Business

AMMAN — Central Bank of Jordan (CBJ) Governor Ziad Fariz on Sunday said Jordan has been able to avoid many economic risks, thanks to the CBJ's monetary policy. Fariz made the remark during a meeting with a delegation from the Amman Group for Future Dialogues, the Jordan News Agency, Petra, reported.

Highlighting the financial tools that the CBJ uses to serve its client base, he cited the CBJ’s bill payment and other banking services. The CBJ policy led to further saving by the Jordanian currency compared to those by foreign currencies, he said, adding that the CBJ’s foreign currency reserves currently stands at $13.1 billion. This is sufficient to cover the Kingdom’s imports of goods and services for three to seven months, he told the delegates.

SAN FRANCISCO — Facebook's board of directors on Friday authorised spending as much as $6 billion to buy back shares in the leading social network.

The stock repurchase programme would go into effect at the start of next year, potentially allowing Facebook to take advantage of a price dip triggered early this month by word that revenue growth will slow because the company has hit a limit on how many ads it can pack onto pages.

"The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities," Facebook said in a filing with the US Securities and Exchange Commission.

The plan is part of Facebook's strategy to focus on long-term business growth, according to the filing.

Facebook shares, which ended the formal trading day down less than a per cent, rose slightly to $118.25 in after-market trades.

The share buyback could help soothe the hearts of investors after a tumultuous period for Facebook.

Shares tumbled early this month after the social network delivered a blockbuster quarterly earnings report, but also warned that its stunning growth is set to slow.

The company joined other large tech stocks in another tumble less than a week later because of worries about policy changes and protectionism under the administration of President-elect Donald Trump.

The social network then found itself at the centre of a debate about whether it aided Trump's surprise victory by allowing false news stories to be shared unchecked.

Facebook also accidentally declared its founder Mark Zuckerberg and many other users dead this month, acknowledging — after fixing the problem — that it had committed a "terrible error" with a feature designed to memorialise accounts.

Facebook this week also said it is working to fix flaws in its metrics calculations that sometimes caused them to overestimate the social network's audience.

It was the second time in months that the company has acknowledged problems with assessing the reach of its content, a key factor for luring crucial advertising.

While Facebook has become a dominant player in online advertising and especially strong in mobile, it remains unclear whether the company can maintain momentum as it shifts into new areas such as virtual reality.

DUBAI/ DOHA — Iranian Oil Minister Bijan Zanganeh expressed optimism on Saturday about an upcoming Organisation of Petroleum Exporting Countries (OPEC) meeting and said crude prices could jump to $55 a barrel if an agreement is reached and non-OPEC producers cooperate.

"We are receiving positive signals that increase the likelihood of agreement at the meeting... and I'm optimistic about the situation," Zanganeh told state television by telephone, after meeting OPEC Secretary General Mohammed Barkindo in Tehran ahead of the November 30 meeting.

"I think if we can reach an agreement, God willing, the price would rapidly reach above $50 per barrel... If non-OPEC [producers]also cooperate, I don't think $55 per barrel would be out of reach."

Benchmark Brent crude rose by 37 cents to $46.86 per barrel on Friday.

Asked about an OPEC proposal for an output cap of 3.92 million barrels per day for Iran, Zanganeh said: "We have not reached any agreement. We have expressed our views and we look forward to explaining them."

OPEC is moving closer towards finalising its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes, ministers and sources said on Friday.

Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.

On Friday, Russia's energy minister said he was "quite optimistic" the OPEC oil cartel will reach an agreement later this month on a planned output cut to shore up prices.

Alexander Novak was speaking after informal talks in Doha with some but not all of his OPEC counterparts ahead of the cartel's meeting in Vienna on November 30.

The cartel's 14 members have been at odds over the details of the production cut agreed in Algiers in September, which is supposed to lead to a wider agreement with non-OPEC producers including Russia.

Iran has refused to join in until it has restored its market share following the lifting of the sanctions in January.

Also, Iraq has asked for an exemption, saying it needs the income to fund its war against the terror group Daesh. 

Asked whether he thought Iraq would agree to a freeze or cut at the Vienna meeting, Novak said: "I would say that I am quite optimistic at this point.

"Today's discussions... do instil optimism in me.

"And I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the 30th November meeting... would result in an agreement."

He also told reporters that Russia was willing to limit production to "certain levels".

"We believe that demand will continue to grow. 

"Even today we have discussed numbers that demand will grow by 1.1, 1.2 million bpd [barrels per day] next year.

"If we jointly with OPEC can stabilise production and not add to supply then, yes, we believe this will be a very significant step of rebalancing the market."

Saudi Oil Minister Khalid Al Falih also attended Friday's meeting but made no comment as he left and instead gave a thumbs-up sign to reporters.

OPEC ministers agreed in Algiers to reduce production to 32.5-33 million bpd from the 33.47 million pumped in August, the first cut in eight years.

SAN FRANCISCO — Facebook on Wednesday said that it has bought facial recognition start-up FacioMetrics, potentially using the technology for photo or video effects to better challenge rival Snapchat.

"How people share and communicate is changing and things like masks and other effects allow people to express themselves in fun and creative ways," a Facebook spokesperson said in an e-mail reply to an AFP inquiry.

"We're excited to welcome the FacioMetrics team who will help bring more fun effects to photos and videos and build even more engaging sharing experiences on Facebook."

Silicon Valley-based Facebook did not disclose financial terms of the deal to buy FacioMetrics, which was spun out of Carnegie Mellon University in Pennsylvania.

FacioMetrics was founded in 2015, and specialises in using artificial intelligence to give facial image analysis capabilities to applications that run on smartphones.

The technology has potential in a host of applications, including those focused on animation, measuring audience reactions, and virtual or augmented realities, FacioMetrics founder and Chief Executive Fernando De la Torre said in a release.

"We're taking a big step forward by joining the team at Facebook, where we'll be able to advance our work at an incredible scale, reaching people from across the globe," De la Torre said.

Using FacioMetrics to let users of Facebook, or subsidiaries such as Instagram, have fun with photos or video could be a countermove to those kinds of features offered in "filters" at vanishing message service Snapchat.

Parent company Snap estimates it has more than 100 million users globally of the service for sending videos, images and text messages which vanish after being viewed. Some reports say it generates 10 billion video views per day.

Since trying unsuccessfully to buy Southern California-based Snapchat several years ago, Facebook has turned to cloning popular features.

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.