduce the tax on small-engine hybrid cars from 55 per cent to 25 per cent

AMMAN — The Council of Ministers on Sunday extended  the deadline for scrapping old fuel-run cars and exchanging them for hybrid vehicles until the end of 2016, according to the Jordan News Agency, Petra. 

The decision was taken in light of the great demand on hybrid vehicles. The deadline was supposed to expire by the end of this year.

From June 30, 2012, when the Cabinet adopted the decision, to October 4 this year, more than 28,600 old fuel- run cars were scrapped and exchanged for hybrid vehicles. 

In a bid to renew the fleet of cars on the Kingdom’s roads and to address the ballooning gasoline bill, the Cabinet on June 1 decided to reduce the tax on small-engine hybrid cars from 55 per cent to 25 per cent.

Authorities also decided to grant motorists who trade in cars that are 10 years old or more a further tax discount as they only have to pay 12.5 per cent in special tax for hybrids in the case of having their old cars scrapped.

Also during Sunday’s meeting, the Cabinet was briefed on the emergency video call system for deaf people’s achievement in being ranked first in an international programme that included 18 countries.

The project ranked first in the Zero Project on inclusive education and/or ICTs, an achievement that was applauded by HH Prince Mired, president of the Higher Council for the Affairs of Persons with Disability (HCD).

Prince Mired commended His Majesty King Abdullah’s support for the council in its efforts to safeguard the rights of people with disabilities. 

The project, which seeks to assist deaf people in communicating directly with authorities in case of emergencies, is the fruit of cooperation between HCD and the Public Security Department.

 

Moreover, the Cabinet approved an allocation of JD14.07 million, part of the allocations of the 2016-2018 enhanced economic and social productivity programme, to be used to establish 13 branches of factories in remote areas to provide job opportunities for local communities.

First flight carrying Syrian refugees from Jordan to Canada takes off

By - Dec 20,2015 - Last updated at Dec 20,2015

Canadian Immigration Minister John McCallum talks to Syrian refugees at the Amman civil airport in Marka on Sunday (Photo by Muath Freij)

AMMAN — The first flight carrying Syrian refugees from the Kingdom to Canada departed from the Amman Civil airport in Marka on Sunday.  

The flight carried 197 refugees from Amman to Toronto, Olivier Jacques of the Canadian embassy in Amman, who is supervising the process of resettling Syrian refugees from Jordan in Canada, said on Sunday at the airport.  

"[There] will be over a hundred flights carrying refugees from Jordan to Canada, because our goal is to get at least 10,000 Syrian refugees from Jordan all the way to Canada," he told The Jordan Times as refugees were waiting for their plane. 

Canadian Immigration Minister John McCallum said some planes have already carried refugees from Lebanon to Canada.

"It is a big job, and as you can see around you, we are doing it very fast and we are planning to get 25,000 between November and end of February; that is a big number because they have to go through health [checks]; they have to go through security… so there is a huge number of people coming together to… make this happen," he told The Jordan Times on Saturday as he toured the refugee processing centre in Amman.

Refugees at the centre were being interviewed and medically checked before moving to Canada. 

The minister also went to the airport on Sunday, meeting a number of refugees and welcoming them to Canada. 

McCallum, who also visited a number of projects in Jordan supported by his government, noted that the total number of refugees to be resettled in Canada might be raised to reach between 35,000 and 50,000.

The Canadian government has recently announced that it will host 25,000 refugees from Jordan, Lebanon and Turkey. 

"There are two kinds of refugees: there are sponsored refugees who are sponsored by their own families or by other groups and when they get to Canada they will automatically go wherever their sponsors are," McCallum said. 

"The other group — the larger group — is the government-assisted refugees and they are paid for by the government and they usually do not have families."  

Jacques said there are many Syrian refugees based in Lebanon who will be going to Canada and they will take a flight from Beirut, transiting in Amman on the way to Toronto or Montréal. 

"In Canada when the refugees arrive, they have a visa for Canada but then the immigration authority will greet them and give them permanent residence status, which will give them the right to study, to work and to live in Canada," he explained.

"Once this is done, they will spend one night in Toronto or Montréal and then they will move on to the next destination where they will settle in Canada," Jacques added.  

Some of the Syrians who were heading for Canada seemed optimistic despite the 12-hour flight. 

Abu Mohammad, who did not give his full name, was among them. 

"I am really happy. I was told that it will be safe for my family and so I decided to take my chance. I underwent medical tests and I said yes I would go to Canada," he told The Jordan Times. 

For Abu Mohammad, stability is far from becoming reality in Syria.   

Khasheeq George, who was waiting for his flight, described moving to Canada as a dream come true.   

 

"I am going to secure a good future for my family," he said.

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