September Newsletter 2003

His Majesty King Abdullah II stressed that educational reforms and the integration of information technology in the educational process are the most important elements in the Kingdom's modernization drive. "Jordan is at the threshold of a new phase in this field," King Abdullah said in opening remarks of the Jordanian Platform for e-Learning 2003 on September 28^th, 2003. "Providing knowledge is the sole means to secure a better future for Jordan and its citizens... and unless we arm our youth with knowledge and educational skills we will never be able to secure neither our future nor theirs," the King added.

Jordan's message is not to work for the interest of its own people but for that of the Arab youth under the age of 25, who form 60% of the Arab world population, the King told an audience of educational experts and decision makers representing over 20 countries taking part in the platform. The King stressed that this initiative of e-learning is part of Jordan's comprehensive educational reform plan, which we have worked for so long to fulfil since the educational sector is the most important in the modernization process.

The one-day forum, organized by the Integrated Technology Group (ITG), a leading IT company in Jordan, in cooperation with the Education Ministry and Microsoft company, is designed to showcase Jordan's e-Learning strategy and EduWave — the 100% “made in Jordan” e-Learning platform being gradually deployed in the country's 3,500 public schools. The e-Learning strategy falls within the Educational Reform for a Knowledge-based Economy (ERfKE) — a $380 million, five-year plan envisaging building 200 new, top specifications schools completely wired, putting 100,000 computers in classrooms across the Kingdom, connecting all schools through narrowband for the time being and broadband later on, training 60,000 teachers and administrators in different levels of IT skills, and redesigning all curricula.

Dr. Saleh Rusheidat, Ambassador of Jordan to Germany, has presented his letters of Credence to His Majesty King Carl XVI Gustaf on September 15^th, 2003 accrediting him as Ambassador of Jordan to Sweden (non-resident). During his visit to Sweden, Dr. Rusheidat met a number of Swedish senior officials to discuss bilateral relations and preparations to the upcoming State Visit for His Majesty King Abdullah II to Sweden on 7 - 9 October 2003. Dr. Rusheidat has also held talks with representatives of the Swedish economy on enhancing bilateral economic and tourist relations.

Jordan has begun consultations with both the Palestinian and Israeli governments to embark on feasibility studies for the Red-Dead Canal project, according to Water and Irrigation Minister Hazem Nasser. On the Jordan TV programme “60 Minutes,” the minister said studies would begin “in the coming months.” The issue received world support when discussed during meetings of the World Economic Forum, held at the Dead Sea earlier in the year. The World Bank prepared terms of reference, which were discussed trilaterally between the three governments for the first time at the conference. The ambitious project is designed to save the Dead Sea from an imminent environmental catastrophe.

Nasser also outlined the country's position on other mega-water projects during the programme. The ministry has received two “technical and financial” bids for the JD420 million ($591.5 million) Disi project from two international consortiums, he said, describing the development as “very good.” “In the next few months, we will announce the name of the company that will undertake the project,” he said. The Disi project is designed to convey water from the aquifer to the capital, which suffers a water shortage, particularly in the summer.

The Second EU-Jordan Association Council will take place on October 14^th, 2003 in Luxembourg. Foreign Minister Dr. Marwan Muasher will lead the Jordanian Delegation. External Relations Commissioner Chris Patten will represent the European Commission. The main focus will be on the state of play of the implementation of the Association Agreement. Within Political Dialogue a number of issues will be discussed, including the situation in the Middle East, Iraq, the democratic process in Jordan after the recent general elections, the link between the Barcelona Process and the “Wider Europe” Initiative, and the Agadir Process of sub-regional integration.

Gross domestic product (GDP) registered a 3% growth at constant market prices during the 2^nd quarter of this year compared to 2.8% during the 1^st quarter of this year. During the 2^nd quarter of 2002 and 2001, the GDP growth was 5.6% and 4.7% respectively. The growth at current market prices was, however, 4.7% indicating a 1.7% rise in the GDP deflator that reflects the level of general price increases in the economy. GDP growth at current market prices during the 1^st quarter of this year was 3.9%.

Key sectors behind the growth achieved were those of the manufacturing industries, construction, wholesale and retail trade, transport and storage as well as telecommunications. Moderate growth was recorded in the private and public services sector.

Imports rose 15.7% to JD1.86 billion ($2.618 billion) in the first half of this year, the Department of Statistics said in a report released in September 2003. It said Germany topped the list of 118 countries selling goods to Jordan, exporting merchandise — mainly vehicles and heavy machinery — worth JD143.7 million ($202.4 million). Imports from Germany, however, were 3.8% less than in the corresponding period in 2002, the report indicated. It said China ranked second, exporting to Jordan goods worth JD141.3 million ($199 million) — nearly 60% more than the same period last year.

Iraq, Jordan's close business associate and sole oil supplier until the US-led war erupted in March, came third, the report said. It pointed out that imports from Iraq — mainly crude and fuel oil — reached JD140.3 million ($197.6 million), a 36.5% decline from the same period in 2002. Saudi Arabia was the fourth largest exporter, sending mainly foodstuff and oil valued at JD136.3 million ($191.9 million), followed by the United States, with exports of mainly wheat, vehicles, foodstuffs and machinery amounting to JD134.1 million ($188.8 million).

Britain, Italy, Japan, Syria and France rounded out the top 10 of importers. Jordan's imports also include barley, livestock, steel, timber, paper, plastic products, electronics and electrical appliances, computers, furniture and pharmaceuticals.

AJEX 2003 attracts major Int’l companies and associations

AJEX 2003 is attracting leading International public and private organizations to participate in the two-day event in Amman from October 22-23, 2003. The conference aims to promote trade and investment between the US, Jordan and the region. The US Importers Association, the Arab American Institute and the American State Offices Association, as well as member of the US government Department of State and Department of Commerce are some of the organizations that have been confirmed to attend and speak at AJEX 2003. The Coalition Provisional Authority (CPA) and other regional US Chamber of Commerce, such as the Iraqi American Chamber of commerce will also be present.

Other US organizations participating in AJEX 2003 include private sector companies already operating in Jordan and Iraq, as well as their regional representatives in the Middle East. For more information and registration, please log into http://www.ajex.org or E-mail: [email protected]

Germany’s Kempinski Hotels & Resorts has signed the management contract for a leisure resort in Jordan, owned by the United Saudi Jordanian Hotels & Tourism Company, which is due to open towards the end of 2004. The resort, now under construction, is situated 50 kilometers west of the country's capital, Amman, on a 25-acre site, with direct access to the shores of the Dead Sea. The Kempinski Ishtar Resort Hotel & Spa will comprise three sections. The Royal Wing will house two VIP Royal Villas and Suite clusters totalling 44 large units. The Resort Wing will offer 90 Executive Club Rooms and Suites, while the Central Pavilion will include restaurants and theme bars with live entertainment and private dining rooms.

The Jordan Phosphate Mines Co (JPMC) made JD 3.8 million ($5.3 million) in net profits for the first half of 2003, tripling its profits for the same period of 2002. During the same period, the company, however, witnessed a gradual decline in its sales, reaching JD 93.1 million ($131.12 million) compared to JD 100 million ($140.8 million) in 2002. JPMC’s financial statement for 2003 indicated that the war on Iraq has affected the company’s foreign exports, in which many shipments were delayed or cancelled. Another factor was the hold-up of India’s imports of Jordanian fertilizers during the first half, due to financial reasons on the Indian part. India is a top importer of Jordanian fertilizers.

A new maritime route shuttling tourists between Jordan's southern port city of Aqaba and the Egyptian tourist resort of Sharm El Sheikh should be in full swing at the end of August 2003. Transport Ministry Secretary General Alaa Batayneh said the newly purchased $18 million Italian-made vessel, "Princess," would begin her biweekly cruises between the two tourist resorts on Aug. 29. "These trips will be organized every Sunday and Thursday, providing tourists on both sides a way to shuttle back and forth between the resorts aboard a 35-knot Italian yacht," said Batayneh.

The transport official said the craft, operated by the Arab Bridge Maritime Company, has a 656-passenger capacity and space for 58 cars. Plans are in the works to exempt Jordanian vehicles transiting Egypt's Sinai Peninsula from fees if the stay does not exceed 15 days. Currently the only maritime link between Jordan and Egypt is one to Nuweibeh, primarily used for trade exchanges between the two neighbors.

The initiative, undertaken by Arab Bridge Maritime Company (a state-firm jointly owned by the governments of Jordan, Egypt and Iraq), also has plans for extensions to the Egyptian seaports of Al Ghardaga and Safaja. Other initiatives to boost two-way tourism include establishing a small port at the Egyptian resort city of Taba, providing a link to Aqaba's port just 10 kilometers away.

The Jordan Tourism Board was officially launched in March 1998 as an independent public – private sector partnership committed to utilize marketing strategies to brand, position and promote the Jordan tourism product internationally as the destination of choice. The adopted strategies are tuned to reflect the true image of the Jordan product being a cultural, natural, religious and MICE destination.

As part of its marketing plan, the JTB plans and executes an integrated program of international promotional activities. This program includes representations, trade fairs, workshops and road shows, familiarization trips, brochure production and distribution and media relations.

Underlining the importance attached to tourism, the 13- member Board of Directors is headed by the Minister of Tourism and includes 9 private sector members representing hotels, incoming tour operators and tourism transport companies.

Jordan at Glance

Ruling Regime: Constitutional monarchy with representative government, freely elected parliament and independent Judiciary.

Location: Jordan is situated between latitudes 29 and 33 north and longitudes 34 and 39 east.

Population: Estimated at 5.33 million inhabitants in 2002.

Area: 89.300 square km, of which 7.8 % is agricultural land.

Climate: Hot and dry in summer, rainy in winter.

Timing: Two hours and three hours ahead of Greenwich timing, in winter and summer respectively.

Language: Arabic, English is widely spoken particularly in business.

Economic System: Market oriented economy.

Size of Economy: GDP in 2002 is estimated at JD 6591 million or US$ 9296 million.

Standard of Living: Per capita GDP at current market prices equals JD 1237 or US$ 1745 in 2002.

Currency: Jordan Dinar, which equals US$ 1.41, is fully convertible.

Resources:

· Several natural resources; phosphate and potash are the most important ones

· Abundant skilled human resources and several tourism sights

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