October 2003 issue

King & Queen paid a State Visit to Sweden 

Their Majesties King Abdullah II and Queen Rania Al-Abdullah paid a State Visit to Sweden from 7-9 October 2003, where they met with Their Majesties King Carl XVI Gustaf and Queen Silvia. During the three-day State visit, His Majesty held talks with the Swedish Prime Minister Göran Persson and Swedish Speaker of Parliament Björn von Sydow. The King's talks focused on development of cooperation between Jordan and Sweden in numerous fields, particularly the economic cooperation, in addition to the development of situation in the Middle East. During his talks with Swedish Prime Minister, His Majesty reviewed investment opportunities in Jordan for Swedish investors. He pointed out that the Jordanian European partnership agreement supports the private sector in Jordan and Sweden for joint ventures. 

Seeking to attract Swedish investments to Jordan, His Majesty met with members of the Swedish Trade Council that includes numerous board heads of companies. At the meeting, which was attended by King Carl XVI Gustaf and Crown Princess Victoria, King Abdullah reviewed the investment climate in Jordan, voicing hope that his visit to Sweden would mark a strong launch for economic and investment relations between the two countries. 

The King noted that Jordan way is now considered as a major gateway for international companies interested in investment in the Iraqi market. He also highlighted the Kingdom's achievements for the past few years to establish an investment environment based on modern legislations and international economy. 

King Abdullah presented the key executives with an overview of investment opportunities available in the Kingdom's water, energy and infrastructure sectors. Several representatives of Swedish big businesses expressed interest in cooperation with Jordan. Ericsson's top representative Mr. Antoine Nehme noted in the meeting that his company, which started its operations in Jordan in 1983, has increased its activities in the Kingdom in the past four years. He praised the quality of Jordanian employees in his company, not only in Jordan, he said, but in the Middle East in general. He also commended King Abdullah’s efforts to introduce IT to schools, adding that Jordan is moving fast ahead in communications and information technologies. 

King Abdullah and Her Majesty Queen Rania, escorted by the Swedish Royal couple, King Gustaf and Queen Sylvia, paid a visit to Ericsson, which takes up 47% of the Middle East market. The King also visited AstraZeneca, which is one of the five top pharmaceutical producers in the world. 

The King and the Queen and their hosts visited the Islamic Centre in Stockholm. King Abdullah said that coexistence between Muslims and Christians in Sweden sets a model for relationships between human beings. 

His Majesty King Abdullah, accompanied by King Gustaf of Sweden, visited an iron mine in the city, which is one of the largest mines in the world. To be acquainted with the Swedish experience in the field of space, Their Majesties visited also the Swedish Institute for Space Researches, which is one of the specialized institutions concerning space researches. 

WEF: Jordan is advancers in economic competitiveness 

Jordan was the Middle East’s most praised nations for economic competitiveness in the World Economic Forum (WEF)’s newly released international report. Jordan was commended for making significant advancements in the quality of its public institutions in the forum’s Global Competitiveness Report 2003-2004. 

Jordan showed the largest score and rank increase in the area of public establishments, driven by gains in control of corruption and greater independence of the judiciary, said the report. The country also posted better ratings relating to public trust in politicians, diversion of public funds, and the extent of distortive subsidies.  

The survey’s Growth Competitiveness Index (GCI) aims to analyse the potential of the world’s economies to attain sustained economic growth over the medium and long term. The index is founded on three central components: the macroeconomic environment, the quality of public institutions, and technology. 

WEF’s annual report evaluates the potential for sustained economic growth of 102 economies and ranks them accordingly. Jordan ranked 34th this year on the GCI Index, up from 44 in 2002. 

King calls for setting up software federation  

His Majesty King Abdullah has called for the establishment of an Arab regional software federation as part of efforts to enhance IT cooperation. He said such parties can work “as partners” to achieve the goals of regional development, technological advancement and building up integrated resources and initiatives.

The King made the remarks as he received in Dubai the Arabian Business e-Achievement Award in recognition of his efforts to boost IT in the region. He was presented the award by HH Sheikh Mohammed Ben Rashid Al Maktoum, crown prince of Dubai and UAE minister of defense, at a special ceremony held on the sidelines of Dubai GITEX 2003, IT exhibition. 

The award is offered on an annual basis by the Information & Technology Publishing Company. The King said he was glad to receive the award on behalf of all Jordanian IT leaders. 

Faisal Fayez Forms a New Jordanian Cabinet 

His Majesty King Abdullah II swore in a new 21-member Cabinet led by Prime Minister Faisal Fayez on October 25, 2003. The New cabinet grouped former ministers and new personalities, mainly young technocrats, including an unprecedented three women. Dr. Marwan Muasher kept his portfolio as Minister of Foreign Affairs. Click here to view members of the new Cabinet. 

King Inaugurates Kemira Arab Potash Company 

His Majesty King Abdullah II inaugurated Kemira Arab Potash Company (KEMAPCO), Jordan's largest fertilizers and animal feed production plant, on October 20^th, 2003. The facility, located in the southern Governorate of Aqaba, is a joint venture by Jordan's Arab Potash Company, one of the 10 biggest exporters of potash worldwide, and Finland's Kemira GrowHow, a global chemical industry group. 

KEMAPCO's production, which is estimated to reach 150,000 tons of potassium nitrate fertilizer annually, will put Jordan on the global industrial map as it will be able to contribute 10% of the total global market's production, estimated at 1.2 million tonnes annually. 

The production of dicalcium phosphate animal feed, estimated at 75,000 tons per year, will represent almost 1.25% of the total global annual production, which stands at 6 million tons. 

Jordan & Microsoft sign a deal to enhance IT strategies 

Jordan has signed a strategic partnership agreement with Microsoft to accelerate the development of the information technology sector, pushing forward the e-government and e-learning strategies. ICT Minister Fawwaz Zu'bi said the five-year deal will open the door to several Microsoft investments in the Kingdom. "This agreement serves Jordan's overall strategy, through the completion of strategic projects, the promotion of the development of unique intellectual property jointly with Microsoft, and capacity building across all segments of society, as well as contributing to revolutionising education in Jordan," Zu'bi told reporters at the signing ceremony. 

Under the deal, Microsoft will co-invest in projects selected jointly with the government from within the national strategies to bring the educational system online and allow citizens to obtain government services with the click of a mouse. Also, Microsoft will supply advanced training to 1,000 engineers, set up and fully equip electronic libraries for 50,000 children in rural and remote areas, disclose source codes as part of technology transfer, and establish new IT academies. 

Jordan Economic Forum magnifies Kingdom's business opportunities 

Seven-hundred Arab and foreign businesspeople gathered in Amman to attend the launch of the Jordan Economic Forum, one of the largest gatherings of pan-Arab investors this year, with hopes of attracting investments to the country clearly reflected in officials' speeches. 

Jordan’s Prime Minister Ali Abul Ragheb, who participated in the opening ceremony alongside Lebanese Premier Rafiq Hariri, was first to give the investment pitch to the high-profile audience, underlining improvements made by the local economy and the different economic, political and social reforms implemented during the past few years. 

“Despite a general economic growth slowdown in nearby countries, the Jordanian economy has shown marked progress in different economic sectors with a real growth rate of 5%  registered by the end of 2002,” Abul Ragheb told dignitaries and investors from 28 different countries attending the ceremony. He said efforts were made to improve the private sector's participation in economic development through new and transparent legislation and embarking on a privatization scheme of state-owned companies as well as launching key national projects wherein both local and foreign business communities could invest. “It is imperative we increase cooperation between the different economic stakeholders in Arab countries by paving the way for the Arab private sector to assume a more vital role in opening new markets for globally competitive products,” the prime minister explained. 

HRH Prince Faisal, the Regent, deputizing for His Majesty King Abdullah, attended the opening ceremony, organized by the Beirut-based Al Iktissad Wal Aamal Group along with several Arab and local dignitaries and ministers. 

Six Iraqi ministers heading a large business delegation have also attended the forum to explore opportunities for cooperation between Arab and foreign companies in the reconstruction of Iraq. 

Al Iktissad Wal Aamal's general manager, Raouf Abu Zaki, also took the podium commending the vast steps Jordan took towards opening its economy through various partnerships and agreements with global players. He also predicted a prominent role for Jordan as a hub for investment in the region and a gateway for future business prospects in Iraq. 

IFC's Middle East and North Africa Director agreed with Abu Zaki, recalling the success stories of the pharmaceutical and medical services sectors of the economy encouraging more attention to the employment-dense services sector as a means for investing in Jordan's human capital. He also urged the Iraqi private sector to follow suit and take the lead in bringing Iraq back on the global scene. 

Foreign trade grows 10% in eight months 

While instability in Iraq and Palestine continues to cast shadow on the economies of the region, the country's foreign trade figures show a 10.1% growth during the first eight months of this year compared to the same period last year, according to the Ministry of Industry and Trade (MoIT) monthly bulletin. 

The growth is attributed to a 4.2% rise in domestic exports, a 10.5% increase in re-exports and a 12.5% jump in imports. A statement from the ministry credited the steady rise in foreign trade, particularly exports, during the past few years to the "success of Jordan's comprehensive economic reform programmes….trade liberalization and full integration in the global economy."

The JD41.6 million ($58.1 million) rise in domestic exports from January until August this year was due to a 41.2% growth in textile industry exports measured against the same period last year. Substantial growth in unconventional industry exports, such as natural or cultured pearls and precious and semi-precious stone as well as beverages and vinegar beefed up exports by 144.4% and 211.1% respective increase over the first eight months of 2002. 

Domestic exports from Qualified Industrial Zones (QIZ), however, grabbed a considerable share of the country's total exports reaching JD261.8 million ($366.1 million) by the end of August this year and registering a JD101.7 million ($142.2 million) increase over the same period last year or a 63.6% growth. 

AJEX pushes investors to seize the opportunity, penetrate Iraqi market. 

Hundreds of national, regional and international participants representing private and public sectors attended the American Jordanian Expo, AJEX 2003, which was held from 22 to 23 October, 2003 with the reconstruction of Iraq under the spotlight.

Held under the patronage of His Majesty King Abdullah II, the two-day conference provided businesspeople with the opportunity to tap into the lucrative market in Iraq, network with other potential investors as well as get a firsthand look at the experiences of the US-led coalition ruling Baghdad. Also highlighting Jordan as an investors' hub in the region underlined the importance of the Kingdom as the gateway for business in Iraq. 

Viewed by entrepreneurs and economists alike as model in the region in terms of its bilateral trade agreements that include the Free Trade Agreement (FTA) with the US and other ties with the European union and the WTO, Jordan strives to build the capacity of its wealth of human resources while building the capacity of private and public sector partnerships. 

Molly Williamson, deputy assistant secretary for Africa, Middle East and South Asia at the International Trade Administration/US Department of Commerce, told the participants that while other countries in the region have been suffering from economic slowdown, Jordan has been enjoying tremendous economic prosperity. In 1998, the Kingdom's exports stood at a mere $12 million in comparison with an expected $350 million by the end of the year. This growth represents a 300% increase during the last three years. Furthermore, exports from the Qualified Industrial Zones are now valued at $500 million. 

Local as well as key speakers representing the Coalition Provisional Authority (CPA), and other state officials from the UK and the US, all called on investors to seize the opportunity and penetrate the Iraqi market capitalising at the same time on new legislation to encourage foreign investment. 

Business Scene:  

• Amman, Zarqa and Irbid account for most of the economic activity in the Kingdom

The registration of 68,838 companies in the capital Amman between January and August 2003 placed Amman at the top of the Kingdom's 12 governorates in terms of economic activity. According to figures from the Ministry of Industry and Trade, Zarqa came second by a far margin, as 6,869 companies were registered, or about 10% of the Amman's total firms. Irbid ranked third with 5,406 companies registered during the first eight months of this year.

• Tourists to get sales tax refund starting 2004

The Ministry of Finance has signed an agreement with a French firm under which the government will refund sales tax to tourists and non-residents who buy goods in the Kingdom for export. Under the deal, France's Premier Tax Free will refund tourists between JD50 ($70) and JD500 ($700) for products bought in Jordan. The firm's general manager in Jordan said that the scheme will start at the beginning of 2004.

• Jordan assumes posts in WTO Executive Council, Middle East Commission

Jordan was elected vice chairman of the Executive Council and vice chairman of the Middle East Commission of the World Tourism Organisation (WTO), at its recently concluded 15th General Assembly in Beijing. Jordan is a founding member of the World Tourism Organisation, which held its first General Assembly in Madrid in May 1975. 

Featured Article: 

The Road to Aqaba: Journeying through the Golden Tourism Triangle is a true voyage through time 

When the sun sets on Aqaba after a long day of trekking the vast desert of Wadi Rum or stroking the stones and pebbles of the truly breathtaking Nabataean city of Petra, the golden rays revisit the footprints and paths trodden by long-gone caravans manned by daring merchants, whose compass were the stars at night and the visions of water, as camels and horses swooned, during daytime.

Dazzling in its simplicity, the pristine desert and sand dunes of Wadi Rum could only be matched by the red-rose hues of one of the ancient world's true wonders, Petra, and the dazzling coastline of Aqaba, tucked neatly in the center of this cultural fiesta, with its evocative blue waters dancing majestically at the northern tip of the Red Sea.

Sewn together by the thread of historic travelers, whose canvas was the desert and their map the sky, the Golden Tourism Triangle stands as whiteness to the cultural and mystical heritage of the jeweled city of Aqaba, nestling on an ancient caravan route upon which luxurious cargos of gold, perfumes and fine silks passed, after crossing deserts upon deserts as well as man-carved temples hiding within the folds of the "the pearl of the desert," Petra. 

Today, the waves caress 27 kilometers of Aqaba's coastline, strewn with five-star hotels and resorts that bring you services and offers to rejuvenate the soul and mind after a long journey through the paths and passageways of Petra city, a declared UNESCO World Heritage Site since 1985. Passing through the exceptional deserts of Wadi Rum, campers can still listen to echoing ballads and myths about Lawrence of Arabia, whose footsteps can be vividly heard crunching against gravel that adorns the natural canyons cutting through mountains, such as Um Ishrine (Mother of Twenty) and Khazali, where a unique flower to Jordan thrives.

The desert road to the Aqaba Special Economic Zone (ASEZ), 324 kilometers away from Amman the capital, could be a true journey through Jordan's remote villages and towns where a taste of our people's warmth and hospitability can be savored. But what truly is worth navigating through remains one of two roads that lead to Aqaba, through the dramatic lows of the Dead Sea basin (the Wadi Araba highway), where the Baptism site religiously sits at the mouth of this largest salty lake in the world and lowest point on earth, with a string of first-class resorts dotting the shoreline. Or you can simply take a one-hour flight from Amman to land after a pleasant trip at the Aqaba Airport, where duty-free items include a handful of artifacts and masterfully knitted embroidery and souvenirs, carefully selected to reflect the treasures of Jordan.

Covering an approximate 375 square kilometers of land, ASEZ encompasses a spree of sites where religion, mythology, art, nature and culture melt in a locality that enjoys a climate matchless in the region as temperatures usually stay at no less than 25 degrees Celsius, while water temperatures changing between 18 to 27 degrees Celsius year round are perfect for diving, skiing and other exciting water sports.

Plan your next vacation to be a truly memorable lifetime experience and make your destination this undeniably regional tourism hub, the very Golden Tourism Triangle, where bridging the ancient and the modern worlds is our people's craft. To know more about ASEZ, visit www.aqabazone.com and without hesitance do drop us a line via the website's Guest Book to tell us more about your family journey, eco-tourism adventure or religious pilgrimage.

For further information contact Ms. Ruba Saqr, Communication Officer at ASEZA. Email: [email protected] or [email protected]

For further information about doing business in Jordan, you may contact Mr. Haitham Abu Alfoul at the Embassy, phone +49 30-36 99 6033 fax +49 30-36 99 6011, [email protected]. Large part of the Newsletter is reprinted from the Jordan Times