December 2001 issue

Jordan-German Trade Cooperation

In November 2001, a German 16-member delegation representing the Federal State of North-Rhine-Westphalia headed by its President of Parliament, Ulrich Schmidt, met with a number of high-ranking Jordanian officials. The topics of discussion covered many bilateral issues including Jordan’s economic situation, the economic reform programme and the various fields that contributed to Jordan’s stability in financial and monetary policy. The delegation also held talks with the Jordanian Business Council on promoting economic, business and cultural relations. The two sides reviewed coordination between private sectors in the two countries and efforts to launch joint ventures especially in the water and energy sectors. The Chairman of the Jordanian German Business Council (JGBC) Khaldoun Abu Hassan said that a large German delegation is expected to visit Jordan in April 2002 to be introduced to business opportunities in the Aqaba Free Trade Zone.

Germany is Jordan’s largest trade partner in Europe and also one of the Kingdom’s leading creditors. His Majesty King Abdullah II had held talks with senior German businessmen during his two visits in Germany this year as part of Jordan’s endeavour to attract foreign investments.

Jordan – US Free Trade Agreement

In the end of September 2000, the US approved the Jordan-US Free Trade Agreement (FTA), that will phase out virtually all tariffs on two-way trade in goods and services. The timing of this decision was considered as a timely gesture to a key Middle East friend. The FTA was signed on October 24^th, 2000 and witnessed by H.M. King Abdullah II and former US President Bill Clinton. The United States has only signed this agreement with three other countries: Canada, Mexico and Israel. It is the first ever with an Arab country and the first to include provisions aiming at protecting worker’s rights and the environment. President Bush said the agreement will promote peace and security in the region, while creating jobs and new investment opportunities in both countries. Analysts expect that the Free Trade Agreement will give a strong economic boost to Jordan.

IMF to Review the Existing Three-Year Extended Plan

According to the International Monetary Fund (IMF) a new programme must focus on the task of accelerating growth to bring a real tangible improvement in incomes. David Burton, Deputy Director of the IMF Middle East Department said that in the beginning of February 2002 an IMF delegation would review with the government a three year extended plan that ends in April 2002 and begin detailed talks on a prospective new plan. The IMF official cited Jordan's rapid turnaround since the extended arrangement began in April 1999 with public debt ratio kept at a downward path and deepened structural reforms. 

Jordan's economy showed signs of strong recovery in the first nine months of 2001 with prospects of 4% or higher real growth for the first time in five years despite regional tensions. The IMF cited that among other things a steady flow of investments in duty-free industrial parks stimulated by the  Free Trade Agreement with Washington.

A Presentation on CeBIT Hanover in Amman: A Gateway to World Markets

World Business Fair, Office Automation, Information Technology and Telecommunication (CeBIT 2002), to be held from 13 to 20 March 2002 continues to break records in numbers of participants and visitors. Deutsche Messe, the German organizers of CeBIT, and Wafiq Al Tilawi & Sons Co., the local representatives of Deutsche Messe held a reception at the Meridien Amman Hotel to make a presentation on CeBIT 2002 to members of the local IT community and the press. The event was also attended by the German Ambassador to Jordan, Dr. Martin Schneller, who spoke on economic cooperation between Germany and Jordan, emphasizing the importance of IT as a growth industry.

Mr. Jorg Schomburg, managing director of CeBIT, said that CeBIT is a gateway to the world market, which provides Jordanian exhibitors with an opportunity to interact with and sell to Asian, European, South American or Australian clients. With regard to Jordanian participation in CeBIT, he stated that there was a steady increase in the number of Jordanian exhibitors. Starting in 1997, Jordanian companies have participated in the show in cooperation with the Jordanian Export Development & Commercial Centres Cooperation (JEDCO), as they will do next year, with seven local companies confirming participation.

Construction of Jordan-Iraq Pipeline

On December, 9^th 2001 the government floated a tender for the construction of a Jordan-Iraq crude oil pipeline with a length of 700-750 kilometre and an estimated capacity to transport 350,000 barrels of crude oil a day. The implementation will take place on a build, own, operate and transfer basis (BOOT). In order to evaluate offers a four-step evaluation process will be applied. Each applying company has to submit qualification documents, bid bonds, a technical proposal and a commercial, financial and legal proposal. ILF Consulting Engineers of Germany will help the government to study the bidders´ offers and determine the project developers. Jordan expected the project will cost about $365 million.

Special Office for Investors

The Labour Ministry decided to establish a new office for investors and other businessmen.  The new office will be responsible for the coordination and will facilitate the handling of businessmen` affairs, especially for dealing with the Qualifying Industrial Zones businesses.

GDP Grew by 4.2%

During the first nine months 2001, Jordan gross domestic product (GDP) grew by 4.2% at fixed prices compared to 4.1% in the same period last year despite regional instability. The growth was triggered by an upsurge in various economic sectors and increased exports.

Foreign Investments

Issued by the Commercial Section of the Embassy of the Hashemite Kingdom of Jordan - Berlin