Business

AMMAN — Lower House Speaker Ahmad Safadi on Monday attended a meeting with President of the Jordan Chamber of Industry Fathi Jaghbir, and members of the boards of directors of the Jordan and Amman chambers of industry to discuss the status of the national industry sector, Al Rai Newspaper reported.   

During the meeting, Safadi said that the Jordanian industrial sector is one of the most important pillars of the national economy, stressing the need to overcome the obstacles it faces to ensure the continuation of its work properly, pointing out that the COVID-19 pandemic has proven the importance of the industrial sector in providing basic necessities to citizens, 

The heads and members of the Lower House committees of energy and mineral resources, and economy and investment attended the meeting.

Safadi added that the next stage is the construction phase, stressing the importance of proceeding with the implementation of the comprehensive modernisation paths directed by His Majesty King Abdullah, 

He noted that today's meeting aimed to discuss the path of economic modernisation, and the Lower House is keen to empower the industrial and commercial sector to face the challenges facing it, and to advance them as required, adding that the current government gives the economic portfolio an important priority.

He noted that the chambers of industry and commerce have important prospects in the reconstruction process in Gaza and Syria, pointing to the importance of cooperation between the Lower House and the industrial sector to work towards overcoming the obstacles it faces in order to continue its successes.

Safadi added that the Lower Chamber would coordinate with the chambers of industry in the event of planning to visit Syria or the Gaza Strip.

Jaghbir said that the meeting would contribute to boosting the partnership between the Lower House and chambers of industry, especially as it was held in light of "exceptional" local and regional economic conditions that require cooperation and coordination.

He added that the industrial sector is the main driver of inclusive economic growth, due to its interdependence and overlap with all other economic sectors.

He explained that 40 per cent of the economic growth achieved until the end of the third quarter of last year, thanks to the industrial sector, which is considered the most capable of creating jobs and employing Jordanians, by forming 21 per cent of the workforce and supporting more than one million citizens.

Jaghbir called for the formation of a joint committee between the heads of the committees concerned with the economy and the Jordan Chamber of Industry, to periodically discuss the challenges and issues facing the industrial sector with regard to legislation.

AMMAN — Economic activities witnessed a complete collapse in the Gaza Strip, while they recorded a sharp decline in the West Bank, Al-Mamlaka TV reported on Sunday.

Many sectors in the West Bank have been affected, while in the Gaza Strip they have completely collapsed, According to the Palestinian Central Bureau of Statistics (PCBS).

The construction activity recorded the highest decline at 98 per cent in Gaza Strip and 38 per cent in the West Bank, reaching $332 million, followed by industrial activity with a decline of 90 per cent in Gaza Strip and 30 per cent in the West Bank, reaching $1,038 million. 

The agriculture activity followed with a decline of 91 per cent in the Gaza Strip and 17 per cent in the West Bank, reaching $564 million. 

However, services activity decreased by 81 per cent in the Gaza Strip and 17 per cent in the West Bank to reach $6,453 million. The prices of gasoline in Gaza rose sharply by 1032 per cent and cigarettes by 2773 per cent, according to the PCBS.

In the data monitored by Al-Mamlaka TV, the cost of living index during 2024 recorded a sharp increase in the Gaza Strip at levels not seen in the Gaza Strip markets before, due to the 15-month Israeli aggression. 

According to the PCBS, inflation in Gaza increased by 238 per cent, and because of this increase, the purchasing power of citizens in Gaza fell by 70 per cent.

Also inflation increased sharply in the West Bank by 53 per cent due to the increase of food prices, while transportation recorded a rise by 32 per cent as well as the prices of diesel used in transportation. The residence, water and electricity increased by 24 per cent.

Dried vegetables increased by 876 per cent, potatoes by 571 per cent, sugar by 534 per cent, fresh vegetables by 436 per cent, eggs by 432 per cent, fresh fruits by 351 per cent, fresh meat by 316 per cent and chicken by 261 per cent.

As for the prices of gasoline, they recorded 1032 per cent increase, diesel prices 377 per cent hike, and the price of imported cigarettes went up by 2773 per cent.

All West Bank cities recorded an increase in inflation levels, led by Jerusalem with an increase of 3.84 per cent, while the West Bank as a whole recorded an increase of 2.48 per cent.

AMMAN — Minister of Tourism and Antiquities Lina Annab on Monday revealed a decline in tourism revenue and visitor numbers in 2024 compared to 2023 during a meeting with the Lower House Tourism Committee to discuss the ministry’s 2024 achievements and the challenges facing the sector.

Annab highlighted that 2023 was a "record-breaking" year for Jordanian tourism, adding that in 2024, tourism revenue fell by 2.3 per cent to JD5.132 billion compared to JD5.25 billion in 2023. 

Also, the number of visitors dropped by 3.9 per cent, reaching 6.108 million in 2024 compared to 6.353 million in 2023, the Jordan News Agency, Petra, reported.

The tourism sector faced significant setbacks in 2024 due to regional shocks, including the Israeli war on Gaza, whose ripple effects impacted Jordan's tourism industry. This downturn came after the sector experienced "peak success and performance" in 2023.

AMMAN — The Arab Investment and Export Credit Guarantee Corporation (Dhaman) announced that the automotive sector in Arab countries has attracted 184 foreign projects, with a cumulative investment exceeding $25 billion and creating over 102,000 jobs from 2003 to October 2024.

Dhaman explained, in its fourth sector report for 2024 issued on Sunday, that five Arab countries; Saudi Arabia, Morocco, UAE, Algeria, and Egypt accounted for 79 per cent of the total projects in the automotive sector. These projects represent an investment cost of more than $22 billion, with a share of 89 per cent of the total sectoral investment, and have created over 91,000 jobs, with a share of 89 per cent of the total.

The report focuses on four key aspects; the development and future of vehicle sales until 2028, foreign trade in vehicles and their components for 2023, in addition to foreign projects in the automotive sector, and assessing investment and business risks related to car sales activity in 2024.

China topped the list of investment exporters in the Arab region, implementing 27 projects in the region from 2003 to 2024, with an investment cost of nearly $8 billion and creating about 20,000 new jobs.

The report highlighted that the top 10 companies in the sector accounted for 41 per cent of the new projects, with a share of 67 per cent of total capital investments, and 58 per cent of the new jobs created.

Japan company's Nissan topped in the number of projects reaching to 18 projects, with a share of 10 per cent of the total. However, the Chinese company Human Horizon Group topped in investment value, contributing $5.6 billion with a share of 22 per cent of the total. Meanwhile, the French company Renault topped in job creation, generating approximately 15,000 positions, with a share of 15 per cent of the total jobs created in the sector.

The report also ranked investment incentives and risks in 16 Arab countries based on Fitch ratings, with Gulf Cooperation Council (GCC) countries leading the list. The UAE ranked as the most attractive for automotive business and investment in 2024, followed by Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain.

Vehicle sales in the Arab region, comprises of 16 countries, are expected to grow by over 5 per cent, exceeding 2.3 million units by the end of 2024, with a share of 2.4 per cent of global vehicle sales. This figure is expected to reach 3 million units by 2028.

Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait collectively account for approximately 75 per cent of total regional sales.

Private car sales in 12 Arab countries are forecasted to exceed 1.8 million units by the end of 2024, marking a 4.5 per cent rise compared to 2023. Saudi Arabia leads this category with a 45 per cent share of the market. The region sales are expected to surpass 2.2 million vehicles by 2028, according to Fitch ratings.

The report indicated an increase in the regional vehicle fleet index, reaching an average of 307 vehicles per 1,000 inhabitants by the end of 2024, up by nine points. This figure is expected to further rise to 353 vehicles per 1,000 inhabitants by 2028, with Libya and many GCC countries exceeding the regional average.

Arab foreign trade in road vehicles and their components increased by 23 per cent in 2023, reaching $126 billion. This growth was driven by a 29 per cent rise in exports, totaling $29 billion, (bolstered by vehicle re-export activities valued at $14 billion in the GCC separately). Imports increased by 21 per cent, reaching $97 billion, with 82 per cent of the total trade concentrated in five countries: the UAE, Saudi Arabia, Morocco, Iraq, and Kuwait, collectively accounting for $103 billion.

Japan topped the largest exporter of vehicles and components to the Arab region, recording exports valued at $17 billion, representing 17 per cent of the total. Iraq emerged as the largest importer from the region, accounting for $10 billion 34 per cent of total imports.

Personnel transport vehicles topped Arab imports of vehicles and components in 2023, valued at $63 billion, exceeding 65 per cent of total imports. Vehicle parts and accessories followed, valued at $14 billion, contributing 14 per cent to total imports.

Dhaman, a joint Arab entity established in 1974 and headquartered in Kuwait, is owned by Arab countries and four financial institutions, with an A+ rating and a stable outlook from S&P. It is the world’s first multilateral investment insurance organisation.

AMMAN — The total licensed building area in the Kingdom during the first 11 months of 2024 reached approximately 8.13 million square meters, compared to 8.70 million square meters during the same period in 2023, marking a decline of 6.6 per cent, according to the monthly report issued by the Department of Statistics on Sunday. 

The total number of building permits issued in the Kingdom by the end of November 2024 was about 21,708, compared to 22,552 permits during the same period in 2023, reflecting a decrease of 3.7 per cent, the Jordan News Agency, Petra, reported.

Regarding licensing purposes, the licensed area for residential purposes amounted to 6.51 million square meters during the first 11 months of 2024, compared to 7.20 million square meters during the same period in 2023, showing a decline of 9.6 per cent. Meanwhile, the licensed area for non-residential purposes increased by 7.3 per cent, reaching approximately 1.61 million square meters, compared to 1.50 million square meters in 2023. 

The report noted that licensed areas for residential purposes accounted for 80.2 per cent of the total licensed building area, while non-residential purposes constituted 19.8 per cent. 

By region, the central region accounted for 67 per cent of the total licensed building area in the Kingdom during this period, an increase of 1.5 per cent compared to 2023. The northern region accounted for 23.2 per cent, a decline of 8.3 per cent, while the southern region represented 9.8 per cent, recording a growth of 12.6 per cent compared to the same period in 2023. 

As for per capita share of licensed residential areas, Balqa Governorate recorded the highest share at 13.2 per cent, equivalent to 0.821 square meters per person. In contrast, Mafraq Governorate had the lowest share at 4.1 per cent, equivalent to 0.255 square meters per person during the same period. 

Regarding permits by building type, licensed areas for new buildings and additions to existing ones represented 63.2 per cent of the total licensed building area, while licensed areas for existing buildings accounted for 36.8 per cent. 

The report further stated that the total licensed area for new buildings and additions to existing ones amounted to approximately 5.135 million square meters, compared to about 5.674 million square meters during the same period in 2023, marking a decrease of 9.5 per cent. 

In November 2024 alone, the licensed building area reached 864,000 square meters, compared to 761,000 square meters during the same period in 2023, reflecting an increase of 13.5 per cent. 

AMMAN — The Jordan Economic Forum (JEF) has held a dialogue session to assess the status of tourism in Petra city, examining the effects of the current political conditions in the region on tourism in Jordan.  

A JEF statement released on Saturday said that Chief Commissioner of the Petra Development and Tourism Region Authority (PDTRA) Fares Breizat and members of the forum’s board and general assembly attended the session, the Jordan News Agency, Petra, reported. 

During the session, JEF Chairman Mazen Hmoud stressed the importance of discussing the rose-red city's tourism challenges amidst regional developments.

He highlighted the forum’s commitment to shedding light on issues with a direct impact on the national economy and proposed enhancing collaboration between Petra and AlUla in Saudi Arabia.  

Breizat outlined the severe decline in tourism to Petra, noting a 74 per cent drop in foreign visitors in 2024 compared to the previous year. 

This decline has significantly affected PDTRA's budget and the livelihoods of local communities dependent on tourism, he noted.  

The hotel sector was among the hardest hit, with 14 hotels still closed and 478 workers unemployed despite efforts to promote domestic tourism through programmes like Urdun Jannah. 

Breizat stressed the need to diversify tourism products and markets to avoid reliance on specific types of tourism, such as cultural, medical and religious tourism.  

He pointed to adventure tourism as an opportunity to position Jordan as a diverse global destination, while also calling for better promotion of the country’s 52 Islamic sites and five Christian pilgrimage locations recognised by the Vatican.

Recent efforts in Petra, such as organising the first prayer at the Byzantine church with the Vatican ambassador in attendance, demonstrate the potential to attract visitors from new markets like Latin America and Asia. 

Breizat also highlighted the potential of stargazing and meditation tourism, noting that 60 per cent of Petra’s visitors come from Europe. 

He identified the Indian market as a "promising prospect," particularly for Islamic and Christian pilgrimage tours and wedding tourism, which could generate significant revenue.

AMMAN — The Jordan Standards and Metrology Organisation (JSMO) processed 199,000 customs declarations at border crossings and customs points across the Kingdom in 2024, ensuring imported goods meet the required specifications before entering Jordanian markets.

JSMO Director General Abeer Zoubi on Saturday said that the organisation re-exported or destroyed goods that failed to comply with technical regulations and Jordanian standards, according to the Jordan News Agency, Petra.  

"These violations were identified in 574 customs declarations and included over 1.623 million items of clothing, footwear, bags, toys and children's supplies, as well as 453,000 household electrical appliances such as heaters, stoves, lamps and decorative string lights, she added.

"Other items included 196,000 cleaning and cosmetic products, 76,600 sanitary tools, 54,000 square metres of non-compliant construction materials like tiles, ceramics, marble and stone, and 250 tonnes of rebar steel." 

Zoubi highlighted JSMO's dedication to verifying product authenticity and preventing counterfeit goods, adding that the organisation reviewed 10,906 conformity assessment documents and authenticated trademarks for 2,332 products in 2024.

She also stressed that JSMO’s work aligns with Royal directives to safeguard the national economy, protect consumer health and safety and foster investment. 

"This commitment supports the goals of the Economic Modernisation Vision, focusing on high-value industries, investment drivers, sustainability, and enhancing quality of life, she added.

AMMAN — In a move to accelerate Jordan's digital transformation, the Central Bank of Jordan (CBJ) on Thursday announced the elimination of all commission fees on government service payments through the eFAWATEERcom platform, effective January 13.

The comprehensive fee waiver, agreed upon by the Kingdom's banks, Jordan Payments and Clearing Company (JoPACC) and MadfooatCom, covers e-transactions for all general budget entities, including Civil Status and Passports Department, Department of Land and Survey, Justice Ministry services, Social Security Corporation, public universities and security agencies.

"This landmark agreement reflects our financial sector's commitment to advancing digital transformation and improving public service accessibility," CBJ said, as reported by the Jordan News Agency, Petra.

The initiative excludes over-the-counter cash transaction fees, intentionally steering users towards digital channels.

The decision marks a "strategic" step in implementing Jordan's Economic Modernisation Vision 2023-2025, aiming to boost digital payment adoption while reducing transaction costs for citizens.

The CBJ anticipates the move will significantly increase digital service uptake, particularly benefiting citizens through time savings and enhanced financial inclusion.

Banking sector observers note this initiative could mark a turning point in Jordan's transition towards a cashless economy, with the fee elimination removing a key barrier to digital payment adoption.

The CBJ stressed that increased digital payment usage will improve government service collection efficiency while advancing the broader goal of comprehensive financial inclusion.

AMMAN — The Senate's Finance and Economy Committee, headed by Senator Rajai Muasher, on Thursday approved the draft law for the General Budget for the fiscal year 2025 as referred by the Lower House.

During the evening meeting, Muasher said that the committee had approved the bill following "several sessions and extensive discussions" regarding the projects and expenses allocated in the budget, assessing their alignment with the strategy of each ministry, the Jordan News Agency, Petra, reported.

He also highlighted the review of how these projects and expenses aligned with the draft budget discussed in the morning session, in the presence of the economic ministerial team, as well as their compatibility with the Economic Modernisation Vision, Political Modernisation Vision, Public Sector Modernisation Roadmap and the Letter of Designation.

Earlier on Thursday, the committee reviewed the strategy and budget of the Ministry of Public Works and Housing.

Muasher explained that the meeting was held to review the strategy, budget and projects of the ministry and to ensure their alignment with the Economic Modernisation Vision and the Letter of Designation.

During the meeting, Minister of Public Works and Housing Maher Abul Samen said that the ministry aims to establish a "modern and safe" road network with economic benefits that serve various modes of transportation, enhance the Kingdom's competitiveness, and boost its geopolitical position as a regional hub and a vital connection point between countries.

He stressed that the ministry's strategy has been designed to align with the economic, political and public sector plans.

AMMAN — The value of the Central Bank of Jordan’s (CBJ) gold reserves increased by JD800 million during 2024.

According to CBJ data, Jordan’s gold reserves reached JD4.256 billion by the end of 2024, compared to JD3.455 billion at the end of the previous year.

In terms of quantity, Jordan’s gold reserves amounted to 2.303 million ounces by the end of 2024.