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RIYADH — Billionaire Prince Alwaleed Bin Talal has lashed out at the Saudi fiscal policy after projecting the largest ever budget deficit for 2015 following the slump in oil prices.

"We have reached the danger point... after starting to withdraw from the reserves," to meet the budget shortfall, Alwaleed said in a letter addressed to the finance minister.

Last week, the world's biggest crude exporter announced an expansionary 2015 budget with the largest-ever deficit of $38.6 billion. 

It projected spending at $229.3 billion, a slight rise from last year's estimates, and revenues at $190.7 billion, sharply down from $228 billion projected in 2014.

Saudi Arabia, the lead producer in the Organisation of the Petroleum Exporting Countries (OPEC), also said it estimates 2014 actual budget deficit at $14.4 billion as both spending and revenues far exceeded projections.

Alwaleed, a member of the Saudi ruling family and the wealthiest Arab private investor, said Riyadh should not have let spending rise above projections, especially after oil prices began to decline.

Oil income contributes about 90 per cent of public revenues in the OPEC kingpin which pumps around 9.6 million barrels per day.

If the government had contained last year's spending within projections, a surplus of at least $50 billion would have been posted, the prince added.

As a result of failing to check rising spending, a total of $53 billion will be withdrawn from fiscal reserves, estimated at $750 billion, in just two years, he indicated.

Alwaleed also criticised the way Saudi reserves are invested, saying because most of them are invested in US and European bonds, they have low yields at around 2.4 per cent annually.

The reserves are currently managed by the Saudi Arabian Monetary Agency, or the central bank. 

Alwaleed called for the creation of an independent sovereign wealth fund to invest the reserves and increase the returns to around 7-8 per cent.

If oil prices remain at the current level of under $60 a barrel for benchmark Brent crude, Saudi Arabia is expected to lose half of its oil revenues of $276 billion posted in 2013. Oil income in 2014 was estimated at $248 billion.

Separately, Iran's deputy foreign minister told Reuters that falling world oil prices will hurt countries across the Middle East unless Saudi Arabia, the world's biggest crude exporter, takes action to reverse the slump, Iran's deputy foreign minister told Reuters.

Hossein Amir Abdollahian described Saudi Arabia's inaction in the face of a six-month slide in oil prices as a strategic mistake and said he still hoped the kingdom, Tehran's main rival in the Gulf, would respond.

Oil prices closed on Wednesday at a 5-1/2 year low, registering their second-biggest ever annual decline after OPEC oil exporters, led by Saudi Arabia, chose to maintain oil output despite a global glut and calls from some OPEC members, including Iran and Venezuela, to cut production.

"There are several reasons for the drop of the price of oil but Saudi Arabia can take a step to have a productive role in this situation," Abdollahian said.

"If Saudi does not help prevent the decrease in oil price...  this is a serious mistake that will have a negative result on all countries in the region," Abdollahian added in an exclusive interview last week.

Abdollahian said Iran would have more discussions with Saudi Arabia about the oil price, both through oil officials at OPEC and through the foreign ministry. He did not give specific details on when any meeting might take place.

Saudi Arabia said last month that it would not cut output to prop up oil markets even if non-OPEC nations did so.

NEW YORK — Looking for a safe, affordable place for retirement? With its warm climate, affordable housing and generous benefits, Ecuador was named the best country to retire in by InternationalLiving.com.

The South American nation bordered by Colombia and Peru topped the website's annual global retirement index of 25 best countries, scoring high points for affordable cost-of-living, entertainment and amenities.

Next are Panama, Mexico, Malaysia and Costa Rica, rounding out the top five nations in the index that looks at eight criteria to determine the best countries for retirement.

"The world's top retirement havens for 2015 may dot the landscape from Asia to Latin America to Europe, but they share certain assets," said Jennifer Stevens, executive editor of InternationalLiving.com.

"They're safe, offer good value and are places you can settle with relative ease," she added in the statement announcing the results.

Ecuador scored 92.7 out of 100 points, with top marks for climate, cost of renting or buying property and discounts on flights, public transportation and utilities offered by the government for retirees.

"Although prices have risen slightly in recent years, Ecuador's real estate is the best value you'll find anywhere," indicated Dan Prescher, senior editor at the website.

Panama is considered the best destination in Central America and offers a Pensionado visa, which is available to anyone with a lifetime pension of more than $1,000. The visa offers discounts on medical services, entertainment, meals, air fares, as well as electricity and phone bills.

"For under $2,000, a couple can live comfortably in a country with a well-earned reputation for being expat-friendly," according to the website.

Malaysia, the top retirement country in Asia, earned high scores for ease of fitting in, entertainment and amenities, as well as low cost of living. A meal with a bottle of wine can cost as little as $5 and a visit to the doctor just $15.

In Europe, sixth-place Spain was the top retirement nation thanks to its warm climate and low cost of living compared with other European countries. 

Spain scored top marks for infrastructure, a healthcare system recognised by the World Health Organisation as one of the best in the world, and entertainment.

Neighbouring Portugal came in at No. 9, followed by Thailand, which won points for low healthcare costs, culture and affordable housing. 

Seventh-place Malta and Colombia at No. 8 completed the top 10.

KUWAIT CITY — Stock markets in the energy-rich Gulf states dived in the fourth quarter of last year due to the slump in oil prices after posting strong gains in the first nine months of 2014.

All the seven bourses ended the October to December period in the red amid a wave of panic sell-offs after oil lost about 50 per cent of its value because of weak demand, a glut in production and a strong US dollar.

In the fourth quarter of last year, the Saudi stock market slumped 23.2 per cent, Dubai dived 23 per cent, Oman dropped 15.2 per cent and Kuwait by 14.3 per cent. Abu Dhabi dipped 11.2 per cent, Qatar lost 10.5 per cent and Bahrain was 3.4 per cent down.

But by the end of 2014, four markets, Qatar, Dubai, Abu Dhabi and Bahrain, posted annual gains while the Saudi, Kuwaiti and Omani bourses recorded dips.

Oil income makes up around 90 per cent of revenues of most of the Gulf states which are forecast to lose half of their oil revenues, which stood at $729 billion in 2013.

"The fall in the fourth quarter was a direct result to the sharp drop in oil prices," said Humoud Al Sabah, senior analyst at Kuwait Financial Centre (Markaz).

"Most of the Gulf bourses ended the first three quarters with strong gains but shed most of it due to the impact of oil prices," Sabah indicated.

He added that Gulf shares performed well in the first three quarters despite turbulent geopolitical developments especially the expansion of Islamist State jihadists in Iraq and Syria and the start of the US-led air campaign against them.

The capitalisation of the seven bourses, however, rose by around $70 billion to $1.04 trillion at the end of 2014 from $970 billion a year ago.

But they shed around $131 billion from their value on September 30.

Dubai most volatile 

The Saudi Tadawul All-Shares Index (TASI), the largest bourse in the region, closed 2014 down 2.4 per cent at 8,333.30 points after repeatedly dipping below the 8,000-point mark.

During  last year, TASI had surged by over 30 per cent but was pulled down mainly by the leading petrochemicals sector, which dived 33.7 per cent in the fourth quarter.

The drop came despite the kingdom issuing a highly expansionary budget for 2015 but which projected a deficit of around $39 billion.

Dubai Financial Market (DFM) Index, which has increased steadily for the past three years, was the most volatile in 2014, surging by about 60 per cent in the year before losing most of the gains in the fourth quarter.

The DFM Index ended 2014 up 12 per cent at 3,774.00 points after dipping below the 2013 close in December.

Its neighbouring Abu Dhabi Securities Exchange also relinquished most of the year's gains but ended 2014 up 5.6 per cent on 4,528.93 points.

Qatar Exchange, the second largest in the Gulf, emerged as the top gainer with 18.4 per cent on 12,285.78, after surging close to the 14,000-point mark on several occasions.

Kuwait Stock Exchange was the biggest loser, dropping 13.4 per cent to 6,535.72 points.

Muscat Securities Market ended 2014 down 7.2 per cent at 6,343.22 points, while the tiny Bahrain bourse finished the year up a healthy 14.2 per cent at 1,426.57 points.

NEW YORK — Oil prices fell on Wednesday as concerns about demand for fuel kept worries about a global supply glut intact.

Both Brent and US crude significantly pared losses just before government data showed US crude oil inventories fell 1.8 million barrels last week, a bigger drop than analyst expectations for a 100,000-barrel dip in stocks.

After initially paring more losses, crude futures pushed lower.

US gasoline stocks rose 3 million barrels and distillate stocks were up 1.9 million barrels last week, data from the Energy Information Administration (EIA) showed, as refiners lifted capacity utilisation 0.9 percentage point to 94.4 per cent.

The EIA data followed American Petroleum Institute data released on Tuesday that showed an increase in US stockpiles.

Brent February crude was down $1.25 at $56.65 a barrel at 1609 GMT, after dropping as low as $55.81, its weakest since May 2009. US crude was down $1.02 at $52.92, off its $52.51 intraday low.

Slated for a nearly 49 per cent decline in 2014, Brent's retreat is set to be the biggest since 2008, when prices fell 51 per cent in response to a demand slump after the financial crisis. Prices then were eventually propped up when the Organisation of Petroleum Exporting Countries (OPEC) formally decided to cut production.

In contrast, OPEC this year, at a November 27 meeting, decided against a cutback to defend its market share, against shale oil and other competing supply sources, despite its own forecasts of a growing surplus in 2015.

"Fundamentally, the market remains weak with the near 2 million barrels build in Cushing that kind of offsets the total drop of almost as much in [overall] crude stocks," said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.

Crude stocks rose 2 million barrels at the Cushing, Oklahoma, delivery point for the US crude contract, the EIA said.

Crude prices came under more pressure on Wednesday from a survey showing China's factory sector shrank for the first time in seven months in December, a bearish indication on the strength of oil demand in the world's second-largest consumer.

Turmoil in Libya has effectively led to a drop in OPEC supply in December to a six-month low, a Reuters survey showed on Tuesday, although forecasts still point to a large excess supply next year.

The Obama administration on Tuesday reacted to months of increasing pressure to lift a 40-year-old ban on exports of most domestic crude, taking two steps expected to increase the flow of ultra-light oil, or condensate, onto the global market.

"We expect a gradual, but slow increase of stabilised condensate exports over the next year," analysts at JBC Energy indicated in a report.

The Seaway Twin crude oil pipeline shipped initial volumes to the Gulf Coast from Cushing on December 21, the company said on Wednesday.

Allowing more crude to get to the Gulf Coast's giant refining hub is expected to be a bearish development for US crude futures.

AMMAN — The budget deficit at the end of November 2014 amounted to around JD696 million compared with JD898 million at the end of the same period last year, Finance Minister Umayya Toukan said on Tuesday.  

In a statement, the minister said the deficit figure is in line with financial reforms and the state budget law. 

According to financial data for the first 11 months of this year, total local revenues and external grants amounted to around JD5.6 billion, a 19.5 per cent increase over the JD4.7 billion during the same period of last year.

Local revenues amounted to around JD4.9 billion, 18 per cent higher than the JD4.1 billion during the same period of last year.  

The data showed total expenditure reached around JD6.3 billion compared with JD5.6 billion, a 12.8 per cent increase. 

Toukan said net public debt was 7.2 per cent higher at the end of November 2014, as it reached around JD20.4 billion, representing 80 per cent of the estimated gross domestic product (GDP) for 2014.

Net public debt in 2013 amounted to JD19.1 billion, representing 80.1 per cent of last year's GDP.  

The statement said the net public debt includes the amounts borrowed to cover the cumulative debt of the National Electric Power Company, which is close to JD4.5 billion, or 17.6 percentage points of  GDP up to November 2014. 

As a result (of this borrowing), the net public debt  rose from around 62.4 per cent to around 80 per cent of the GDP estimated for 2014, the statement indicated. 

Turning to the issue of increasing transparency and further financial disclosures, Toukan said the ministry is working to ensure a periodic issuance of the ministry’s financial bulletin, which seeks to display financial data in a transparent manner.

The ministry’s last issued bulletin included additional data on the public debt, he added.

AMMAN — Jordan Chamber of Commerce’s (JCC) board of directors on Tuesday informed Senator Marouf Bakhit, Senate 2nd deputy president, and Jamal Gammoh, head of the Lower House’s energy and mineral resources committee, that raising electricity charges will negatively affect the competitiveness of the industrial sector and will lead to increasing operational costs.

In a JCC statement, the board said such a step would lead to job cuts at factories and stoppages or force industrialists to shift to neighbouring countries.

The board called on the Parliament to support the industrial sector and convince the government to freeze the decision at the current time, until a committee studies the effects.

The board noted that all studies JCC has made show that the sector will be “greatly” harmed. Bakhit stressed the importance of supporting the sector due to its high ability to employ Jordanians and its contributions to the national economy. 

AMMAN — Nippon Jordan Fertiliser Company W.L.L announced Tuesday in a press statement that its exports went up by 50 per cent this year, reaching a record 291,300 tonnes.

According to the press statement, exports last year stood at 193,000 tonnes.

Karim Halaseh, the firm's general manager, credited Australia for the improvement, indicating that exports to that market will reach 21,100 tonnes, as  the company is currently shipping 17,600 tonnes in addition to 3,500 tonnes shipped earlier this year.

He attributed the sales to the company's success in acquiring the  Australian Quarantine and Inspection Service (AQIS) level 1, which is a certification essential to maintaining Australia’s highly favourable animal, plant and human health status and access to export markets. 

"The AQIS certificate attests that  Nippon Jordan Fertiliser Company is eligible to export fertilisers to Australia which is one of the most important that consume highly-added value fertilisers," Halaseh said, noting that the company possesses the scientific and technical expertise on an international standard in the compound fertiliser industry.

"As such, Nippon Jordan Fertiliser Company is qualified to obtain the highest international quality certificates for fertiliser production," he added.

Referring to the latest shipment to Australia, Halaseh described that market as promising and, accordingly, the company views it as extremely interesting because it is one of the key agricultural lands, especially for grain production.

He said that a team from the Australian company that imports the fertilisers inspected the production process and conducted tests to verify the quality of the output and its adherence to the specifications agreed upon.

"The delegation visited the company's factories in Aqaba and was satisfied with the physical and chemical specifications of compound fertilisers produced to meet the Australian farming needs," the general manger added.

He remarked that the company conducted several experiments to produce new types of compound fertilisers with special specifications and elements  that would satisfy the needs of Australia's agricultural sector.

Amer Majali, the company’s chairman, said Nippon Jordan Fertiliser was able to achieve 291,000  tonnes of output from different types of fertilisers, following disappointments in previous years, pointing out that the volume is about 97 per cent of the 300,000  tonnes production capacity.

Majali added that the company’s profit for this year are close to $5 million due to higher production, lower costs and exports to new markets besides upgraded quality.

Of the company’s total exports this year, about 96,000 tonnes were for Thailand, Vietnam and Japan, 89,000 tonnes for Iraq and Turkey, 83,000 tonnes to Europe through Bulgaria, 1,550 tonnes to Sudan and 760 tonnes for the local markets. 

Noting that these markets are now considered traditional,  Halaseh highlighted the success of penetrating new markets in 2014 mentioning in particular the Australian and Sudanese markets as well as the Turkish which imports and re-exports to Iraq.

Jordan Phosphate Mines Company owns 70 per cent of Nippon Jordan Fertiliser, Arab Potash Company (20 per cent) and Japan’s Mitsubishi Corporation (10 per cent), according to Nippon website.

AMMAN — Jordan Industrial Estates Corporation (JIEC) attracted more than 700 industrial companies in 2014, 12.5 per cent higher than the 617 firms in the same period of 2013, its chief executive said Monday.

Ali Madadha indicated that the investment volume reached JD2,450 million this year, a 6.4 per cent increase over last year's JD2,293 million in JIEC's  five industrial estates. 

According to Madadha, exports of the industrial estates went up by 2.8 per cent in 2014 reaching JD1,090 million compared with JD1,060 million in 2013.

The exports constituted 25 per cent of the Kingdom’s manufactured goods  and 22 per cent of total national exports, Madadha said in a JIEC statement e-mailed to The Jordan Times. 

He added that these investments have provided 48,000 job opportunities this year, 17 per cent higher than last year's 39,000 job openings, noting that workers in industrial estates constituted 28 per cent of the total number of workers in the Kingdom's manufacturing sector.

The chief executive expects the industrial sector’s contribution to the gross domestic product to increase from 26.1 by the end of 2014 to 32 per cent by the end of 2025 in accordance with the 10-year economic plan, that was recently endorsed by the government, and the new investment law.

He revealed that JIEC is planning to establish new industrial estates in several governorates under the 10-year economic plan, in light of high occupancy rates reached in operational industrial estates.

In this context, Madadha indicated that the occupancy rate at the Abdullah II Bin Alhussein Industrial Estate in Sahab, established in 1985, reached 100 per cent with 448 industrial companies.

Occupancy rate at Al Hassan Industrial Estate, which has 138 industrial firms, reached 99 per cent, while in Al Muwaqqar Industrial Estate, the occupancy rate stands at 70 per cent having 49 industrial companies in its first phase, Madadha said. 

Al Hussein Bin Abdullah II Industrial Estate has an occupancy rate of 50 per cent with 22 industrial companies, while the first phase of the Aqaba Industrial Estate, that includes 38 industrial firms, registered a 90 per cent occupancy rate and the second phase reached 40 per cent.

ALGIERS, Algeria — Algeria's oil minister on Sunday called on the Organisation of Petroleum Exporting Countries (OPEC) to cut production and raise the price of oil, which has plunged dramatically in the last six months.

The call by Youcef Yousfi to OPEC, of which Algeria is a member, comes as the country is struggling to deal with a halving of oil prices from $120 barrel to $60 a barrel.

"For us, OPEC has to intervene to correct the imbalance and cut production to bring up prices and defend the income of its member states," Yousfi said in remarks carried by the state news agency.

While Algeria has some $200 billion foreign reserves, enough to cover imports for the next several years, it is heavily dependent on its oil revenue which provides 97 per cent of its hard currency income and 60 per cent of the budget.

In a Cabinet meeting Tuesday, President Abdul Aziz Bouteflika for the first time expressed concern over the "worrisome" situation and made vague promises of cost-cutting.

The first of such austerity measures came Saturday when Prime Minister Abdul Malek Sellal said there would be a freeze on public sector hiring in 2015. Some 60 per cent of the jobs in the country come from the government.

Major infrastructure projects, such as public transportation in Algiers and highways in the countryside are also expected to be put on hold.

Long flush with money from its gas and oil exports, Algeria operates an extensive welfare state.

Subsidies, which amount to 21 per cent of the country's annual economic output, cover electricity and many foodstuffs. Gasoline is the cheapest in North Africa.

The government also subsidizes education and provides housing. Social unrest, even before the scattered protests of the Arab Spring, was effectively bought off with higher wages and promises of housing, all funded by the bountiful oil receipts.

AMMAN — The Jordanian Free Zones Corporation (JFZC) attracted 77 investment projects worth $500 million during 2014, its chairman announced Sunday.

Nasser Shraideh said the investors, whose businesses covered industrial and commercial activities, began preparing and setting up their ventures in 2014 and are scheduled to start production next year.

The industrial undertakings include manufacturing and assembling specialised cars, food and chemical factories, and packaging plants, Shraideh indicated.

The commercial businesses focus on auto showrooms and logistic services, he added, noting that those projects will provide around 1,500 job opportunities.

According to the chairman, most of the investors will be exporting their output primarily to Iraq, Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain, Yemen and Oman.

To a lesser extent, exports will also reach Egypt, Sudan, Libya, Algeria, Palestine, Syria, Lebanon and some European countries. 

Shraideh ranked Iraqi investors atop as they accounted for almost half of the overall investments this year.

He pointed out that the Iraqis set up eight industries valued at about $160 million, and ten commercial businesses at nearly $100 million.

Joint investments by Iraqi, Syrian and Jordanian investors came at $70 million and ranked second, Shraideh remarked.

He mentioned several improvements that were implemented by the JFZC, especially a solar energy project and infrastructure works such as roads, power stations and poles as well as water tanks and networks.

He highlighted the installation of 58 solar cells to provide the zone with lighting needs, noting this project is aimed at reducing electricity consumption and relying on renewable energy sources.