Business

AMMAN — Exports of East Amman Industrial Zone (EAIZ) have continued to drop because its conventional markets have been closed due to regional instability and because of the closed borders with Iraq and Syria.

The zone’s exports in the first seven months of 2016 dropped to JD194 million compared with JD203 million, the figure recorded in the same period of the previous year, a report released by EAIZ Investor Association on Saturday indicated.

Chemical industries and cosmetics’ exports accounted for JD56 million, followed by food supplies, agricultural and livestock exports at JD51 million. Launched in 1960s, EAIZ currently houses 1,860 small- and medium-size facilities that provide 26,000 jobs, according to the Jordan News Agency, Petra.

CAIRO –– The International Monetary Fund (IMF) has reached an initial agreement with Egypt for $12 billion in funding over three years, the fund said on Thursday.

The Egyptian government hopes the deal will provide a lifeline amid a dollar shortage, dwindling foreign reserves and an economy battered by years of unrest.

The agreement, which will have to be ratified by the IMF and Egyptian authorities, will require Cairo to undertake economic reforms.

“Egypt is a strong country with great potential but it has some problems that need to be fixed urgently,” a statement from the fund said quoting the head of its delegation to Egypt, Chris Jarvis.

Jarvis said in a press conference that the IMF was looking to Egypt’s parliament to pass a value added tax law.

The IMF’s Extended Fund Facility is aimed at countries with payment imbalances and tepid growth to aid structural reforms, according to the fund’s website.

Analysts have said the IMF also pushed for a more flexible exchange rate for the Egyptian pound, which the government has been propping up amid capital controls.

The shortage has affected imports and created a flourishing black market trade that the government fought unsuccessfully.

Jarvis said the goal was to have no foreign currency shortage and to create a “balance between supply and demand”.

President Abdel Fattah Al Sisi has been preparing public opinion for the economic reform measures, including further subsidy cuts.

Although the funding is spread out over three years, the IMF will be looking for a quick implementation of the reform measures.

“The IMF would like to see change right now, not delayed,” said Angus Blair, president of the economy think tank Signet.

Egypt has been in tentative negotiations for an IMF loan since the ouster of president Hosni Mubarak in a 2011 uprising that set off years of political turmoil culminating in the military overthrow of his Islamist successor two years later.

Mohamed Morsi’s ouster in 2013 unleashed a bloody police crackdown on Islamists and extremist attacks that have decimated tourism, a key dollar earner for Egypt.

With tourist revenues and foreign remittances down, the country’s foreign reserves have fallen to $15.5 billion (13.9 billion euros).

AMMAN — Credit facilities extended by banks and financing institutions reached JD22.17 billion by the end of May 2016, registering a 9.6 per cent increase over the JD20.23 billion during the same period of 2015, the Central Bank of Jordan (CBJ) announced Thursday.

The CBJ said that JD21.88 billion were extended by licensed banks, while the state-owned Agricultural Credit Corporation and Cities and Villages Development Bank facilitated loans valued at JD133 million and JD114.1 million respectively, according to the Jordan News Agency, Petra.

The central bank said the value of the credit facilities it extended were around JD43 million.  

AMMAN — Assets of branches of Jordanian banks operating in Palestine increased by 2.8 per cent in the first six months of 2016 to JD4.26 billion, compared to JD4.15 billion in the same period of 2015, the Central Bank of Jordan said Thursday in a statement carried by the Jordan News Agency, Petra. 

SHANGHAI — A Chinese city has suspended preliminary work on a proposed 100 billion yuan ($15 billion) nuclear waste processing plant, following protests by local residents concerned about health risks.

Reports that Lianyungang — a coastal city about 500km north of Shanghai — was set to be chosen as the site for the project sparked protests that began at the weekend.

The project, to be run by the state-owned China National Nuclear Corporation (CNNC) in collaboration with France’s Areva, is due to start construction in 2020 and scheduled to be completed by 2030.

“The Lianyungang Municipal People’s Government has decided to suspend site selection and preliminary work on the nuclear recycling project,” the local government said in a notice posted on its website.

It did not give further details.

In a report published on Monday by the official local newspaper, the Lianyungang Daily, the local government said “no final decision had been made” on the location of the plant.

It threatened to take legal action against “illegal elements” it accused of “fomenting social disorder” and spreading rumours about the project.

Lianyungang, in the province of Jiangsu, is the location of the Tianwan nuclear project, which currently consists of two Russian-designed reactors. Two more units are now under construction and there are plans to expand further.

An Areva spokeswoman in Paris said the company could not comment on the protests or on the choice of a site for the plant. She added the company had completed negotiations about the technical aspects of the project in June 2015 and was now in commercial negotiations. There is no deadline for the project.

The negotiations between CNNC and Areva are about the price of a technology transfer, as the plant will not be built and operated by Areva but by CNNC.

China wants to build a nuclear fuel reprocessing plant modelled on Areva’s installations in La Hague, western France, as well as a MOX fuel plant modelled on Areva’s plant in Melox, southern France.

La Hague takes the plutonium out of spent uranium burned in EDF’s French plants, which Melox blends with uranium to produce new fuel rods for pressurised water nuclear reactors.

The Chinese plant is expected to have a reprocessing capacity of 800 tonnes per year, compared to a maximum capacity of 2,700 tonnes in La Hague.

CNNC could not be reached for comment, but an official with the firm told state newspaper Science Daily on Tuesday that Lianyungang was just one of several candidates and the central government would make the final decision on the plant’s location.

China has ambitions to become a world leader in nuclear power. It had 30 reactors in commercial operation by the end of June this year, amounting to 28 gigawatts (GW) of capacity. It is aiming to raise that to 58GW by the end of 2020.

However, it is struggling to resolve bottlenecks in the industry, including fuel processing, waste recycling, grid access and a shortage of qualified staff.

China’s reactors could instead take the US route and bury waste underground, said Li Ning, a nuclear scientist and Dean of the School of Energy Research at Xiamen University.

“But the [Lianyungang] government gave in so quickly, and from that perspective, it does not bode well for the nuclear industry,” he said.

High-profile government-driven publicity campaigns designed to promote nuclear power have not stopped Chinese citizens from taking action against nuclear projects in the past.

In 2013, residents in the city of Heshan in Guangdong province took to the streets to protest against a uranium processing plant scheduled to be built in the city. The project was eventually cancelled.

“These actions are happening more frequently, on a larger scale and in a more agitated way,” Li said. 

AMMAN — French Ambassador to Jordan David Bertolotti has visited the recently-opened showroom of Al Khayyat Motors (AKM), the sole importer for PSA Group (Peugeot and Citroen), a company statement said on Wednesday.

Touring the showroom and its various facilities, the ambassador expressed his admiration of AKM’s rapid growth and development in Jordan. AKM’s management team highlighted the company’s achievements in recent years, in addition to its future plans related to the development of its human resources, as well as its continued pursuit of excellence in customer service in its sales and post-sale operations.

AKM was established in 1996 as the exclusive agents and distributers of Peugeot vehicles in Jordan. Since then, the group has grown and established its presence in the Jordanian automotive market, expanding the group’s portfolio to include Japanese brand Mazda, besides the recent addition of Citroen, to complete its representation for PSA, the French manufacturer of Peugeot and Citroen automobiles. 

AMMAN — Providing training opportunities to Jordanians and empowering them to meet the needs of the labour market is a priority for Amman Chamber of Commerce (ACC), Issa Murad, the chamber’s president said on Tuesday.

Murad made the remark at a ceremony, marking the ACC’s signing of cooperation agreements with the Amman-based Arab Trainers Union and the Jordanian Trainers Society.

Murad expressed the chamber’s readiness to support all ideas that can contribute to enhancing the national economy, the Jordan News Agency, Petra, reported.

The ACC is keen on providing all types of training, deemed necessary for the commercial sector, in particular, and the economy, in general, in addition to implementing programmes that may play a role in developing business quality, he noted. 

AMMAN — Prime Minister Hani Mulki on Tuesday said Jordan wants to strengthen its ties with Turkey in the field of development cooperation to achieve mutual interests. 

The premier made the remark during a meeting with a Turkish delegation representing the Foreign Economic Relations Board of Turkey (DEIK) headed by its Vice President Mithat Yenigün, according to the Jordan News Agency, Petra. 

During the meeting with the delegates, Mulki noted that the private sector of Turkey may benefit from the Jordanian-EU agreement on simplified rules of origin, which can also encourage Turkish industries to invest in the Kingdom and export its products to European markets. 

He urged the delegates to benefit from the opportunity, which he described as “historic”, to achieve mutual gains and build partnerships that can contribute to achieving sustainable development. 

He also highlighted the importance of benefitting from the free trade agreement signed between the two countries to increase the joint commercial exchange volume. 

Moreover, Mulki welcomed Turkey‘s use of Aqaba port for shipping Turkish products, noting that the Aqaba Container Terminal has been  classified by the UN as one of the best in the world in terms of efficiency and prices.

Underscoring the importance of cooperation between the private sectors of both countries, Yenigün highlighted the large volume of Turkish investments abroad and the achievements made in the industrial, commercial and tourism sectors. He also mentioned that Turkey has restabilised in the wake of the failed coup attempt last month. 

Also on Tuesday, the Jordanian Businessmen Association (JBA) hosted the delegates, in the presence of the premier who mentioned that there are great opportunities in the construction sector in Jordan.

The government is going to award school and hospital construction projects to the private sector in the future in the same way the Bus Rapid Transit project is being handled, he told the delegates. 

DIEK’s delegates are currently visiting the Kingdom to showcase Turkey’s economic strengths and to stress the solid relations, a JBA statement indicated.  

The delegates also met with Central Bank of Jordan (CBJ) Governor Ziad Fariz, who highlighted Jordan’s financial policy and  foreign currency reserves. Fariz also highlighted the country’s support of medium and small-scale enterprises, according to Petra. 

Established in 1986, DEIK seeks to lead and strengthen the foreign economic relations of the Turkish private sector in a myriad of sectors particularly foreign trade, international investment and services, international construction activities and logistics and exploring inward and outward investment opportunities.

As of May 2016, DEIK has 104 founding institutions, 133 business councils, and approximately 1,000 member companies which form these councils, as well as 2,000 representatives from the member companies.

AMMAN — Arab Potash Company (APC) Chairman Jamal Sarayrah on Tuesday said that his company is facing huge challenges because of the drop in potash prices at the international level, and due to competition among global producers.

Potash prices have dropped by around $105 per tonne, he said. Subsequently, the APC will not be able to achieve any profit, Sarayrah told the Jordan News Agency, Petra, citing large market supplies compared to limited demand. 

He also criticised the high costs of energy and water used in the production process, adding that despite challenges, the APC will continue to support national institutions. 

It will also remain one of the largest employers of local workers in the south, APC chairman said, noting that the company has around 2,000 employees. 

During the first half of 2016, the APC posted JD28.7 million in post-tax profit and other provisions besides mining revenues, Sarayrah said, recording a 53 per cent drop compared to the figure of the same period last year. 

He added that the company managed to achieve these gains  through its subsidiaries and other revenues  from non-operational activities.

AMMAN — Jordan Investment Commission (JIC) President Thabet Al Wir on Tuesday discussed ways to enhance Chinese investments in Jordan with a delegation visiting from Ningxia province, the Jordan News Agency, Petra, reported.

During the meeting, Wir and the Chinese delegates highlighted the importance of benefitting from Chinese agricultural experience and enhancing bilateral cooperation, especially in the field of agriculture.

Wir urged the delegates to move away from the traditional approach of viewing the Arab market as consumers, and to benefit from Jordan’s access to US and European markets through the China-proposed fund to finance infrastructure projects.

In September, the JIC took part in the 2015 China-Arab States Expo held in Yinchuan, the capital of Ningxia Hui autonomous region.