Business

DOHA — Demand for natural gas will grow in 2017 but at a slower rate than in recent years, Qatar's energy minister said on Thursday ahead of a meeting of exporting countries.

Mohammed Saleh Al Sada said ministers of the Gas Exporting Countries Forum (GECF) would discuss "long-term strategy" at Thursday's meeting in Doha.

"The big news, of course, is that the demand for natural gas grew in 2015 by 1.9 per cent, more than double of that in 2014," he said.

"And it is expected to continue growing in the next year albeit at a lower pace." 

The Doha-headquartered GECF is made up of 12 countries, including Russia, Algeria, Libya and Venezuela who between them account for more than 40 per cent of global gas output.

Officials would not confirm if all 12 countries are represented at Thursday's meeting but ministers from Russia and Algeria were taking part.

Iranian Oil Minister Bijan Zenghanah had announced he would not attend.

The GECF is meeting at a time when Liquefied Natural Gas (LNG) production is growing because of output from non-members Australia and the United States.

Qatar is currently the world's biggest LNG exporter but could soon be overtaken by Australia.

Sada said there would be a "new environment and competitiveness" on the supply side.

AMMAN — Deputy Prime Minister for Economic Affairs and Minister of State for Investment Affairs Jawad Anani stressed on Wednesday the importance of strengthening the Jordanian-Romanian ties, especially in economic and commercial fields.

Anani made the remarks at a ceremony, marking the signing of a joint cooperation agreement between the Jordan Chamber of Commerce and the Chamber of Commerce and Industry of Romania.

Romanian Minister of Foreign Affairs Lazar Comanescu, who is currently visiting the Kingdom, attended the signing of the agreement, which is intended to boost joint activities in economic, commercial, scientific and technological areas.

Anani indicated that the joint Jordanian-Romanian commercial exchange volume was still below the desired level and he urged the Romanian side to take the steps needed to deal with this issue. 

In 2015, the deficit in the trade balance, very much tilted in Romania’s favour, exceeded $295 million, he noted.

The Jordanian official explained that the Kingdom hopes to increase its exports, including phosphate and fertilisers, among other products, to the Romanian and European Union markets. 

Under the agreement, the two sides will hold joint business conferences, and establish a joint business council that contributes to boosting business relations and encouraging investments, the Jordan News Agency, Petra, reported.

Anani also referred to the possibility of benefiting from the Romanian expertise in vocational training through setting up a Romanian vocational centre in Jordan, in addition to increasing Romanian investment projects in the Kingdom.

On the sidelines of the ceremony, Anani and Comanescu held talks on fostering economic and commercial cooperation.

Jordan's exports to Romania include vegetables, medicines, and skin-care products while its imports from Romania include wood, paper, textiles, and livestock.

KUWAIT CITY — Kuwait must enact further subsidy reforms to trim its budget deficit resulting from low oil prices despite political sensitivity, the International Monetary Fund has said.

Posting its first budget shortfall of $15 billion last fiscal year following 16 years of surpluses, OPEC member Kuwait has adopted a series of austerity measures raising the prices of fuel, power and water.

The emirate liberalised diesel and kerosene prices last year and recently hiked the cost of petrol, causing a political crisis that led to parliament being dissolved and calls for a snap election.

But even with these measures, Kuwait will need a massive 35 billion dinars ($116 billion) to finance its deficit over the next six years, the IMF said in a report released late on Tuesday.

In spite of the government reform measures, Kuwait's "fiscal and external accounts have deteriorated markedly", it said.

"Further subsidy reform is critical."

The report encouraged "the authorities to move ahead with their plans to further rationalise energy subsidies", estimated at $7 billion in last year's budget.

It also called for controls on the wage bill and for raising non-oil revenues.

Earlier this year, the Cabinet approved a comprehensive plan aimed at subsidy reforms, economic diversification and controlling the wage bill, which accounts for almost half of public spending.

But the plan was fiercely opposed by the previous parliament and also by a majority of candidates running in polls slated for November 26.

According to local media, the government plans to end subsidies by 2020.

To meet budget financing needs, Kuwait has drawn down billions of dollars from its $600-billion sovereign fund.

It has also resorted to borrowing and plans to issue domestic and foreign bonds worth $16.6 billion.

Kuwait is projecting a deficit of $29 billion this fiscal year.

RIYADH — Arab leaders must treat the region's 100 million young people as an asset, not a liability, the UN's youth envoy said in Saudi Arabia on Tuesday.

"This is a generation that is so willing to contribute, but is beset by obstacles in the 22-nation region plagued by conflict since a wave of Arab uprisings demanding reform erupted after late 2010,” Ahmad Al Hendawi told the MiSK Global Forum.

Releasing figures from a forthcoming study, he said the region's average age is below 25 — but the average age of Arab world politicians is 58.

"This region has the highest rate of youth protest if you compare it to all other regions in the world," said Al Hendawi, who assumed the post in 2013.

He said two-thirds of Arab women are looking for jobs.

A separate report by the United Nations labour agency in August showed that Arab states have the world's highest youth unemployment rate, above 30 per cent.

Overall, the region needs to create 60 million jobs by 2020, Al Hendawi said.

Even though that figure seems unreachable, he said the region should establish "an enabling environment" which would make it easier for young people to start businesses, and where they are seen "as an asset, not as a liability".

At the moment, starting a new business "is almost a mission impossible", he told the forum which brings business leaders together with young Saudis in a bid to inspire their involvement in diversification of the kingdom's oil-dependent economy.

Alhendawi said young people's use of social media shows "they are interested in politics and they are interested in public life", though not in the formal institutions of government.

He said the Arab world itself contains the solutions to its problems.

"This is our region," he told the hundreds of delegates. "We have to reclaim it."

The forum, which continues on Wednesday, is organised by the MiSK Foundation which aims to generate youth initiative.

It was founded by 31-year-old Deputy Crown Prince Mohammed Bin Salman, who in April launched the wide-ranging Vision 2030 plan for enhancing the role of the private sector as part of economic diversification.

AMMAN — Al Seraje Real Estate Development, a subsidiary of the Audeh Group, and  Habash-Deir Contracting Co. have signed an agreement for the construction of the skeleton works of Campbell Gray Amman, according to a statement sent to The Jordan Times on Tuesday.

Signed by Tony El Khal, Al Seraje real estate development general manager, the agreement entails the development of the 5-star hotel project, which will be operated by Campbell Gray Hotels and is set for completion in 2018.

Campbell Gray Living, the first investment project of Al Seraje Real Estate Development in Abdali is now open for sales and lease inquiries offering residential, offices and retail space.

Campbell Gray Amman will offer 188 rooms, two restaurants, meeting rooms, a ballroom, screening room, a spa, salon, indoor and outdoor swimming pools, cigar lounge, library and a royal suite atop the tower.

AMMAN — A hospitality and tourism expert believes Jordan has what it takes to assume a better position on the international tourism map. 

Furthermore, Omer Kaddouri, Rotana president and CEO, is confident that the Kingdom has the potential to attract "plenty of opportunities" in the hospitality sector, provided that more efforts are exerted by all stakeholders. 

"Amman is a city that can achieve, and needs to achieve, an 80 per cent [hotel] occupancy rate instead of the current average of 55 per cent," he told The Jordan Times in an exclusive interview on the sidelines of the Rotana Hotel opening ceremony. 

On the reasons for Rotana Group's decision to invest in Jordan, Kaddouri noted that investors have decided to move to Jordan many years ago believing that the country is "in need of more hotels of great calibre". 

"This country attracts corporates, it attracts medical tourism, it attracts tourism because of the culture [and the] availability of beautiful places… There are many good reasons to do business in Amman," he highlighted. 

While citing the difficult situation in the Middle East, which made countries with high hotel occupancy rates lose in that department, he underlined the importance of the Rotana Hotel as a project with long-term benefits.    

"It is not a great time right now, but you do not build a hotel for right now; you build a hotel for the next 20, 30 and 50 years," Kaddouri noted.  

Around 99.9 per cent of Rotana Amman employees are Jordanians, he said, because "there are a lot of Jordanians who have plenty of experience in the hotel business".

"If there is one thing that stands out to me, it is the calibre, the quality, the look and the friendliness of our Jordanian colleagues. They want to make a difference. They all speak English pretty well and they are all excited," said Kaddouri, a graduate of Les Roches International School of Hotel Management.

He underlined the need for young Jordanians to understand how "good this industry is for them", but called for instilling "some more loyalty" among them to understand that they join a company for the future and their career, rather than for a few additional dinars. 

"Rotana can give a lot of Jordanians great careers, not just in Jordan, but they can also transfer to our hotels in the UAE, Turkey, Kuwait, Saudi Arabia and to Africa when we open there next year," he said.

Kaddouri believes that Jordan can do more in familiarising the world with its uniqueness, especially in cooperation with the private sector and Royal Jordanian. 

"There are efforts to reach the world and they are great, but there have to be continuous delegations going from Jordan to all source markets like the UK, Germany and Asia," he said.   

AMMAN — The Amman Rotana Hotel was officially inaugurated on Monday. 

The $280 million investment managed by Rotana Group "reflects the company's faith in Jordan as a leading travel destination that offers its visitors a unique historical and cultural experience", Nasser Al Nowais, Rotana chairman and co-founder, said at the opening ceremony, attended by Prime Minister Hani Mulki on behalf of His Majesty King Abdullah.

Nowais noted that the opening of the new hotel "enhances our growing portfolio in the Jordanian market, which includes the Boulevard Arjaan by Rotana in the new Abdali downtown area".

Combined, the two hotels offer 803 rooms, suites and hotel apartments, employing 900 Jordanians. 

"Rotana has become the largest hotel operator in the Kingdom," said Nowais, who noted that the group, which will operate more than 100 hotels globally by 2020, looks forward to enhancing its presence in Jordan's tourism sector. 

The 188m building is the tallest in the Kingdom and includes 50 floors that house 412 rooms and suites, in addition to other facilities.

Tourism Minister Lina Annab cited the strong relationship Jordan and the United Arab Emirates enjoy, noting that Emirati investments in Jordan are estimated at $15 billion, while the Gulf country is seen as the first destination for Jordanian investments, which stand at around $1 billion.

SEOUL — Samsung Electronics said Monday it would buy US auto parts maker Harman International Industries for $8 billion in a bid to enter the growing market for automotive technology to produce "connected" cars.

The deal, the biggest in the firm's history, will provide a chance for the tech titan to move past the exploding Galaxy Note 7 crisis that is expected to cost it billions of dollars as well as its cherished reputation.

Board members of Samsung — the world's largest producer of smartphones — approved the all-cash deal of the Connecticut-based firm for $112 a share, Samsung said in a statement.

The deal will give the South Korean giant a "significant presence" in the global market for online-connected auto parts, the firm said. 

"Harman perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time," Samsung Vice Chairman Kwon Oh-Hyun said in a statement. 

"Harman immediately establishes a strong foundation for Samsung to grow our automotive platform."

Harman produces high-end audio systems and other Internet-enabled entertainment features for global carmakers, including General Motors and Fiat Chrysler.

Samsung Electronics — the flagship unit of the Samsung Group — produces a wide range of electronics from smartphones to home appliances and semiconductors. 

The latest deal will offer the firm a chance to combine Harman's expertise in high-tech auto parts and its own mobile and semiconductor technologies, Samsung said. 

Samsung is hoping to complete the deal by the third quarter of 2017 after getting approvals from Harman shareholders and regulators.

The latest deal comes as the South Korean electronics giant seeks new sources for growth beyond its key business of mobile handsets as the market slows.

"Samsung is trying to fill what it lacks by tapping into a new growth engine," said Greg Roh, an analyst at HMC Investment Securities.

"We can say that Samsung took a big step in gaining a competitive edge in the car info-tainment sector," Roh said.

Samsung in September announced a recall of millions of Note 7s after it emerged they were susceptible to overheating and exploding. The problem was exacerbated when it was discovered replacement gadgets were also blowing up and it discontinued the handset.

Roh said the search for a new growth engine would also likely be aimed at giving the company a boost amid a power transfer to the scion Lee Jae-yong.

The 48-year-old Lee, who is already vice chairman of Samsung Electronics and has seen his influence grow since his father, Samsung patriarch Lee Kun-Hee, suffered a heart attack and was hospitalised in 2014 joined the board last month during an extraordinary shareholders' meeting.

Samsung last year established a new automotive electronics business team, which will work closely with Harman, Samsung said.

The market for smart, connected electric vehicles including self-driving cars would grow by an average of 13 per cent each year to $186.4 billion by 2025, it added. 

The Samsung group dabbled in carmaking business in the 1990s but was soon forced to sell the business to the French carmaker Renault in the wake of the crippling 1997-98 Asian financial crisis.

DUBAI — Dubai business magnate Mohamed Alabbar announced on Sunday the launch of a $1-billion regional e-commerce site in a joint venture with the Saudi sovereign wealth fund and other Gulf investors.

Noon.com is to go online in January with a 50 per cent investment from the kingdom's Public Investment Fund and the rest from around 60 investors led by Alabbar, who heads the emirate's real estate giant Emaar.

He told a press conference that distribution centres are being set up in the Saudi cities of Riyadh and Jeddah, along with a giant warehouse the size of 60 football stadiums in Dubai.

"We expect to become a world player but will concentrate firstly on Saudi Arabia and the United Arab Emirates," said the president of Emaar, the company which built the world's tallest building, the Burj Khalifa in Dubai.

With an initial inventory of 20 million products, the online retailer aims to expand to Egypt, the Arab world's most populous state, at the end of next year or early in 2018.

Alabbar, quoted by Bloomberg, said Noon would be traded on stock markets after five to seven years.

Products will include fashion, books, home and garden, electronics, sports and outdoor, health and beauty, personal care, toys, children's and baby products.

With e-commerce growing fast in the Middle East, the region's Souq.com, founded in 2005 as an auction site before expanding into general retail, is often described as "the Amazon of the Middle East".

In February, Souq.com announced it had raised $273 million from international investors to finance expansion plans.

ALGIERS — Saudi Arabia's oil minister said it was "imperative" that OPEC nations finalise an agreement over a cut in oil production aimed at boosting crude prices, Algerian media said on Sunday.

Khalid Al Falih met his Algerian counterpart Noureddine Boutarfa on Saturday and called on cartel members to stick to the surprise cut deal, reached in Algiers in September.

"In this period marked by unstable oil prices it is imperative to reach a consensus between OPEC nations and to agree on an effective mechanism and precise figures to activate the historic Algiers accord," Falih was quoted as saying by Algeria's APS news agency.

The September meeting of OPEC members produced an agreement to cut the cartel's output by 750,000 barrels per day (bpd), according to Bloomberg News. 

Oil rose on news of the deal, but crude prices are still more than 50 per cent lower than their mid-2014 levels. 

Falih said he was "optimistic" that the agreement would come into effect.

The Saudi minister was quoted as saying that a "fair and balanced" output deal would allow unrest-hit Libya and Nigeria, with a return of security, to raise production, while reaching agreement with Iran on a freeze. 

Falih and his Algerian counterpart Boutarfa called for the date an OPEC preparatory meeting of experts ahead of the Vienna conference to be brought forward to November 21 from its scheduled date of November 25, APS reported.

OPEC officials said in September that the group would aim for a combined output of 32.5-33 million bpd.

On Friday, however, prices fell on news from OPEC that it had pumped oil in October at record levels of 33.64 million bpd, 236,000 bpd more than the previous month.