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BEIRUT – A new international bond and grant scheme to help countries dealing with the fallout of war and instability in the Middle East and North Africa should be in place by spring, a senior World Bank official said.

In a Reuters interview, Hafez Ghanem, the World Bank's vice president for the Middle East and North Africa, said the type of investment targeted by the plan — education, infrastructure and jobs — was vital to addressing the region's refugee crises.

He said that humanitarian aid alone was not enough and the alternative was "one or two lost generations" in a region with 15 million refugees or internally displaced people.

Ghanem spoke during a visit to Lebanon, which is struggling to cope with more than 1 million registered Syrian refugees who account for a quarter of the population.

He said he could not remember a time in his nearly three-decade career of such high demand from middle-income countries for assistance.

"The demand on our support is very high right now and it is going to increase, because as you bring peace through political or security measures, to make the peace hold, you need to give people opportunities and hope," he said.

"We are trying to raise more resources, that is why we have proposed this financing mechanism."

The World Bank, United Nations and Islamic Development Bank last month announced the initiative that would ask donor countries to provide guarantees for bonds raising money for certain projects ranging from support for refugees to rebuilding to allow displaced people to return home.

Some would be Islamic bonds, or sukuk, targeting investors in the region, where conflicts are raging in Syria, Iraq, Yemen and Libya. The proposal also includes asking donors for grants to cut the interest rate for states hosting refugees.

"If we agree and succeed in putting this together, it's not a one-shot deal. It's something that will have to be done over several years, and the amount of work that is needed, the projects that will need to be implemented, none of us can implement them very quickly," Ghanem said.

Rebuilding Libya, Yemen, Syria     

"We are talking development projects, investments in education, health, infrastructure. So the way I see it is we will start gradually," he said. "We are not envisioning an amount right now."

"The big amounts will be required when you do the reconstruction say in Syria, or in Yemen, or Libya, but right now you cannot do that."

The aim is to have the financing mechanism in place by spring, he said. Governments that had expressed interest in the plan included the Group of Seven nations, Nordic states, the Netherlands, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.

He said a forthcoming meeting would include beneficiary states including Jordan, Egypt, Tunisia, Morocco and Lebanon.

Lebanon's response to the refugee crisis and other problems has been hampered by its own internal political conflict.

Lebanon's parliament convened for the first time in a year last week to approve laws including one allowing implementation of a $600 million dam to be built with World Bank financing. The project has been held up for more than a year.

"I hope that by the time we put this financing mechanism in place — and our objective is to move very fast — like in the next two or three months — Lebanon will also have found a way to make sure we don't have to wait years before our projects get approved by parliament," Ghanem said.

He also said World Bank expects to make a $1 billion loan available to Egypt in December after completing negotiations in Cairo last weekend and that it was in talks with Iraq to lend more money after agreeing a $350 million loan in July.

BRUSSELS – The European Union said Tuesday it was ready to take French security priorities into account after France said it was likely to break eurozone deficit rules because of extra spending after the Paris attacks.

"The rules of the stability pact do not stop member states from defining their priorities. We understand that the priority is security," EU Economic Affairs Commissioner Pierre Moscovici told a news conference.

Moscovici, the former French finance minister, said the tough budgetary rules imposed by Brussels after the eurozone debt crisis were neither rigid nor stupid, they are capable of dealing with situations.

"It is in that spirit that we are in discussions with the French government."

French Prime Minister Manuel Valls confirmed earlier that France would exceed its spending targets — which had aimed to reduce the deficit below 3 per cent of economic output by 2017 — in order to fund extra police and military.

"We have to do this and Europe should understand this," Valls told France Inter radio.

"It is also time that the EU, the European Commission, understand today that this battle concerns France, and also Europe."

The show of fiscal solidarity came just hours after EU defence ministers unanimously backed a French request for military assistance in the wake of the Paris attacks.

AMMAN — Jordan and the United Arab Emirates (UAE) on Tuesday started the fifth round of talks on double taxation avoidance, a statement issued by the Income and Sales Tax Department (ISTD) said Tuesday, adding that negotiations are set to continue for three days.

A final agreement to avoid double taxation between the two countries is exoected to be signed soon, ISTD Director General Bashar Nasser said.  Nasser said that Jordan is seeking to boost economic and taxation cooperation with Arab and foreign countries in a bid to stimulate investments in the Kingdom. 

LONDON – European shares were steady on Monday, supported by gains in the energy sector that helped offset a slump in travel stocks following Friday's attacks in Paris.

Energy shares outpaced the broader market, buoyed by the prospect of higher oil prices following French air strikes against Daesh group  targets in Syria.

French shares slightly underperformed when markets reopened for the first time since the co-ordinated attacks by militants.

Around 2.5 billion euros ($2.68 billion) were wiped off the STOXX 60 Travel & Leisure index amid fears that the sector could be impacted by loss of consumer confidence.

Shares in French hotel group Accor fell 5.2 per cent, Air France fell 5.6 per cent while shares in  Eurotunnel and Aeroports de Paris, the operator of Paris' Charles de Gaulle and Orly airports, were down 3.8 per cent.

Luxury stocks were also under pressure. Hermes, LVMH and Kering, which get a large part of their sales from foreign tourists in Paris, were all down more than 1 per cent.

"Paris is one of the most important cities worldwide in terms of luxury spending and the timing is not good too — a few weeks before Christmas, the most important period for retailers," said Gregoire Laverne, fund manager at Roche Brune Asset Management.

"Those attacks will definitely have a long-term negative impact on the tourism sector in France, and all sectors [which depend] on tourists, but it cannot be measured yet although the market tends to forecast the worst case scenario."

Some highlighted France's Showroomprive.com as an outperformer in the fashion sector, up 1.5 per cent, with Internet-only retailers seen as more insulated from the drop in confidence.

"Companies that retail over the web could outperform," said Clairinvest fund manager Ion-Marc Valahu.

Outside the retail and travel sectors, European stock markets were broadly resilient, with the attacks seen as strengthening the case for the European Central Bank to provide further monetary stimulus when it meets next month.

The pan-European FTSEurofirst 300 index edged up 0.2 per cent and France's CAC was down 0.1 per cent.

Energy shares firm 

Energy stocks were the leading sectoral gainers, rising 1.8 per cent as crude oil prices edged up after France launched large-scale air strikes against Daesh in Syria.

Basic resources stocks also firmed.

KBC rose more than 3 per cent after the Belgian financial group posted a bigger-than-expected net profit, as a strong performance in its traditional banking and insurance businesses made up for a weaker showing of its dealing room.

Among outstanding losers, Sonova fell 7.7 per cent as the hearing aid maker cut its sales and profit forecasts after weak cochlear implant sales, sluggish business with US veterans and a squeeze on overseas earnings from the strong Swiss franc.

RIYADH – Saudi Arabia's civil aviation authority has announced a plan to privatise its airports by 2020, as the kingdom looks to diversify its economy to boost non-oil income.

The initiative was set to be launched in the first quarter of 2016 with the privatisation of the capital's main international airport, said the state-owned General Authority for Civil Aviation.

In the second and third quarters of next year, the kingdom plans to privatise the aviation services sector and the information technology system, respectively, it said in a statement issued at the weekend.

All privatised airports and services will be supervised and managed by the Saudi Civil Aviation Company Holding "which will undertake the privatisation of all international, regional and domestic airports" by 2020, it said.

The oil-rich kingdom has at least three major international airports in Riyadh, Jeddah and Dammam in addition to a large number of domestic airports in most Saudi cities.

The privatisation programme was aimed at upgrading services by operating on a commercial basis and generating funds for state coffers, said the civil aviation authority.

Oil income, which makes up more than 90 per cent of the country's public revenues, has plummeted by more than 50 per cent due to the sharp fall of crude prices.

AMMAN – Capital Bank and the ICT Association of Jordan (int@j) have signed an agreement to facilitate lending to ICT companies in the Kingdom, a statement issued by Capital Bank said Monday.

The agreement, which Capital Bank said is the first of its kind in Jordan, came after the Central Bank of Jordan issued instructions to expand medium-term financing to key economic sectors, including the ICT.

The agreement was signed by Capital Bank general manager Haytham Kamhiyah and inta@j CEO Khaled Hudhud.

Kamhiyah said credit facilities to be extended by the bank to the ICT sector and other fields such as industry, renewable energy, tourism and agriculture will be guaranteed by local agencies including the Jordan Loan Guarantee Corporation and the US Overseas Private Investment Corporation. 

LONDON – Prices of oil and other commodities will come under renewed pressure on Monday on fears that Friday night's deadly attacks on Paris will further slow the global economy.

Oil is already trading near its six-year lows and healthy demand has been a major factor preventing the prices from sliding any lower amid a worsening global oil glut due to abundant supplies.

At least 129 people were killed on Friday evening in a series of coordinated attacks on Paris with Islamist militants claiming responsibility for the carnage.

"Currently sentiment is really bearish, so this could be seen as hurting demand, so oil prices could fall further," said Amrita Sen from Energy Aspects.

Sen added that a short-term sell-off could, however, be followed in the mid-term by a rally if people think events in Paris could lead to a serious escalation of tensions in the Middle East.

Analysts from Eurasia Group said the attacks will likely undermine the French government's ability to focus attention on the improving economy.

Looking at the broader financial repercussions, global stocks are set for a short-term sell-off on Monday but few strategists expect a prolonged economic impact or change in prevailing market directions.

ActivTrades chief analyst Carlo Alberto de Casa and Ed Meir, analyst at INTL FCStone, both said they expect a moderate rebound in gold prices given that equities and commodities were poised to be hit.

"People in France are in shock. They are not doing much shopping and that could last for a few days," said Olivier Jakob from Petromatrix consultancy.

"The rest of the world is not as deeply affected to change consumer behaviour," said Jakob adding that the bearish impact of Paris attacks would likely be short-lived.

"The attack could however result in a re-calibration of France's foreign policy and positioning in the Middle East," he added.

An OPEC delegate from a Gulf producing country said he also believed that in the mid-term oil prices could get some in support due to rising geopolitical tensions especially if the international community takes additional steps to reduce smuggling of oil and hits oil facilities under Islamic State's control in Syria and Iraq.

But the short-term impact could see prices remain under pressure, the OPEC delegate agreed: "Certainly any more controls — though it ensures safety of travellers — will reduce transport. Look at what happened after the September 11 attacks," he said.

He added the markets would react depending on details of how severe and prolonged any restrictions across France and the rest of Europe are.

ING Bank energy analyst Hamza Khan said the Western coalition could now begin targeting Daesh-run oil fields and refineries but the risk would be destruction of already perilous Syrian supplies.

AMMAN – ArabiaWeather Inc., a leading weather company in the Middle East, has announced a new round of funding totaling $5 million, following the $2.1 million it raised earlier this year. 

The round, one of the largest venture deals raised in the region in 2015, is led by Silicon Badia and Wamda Capital, and includes the founding investor Jabbar Internet Group and DASH Ventures.

The investment will be used to continue growing ArabiaWeather’s customer and enterprise offerings in the region, the company said in a statement e-mailed to The Jordan Times Sunday.

ArabiaWeather serves millions of customers across the Middle East and North Africa with weather forecasts, information, and content, delivered through its web and mobile properties. 

The company said it will invest in expanding the reach of its flagship mobile app, which is one of the most popular native Arab mobile applications on both iOS and Android, adding that it will also be expanding its video coverage and content, and launching new specialised mobile apps targeted at weather aficionados. 

"The company is launching a new digital monetisation unit that will allow advertisers to create smarter digital ad products which leverage ArabiaWeather’s weather and customer data," said the statement.

On the enterprise side, ArabiaWeather said it will invest in developing integrated industry-specific solutions for businesses in the Middle East as the decision-support solutions enables companies in sectors that are particularly affected by weather conditions — such as aviation, marine, oil and gas, agriculture, insurance and retail — to save costs, enhance safety and drive operational efficiency. 

“We are happy with the continued growth of our customer-focused properties, and we will continue to serve our millions of users with the most accurate and informative weather forecasts and content by enhancing our mobile offerings and expanding our original video content," said ArabiaWeather CEO Mohammed Al Shaker. 

The company plans to invest a portion of the proceeds of the round in its weather infrastructure, including expanding the deployment of its own weather stations across the region and the unique weather forecasting technology, said the statement, adding the company also has plans to utilise its 35 million strong user-base to crowd-source more accurate hyper-local weather observations.

Khaled Talhouni Managing Partner at Wamda Capital said the funding is fully dedicated to further growing the company, which has established "an exceptional track record as a premier provider of highly useful weather information in the region." 

"We believe there is a true opportunity to further build ArabiaWeather’s portfolio of decision-support weather solutions for the benefit of companies and customers in the region” he added.

ArabiaWeather Inc. is the first and considered the largest private weather company in the Middle East.  

Founded in 2006, ArabiaWeather is headquartered in Amman and has an office in Dubai.

SHARM EL SHEIKH – The Russian plane crash in Egypt has forced hotels in Sharm El Sheikh to send dozens of staff on "unpaid leave", as tourist numbers plunge, with tens of thousands of jobs at risk within months.

The October 31 crash over the Sinai Peninsula that killed all 224 people on board prompted Russia and Britain to halt flights to the Red Sea resort and to begin repatriating nationals holidaying there.

The Egyptian affiliate of the jihadist Daesh group claimed it brought down the plane minutes after it took off from Sharm El Sheikh, and there are growing suspicions this was done with a bomb.

Two weeks after the tragedy, the travel restrictions have hit hard, with resort operators in Sharm El Sheikh cutting staff to reduce costs.

"I have been told not to come from tomorrow," luxury hotel employee Ahmed said on Friday, giving only his first name.

"I'll be called if the situation improves. Nothing is clear."

Ahmed said five other employees at his hotel were also told to go on unpaid leave. 

At least four luxury hotels confirmed to AFP they have asked several employees to take leave.

Tourism employs one in nine workers in Egypt, and in Sharm El Sheikh nearly 80,000 depend on it for their livelihood. 

"The way the situation is, about 40,000 people risk losing their jobs within months," Givara El Gafy, head of the South Sinai chamber of tourism, told AFP.

Although plagued by instability since the 2011 ouster of longtime president Hosni Mubarak and a rising tide of militant attacks, Egypt's tourism had shown signs of a pick-up ahead of Christmas and the New Year.

Resort owners were even considering hiring new staff, but no longer.

"We stopped hiring new staff... and those who want to go can go," said Anwar Hawary, a manager at a five-star hotel.

'Blessing in disguise' 

For a hotel to break even, at least 30 per cent of its rooms have to be occupied, experts say. Failing that, many hotels, especially new ones, will have to close.

In a holiday spot such as Sharm El Sheikh, many foreigners are also employed in resorts and companies catering to tourists.

"Two days back I lost my job," said Oxana, a Russian who worked for an Egyptian perfume company based in Sharm.

"Sixteen of our 20-member sales team have been told to go," she said.

Oxana, 40, said her clients were Russian holidaymakers who stayed in the coastal town for weeks at a time.

With a monthly salary of about $600, Oxana said she lived comfortably in Sharm — a favourite holiday destination for millions attracted by its pristine beaches, sunny weather and dive sites. 

"I can live off my savings for two months, but if things don't improve by then, I'll have to return to Moscow," said the former rescue diver.

Chances of finding a job in Moscow are also tough because of the economic recession back home, she said. "I prefer working here... the weather is beautiful and Sharm is safe."

For some big resorts, however, the lull in business is an opportunity to renovate their properties.

"This is a blessing in disguise," the general manager of a luxury hotel chain told AFP.

"We plan to close two wings of our hotel for renovation, so that when the situation changes, we are ready."

Prospects of that happening in the near term were called into question Friday when reports from Russia said the Federal Air Transport Agency had banned EgyptAir flights to Russia from Saturday.

Moscow's Domodedovo airport told AFP they had received a telegram to that effect from Rosaviatsia, but the agency declined to comment.

Meanwhile, the British government said the country's airlines will stop repatriating tourists from Sharm El Sheikh on Tuesday, and that anyone who stays after that will have to fly back "at their own risk".

"British airlines estimate that after this date, there will be fewer than 200 of their passengers remaining in the resort," a statement said.

Anyone staying on "should make their own alternative arrangements for returning to the UK".

AMMAN — Jordan Enterprise Development Corporation (JEDCO) on Saturday launched its Entrepreneurial Communities Initiative inspired by the European Training Foundation (ETF)’s Entrepreneurial Communities Initiative, which identifies entrepreneurial communities, learns from the participatory governance they incite, and makes their successes known.

JEDCO, along with its partners – both national and international, set out to shape a customised Entrepreneurial Communities Initiative for Jordan. 

The partners include the Ministries of Interior, Tourism and Antiquities, Environment, The Hashemite Fund for Development of Jordan Badia, Development and Employment Fund, The Jordanian Hashemite Fund for Human Development, The King Abdullah II Fund for Development, and the Jordan River Foundation, in addition to the ETF, Union for the Mediterranean, and GIZ. 

The CEO of JEDCO Hana Uraidi stated that the goal of the initiative is to enhance skills and entrepreneurship, create jobs, and promote the concept of entrepreneurship through partnerships aimed at the development of local communities.

The focus will be on practice, storytelling (vision) and added value.  It is about learning from good practices, big or small, to shape the economic future of Jordanian society. 

The initiative’s target communities are divided into five categories: practices in the governorates, practices that develop women and youth, practices concerned with conserving the environment, and practices that encourage and support tourism in Jordan.