Business

AMMAN — Rum-Aladdin for Engineering Industries seems to be going down the voluntary liquidation road when shareholders hold an extraordinary general assembly meeting next week, or later, if postponed.

Chairman Mohammed Taha Harahsheh told the Jordan Securities Commission in a disclosure that an extraordinary general assembly meeting on October 18 will discuss taking the company into voluntary liquidation.

A public shareholding company founded in 1993, the company manufactures, assembles and trades electrical and electronic home appliances, such as air conditioning units, gas cookers, heaters, metal furniture, radiators, washing machines, steel and aluminum ladders.   

Earlier this year, the shareholders agreed to restructure the company's capital and received the approval of the minister of industry and trade to this effect.

The restructuring entailed lowering the JD10 million registered capital to the JD7.2 million paid up capital and then down to JD3 million to write off JD4.2 million of losses that, at the end of 2013, accumulated to JD4.8 million.

The next step, as stipulated in the minister's approval, would be to increase the capital by JD7 million in order to provide the company with liquidity from strategic shareholders and/or  to capitalise the amounts payable to creditors by converting them into shares.

The price per share in this course of action should not be less than JD0.750, meaning that the capital would rise by JD7 million to JD10 million at a JD0.250 discount per share, the minister wrote in March 2015 noting that legal requirements were not fulfilled until March 29, 2015.

On April 26, another extraordinary general assembly meeting was held and shareholders amended the price per share from JD0.75 to JD0.5.

Even so, the consolidated interim financial statements and the auditor's review covering the six months ended June 30, 2015 showed accumulated losses at JD5.3 million, paid up capital at JD7.2 million and JD1.9 million as payments into account to increase capital.  

Current liabilities totaled JD7.5 million, of which JD3.4 million were short-term loans, JD2.4 million were amounts due to creditors and JD1.4 million were overdue expenses and other payables.

The auditor mentioned in the review that the company did not provide confirmations from banks regarding account balances and amounts outstanding of all related loans. 

It said that Rum-Aladdin for Engineering Industries did not record during the period all interests due on loans extended by local banks, because the company did not receive any account statements from them.

The auditor also could not verify the worth of inventory in the warehouses, noting that it, therefore, was unable to determine if there should have been any impairment in the value.

According to the balance sheet as of June 30, 2015, the inventory amounted to JD4.3 million (mostly raw materials) out of JD5.7 million in total current assets. JD1million were receivables after taking impairments into account.

Property and equipment, totaled JD6.6 million.

"The company's land and everything built on it are hypothecated in favour of the banks, the Income and Sales Tax Department, and the Social Security Corporation," the auditor wrote in the notes accompanying the 2014 financial statements.

It added: "The vehicles are held under lien in security for suits filed against the company."       

The auditor noted that JD1.3 million, an amount owed as interest by Middle East Complex for Engineering and Electronics and Heavy Industries, was reversed and a confirmation of the receivable balance after deducting the interest was not obtained.

The income statement revealed a sharp decline in sales from JD0.5 million during the first six months of last year to JD0.1 million during the January-June period of 2015.

This drop translated into a JD0.3 million loss when all costs were taken into consideration compared to a JD0.6 million loss during the first six months of last year.

The troubles of the Rum-Aladdin for Engineering Industries appear to lie in operational losses as the cost of production in 2014 amounted to JD1.3 million, only to generate JD0.7 million of sales.

Similarly, in 2013 the cost of production was JD0.7 million while sales amounted only to JD0.4 million.

Such operational deficit resulted in a JD0.9 million loss last year. In 2013, the financial performance was positive with a JD0.6 million profit that was achieved on the back of JD1.2 million gained from selling property and equipment.

The 2014 annual report showed capital investment at about JD265 and market share at around 35 per cent, mentioning as well that the Saudi and Iraqi markets account for 57 per cent of overall sales.

The report acclaimed marketing and technological achievements, stressing capabilities and drive towards higher efficiency, operational competence, competitiveness and investment growth.     

At the end of last year, 33 employees worked at the head office and factory of Rum-Aladdin for Engineering Industries in Amman's Sahab neighbourhood.

Salim Abdul Rahman Hassan Hamdan, Talal Ibrahim Mohammed Al Awadi, Taha Harahsheh and Fuad Khamis Abdul Rahman Al Jamal were the major shareholders in the company at the end of last year.

AMMAN — Inflation in the first nine months of 2015 went down by 0.7 per cent, compared to the same period of 2014, the Department of Statistics (DoS) announced Sunday.

Main item groups that contributed to the drop were transportation (14.2 per cent), fuel and lighting (12.5 per cent), beverages (1.6 per cent) and personal objects (3.6 per cent), according to a DoS report sent to The Jordan Times.

An increase in prices during the nine-month period included rents (5.2 per cent), fruits and nuts (6.4 per cent), tobacco and cigarettes (3.8 per cent) and education (3.5 per cent).

DoS also noted that average consumer prices went down by 1.2 per cent in September 2015, compared to September 2014.

The DoS report  highlighted that the inflation rate in September 2015 went down by 0.3 per cent, compared to the previous month.

DoS started calculating the inflation rate considering 2010 a base year instead of 2006, starting from January 2015 to conform to international classifications and approaches.

WASHINGTON — US President Barack Obama took a dig at China Saturday as he defended the new Trans-Pacific Partnership (TPP) free-trade deal, which excludes Beijing.

In his weekly address to the nation, Obama said the 12-country accord concluded last week after five years of negotiations features the strongest labour and environmental standards in history, which he said will level the field in international trade.

Once approved by all the signatories, the TPP could be the largest regional trade pact ever.

"Without this agreement, competitors that don't share our values, like China, will write the rules of the global economy," Obama said. "They'll keep selling into our markets and try to lure companies over there, meanwhile they're going to keep their markets closed to us." 

Spanning about two-fifths of the global economy, the TPP aims to set the rules for 21st century trade and marks one of Obama's key diplomatic and economic achievements.

He hopes it will encourage investment and press China to shape its behaviour in commerce, investment and business regulation to TPP standards.

But the deal has faced opposition from activists, who argue it favours big business over consumers and governments, and US congressional leaders have already expressed reservations even before the details have been released.

Hillary Clinton, who as secretary of state under Obama promoted the negotiations aimed at sealing the TPP and is now the Democratic frontrunner in the race for the 2016 presidential election, has come out against it.

Clinton said Wednesday that given what she knows about the deal it falls short of her "high bar" for creating American jobs, raising wages and advancing US national security.

Under the deal, 98 per cent of tariffs will be eliminated on everything from beef, dairy products, wine, sugar, rice, horticulture and seafood through to manufactured products, resources and energy.

Countries involved are the US, Canada, Japan, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Left outside the TPP, China and India approach this week's talks for a huge Asia-wide equivalent with fresh urgency, lest competitor nations steal a march on export access.

Beijing is a key driver of the Regional Comprehensive Economic Partnership (RCEP), a proposed 16-nation free-trade area that would be the world's biggest such bloc, encompassing 3.4 billion people.

"Member countries will be under pressure to fast-track negotiations for RCEP," said a senior official in India, which is keen to avoid being excluded from major trade accords.

While China's rivalries with India and Japan will complicate progress, it has incentive to get things moving.

China's central bank estimates the world's second-largest economy could forfeit a 2.2 per cent boost to gross domestic product if Beijing does not join the TPP, according to a commentary by the bank's chief economist, Ma Jun, published in the official Shanghai Securities News on Friday.

China stands to lose ground to manufacturing competitors such as Vietnam, which as a TPP member will have greater duty-free access to the United States and other member nations, said Tu Xinquan, a professor at the University of International Business and Economics in Beijing.

"It's not that there is a competition between the RCEP and the TPP, but overall, because of the pressure put on by the TPP, there's hope for a faster end to negotiations for more liberalised trade in the region," Tu added.

RCEP was first conceived by the 10 members of the Association of Southeast Asian Nations (ASEAN), but China is increasingly prominent as backer of the proposed pact.

While RCEP has largely been seen as an alternative to US-led trade plans, some say that view is evolving.

China may ultimately look to steer RCEP talks towards a broader pact that would encompass TPP into a Free Trade Area of the Asia-Pacific (FTAAP), said Kim Young-gui, head of regional trade studies at the Korea Institute for International Economic Policy in Seoul, an idea first put forward by the Asia-Pacific Economic Cooperations (APEC) grouping.

Seven countries — Australia, Japan, Malaysia, New Zealand, Singapore, Vietnam and Brunei — are in both TPP and RCEP.

"New Zealand views TPP and RCEP as complementary stepping stones to the vision of a Free Trade Area of the Asia Pacific," said a ministry of foreign affairs and trade spokesperson.

The TPP deal aims to liberalise commerce in 40 per cent of the world's economy.

Raising standards?

Obama wants TPP to help boost US influence in East Asia and counter the rise of China, but Beijing officially welcomed the pact, saying it hoped the deal would promote Asia-Pacific trade.

"We hope that regardless of whether it is the TPP or the RCEP, they both can supplement, promote and be beneficial to strengthening the multilateral trade system," said Chinese foreign ministry spokeswoman Hua Chunying.

Prime Minister Shinzo Abe of Japan, a key player in TPP, held out the prospect of bringing China into the deal in future, saying it would increase the pact's strategic significance and improve regional stability.

Washington does not dismiss the possibility, though China would need to undertake reforms to meet the standards of commerce envisioned by the TPP.

"It is not designed to encircle China," Deputy US Secretary of State Antony Blinken said in Seoul earlier this month when asked if Washington sees the TPP deal as a way to check China. 

"To the contrary, if China is interested in pursuing membership and it is able to meet the standards, we would welcome that," he added.

Those standards include minimum labour rights and principles for currency management that RCEP is unlikely to demand of Beijing.

A Japanese foreign ministry official said TPP would accelerate the pace of RCEP and could have some impact on "raising the level of the outcome of the negotiations", but the "very diverse group" had different ideas on what might be desirable.

The 16 RCEP countries will present their offers for market opening when they meet in Busan in South Korea on Monday, with an aim to make "best efforts" towards reaching agreement by year-end, a South Korean official close to the negotiations said.

Negotiators are expected to share their lists of offers for tariff reductions on goods and service sectors.

Song Yeong-kwan, a research fellow at the state-run Korea Development Institute, believes agreement nevertheless remains years away.

"Some countries have tensions with China, so it will not be easy, and the process could be a bumpy ride," Song said.

LIMA — The Group of 20 (G-20) major economies have endorsed a package of measures to tackle corporate tax avoidance, but questions remain about whether countries will follow through on the plans or leave loopholes multinationals can exploit.

G-20 finance ministers agreed to back proposals drawn up by the Organisation for Economic Cooperation and Development (OECD) which aim to shake up rules dating back almost a century that govern taxation of profits from international commerce.

The ministers reached the agreement against a backdrop of concern about weak economic growth, tight government finances and media reports on the tax structuring used by companies including Starbucks and Google that have spurred public anger in Europe and the United States in recent years over tax avoidance.

"This is a reaction of people who cannot stand anymore that they pay their fair share of taxes, that they contribute to fiscal consolidation while companies, especially multinationals, can avoid tax," European Economic Affairs Commissioner Pierre Moscovici told Reuters.

The practice of so-called Base Erosion and Profit Shifting (BEPS) has allowed companies to move profits out of the countries where money is earned and into jurisdictions such as Luxembourg, Ireland or Bermuda that do not tax them.

The agreement endorsed by the G-20 ministers late on Thursday aims to close the gaps in existing international rules.

The plans include provisions to give governments a global picture of the operations of multinational companies, and minimum standards on so-called "treaty shopping" to put an end to the use of conduit companies to channel investments.

"The challenge is consistent implementation," said Pascal Saint-Amans, director of the OECD Centre for Tax Policy and Administration.

Technology companies are seen as the most adept at exploiting loopholes, but drug makers, medical device groups, banks, fast-food groups and retailers all commonly use contrived arrangements to cut their tax bills.

Tax advisers agree the measures could force many companies to restructure their operations and rethink how they fund themselves.

However, multinational enterprises (MNEs) will try to exert influence over the way the plans are implemented.

"The implementation phase now starts and MNEs and their advisers will have to continue to make their voice heard in the implementation phase to limit negative impacts on business," said Keith O'Donnell, board member at Taxand, which provides tax advice to multinational businesses.

"If certain states don't implement or implement partially, MNEs may be able to take advantage of this," he added.

The crackdown on corporate tax avoidance has been led by governments, who asked the OECD to develop the plans.

British Finance Minister George Osborne urged OECD chief Angel Gurria to put pressure on countries to enact the measures.

"I think he should call out countries that are not implementing what has been signed up to and hold our feet to the fire," Osborne said after the meeting of G-20 ministers in Lima.

G-20 leaders must now give final approval at a summit in November in Turkey, although the initiative was swiftly dismissed as lacking bite by one prominent critic.

The 15-point plan aims to tackle low tax bills for the likes of Google, Apple and McDonald's, which have managed to sharply reduce their taxes while remaining within the law, provoking public outrage in recent years.

Turkish Deputy Prime Minister Cevdet Yilmaz, who announced the G-20 decision, called it a "historic moment" for the fight against tax evasion.

He said the plan addressed a "very comprehensive set of issues" including profit-shifting across borders, corporations' use of no-tax status in multiple countries and the digital economy.

"These are very complicated issues that required an extensive technical effort and a hard-to-build consensus in some cases," he told a press conference in Lima,

But the work on consensus-building has only just begun.

Preventing companies from shifting profits to low-tax jurisdictions and debt to high-tax jurisdictions will require "a very large group of countries", particularly developing nations, to get on board with the plan, Yilmaz said.

International charity Oxfam has criticised the plan as a "toothless" package that will do nothing to stop poor nations being cheated out of billions of dollars.

"Rich governments are all bark and no bite when it comes to corporate tax dodging," said Oxfam's Manon Aubry when the plan was announced Monday.

But the OECD said it would give governments across the board a much-needed fiscal boost.

"Base erosion and profit shifting is sapping our economies of the resources needed to jump-start growth, tackle the effects of the global economic crisis and create better opportunities for all," said OECD Secretary General Gurria.

Globalisation loopholes

The man who supervised the drafting of the plan, the OECD's Pascal Saint-Amans, has said it means "playtime is over" for tax-dodging multinationals.

The OECD calculates that national governments lose $100 billion to $240 billion a year, or four to 10 per cent of global tax revenues, because of companies that game the system.

The plan, which applies to international companies with revenues of at least 750 million euros, seeks to make them pay tax in the country where their main business activity is based.

"It's not about paying low or high taxes, it's about paying your taxes," said Osborne.

The OECD has called for a multilateral deal by the end of 2016 enabling countries to update bilateral tax treaties in line with the new plan without the need to renegotiate them one by one.

The plan comes nearly a year after the "LuxLeaks" revelations that some of the world's biggest companies, including Pepsi and Ikea, lowered their tax rates to as little as one per cent in secret pacts with tax authorities in Luxembourg.

Luxembourg's Finance Minister Pierre Gramegna joined the calls for governments around the world to sign up for the new plan.

"We need a level playing field, which means we have to implement it all together and at the same pace," he said. "That is not the end of the story," said German Finance Minister Wolfgang Schaeuble.

"If there is no implementation it remains an impressive amount of paper," he added.

AMMAN — The Ministry of Industry, Trade and Supply is currently cooperating with the private sector to find new markets for Jordanian products, especially in Africa which has promising markets, Minister Maha Ali said Saturday.

At a meeting with South African Ambassador to Jordan John Davies, Ali added that Jordanian exports were negatively affected by the unrests in Syria and Iraq and lost these two markets, according to a ministry statement.

She noted that the Kingdom also lost its only transit route to Europe which used to pass the Syrian territories to export Jordanian products, especially the agricultural produce.

The ministry, in coordination with the private sector, is also considering the signing of free trade agreements with African countries such as South Africa to stimulate national exports to these markets, the minister indicated, highlighting the Kingdom's keenness to increase trade volume with African countries.

She also underlined the importance of joint action with South Africa to increase commercial exchange, in addition to encouraging the South African private sector to invest and benefit from available opportunities in Jordan, the statement said.

Davies, for his part, expressed his country's willingness to develop economic relations with Jordan, boost commercial exchange and benefit from available investment opportunities.

Ali also met with Irish Minister of State for Development and Trade Seán Sherlock and discussed ways to enhance economic cooperation between the two countries at all levels, especially commercial and investment fields.

She also called for facilitating Jordan's advantage from the partnership agreement with the European Union, noting that Jordanian exports to European countries are still below the expected level, and the private sector could not benefit from the agreement as desired, according to a ministry statement.

Ali called on the Irish private sector to benefit from economic and investment opportunities available in the Kingdom which is considered a gateway for the region due to its geographical location.

Sherlock expressed his country's interest in developing economic cooperation with Jordan valuing the country as a pioneer in the region in economic reforms, and calling on both countries' private sector to benefit from available opportunities.

CAIRO — Egypt's foreign currency reserves fell for the third consecutive month in September, according to central bank figures, putting pressure on authorities to devalue the currency, limit non-essential imports and take urgent steps to promote investment.

Reserves dropped 9.7 per cent to $16.3 billion from the previous month, the lowest since March, after the central bank repaid $1.25 billion in loans that matured last month, the bank said Wednesday.

"They are getting closer and closer to the critical level," said Hany Farahat, a senior economist at CI Capital in Egypt. "If reserves go below $15 billion with the current state, the pound will come under severe devaluation pressure."

Egypt has been struggling to maintain its foreign reserves since the 2011 overthrow of longtime autocrat Hosni Mubarak. President Abdel Fattah Al Sisi, has staked his legitimacy on stabilising the country and reviving the economy.

Years of unrest have taken a heavy toll on Egypt's vital tourism sector and its investment climate. 

Sisi's government has launched a number of mega projects to attract investment but they could take years to get off the ground. Meanwhile, analysts say concerns about a virtually inevitable devaluation are dampening interest.

"Everyone is expecting a devaluation, and since the expectation is there but it's not materialising, then investment will not come until after the devaluation takes place," said Amr Elalfy, global head of research at Mubasher Financial Services.

At the same time, the central bank has "social factors" to consider, he indicated. "Devaluing the pound will increase costs and will increase prices."

Import restrictions on consumer goods, "if the products are selected correctly without compromising local industrial and economic activity”, could free up some foreign currency wasted on importing non-essentials, Farahat added.

Sisi hinted at such measures during a Cabinet meeting Saturday, saying the country imports "many unnecessary goods" that could be provided locally, according to a statement from the president's office.

Separately, a high-profile housing project signed by Abu Dhabi-run contractor Arabtec with the Egyptian government in March 2014 and seen as a sign of the Gulf Arab state's support for Sisi, has stalled, possibly risking his reputation and highlighting Egypt's habit of promising grandiose ventures and then struggling to deliver.

Egyptians were promised one million homes by 2020 at a cost of about 280 billion Egyptian pounds ($35.76 billion) and a raft of other projects to help the economy get back on its feet after the political upheaval that followed the 2011 uprising.

Sisi was counting on billions of dollars in pledges of help from Gulf Arab oil-producing allies. Some of this money has failed to materialise, and local banks are unable to finance the Arabtec project.

"Egyptians want these projects now but in fact they will take years to finish," said a Western diplomat in Cairo.

Egypt signed a memorandum of understanding for the project with Arabtec, which built the world's tallest building, the Burj Khalifa for Emaar Properties, but now it has ground to a halt. A source familiar with the matter pointed to disagreements over the contract and funding difficulties.

Work has not started and Arabtec has yet to submit a building plan. Arabtec declined to comment, while Abu Dhabi officials could not be reached for comment.

Abu Dhabi, the dominant member of the United Arab Emirates (UAE) and home to the country's federal government institutions, is the company's largest shareholder in Arabtec through state fund Aabar, which holds a 36.1 per cent stake.

Abu Dhabi officials have been Arabtec's chairmen since mid-2012, with the current board all part of the emirate's government and business elite.

In the original announcement, Arabtec's then chief executive Hasan Ismaik said the project owed much to Abu Dhabi's crown prince "who has been very keen to mobilise all efforts to boost support to our brothers in Egypt through a multitude of humanitarian, economic and social initiatives".

Sisi under pressure

The UAE is still deeply committed to Sisi but when it comes to commercial ventures it is paying closer attention to contract details for a good return on investment, Western diplomats say.

Sisi's success in cracking down on the Muslim Brotherhood, seen by Gulf allies as an existential threat, may mean the UAE has less reason to engage in ventures to back him. UAE finances have also been hurt by a fall in oil prices.

When, as army chief, Sisi toppled Morsi, he promised what he called a political roadmap to democracy. Parliamentary elections on October 18-19 mark the last step in that process.

His performance on the economy will come under greater scrutiny as political turmoil eases.

"At the moment, many ordinary Egyptians, due to the fear of political violence in the country, will be giving Sisi a lot of leeway, but eventually, the public will want to see results in economic terms," said H.A. Hellyer, nonresident fellow at the Brookings Centre for Middle East Policy.

"If the results are not sufficiently big or don't come quickly enough, be it on the Arabtec deal, the new administrative capital, or the Suez Canal expansion, Sisi's popularity could suffer quite substantially as a result," he added.

At an investment conference in March, Sisi said the UAE businessmen Mohammed Alabbar, through Abu Dhabi investment firm Capital City Partners, would lead the construction of a new administrative capital. This would include an airport larger than London's Heathrow and a building taller than Paris's Eiffel Tower.

Nearly four months after the initial memorandum of understanding was signed with Alabbar, Egypt's investment minister said that his company would only take "part of the project" along with other investors, including China Construction, which signed a memorandum of understanding of its own to study "building and financing" part of the project. Capital City Partners declined to comment.

In another example of the difficulties faced by these projects, a year after announcing it would build Egypt's first coal-fired power station, Abu Dhabi-based Al Nowais Investments said last month the paperwork still had to be finalised.

"I don't think the UAE is pulling out, but the UAE companies who tried to jump on the bandwagon are finding it difficult to fulfill commitments that were not planned well," said Mohammed Ali Yasin, managing director at NBAD Securities, the stockbrokerage arm of National Bank of Abu Dhabi.

Funding trouble

On the Arabtec deal, the parties disagree on profit sharing terms, the government's return for providing the land and state insistence labour and materials be sourced mostly locally for a project that will provide very thin margins, said Allen Sandeep, director of research at Naeem Holdings in Cairo.

It is unclear whether Egypt was swept up in the ambitions of Arabtec's ex-CEO Ismaik, who promised in June 2014 to make Arabtec one of the top 10 companies globally by 2018. Ismaik resigned a week later.

Khadem Abdulla Al Qubaisi, considered a close ally of Ismaik, has also left his roles as chairman of Arabtec and managing director of Aabar's parent firm International Petroleum Investment Co. It is unclear whether his departure is a signal of Abu Dhabi's waning support for the builder.

A source at Egypt's housing ministry said it was still waiting for Arabtec, which has posted losses for the past three quarters, to submit a workable plan detailing how it will build 100,000 homes over five years and the parties have yet to agree when work will start.

Arabtec also does not have the cash to fund the project costs upfront — its cash and cash equivalents were 296 million dirhams ($80.59 million) in arrears as of June 30 according to its most recent earnings statement.

Financing from Egyptian banks is unlikely due to insufficient liquidity in the banking system.

Though the Suez Canal extension was raised through a local investment certificate, analysts say this type of fundraising, which drew on nationalist sentiment to encourage scores of Egyptians to buy up certificates, is unlikely to be repeated.

Angus Blair, head of Signet economic forecasting, questioned the wisdom of mega projects.

"There have to be other solutions to grow the economy — it's one of the parts that could be played as an economic vision but these projects and programmes have to be really well thought through so there is maximisation of value and long term sustainability," he said.

SINGAPORE — South Korea's Lee family, which controls the formidable Samsung conglomerate, topped an inaugural list of Asia's 50 richest families published Thursday by Forbes Asia magazine.

The family had a net worth of $26.6 billion as of late September, with second- and third-generation members now running more than 50 businesses, the magazine pointed out.

The Samsung empire, founded in 1938 by wealthy landowner's son Lee Byung-Chull, has diversified interests ranging from mobile phones to construction and shipbuilding.

Forbes Asia indicated that Samsung, the biggest of the "chaebol" or family-run conglomerates dominating South Korea's economy, accounted for 22 per cent of the country's gross domestic product in 2014.

"Nearly half of the richest families in Asia are of Chinese descent, yet none of the inaugural 50 is based in the mainland, where conglomerates are young, run by the first generation," it said in a report.

The second richest is the Hong Kong Chinese family, also surnamed Lee, which controls Henderson Development and boasts a fortune of $24.1 billion.

The third richest are the Ambanis of India's Reliance Group with a combined net worth of $21.5 billion, followed by Thailand's Chearavanont family with $19.9 billion, generated from the agriculture-based Charoen Pokphand group.

Rounding out the top five is the Kwok family, which controls Hong Kong's Sun Hung Kai property empire, with a combined net wealth of $19.5 billion.

Only families with business involvement extending to at least three generations were included in the survey, the magazine said.

The family of Hong Kong tycoon Li Ka-shing, who has a current net worth of $25 billion based on a Forbes global list, was excluded because he has no grandchildren who have taken serious roles in the family business, it added.

The estimates of family fortunes were based on stock prices and exchange rates at the close of markets on September 25.

The top 10 richest families in Asia on the Forbes Asia list with their main businesses:

 1. Lee from South Korea (Samsung): $26.6 billion.
 2. Lee from Hong Kong (Henderson): $24.1 billion.
 3. Ambani from India (Reliance): $21.5 billion.
 4. Chearavanont from Thailand (Charoen Pokphand): $19.9 billion.
 5. Kwok from Hong Kong (Sun Hung Kai): $19.5 billion.
 6. Kwek/Quek from Singapore, Malaysia (Hong Leong): $18.9 billion.
 7. Premji from India (Wipro): $17 billion.
 8. Tsai from Taiwan (Cathay Financial): $15.1 billion.
 9. Hinduja from India, Britain (Hinduja Group): $15 billion.
10. Mistry from India (Shapoorji Pallonji Group): $14.9 billion. 

Last month, the mouthpiece newspaper of China's Communist Party has blasted Hong Kong tycoon Li Ka-shing after he sold assets on the mainland with the world's second-largest economy facing headwinds.

The 87-year-old, nicknamed "Superman" for his sharp business acumen, has been offloading major property investments in China, where growth slowed to a 24-year low last year and has continued to weaken this year, after investing heavily there in the 1990s.

The move, combined with his selling of assets in Hong Kong, has fuelled speculation that the richest man in Asia is losing confidence in the Greater China region.

"Capital has no borders while businessmen have their own motherland," the People's Daily said on a verified social media account, implicitly questioning his patriotism.

China's opening up, vast market and favourable policies had been "the key cornerstone" of Li's success, yet he was now leaving his benefactor in the lurch, it said in a commentary Sunday on its account on China's mobile messaging application WeChat, a less formal platform than the printed newspaper itself.

"From the perspective of uncomplicated people, he shared the prosperity while we had good times but could not beat the odds together with us now that we have difficulties," it added. "This is indeed unacceptable emotionally." 

But it sought to downplay any "negative impact" on confidence in China, saying the mainland offers "a vision that goes beyond money".

"We don't need to worry that no investors will come after Li Ka-shing," it said, pointing out the country accounts for more than 12 per cent of the global economy.

"What we can do is not to condescend to persuade him to stay or to hurl invectives out of outrage, but to build the country better to make today's departure tomorrow's regret," it added.

Li, who is currently worth $32.9 billion according to the Bloomberg Billionaires index, started out in business as a plastic flower-maker.

He has been reshuffling his business empire since the start of this year and earlier this month announced the merger of his utilities firms, part of an overhaul seen as paving the way for him to hand over the reins to his eldest son Victor, 51, after he retires.

In one of his recent overseas purchases, Li in March acquired British telecom giant O2 from Spain's Telefonica for $15.2 billion.

DUBAI — The halal economy is set to grow as the world’s Muslim population expands and more products are certified to comply with Islamic sharia law, experts said on Tuesday.

The range of halal products, from goods not containing pork or alcohol to financial and tourism services, is rising as the global Muslim population grows.

“They are growing because we are increasing by 2.5 to 3 per cent every year. Islam is the fastest growing religion,” said Muhammad Chaudry, president of the Islamic Food and Nutrition Council of America.

He added that many products that were sharia-compliant by nature are now being certified as halal, contributing to the increase in the size of the halal economy.

“When we talk about the halal economy growing by 20 per cent, it is the conversion from indiscriminate we-don’t-know-what’s-in-it economy to a definitely halal-certified economy,” he told AFP at an Islamic economy forum in Dubai. 

The rising demand for halal products has seen businesses, restaurants and hotels across the world cater for the needs of Muslim clients, Chaudry said.

“Halal is a lifestyle. Countries like Japan and Korea are taking the lead to convert their restaurants and hotels into halal-friendly so they can attract more tourists from Muslim countries,” he indicated.

“Halal is a global entity. We are looking at 1.8 billion consumers,” he added, referring to an estimate of the world’s Muslim population.

The head of the Emirates Authority for Standardisation and Metrology, Abdulla Al Muaini, said the Muslim population, expected to reach 2.2 billion in 2030, is a “core market” for halal products.

He pointed out that the Organisation of Islamic Cooperation values the global halal sector at $2.3 trillion.

“Halal industry is expected to be one of the steady growing sectors across the global economy,” he added.

Separately, 24 year-old Nurnadille Edlena, dressed in a headscarf and full-length robe, takes notes intently as the man before her introduces himself.

The two are at Halal Speed Dating, a new matchmaking event in Kuala Lumpur that is helping Malaysian Muslims find partners in a largely conservative society where courtship is frowned upon and marriages are often arranged.

The dating service is halal, meaning permissible under Islamic law, as it is practised with an Islamic approach: women speed daters must be chaperoned by a wali, or guardian until she gets married and who grants her the permission to do so.

“I brought my parents as they are the best people who can guide me to find someone,” said Nurnadille. “I’m focusing on finding someone who can willingly accept me for who I am.”

Malaysia is a largely moderate Muslim country, where Islam is the official religion and ethnic Malay Muslims make up two thirds of the 30 million people.

Many young Malaysians meet as young people do in many places, including through the dating app Tinder and on Facebook, but dating is complicated for young Muslims in Malaysia, where public displays of affection and intimacy before marriage is strictly disapproved of.

Halal Speed Dating’s founders say most of their clients hope to find a spouse. A client can shortlist up to three possible partners but can only negotiate marriage with one at a time, in accordance with Islamic rules.

“Halal Speed Dating is the anti-Tinder,” co-founders Zuhri Yuhyi, 34, and Norhayati Ismail, 41, said in a release, referring to the US-based dating app that has gained a reputation for free and easy matchmaking.

“Instead of casual hookups, Halal Speed Dating is about dignified and chaperoned meet-ups with the intention of marriage. In fact, we do not condone the modern dating that is commonly practiced,” they added.

They say their system can prevent what they see as the social ills of premarital sex and adultery, which they believe are fostered by apps like Tinder.

Norhayati remarked that it is not just Muslims who are interested in their system and making inquires.

“I can tell people are looking for something new,” she said.

The founders have organised the event twice in Kuala Lumpur. The first time in May when about 80 people joined, and the second time last week with 60 hopefuls.

About 2,300 people have signed up to attend a session, most of them urban professionals between the ages of 25 to 35.

Mohamad Fauzan, 26, who helps to run his family business in Kuala Lumpur, halal speed dating provides another option in his quest to find true love.

“I’ve done online dating and gone on blind dates, but in our religion, going halal is the better thing to do. It’s better to first get the permission of the parents, but I’m open to all options,” he said.

TOKYO — Asian members of the newly-minted Trans-Pacific Partnership (TPP) Tuesday hailed the deal to create the world’s largest free trade area, with Japan calling it the start of a “new century” for the region.

Delegates from 12 Pacific Rim nations finally managed to hammer out an agreement in Atlanta, Georgia on Monday, five years after the US-led talks first began. 

Spanning about two-fifths of the global economy, the hard-won deal aims to set the rules for 21st century trade and investment and press non-member China to shape its behaviour in commerce, investment and business regulation to TPP standards.

Under the deal 98 per cent of tariffs will be eliminated on everything from beef, dairy products, wine, sugar, rice, horticulture and seafood through to manufactured products, resources and energy.

Those involved are the US, Canada, Japan, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Asian members were quick to follow President Barack Obama in declaring the agreement a win, even if most nations were forced to compromise on key issues and exact details of the deal remain scant.

“It’s the opening of a new century for the Asia-Pacific region,” Japanese Prime Minister Shinzo Abe told reporters, hailing the emergence of a “huge economic zone”.

Australian Prime Minister Malcolm Turnbull described the agreement as “a gigantic foundation stone for our future prosperity”.

His New Zealand counterpart John Key said it was the culmination of two decades of work and would offer “more jobs, higher incomes and a better standard of living”.

Malaysia also hailed the deal, saying it had managed to avoid restrictions on its politically sensitive system of favouring the ethnic Malay majority economically.

China, which is not party to the talks, gave the agreement a cautious welcome, with the ministry of commerce describing TPP as “one of the key free trade agreements for the Asia-Pacific region”.

But there was no indication whether it might join itself.

‘Devil’s in the detail’ 

Consensus in Atlanta was only reached after a number of countries made concessions on protected industries, moves which might be hard for domestic voters to swallow.

And critics lambasted the way many details are still secret.

“The lack of access to details in the text means governments can put a positive spin on the deal, but the devil is in the detail, and we won’t have the detail for at least another month,” said Patricia Ranald, coordinator of the Australian Free Trade and Investment Network. 

The accord must be signed and ratified by the respective countries and many may face uphill battles, not least the United States as it tries to convince a sceptical Congress.

As the largest Asian economy included in the deal, it is little surprise Abe has touted the Atlanta agreement.

The Japanese premier has faced a torrid few months, with the country lurching back towards recession despite his “Abenomics” reforms and a backlash over the decision to abandon decades of pacifism to allow troops to fight abroad. 

“Without a success in TPP, the Abe government would have had very little to show in its fight for structural reforms,” Martin Schulz, senior economist at Fujitsu Research Institute, told AFP.

Japanese carmakers hope for easier access to global markets. 

But Abe has infuriated the agricultural lobby, usually staunch supporters of his Liberal Democratic Party.

Although Japan secured exclusions for some domestically sensitive products, such as rice, sugar beet, beef, pork and dairy products, many farmers remain deeply critical of the TPP.

New Zealand also did not get everything it hoped for.

“We’re disappointed there wasn’t agreement to eliminate all dairy tariffs but overall it’s a very good deal for New Zealand,” Key said.

And while the deal grants Australia access to the lucrative US sugar market, cane growers were unhappy they will only be allowed to send an extra 65,000 tonnes of sugar.

The biggest loser, however, is likely to be Asia’s largest economy.

But Japan’s Abe said he hoped China would one day join the club.

“If China participates in this system in the future, that will contribute to both Japan’s security and the stability of the Asia-Pacific region,” he said.

Early industry reaction amounted to faint praise that it could have been worse and umbrage that the United States appeared to be the biggest winner.

Initial ambitions for the deal, aimed at liberalising commerce across nations accounting for 40 per cent of the world’s economy and covering an enormous range of products and services from kiwifruit to semiconductors, were clipped back in many areas to find agreement. 

Negotiations between the European Union (EU) and the United States on a similar deal, which proponents say could deliver some $100 billion of economic gains, appear stalled as negotiators clash over issues ranging from chlorine-washed chicken to genetically modified products.

But European business organisations said the agreement among Pacific Rim countries could spur flagging talks between the 28-member bloc and Japan.

“With the conclusion of TPP we are now confident the EU might be closer to conclude ambitious agreements with Japan and the US,” European industry association BusinessEurope said in a statement.

New Zealand’s Fonterra, the world’s biggest dairy exporter, said the deal was a “small but significant” step forward for the dairy sector but “entrenched” US protectionism meant it fell far short of its original ambition to eliminate all tariffs.

The politically influential Dairy Farmers of Canada highlighted financial losses, albeit mitigated by a “fair compensation package”.

Beef, sugar, rice, seafood and horticulture companies in Australia and New Zealand welcomed the increased access to Japanese markets thanks to tariff reductions under the deal.

“We should focus on the gains made in this agreement for Australian sugar, and not the success of the powerful US sugar lobby in maintaining their protectionist stance against bringing sugar into their deficit market,” said Dominic Nolan, chief executive of the Australian Sugar Milling Council.

Lost concessions

In India, there was concern that exports to the United States would suffer from the loss of zero-duty export concessions.

“If the deal is implemented, India’s exports of products like textile and leather will be severely affected,” said Abhijit Das, head of the Centre for WTO studies, a think-tank run by India’s ministry of commerce and industry.

He suggested the deal could nudge India into restarting negotiations on a free-trade agreement with the EU.

Among those expected to welcome the deal are US-based global e-commerce companies like Google and Uber , who will have restrictions removed on sales into foreign markets, including existing requirements that they establish local infrastructures.

The US Trade Representative office welcomed the “cutting-edge rules to promote internet-based commerce , a central area of American leadership”.

Australian Retailers Association Executive Director Russell Zimmerman said it was too early to say how those measures would affect local retailers but warned there was a risk of harm “unless barriers are also lifted for Australian retailers going overseas”.

Even in areas where the Obama administration compromised, such as cutting the monopoly period for new biologic drugs, companies were grudging in their welcome.

Osamu Nagayama, chairman and chief executive of Japan’s Chugai Pharmaceutical Co. Ltd., which sells such drugs in the United States through Switzerland’s Roche, was grateful that the settlement didn’t drop below eight years as the protection period.

“That said, given the current research and development environment, shortening the data protection period would be challenging for the overall pharmaceutical industry,” he said.

AMMAN — Specialised Trading & Investments Company (STI) is returning JD1.2 million in cash to shareholders, describing the amount as unneeded excess funds.

The disbursement culminates a capital reduction by JD2.1 million, from JD3.1 million to JD1 million, that was previously approved by the general assembly of shareholders and the minister of industry and trade.

The company informed the Jordan Securities Commission in a disclosure that an announcement was published in Ad-Dustour Arabic daily on September 28, 2015, requesting investors who were in possession of STI shares on August 30, 2015, to contact its offices in Sweifieh to collect the money they are entitled to.

The general assembly agreed during an extraordinary session at the end of May 2015 to tap the voluntary reserve balance and write off JD45,422 of the company’s accumulated losses bringing it down to JD858,398.

The next step was to lower the capital to JD1 million from JD3.1 million, use JD858, 398 to write off the remaining losses, and return the JD1.2 million balance to approximately 250 shareholders.

According to the interim financial statements as of June 30, 2015, STI posted a JD57,069 gross profit generated from JD0.7 million in sales, during the first half of this year, down from JD72,277 registered during the same period of last year when sales were higher at JD0.9 million.

The company’s balance sheet showed total assets at JD2.6 million, JD1.4 million of which was cash and quasi money,  JD0.5 million were property, machinery and equipment and the remaining JD0.7 million were inventory and receivables. 

Chairman Munir Ahmad Al Quqa wrote in the annual report that the board of directors decided last year to build warehouses, stop trading in steel and substitute that by investing in other products with a suitable return.

In a foreword, he expressed hope that market conditions would improve in 2015 and that the company would achieve profit in the future, noting that STI ended 2014 with a JD253,516 loss.

The loss resulted after deducting expenses and provisions from the JD115,232 gross profit generated last year.

Although 2014 sales amounted to JD1.9 million,  26 per cent higher than the JD1.5 million posted at the end of 2013, the report attributed the slight decline in gross profit to the drop in steel prices and the disposal of steel inventory as the company shifted away from this commodity.

“The performance was affected by the continued fluctuation of steel prices in international markets during 2014 coupled with lower demand for steel in light of diminished economic and construction activity in the Kingdom,” the report said in mentioning the most important developments that impacted the company last year.

It added that the plan for 2015 was to look for other investment resources, build warehouses for storage, and increase the company’s local market share by boosting the sales volume of products that will be handled with a suitable rate of return.

Reflecting the business regression, the balance sheet as of December 2014 showed total inventory at JD0.3 million compared to JD0.5 million at the end of the previous year.

“Inventory represented 9 per cent of total assets at the end of 2014 compared to 17.5 per cent in 2013,” the report indicated.

It said that the 19.5 per cent fall in current assets from JD2.5 million to JD2 million was due to reduced stocks and other receivables.

Current liabilities stood at JD0.1 million, a 70.4 per cent fall from JD0.4 million at the end of 2013.

Consequently, total liabilities and shareholders equity dropped from JD3.1 million to JD2.6 million at the end of last year.

STI’s capital investment was calculated to be JD2.6 million as of December 31, 2014.

Ten employees worked at the company’s offices in Amman’s Sahab neighbourhood.

At the end of last year, the main STI shareholders were Al Salem Investments (23.3 per cent), Nadim Abdul Ahad Qattan (22.8 per cent),  Future Arab Investment Company (22 per cent), and Awni Al Saket and Partners Company (5.3 per cent).