Day: August 17, 2022

The European Bank for Reconstruction and Development (EBRD) and Bank al Etihad of Jordan have signed a US$ 10 million Green Economy Financing Facility (GEFF) that includes US$ 0.5 million of co-financing from the Green Climate Fund (GCF).

The package is complemented by investment incentive grants provided by the EU at €1.125 million and by technical assistance support from multiple donors.

The facility would be on-lend to local private micro-, small- and medium-sized enterprises (MSMEs) in Jordan for investment in climate change adaptation and mitigation technologies and services.

The partnership marks the first EBRD Green Economy Financing Facility (GEFF) with a Jordanian bank.

The investments would bolster the development of an environmentally sustainable, low-carbon and climate-resilient economy in Jordan, a country that suffers from water scarcity and is among those with the highest annual growth rates for energy demand while also fully dependent on energy imports.

The financing would support individuals, local private MSMEs and technology suppliers, through sub-loans to finance investments in climate adaptation and mitigation technologies and services.

A comprehensive technical cooperation (TC) package funded by EBRD, the EU and GCF would support Bank al Etihad in its deployment of the facility.

The TC would include an assessment of the optimal technologies for better integrating climate change practices into the targeted local private MSMEs and households.

Technical advice would be available on how to implement the energy investments. The TC package would include sessions to raise awareness and build capacity about climate change mitigation and adaptation technologies.

For eligible sub-borrowers, investment incentives funded by the EU would be expected to accelerate the adoption of the climate change adaptation technologies and services by the MSMEs and households.

EBRD Director for the eastern Mediterranean region, Philip ter Woort, said: “A key strategic priority for the EBRD in Jordan is to support investment in renewables and energy efficiency projects, for which we see a growing demand in the country.

I am very pleased that we are supporting our long-term partner Bank al Etihad with this first EBRD Green Economy Financing Facility in Jordan with a Jordanian bank. This programme relies on strong donor funding and I am grateful to the EU and GCF for their crucial support.

I hope that the new partnership with Bank al Etihad will contribute to the more resilient and sustainable growth of the Jordanian economy.”

The European Union Ambassador to Jordan, H.E Ms Maria Hadjitheodosiou stressed that “through the Green Economy Financing Facility (GEFF), Bank Al-Etihad is offering new financing opportunities to micro, small and medium enterprises (MSMEs).

This reflects the private sector’s leadership in supporting economic development as well as job creation. Equally important, the Bank has an important role in guiding MSMEs sustainable economic opportunities.”

Bank al Etihad’s CEO, Nadia Al Saeed, commented: “This partnership is one of the many concrete steps we are taking to transition to a more sustainable and climate-resilient business model.

We hope our partnership with the EBRD will help us make a meaningful impact and protect resources for the next generations.” Bank al Etihad is the fourth-largest bank in Jordan in terms of total assets and is listed on the Amman Stock Exchange.

Source: Jordan News Agency

The Jordan Businessmen Association (JBA) organized a meeting with a Serbian trade delegation on Wednesday to boost economic ties with the southeastern European republic.

The meeting focused on joint investment opportunities in the agriculture and food sectors, as well as the prospect of additional bilateral business meetings.

Abdul Halim Abdin, a member of the JBA’s Board of Directors, emphasized Jordanian business people’s interest in strengthening Jordanian-Serbian ties, noting the Kingdom’s many investment incentives and trade agreements with other countries.

He noted that the Jordanian food industry is an important sector that can supply the local market and export to approximately 70 countries.

Abdin reaffirmed JBA’s willingness to arrange meetings with Serbian trade parties to discuss possible collaboration in a host of industries like fertilizers, chemicals, pharmaceuticals, garments, and textiles.

Abed Al Rahim Boucai, a member of the JBA’s Board of Directors, emphasized Jordan’s strategic location in the region, which qualifies it as a safe hub for trade and investment, and drew attention to ongoing efforts to develop investment-related legislation.

Assistant Manager of the Chamber of Commerce and Industry of Serbia (CCIS) Danijela Strizak emphasized the importance of bolstering cooperation with Jordan in order to establish commercial projects, stating that the purpose of the visit was to introduce the economic sectors of Serbia and seek alternative markets from which to import raw materials.

She pointed to her country’s private sector’s interest in cooperation with Jordan in the food, agriculture, construction, and medical tourism sectors.

Strizak emphasized the importance of agreeing on regular meetings between the business communities of the two countries.

Source: Jordan News Agency

Some 4.2 million people in central China’s Hubei province have been affected by severe drought since June, according to Chinese sources.

As of Tuesday, drought conditions, triggered by sustained hot weather and low precipitation, had impacted 78 counties in Hubei. A total of 151,300 people had difficulties accessing drinking water, while nearly 397,200 hectares of crops had been damaged due to water shortages.

From the beginning of June to mid-August, temperatures in the province were unusually high exceeding 35 degrees Celsius, the Hubei Meteorological Service said.

Hubei has allocated 610 million yuan (about USD$90 million) to support drought relief work, including ensuring the provision of drinking and irrigation water.

Source: Jordan News Agency

Prime Minister Bishr Khasawneh on Wednesday said that the government drafted and submitted the investment environment bill to the parliament, denying that the bill was drafted by a foreign company.

The Prime Minister told a meeting of the Lower House that the government drafts legislation out of “unilateral self-will” in an effort to improve the legislative environment.

The premier’s remarks came as lawmakers began debating the government’s proposed new investment law.

Source: Jordan News Agency

The Lower House of Parliament began debating a draft law governing the investment ecosystem on Wednesday, passing a number of articles, including changing the name of the law to “the Investment Ecosystem Law for 2022.”

The legislators also agreed to redefine investment as “starting an economic activity in the Kingdom, including ownership, participation, development, or expansion.”

Before the House began debating the proposed law, the chairman of the Economy and Investment Committee, Khair Abu Sa’ilek, stated that the committee held a national dialogue and solicited feedback from lawmakers and other stakeholders.

In response to the MPs’ comments on the proposed law, Abu Sa’ilek stated that the recommendation to enforce the law 90 days after its publication in the Official Gazette, as opposed to 30 days, does not violate the Jordanian constitution, justifying the extended waiting period by saying that there is a major bylaw that must be completed before the law can be enforced.

In addition to facilitating business and attracting foreign investment, one of the most important mandated purposes of the bill was to establish a mechanism for resolving investment contract disputes, the applicable law, and the location of arbitration in the Kingdom, unless the investor’s contract specifies otherwise.

Source: Jordan News Agency