June 2003 issue

World Economic Forum convenes global reconciliation summit in Jordan

More than 1,500 leaders from business, politics and civil society have gathered in Jordan for the Global Reconciliation Summit of the World Economic Forum (WEF), held June 21-23, 2003, and hosted by H.M King Abdullah II. The forum that was held under the theme “Visions for a Shared Future” has pledged itself to the future of the region, and to its social, political and economic regeneration. Over the course of the three-day meeting, the participants have the unique opportunity to work together to enhance economic prosperity and social development in the region. An analysis of the necessary reforms, including the need to improve competitiveness, create better conditions for foreign investment and promote free trade, were at the forefront of the discussions. 

In his keynote address at the opening session of the WEF, H. M. King Abdullah II affirmed that prosperity can not be achieved in any country or region in isolation, calling the participants in the extraordinary annual meeting to adopt a real partnership, a partnership based on common values and fate, to achieve the human development based on mutual respect and true dialogue. 

The king urged the Palestinians, Israelis and the international community to stay the course of Middle East peace, “The friends of peace within the region and around the world must stay the course.” He emphasized that the "vast majority" of Arabs and Israelis want peace that "extremists" are trying to undermine. 

In his opening remarks, German Federal President H.E. Mr Johannes Rau launched the “C100 initiative” - a council grouping political, business, religious, academic and artistic leaders committed to promoting dialogue amongst civilizations. WEF President professor Klaus Schwab noted, “the Global Reconciliation Summit in Jordan is part of a continued and long-term effort by the Forum to contribute to peace and security in the Middle East.” ”We are at a historic moment for the Middle East, offering great opportunity amid the ever present risks,” he said. 

During the forum King Abdullah has launched a pilot educational scheme. The Jordan Education Initiative will bring together leaders from the IT and telecom industries with Jordanian counterparts to create the project that was designed to improve education in the Kingdom. Jordan has been selected as the pilot nation for the implementation of the ambitious project for the delivery of effective e-learning to its citizens. The King noted that this initiative forms the first step, if it succeeds, in transforming the telecommunication industry and information technology to neighbouring counties especially that it guarantees creating ideal environment to pursue the development of Jordanian human resources and to prepare qualified staff. For his part, President of the WEF Schwab said that there is a confidence in the coordination and cooperation among the various participating parties in the field of education, Schwab affirmed that such an initiative will undoubtedly build a better and promising future for the coming generations. 

Another significant topic that was taken up at the forum, aims at rescuing the Dead Sea from total evaporation and sparing the country an environmental catastrophe by building a canal along the Jordanian-Israeli border that would carry water from the Red Sea to the Dead Sea. During the forum, Jordanian, Palestinian and Israeli officials have agreed in principle to terms of reference regarding an environmental, social and feasibility study by the World Bank on the project. Officials also discussed future plans for implementing the Protection of the Dead Sea Initiative. Environmental experts have warned repeatedly that Dead Sea water levels were dropping fast, as a result of the diversion of Jordan River water for irrigation. 

Furthermore, H.M. King Abdullah II inaugurated the Jordan Bromine Company at the Dead Sea. The company is a joint venture between the Arab Potash Company and Albemarle Corporation / USA, which owns the technical and the marketing know-how. Valued at approximately
$130 million, Jordan Bromine is the largest U.S. investment to date in Jordan and one of the biggest four bromine producing plants in the world. 

Aqaba Summit Places ASEZ on World Map 

The world's eyes turned to Aqaba on June 4^th, 2003 as His Majesty King Abdullah hosted a three-party summit between U.S. President George W. Bush, Palestinian Prime Minister Mahmoud Abbas and Israel's Premier Ariel Sharon. As top reporters converged on this Red-Sea city, the world held its breath in anticipation of the outcome of the Aqaba Summit. The summit was considered as vital step towards the implementation and follow-up of the internationally-backed roadmap to Middle East peace. The summit was ended with pledges to end violence and to dismantle Israeli “unauthorised outposts” in the West Bank. ASEZA Chief Commissioner Akel Biljaji noted that Aqaba will always be a safe haven for tourists. "It is not an accidental choice," Biltaji said. "Owning to its pleasant relaxed atmosphere, the summit was held here." 

Fund raising for Humeimah Water Network Rehabilitation 

During a visit to the Federal State of Baden-Württemberg from 26 to 27 June, Ambassador of Jordan Dr. Saleh Rusheidat meet H.E. Mr. Ulrich Müller, Minister of Environment and Traffic and Countess Sonja Bernadotte, Director of Mainau GmbH, to discuss the fund raising project on the Isle of Mainau in support of “Humeimah Water Network Rehabilitation Project.” The Ambassador conveyed Government of Jordan’s sincere thanks to the Ministry of Environment and Traffic of Baden-Württemberg and to Countess Sonja Bernadotte for launching the fund raising for the Humeimah water project, in connection with the “UN Year of Water”. The expected fund to be raised is €120 thousand that will cover the cost of the water network rehabilitation for the Humeimah village in southern Jordan. Dr. Rusheidat attended, as well, the opening of  “Water is Future” exhibition on the Isle of Mainau. 

Conference stresses “Amman, the gateway to Baghdad” 

The concept "Amman, the gateway to Baghdad" was highlighted as delegates from USA, Australia, India, China, Japan, EU and the Arab countries gathered in Amman to participate in "Doing Business with Iraq" conference. The conference that scrutinized opportunities available to do business in Iraq, recommended that the Jordanian private sector should make long strides for it to gain a fair share in the reconstruction of Iraq. During the conference, Industry and Trade Minister Salah Bashir said that Jordan is well-positioned to participate not only in terms of supplying a portion of the goods needed by the Iraqis. “We are also seeking to build a long-lasting partnerships, joint ventures and long-term investments with the Iraqi private sector,” he noted. 

Jordanian companies are positioning themselves to take part in the reconstruction of Iraq, either as subcontractors to US firms working in the country, or as exporters and suppliers of goods and services to the Iraqi market. Some are considering establishing joint-venture partnership with the Iraqi private sector. Jordan and Iraq have strong commercial ties. Iraq is Jordan’s first trade partner. 

Meanwhile, Jordanian and Iraqi businessmen have agreed to set up a joint business council to boost direct relations between them. The agreement was signed by Jordanian Businessmen Association (JBA) and Iraqi Businessmen Association (IBA) during a meeting grouping businessmen from the two countries. The aim of the agreement is to acquaint Jordanian and Iraqi businessmen with trade and investment opportunities available in Jordan and Iraq. 

Growth during 1^st quarter better than expected 

Instability and apprehension prior to the war on Iraq brought the real growth of the national economy during this year's first quarter to its lowest level in four years, according to Planning Minister Dr. Bassem Awadallah. Jordan's economy achieved a growth of 2.8% at constant prices and a 3.9% growth at current prices during this year's first three months compared to 4.3% and 5.5% respectively during the same period last year. The minister noted that these results, despite their modesty, were better than expected, "Few weeks ago, international institutions such as the World Bank did not even expect the national economy to record a noticeable growth this year," he said.

W&I Ministry signs deal for proposed $52m 5-star Dead Sea hotel 

Water and Irrigation Minister Dr. Hazim El-Naser has signed an agreement with the Arabian Sharm Investment Company of Jordan, a subsidiary of the Cairo-based Sharm Investment Group, to develop a luxury five-star hotel and spa complex. This agreement is the second of its kind signed this year. The first was a $60 million deal linked with Belavista Overseas Investment Corporation for a five-star resort at the Dead Sea. According to Dr. El-Naser, $1.4 billion will be invested around the Dead Sea by 2010. 

JIB offers new service to investors 

The Jordan Investment Board (JIB) has launched a digital system categorising all tax and custom exemptions offered to investors. The electronic system is based on the international HS-Code listing all the equipment and machinery covered by the Investment Promotion Law of 1995. According to JIB Director General Reem Badran, the new service offered to investors on a CD comes as part of the board's efforts to provide the best service to businesspeople and investors easing their paperwork. 

1.3 million voters elected new Parliament 

Some 1.3 million Jordanians turned out on June 17^th to elect 110 representatives to the Kingdom's 14th Lower House of Parliament, with independent candidates sweeping the majority of seats, according to official results. The voters who cast their ballots constituted 58.8% of registered voters.