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JEDDAH, Saudi Arabia — Saudi Arabia has unveiled the first concrete targets in its ambitious effort to move its crude-dependent economy away from oil.

In a press conference in the early hours of Tuesday in Jeddah, officials revealed plans to create some 450,000 non-government jobs by 2020 boost non-oil revenues’ and cut the cost of public wages.

The National Transformation Programme (NTP), endorsed by the Saudi Cabinet late on Monday, is part of Saudi Vision 2030, a reform drive led by Deputy Crown Prince Mohammed Bin Salman, the 30-year-old son of Saudi Arabia's King Salman.

It aims to transform the state-dominated economy of the world's largest oil exporter into a private-sector powerhouse with diverse industrial interests and major international investments.

Saudi authorities have for years discussed plans to diversify the economy, but this effort has been given fresh urgency by the collapse in oil prices by more than half since mid-2014, which has led to a dramatic drop in state revenues.

Addressing reporters, Minister of State Mohammed Al Sheikh explained that the NTP is a five-year roadmap, laying out targets to be met by government ministries and departments.

"This is phase one of addressing the challenges," he said, adding there will be "no substantial fiscal impact" on the state budget, partly because some savings have already been made.

At the heart of the reform effort is a previously announced plan to float less than five per cent of oil giant Saudi Aramco on the stock market, with the proceeds to help form what will become the world's largest state investment fund, with some $2 trillion in assets.

Sheikh said the NTP will be implemented through more than 500 initiatives at a cost of 270 billion riyals ($72 billion) over the next five years, with 40 per cent of the funding coming from the private sector.

A plan to cut the share of public wages in the budget from 45 per cent to 40 per cent will decrease the total cost of state salaries from 480 billion to 456 billion riyals by 2020.

The plan also foresees a huge increase in non-oil revenues from 163.5 billion to 530 billion riyals by 2020, in a major shift in how state coffers are filled.

Officials said no income taxes are planned, but the plan does envisage measures including increases in government fees and taxes on "harmful products".

Further cuts to water and electricity subsidies — already imposed last year after the country posted a record budget deficit — will lead to an additional 200 billion riyals in savings, the plan says.

The creation of non-government jobs will focus on developing Saudi industry in a range of sectors, from renewable energy to car manufacturing to tourism.

Energy, Industry and Mineral Resources Minister Khaled Al Falih said that under the plan Saudi Arabia will be "a very strong competitor in renewable energy", and will implement "massive" projects to produce more natural gas.

He said the ministry plans to build an international complex for marine industries that will provide 80,000 jobs and cut imports by $12 billion annually.

A number of industrial cities are also planned and slated to generate 150,000 jobs, Falih said.

Unemployment is to fall from 11.6 to 9.0 per cent by 2020 under the plan, with the proportion of women in the workforce rising from 23 to 28 per cent.

Education reforms will aim to push more Saudis into the private sector, with the number of students in technical and vocational training programmes rising from about 104,000 to 950,000.

Noting that "transparency is crucial to the success" of the plan, it calls for regular updates on progress in reaching the targets — an unusual display of openness from Saudi authorities. 

Local and foreign reporters were invited to Jeddah for the unveiling of the targets and government ministers were to be available for three days to answer questions.

AMMAN — Danish companies say they found "great opportunities" in the Jordanian markets during a recent tour of the Kingdom. 

“This was a great visit to Jordan. It gave us networks and special insights into which problems that need to be solved. I will bring this with me back home," said Kim Skibsted, director of pump manufacturer Grundfos.

"Then we have to decide, how we in the best possible way will develop our cooperation with partners, especially civil society organisations," Skibsted added, according to a statement by the Confederation of Danish Industry (DI) which organised the visit.

Thirteen Danish companies, two universities, a civil society organisation and the Danish ministry of foreign affairs travelled across Jordan to find opportunities in the market and ways to deliver solutions to refugee camps and host communities, the confederation said in a statement. 

DI Deputy Director General Thomas Bustrup said cooperation between businesses, civil society and government could help to solve complex challenges.

“It takes all parties to engage in solution-oriented partnerships with respect for the values and the purpose of the various parties. The Danish culture with a high degree of trust between the parties gives the opportunity to take the lead in promoting this development,” he said.

AMMAN — The local market is well-stocked with all commodities to meet consumer demand in the holy month of Ramadan, the government confirmed on Monday.

Deputy Prime Minister for Economic Affairs and Minister of Industry, Trade and Supply Jawad Anani said large quantities of household supplies were available, speaking at a ministerial meeting attended by public and private sector representatives on the first day of Ramadan, according to the Jordan News Agency, Petra. 

Anani also highlighted the market’s stability, in terms of prices, pointing out that the ministry has intensified its monitoring efforts, which will continue throughout the month. 

He stressed the importance of the government’s partnership with the private sector to meet citizens’ needs. 

The ministry has recently stopped the export of some food items that are in high demand during Ramadan, he added.  

Ramadan, a holy month for Muslims, sees lots of festivities and banquets and sometimes extravagant hospitality at the end of the daytime fast, after sunset.

 Households often prepare ahead of the month to meet extra expenses, and middle- and low-income families struggle to make ends meet during the month. 

Food costs have risen in Jordan, and prices usually go up in Ramadan due to increased demand, pinching the pockets of consumers.

Anani urged citizens not to rush to buy produce in bulk, but to purchase only what they need, reiterating that all commodities are available at the market at all times.

 To report any market-related violations or complaints, he urged the public to call 06/5661176. 

DUBAI/LONDON — Gulf Arab investors, some of the biggest buyers of British real estate, are holding back from new deals because they fear a property price slump if Britain leaves the European Union, according to legal and investment sources.

Sovereign and private investors from Qatar, Saudi Arabia, Kuwait and the United Arab Emirates have been prolific buyers of British assets in the past decade, snapping up billions of dollars worth of property, mostly in London.

"Sovereign wealth funds are concerned that Brexit is taking its toll on the property market in London," said a London-based lawyer who works with some of the largest Gulf funds. He declined to be named, citing the confidential nature of his work.

"The situation will further deteriorate if there's a Brexit vote."

The value of residential property in upmarket areas popular among Gulf investors — including Chelsea, South Kensington and Knightsbridge — fell between 3.5 and 7.5 per cent on the year in May, according to estate agent Knight Frank.

Gulf family businesses and private investors are heavily involved in London real estate.

Investors from the UAE accounted for more than 20 per cent of buy-to-let property sales in the UK in 2015, said Amit Seth, the Middle East and North Africa head of international residential developments at London-focused real estate agency Chestertons.

"At the moment it seems clear people are little bit more sceptical on making an investment today because of Brexit," said Seth, who is based in Dubai, referring to private Gulf investors in residential real estate.

He said investors were still researching opportunities and discussing them with his company, but not finalising deals.

While the precise impact on Gulf investments is unclear, overall flows of foreign capital into commercial real estate in Britain stopped in the first three months of 2016, Bank of England Governor Mark Carney said in April. Business investment in the country also fell in early 2016, statistics showed this week.

London landmarks

Gulf investors also have broader worries about their investments in other sectors and how a possible Brexit in a June 23 EU referendum could affect the British economy, the sources said.

A YouGov poll for the Times newspaper showed an even split between "Remain" and "Leave" voters on Wednesday.

There is no suggestion long-term investors from the Gulf will exit assets en masse if Britain votes out, but many are worried about the impact on portfolios and wider economic effects, a senior Gulf government official said.

"Of course, we are worried about what will come next if the British decide to leave the EU," the official said. "We think that there will be a negative impact on our investments in the UK because the selling [prices] will go down and the banks in England will face some difficulties."

Asked to comment on Gulf investor concerns, Tobias Ellwood, a British Foreign Office minister, said the EU referendum was a significant event that had been discussed as part of regular bi-lateral engagements covering a wide variety of areas.

"But [it] has not been raised in any form in relation to impact on investment opportunities, which go from strength to strength," he told Reuters in Qatar's capital Doha on May 21.

Sheikh Hamad Bin Jassim Bin Jaber Al Thani, a former Qatari prime minister and investment chief who oversaw much of the Gulf state's UK acquisitions, has spoken out against a "leave" vote.

"In the Middle East we all want to see a strong Europe, and believe that economic integration is key to making it stronger. In fact, we believe the UK should not only be part of the EU but should lead it," he told Reuters, describing the City of London as the "financial capital of the world".

Qatar is one of the most high-profile investors in London, owning landmarks such as the Shard skyscraper, Harrods department store and Olympic Village, as well as luxury hotels.

While the Qatar Investment Authority wealth fund has been diversifying its portfolio away from Europe towards more investments in the United States and Asia in the last couple of years, it is still heavily invested in Britain and holds stakes in Barclays, Royal Dutch Shell and Sainsbury's.

If Britain votes to leave "then you are going to see a big hit to investments", said a senior Qatari banker who does business with sovereign and private investors.

He said investors were still working on deals without finalising them until the picture becomes clear. "They are watching to see what happens, but people are continuing to work on new things as they take months to get done."

Herat, Afghanistan — Indian Prime Minister Narendra Modi visited Afghanistan on Saturday to inaugurate a $290 million hydroelectric dam with Afghan President Ashraf Ghani, the latest Indian investment which highlights strengthening ties between the two countries.

The 42 megawatt Salma dam in western Herat province, bordering Iran, is the second major Indian project after a new parliament complex built under New Delhi's robust development partnership with Afghanistan. 

Modi and Ghani jointly pressed the button on a remote-controlled console, sending torrents of water gushing down the dam as celebrations erupted with balloons released in the colours of the Indian flag.

"I want to give the good news to my people that 'Afghanistan-India Friendship Dam' is the prologue to construction of a series of dams that we have undertaken so that our provinces have access to electricity, water, food and work," Ghani said at the ceremony.

Construction on Salma dam, which will boost Afghanistan's power capacity and help irrigate thousands of hectares of farmland in a parched landscape, had been stalled by decades of conflict.

"Afghans and Indians dreamt of this project in the 1970s," Modi said.

"Today the brave Afghan people are sending a message that the forces of destruction, death, denial and domination shall not prevail. It is a historic moment of emotion and pride in the relations between Afghanistan and India."

India, the fifth largest bilateral donor in Afghanistan, has been a key supporter of Kabul's government and has poured more than $2 billion into the country since the Taliban was toppled from power in 2001.

'Building prosperity'

New Delhi's active engagement has led analysts to point to the threat of a "proxy war" in Afghanistan between India and its nuclear-armed arch-rival Pakistan.

Pakistan — the historic backer of the Taliban — has long been accused of supporting the insurgents in Afghanistan, especially with attacks on Indian targets in the country.

In December, Modi inaugurated Afghanistan's new parliament complex in Kabul, built by India at an estimated cost of $90 million.

A few days after his visit militants launched a 25-hour gun and bomb siege near the Indian consulate in Afghanistan's Mazar-i-Sharif city.

And in March, Taliban militants fired a barrage of rockets at the parliament complex.

"Destroying is easy and building is difficult. Contrary to those whose main art is destroying and sending messages of destruction, we have taken the difficult responsibility of building prosperity," Ghani said in a veiled reference to the Taliban. 

"We resolutely believe that... prosperity triumphs over destruction. Hope is right and hopelessness is wrong; seeking peace is right and seeking war is wrong."

Diplomatic relations between New Delhi and Kabul have grown despite a series of attacks on Indian installations in Afghanistan.

The two countries recently signed a three-way transit agreement with Iran to develop its southern port of Chabahar, as Modi visited Tehran last month.

The deal, bypassing Pakistan to connect Iran, India, and Afghanistan to central Asia, would boost economic growth in the region, Modi said at the time.

AMMAN—Jordan ranked 53rd among 61 countries in the 2016 IMD World Competitiveness rankings, in which economies are ranked from the most to the least competitive.

China and Switzerland achieved the two highest scores, followed by the US in third place. 

Jordan’s ranking was one notch lower than its score in 2015, according to the report, published by the IMD, a Swiss-based institute that releases competitiveness rankings annually.

In the report, issued since 1997, scores are based on a country’s economic achievements, infrastructure, and government and corporate efficiency, according to the IMD’s website. 

Among Arab countries covered by the IMD study, Jordan was preceded by Qatar (13th globally) and the UAE (15th place).

Commenting on the report, economist Hosam Ayesh said: “The world suffers from decreased competitiveness due to several crises, including the drop in oil prices, rising debt, slow economic activities in Asia, and weak economic growth in the US. Jordan is affected by this and suffers from decreased competitiveness in general.”

“Our imports are three times more than our exports, which affects our competitiveness. Our ability to attract investment is also affected due to the global decline. Therefore, our competiveness is weak in this regard,” he added.

The economist said there is a need for more work to amend some business-related laws.

“We need more stability on legislation related to taxes… We need more efforts to enhance governance, business climate and legislation,” he said, besides improved labour-related regulations.

AMMAN – Independent public institutions final accounts, issued at the end of May, revealed a net deficit of JD238 million that was offset through internal and external borrowing. 

The final accounts covered 59 independent public institutions that are financially independent, according to Ministry of Finance Secretary General Ezzeddin Kanakrieh.

Some of the institutions’ final accounts revealed a surplus of JD232 million, which were transferred to the Treasury, while some others showed a deficit, bringing the net financial deficit to around JD238 million, he said.

Independent government entities that registered a surplus included the Telecommunications Regulatory Commission and the Free Zones Corporation whereas those recording a deficit, included the National Electric Power Company and the Water Authority of Jordan.

Moreover, the government extended financial support to some institutions, such as the Jordan Radio and Television Corporation, the National Aid Fund and the Vocational Training Corporation, Kanakrieh indicated, according to the Jordan News Agency, Petra.

The institutions’ final account figures are available on the ministry’s website in detail, he added. 

For the second consecutive year, the final accounts were issued one month ahead of the deadline stipulated in the Constitution, Finance Minister Omar Malhas said, underscoring the ministry’s transparency.

VIENNA – Saudi Arabia promised on Thursday not to flood the oil market with extra barrels even as OPEC failed to agree on output policy, with Iran insisting on the right to raise production steeply.

Tensions between the Sunni-led kingdom and the Shiite Islamic republic have been the highlights of several previous OPEC meetings, including in December 2015 when the group failed to agree on a formal output target for the first time in years.

Tensions, however, were less acute on Thursday as Saudi Arabia's new energy minister, Khalid Al Falih, showed Riyadh wanted to be more conciliatory and his Iranian peer Bijan Zanganeh kept his criticism of Riyadh to an unusual minimum.

In a rare compromise, OPEC also decided unanimously to appoint Nigeria's Mohammed Barkindo as its new secretary general after years of friction over the issue.

Saudi Arabia and its Gulf allies had tried to propose OPEC set a new collective ceiling in an attempt to repair the group's waning importance. But Thursday's meeting ended with no new policy or ceiling amid resistance from Iran.

Despite the setback, Saudi Arabia moved to soothe market fears that failure to reach any deal would prompt OPEC's largest producer, already pumping near record highs, to raise production further to punish rivals and gain additional market share.

"We will be very gentle in our approach and make sure we don't shock the market in any way," Falih told reporters.

"There is no reason to expect that Saudi Arabia is going to go on a flooding campaign," Falih said when asked whether Saudi Arabia could accelerate production.

The market has grown increasingly used to OPEC clashes over the past two years as political foes Riyadh and Tehran fight proxy wars in Syria and Yemen.

Saudi Arabia effectively scuppered plans for a global production freeze — aimed at stabilising oil markets — in April in the Qatari capital of Doha. It said then that it would join the deal, which would also have involved non-OPEC Russia, only if Iran agreed to freeze output.

Tehran argues it should be allowed to raise production to levels seen before the imposition of now-ended Western sanctions over Iran's nuclear programme.

Zanganeh said Tehran would not support any new collective output ceiling and wanted the debate to focus on individual country production quotas, effectively abandoned by OPEC years ago.

"Without country quotas, OPEC cannot control anything," Zanganeh told reporters. He insisted Tehran deserved a quota — based on historic output levels — of 14.5 per cent of OPEC's overall production.

OPEC is pumping 32.5 million barrels per day (bpd), which would give Iran a quota of 4.7 million bpd — well above its current output of 3.8 million, according to Tehran's estimates, and 3.5 million, based on market estimates.

At its previous meeting in December 2015, OPEC effectively allowed its 13 members to pump at will.

As a result, prices crashed to $27 per barrel in January, their lowest in over a decade, but have since recovered to around $50 due to global supply outages. On Thursday, Brent prices eased 1.5 per cent to $49 per barrel.

That OPEC could not agree on a benign deal is a sign that political differences are undermining the organisation, said Gary Ross, founder of US-based PIRA consultancy.

"It is bearish short-term for oil prices. But what is also important is that Saudis are not planning to flood the market," Ross added.

Zanganeh made a few conciliatory remarks, saying he was happy with the meeting and received no signals from other producers that they planned to increase output.

For Amrita Sen of Energy Aspects, who like Ross travelled to Vienna to meet OPEC officials, the meeting sent an encouraging signal about the state of the organisation.

"After the Doha debacle, it actually restores market confidence that Saudi Arabia is committed to OPEC. This is a success compared to three days ago when people had been expecting Falih to walk out of the OPEC room," said Sen.

Falih was the first OPEC minister to arrive in Vienna this week, signalling he takes the organisation seriously despite fears among fellow members that Riyadh is no longer keen to have OPEC set output.

"There could be shorter-term situations in which, in our view, OPEC might intervene and yet other situations — such as long-term growth of marginal barrels — in which case it should not," Falih told Argus Media ahead of the meeting.

GENEVA — Just like Hannibal in ancient times, Swiss engineers have conquered the Alps.

More than 2,200 years after the commander from the ancient North African civilisation of Carthage led his army of elephants and troops over Europe's highest mountain chain, the Swiss have completed another gargantuan task: Burrowing the world's longest railway tunnel under the Swiss Alps to improve European trade and travel.

European dignitaries on Wednesday inaugurated the 57km Gotthard Railway Tunnel, a major engineering achievement deep under the Alps' snow-capped peaks. It took 17 years to build at a cost of 12.2 billion Swiss francs ($12 billion) — but workers kept to a key Swiss tradition and brought the massive project in on time and on budget.

Many tunnels crisscross the Swiss Alps. The Gotthard Pass itself already has two — the first, also for trains, was built in 1882. But the Gotthard base tunnel is a record-setter eclipsing Japan's 53.8km Seikan Tunnel as the world's longest — and it also bores deeper than any other tunnel, running about 2.3 km underground at its maximum depth.

The tube bores through the Gotthard massif that includes the 2,500-metre Piz Vatgira on the way to Italy. It is part of a broader, multi-tunnel project to shift the haulage of goods from roads to rails amid concerns that heavy trucks are destroying Switzerland's pristine Alpine landscape.

The tunnel's impact will be felt across Europe for decades.

The thoroughfare aims to cut travel times, ease roadway traffic and reduce the air pollution spewed from trucks travelling between Europe's north and south. Set to open for commercial service in December, the two-way tunnel can handle up to 260 freight trains and 65 passenger trains per day.

Swiss planners have dreamt of such a tunnel for decades, and Gotthard's 17 years of construction don't include the many years spent to scope out suitable paths.

Switzerland pulled out all the stops for Wednesday's inauguration. Chancellor Angela Merkel of Germany, President Francois Hollande of France and Italian Prime Minister Matteo Renzi all came to southern Switzerland for an upbeat, glitzy celebration featuring musical bands, dancers and even a theme song for the tunnel.

Under purple neon lights, performers dressed in orange miners' suits and protective helmets danced atop a moving rail car, while others in skimpy outfits feigned wrestling and trapese artists hung from chains or ropes.

The tunnel runs between the German-speaking Swiss town of Erstfeld in the north to the Italian-speaking town of Bodio in the south, cutting through central Switzerland. The tunnel journey takes about 20 minutes for passenger trains.

Split-screen TV images Wednesday showed two trains in opposite directions entering and leaving the tunnel entrances nearly simultaneously.

The project, funded in part by Swiss taxpayers and fees on trucks, received financial support and industrial know-how from around the European Union. Although Switzerland isn't one of the bloc's 28 members, the EU railway network gets a big boost from this shortcut through the Alps, notably on the route from Germany to Italy.

"The new tunnel fits into the European railway freight corridor, which links Rotterdam and Genoa" — key ports in the Netherlands and Italy, said Swiss President Johann Schneider-Ammann. "Aside from saving time, more merchandise can be carried through the Alps."

A test run by the EU leaders on Wednesday turned into a sort of mini-summit beneath real Alpine summits: Merkel, Renzi, Hollande and Schneider-Ammann sat face-to-face for a ride in first class through the tunnel. A band played Rossini's "William Tell Overture", after they arrived.

Merkel said it was a "wonderful feeling" to be on the train. Though "more than 2,000 metres of rocks" were above, she said she felt a "feeling of security, because I believe in the security of the Swiss civil engineers".

She congratulated the punctual Swiss and noted how costs were kept within targets.

"That's something Germany still needs to strive for," she added

Hollande, host of the UN climate change summit held in Paris last year, pointed to the tunnel's environmental benefits.

"You have created a great European infrastructure," Hollande said at the tunnel's southern exit. "It will be able to reduce greenhouse gas emissions, redirect traffic from the road to rail and move passengers and goods faster."

He also used the chance to remind Britons of  the unity that the tunnel under the English Channel has brought between Britain and the continent — comments that came just weeks before Britons vote June 23 on whether to stay in the EU or leave.

"More than 20 years ago, a construction was completed between France and the United Kingdom: The Channel Tunnel," Hollande said. "Since then, we are united like never before, and I hope the British remember that when the time comes."

Renzi echoed that connective symbolism, despite the current discord in the EU over how to best handle a surge of migrants from the Middle East, Africa and Asia.

"At a time when some are thinking about building walls... today Switzerland gives us a beautiful signal about building a tunnel, connecting, and making chances for meeting," Renzi said.

Swiss forces took no chances with security for the inauguration. Almost 2,000 additional Swiss troops were called, helicopters buzzed overhead and airspace restrictions were put over the tunnel area.