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AMMAN – Forthcoming loans and grants facilitated by the Jordan Compact and the International Monetary Fund (IMF) Extended Fund Facility are aimed at strengthening the Kingdom's macroeconomic stability and enhancing resilience in the face of regional instability and the influx of refugees, Minister of Planning and International Cooperation Imad Fakhoury said. 

In a recent interview with Oxford Business Group (OBG), Fakhoury said the financial assistance also aims at keeping Jordan on its path towards sustainable development and increasing prosperity as outlined in the Jordan 2025 Vision. 

“Part of this programme emphasises home-grown, structural reforms focusing on promoting investment and employment by boosting the business environment, the competitiveness and productivity of our economy, and implementing structural reforms in the labour market and various sectors such as energy, water and financial,” he said, adding that the main item on the fiscal side is to bring the public debt ratio to the GDP to under 77 per cent by 2021.

The full interview with Fakhoury will appear in The Report: Jordan 2016, OBG’s latest report on the country’s economy. The publication contains a detailed, sector-by-sector guide for investors, alongside contributions from leading personalities, including Minister of Finance Omar Malhas, Minister of Energy and Mineral Resources Ibrahim Saif and Chief Commissioner of the Jordan Investment Commission Thabet Elwir.

Fakhoury told OBG that the proposed holistic approach marked a paradigm shift that "moves us from mainly a refugee response to a resilience-based comprehensive framework" that bridges the divide between short-term refugee and long-term development responses, based on which the Jordan Compact was adopted at the London Donor Conference, held in February of this year.

“One of the pillars of the compact is to attract investment and open the EU market to the sale of domestically made products, which will in turn create jobs primarily for Jordanians and Syrians in areas that do not impact Jordanian jobs,” he commented. 

In the interview, Fakhoury also talked about the government’s new public investment management framework developed alongside the World Bank to create a unit in the ministry responsible for how future public capital expenditure should be implemented and funded with a focus on impact and efficiency, as well as maximising Public Private Partnerships schemes to deliver public infrastructure and expenditure. 

OBG is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia, and Latin America and the Caribbean. 

AMMAN – Minister of Public Works and Housing Sami Halaseh on Wednesday chaired a meeting for the higher committee for the housing sector that was attended by representatives of the World Bank.

Halaseh said the committee will look at studies related to the housing sector to draft policies based on supply and demand, and to reevaluate the contribution of the sector to the national economy, according to a ministry statement.

He said an action plan will be prepared and presented to the Council of Ministers that aims at improving the performance of the housing sector.

The study, to be prepared in cooperation with the World Bank, will address issues related to financing in coordination with banks and building regulations in coordination with the Greater Amman Municipality. 

AMMAN — The fourth meeting of the Joint Jordanian-Kazakh Committee commenced on Wednesday in Astana with the participation of representatives of public and private sectors from both countries.

Secretary General of the Ministry of Industry, Trade and Supply Yousef Shamali said that Jordan and Kazakhstan should further develop bilateral economic cooperation through increasing the volume of bilateral annual trade which does not exceed $600 million, according to a ministry statement.

The meeting should result in mechanisms aimed at enhancing economic relations, especially in the trade, agriculture and investment fields, among others, he said.  For his part, the Kazakh undersecretary of the agriculture ministry said the meetings are important for developing bilateral relations, especially that the Kazakh president is scheduled to visit Jordan next month.

AMMAN — A delegation representing the Bursa Chamber of Commerce and Industry on Wednesday discussed means to develop cooperation with the industrial and commercial sectors in Irbid, through establishing joint projects with the private sector in the northern governorate.

The delegates visited the Irbid Chamber of Industry, where they met with board member of the chamber Mwaffaq Bani Hani, who briefed them on investment opportunities available in the city, the Jordan News Agency, Petra, reported.

The Turkish delegates expressed interest to establish investments in the Kingdom in general, and in Irbid in particular, noting that opportunities are good for investing in wood industries, renewable energy, food processing, garment and technology, according to Petra.  

SINGAPORE – Crude prices rose in Asia Tuesday after Russia and Saudi Arabia pledged to work on addressing a global supply glut, but analysts said gains would be limited after the two sides provided scant detail about their plans.

Saudi Energy Minister Khaled Al Falih and his Russian counterpart Alexander Novak agreed to "act together" to steady the market but stopped short of agreeing to a production freeze.

On the sidelines of the G-20 summit in China, the ministers said they will act "together or in cooperation with other oil productions" and agreed to set up a "joint monitoring group" to offer recommendations to prevent price fluctuations. 

News that the two sides were about to make an announcement sent both contracts soaring Monday but the gains were all but wiped out after the statement.

At about 7:20 GMT, the US benchmark West Texas Intermediate (WTI) was up 78 cents, or 1.76 per cent, at $45.22 and Brent added six cents, or 0.06 per cent, to $47.69. With US markets closed Monday for a holiday, electronic transactions on WTI will be booked Tuesday for settlement purposes.

The comments come three weeks before Russia joins OPEC, of which Saudi Arabia is the kingpin, for talks in Algeria to discuss the supply crisis that has hammered prices for two years.

"Despite the rather nebulous language [of the statement] the market was clearly on the hope side of the equation," OANDA senior market analyst Jeffrey Halley said in a note.

"The longevity of the rally being how long before reality bites with the OPEC meeting still three weeks away."

The previous attempt at reaching a deal in April was scuppered by OPEC member Iran's refusal to agree to any output freeze, and there are worries about the chances of an agreement in Algiers.

HANGZHOU, China — The world's two biggest oil producers Saudi Arabia and Russia said Monday they had agreed to "act together" to try to stabilise oil prices, but failed to make headway on a production freeze. 

The two nations "noted the particular importance of constructive dialogue and close cooperation between the largest oil-producing countries with the goal of supporting the stability of the oil market and ensuring a stable level of investment in the long term," the energy ministers from both countries said.

Their comments came in a joint statement after a meeting at the G-20 summit in China. 

"To this end the ministers agreed to act together or in cooperation with other oil producers," the statement said, adding they had agreed to set up a "joint monitoring group" to offer recommendations aimed at preventing price fluctuations. 

Russia's Energy Minister Alexander Novak described the announcement as marking a "new era" in cooperation between Russia and Saudi Arabia and insisted it would have a "critical significance" for oil markets, news agency Interfax reported. 

But there were no details in the announcement on any elusive agreement to freeze oil output, just weeks before Moscow and OPEC meet in Algeria to discuss the crisis.

The globe's major oil producers have been unable to strike a deal on freezing output, due mainly to a dispute between Saudi Arabia and Iran over Tehran's desire to raise production levels after the lifting of sanctions. 

Saudi Arabia's Energy Minsiter Khaled Al Faleh told Al Arabiya television channel there was "currently no need to freeze production" after meeting Novak.

"A freeze is one of the preferred options but it is not needed for the moment," he said. 

President Vladimir Putin met Saudi Deputy Crown Prince Mohammed bin Salman on the sidelines of the G-20 on Sunday and said they would work to address a global glut and overproduction that has hammered prices for the past two years.

In an interview ahead of the meeting Putin — whose economy slumped into recession on the back of oil price falls — said that a freeze was "the right decision" and called for "compromise".

The oil market has been plagued by a stubborn supply glut that saw prices plunge to near 13-year lows below $30 at the start of 2016. While it has recovered recently, it is still well off highs above $100 seen in mid-2014.

AMMAN — Samsung Levant recently issued a statement in which it said "it is committed to producing the highest quality.

In response to recently reported cases of the new Galaxy Note7, the company said it conducted a thorough investigation and found a battery cell issue. 

“To date [as of September 1] there have been 35 cases that have been reported globally and we are currently conducting a thorough inspection with our suppliers to identify possible affected batteries in the market.

However, because our customers’ safety is an absolute priority at Samsung, we have stopped sales of the Galaxy Note7," the company said in a statement e-mailed to The Jordan Times on Monday. 

For customers who already have the Galaxy Note7 device in the Levant region, Samsung Electronics Levant said it will voluntarily replace their current device with a new one. 

Customers may proceed to the nearest official Samsung Electronics’ Service centre (Jordan, Lebanon, Iraq, Syria and Palestine) to have their units inspected and replaced within the coming short weeks.

"For more information, we kindly ask our customers to contact our service team in their country.”

Kuwait City — The earnings of Gulf-listed firms dropped 8 per cent in the first half of 2016 due to low oil prices and a lack of liquidity, a report said on Sunday.

Net profits of over 650 firms on the region's bourses reached $32.8 billion in the six months against $35.6 billion for the same period of 2015, said Kuwait Financial Centre Markaz.

All posted drops except those on the stock market in Oman, where net earnings rose by 7 per cent, the investment firm said in a report.

Stock exchanges in members of the Gulf Cooperation Council (GCC) were hit hard last year and in the first few months of 2016 as a result of the sharp fall in oil revenues.

They recovered some of the losses in the second quarter as crude prices rose to around $50 a barrel from under $30.

"Persisting lower oil prices, liquidity squeeze and sedate global growth led to decline in GCC corporate earnings during the first half period of 2016, compared with the corresponding period a year back," said the report.

"During the first half of 2016, corporate earnings in the GCC fell by 8 per cent over the same period in 2015."

The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump around 18 million barrels of crude oil daily.

In its report, Markaz projected the earnings of companies in the GCC would end the year down 4 per cent.

Profits of companies with medium- and small-sized capitalisation fell by 38 per cent and 22 per cent respectively, while net earnings of large corporates dropped by just 5 per cent, it said.

The drop was attributed to the fall in earnings of commodities, real estate and construction sectors. Banks' earnings remained flat while telecoms and financial services increased, said Markaz.

Profits of firms listed on the Saudi stock market, the largest bourse in the Middle East, dropped 7 per cent with the real estate sector down by 50 per cent, it said.

Hangzhou, China — Chinese President Xi Jinping urged world leaders to avoid "empty talk" and confront sluggish economic growth and rising protectionism as their summit opened Sunday in the scenic city of Hangzhou.

Xi welcomed Group of 20 presidents and prime ministers with a handshake, and an extended clasp with Barack Obama, as both men smiled despite protocol stumbles around the US leader's visit.

The Chinese leader said the world economy "still faces multiple risks and challenges including a lack of growth momentum and consumption, turbulent financial markets, receding global trade and investment".

The rise of protectionism is challenging economic globalisation, imperilling multilateral trade arrangements, and despite regulatory reforms market volatility is gathering pace, he said.

"We hope the Hangzhou summit will come up with a prescription for the world economy and lead it back to the road of strong, balanced, comprehensive and sustainable growth," Xi said.

The G-20 brings together representatives of 85 per cent of the world's GDP and two-thirds of its population. 

But experts fear the gathering will be short on substance, with no acute crisis pushing leaders to defy rising populist sentiment and to take difficult steps such as liberalising trade.

In a circular conference hall in Hangzhou — the eastern city left deserted by a vast security operation — Xi told leaders the G-20 "should work with real action, with no empty talk".

China is hoping a successful meeting will portray it as an assured and powerful nation ready to assume a role on the international stage that befits its status as the world's second-largest economy.

Authorities shut thousands of factories to try to clear the skies of smog, and encouraged residents to leave town on free holidays, as well as detaining dozens of dissidents to prevent any hint of unrest.

VLADIVOSTOK, Russia — Russia hopes to fetch more than $11 billion for a minority stake in the Kremlin's flagship oil producer Rosneft before the end of the year to plug budget holes caused by low crude prices, an industry source told Reuters on Friday.

The sale will be complicated by sanctions imposed on Moscow over its actions in Ukraine and by many investors' wariness of putting money into Russia as well as volatile commodity markets.

But Russia is hoping to repeat the success of Rosneft's initial share offering a decade ago when it raised $11 billion in one of the world's biggest such sales, despite concerns that investors would be spooked by Rosneft's purchase of most of the assets of oil firm YUKOS, bankrupted by the Kremlin.

On Friday, Economy Minister Alexei Ulyukayev said his ministry had received documents needed to kick start the sale of 19.5 per cent in Rosneft, including a valuation and proposals on terms of sale.

An industry source familiar with the sale process said the stake had been valued at over $11 billion. The documents were submitted this week by Rosneftegas, which controls Rosneft on behalf of the government. Italian bank Intesa is advising Rosneftegas on the sale.

In comments to Russian news agencies later on Friday, Ulyukayev said it estimates the stake would be valued at around $11 billion were close to reality.

After privatisation, the government will keep 50 per cent plus one share in Rosneft, the world's largest oil firm by reserves among listed companies.

Rosneft produces over a third of Russia's total output of 10.7 million barrels per day — a figure making Russia the world's biggest producer on a par with Saudi Arabia and the United States.

Russian President Vladimir Putin said the sale of the stake should take place before the end of the year and should involve strategic investors.

"I think we should be aiming precisely for that type of investment. We are getting ready and are planning to do it this year," Putin told Bloomberg News.

Oil major BP owns just under 20 per cent in Rosneft following the purchase of BP's Russian joint venture TNK-BP by Rosneft for $50 billion in 2013.

Rosneft's own market value has fallen to $55 billion since then as a result of low oil prices and sanctions imposed on Russia, Rosneft and its Chief Executive Igor Sechin, one of Putin's closest allies.

At its initial public offering (IPO), Rosneft was worth nearly $80 billion. Western majors will find it difficult to invest in Rosneft due to sanctions but their place could be taken by Asian investors, including from China and India, which have been seeking to develop resources in Russia.

Russia is effectively competing with many other resource rich countries for money from investors to compensate for low commodities prices.

The world's largest non-listed oil firm by reserves and output, Saudi Aramco, is planning to list up to a 5 per cent stake in the next two years, seeking an overall valuation of over $2 trillion.

The industry source said Rosneftegas was asking the government to issue a decree guaranteeing a stable tax regime during the sale of the stake and beyond.

"You cannot attract solid investors if the tax regime keeps changing," the source said.