Category: Business & Finance

The General Industrial Production Quantities Index edged up by 1.83 percent in January 2023, reaching 90.85 points against 89.21 points in the same month of 2022.

The growth was mainly attributed to a 2.02 percent increase in quantities of transformative industries and a 3.05 percent in extractive industries, while a 2.61 drop was recorded in electricity quantities, according to the Department of Statistics’ (DoS) monthly report issued Tuesday.

In comparison to 8and.19 points recorded in December 2022, the index rose by 4.19 percent to 90.85 points in January 2023.

The monthly increase was due to transformative industries going up by 2.24 percent, extractive industries by 23.60 percent, and electricity by 8.23 percent.

Source: Jordan News Agency

The Industrial Producers’ Prices Index picked up by 4.48 percent in January 2023, amounting to 135.84 points against 130.02 in the same month last year.

A report issued Tuesday by the Department of Statistics (DoS) said this upward trend comes as a result of a 3.and3 percent increase in the transformative industries prices index and a 23.86 percent increase in the extractive industries prices index, while the prices index of electricity dropped by 8.80 percent.

On a monthly level, the index declined by 2.61 percent in January 2023, reaching135.84 points against 139.48 points in December 2022.

The main contributors to the monthly decrease were transformative industries retreating by 3.02 percent, followed by electricity prices index by 0.36 percent, while extractive industries prices went up by 0.20 percent.

Source: Jordan News Agency

The Aqaba cruise ship terminal welcomed early Tuesday the cruise ship (MSC Splendida), coming from the Egyptian port of Safaga, and carrying about 3,400 tourists from various European and Arab countries in addition to its 1,168 crew.

The Aqaba Special Economic Zone Authority (ASEZA) spokesperson, Fayez al-Fayez, said in a statement that the arrival of a large number of cruise ships during the winter tourist season confirms that Aqaba becomes an attraction center at the Red Sea gate, and a global tourist destination.

“Tourists are scheduled to visit the Golden Triangle ( Aqaba, Petra and Wadi Rum) and tour the city of Aqaba, which would contribute to reviving the tourism movement,” he indicated, noting that the ASEZA has provided all logistical services necessary to receive tourists and transport them to the historical, archaeological and tourist areas in the Golden Triangle.

Source: Jordan News Agency

The Consumer Price Index (CPI), a measure of inflation, edged up 4.01 percent in the first two months of 2023, to 107.97 points against 103.81 in the same period of 2022.

In a monthly statistical bulletin released Monday, the Department of Statistics (DoS) noted that the fuel and lighting sub group was responsible for 31.82 percent of the index increase, while furniture, carpets and mattresses, culture and entertainment, restaurants and hotels, and oils and fats each made contributions of 10.41 percent, 10.39 percent, 9.48 percent, and 9.46 percent, respectively.

In February, inflation increased by 4.25 to 108.32 points compared to 103.90 points recorded in the same month of 2022, the figures showed.

Fuels and lighting contributed 31.82 percent to the monthly increase, followed by furniture, carpets, and mattresses with 10.39pct, culture and entertainment with 10.37pct, oils and fats with 9.52pct, and restaurants and hotels with 9.50pct.

Source: Jordan News Agency

Despite a Free Trade Agreement (FTA) between Jordan and Canada that was signed in 2009 and entered into force in October 2012, the two countries’ trade exchange has lagged behind their goals.

By accelerating trade delegation exchanges, increasing efforts to market Jordanian exports of goods, services, and agricultural products, hosting exhibitions to promote travel destinations, and expanding investment opportunities, the two countries hope to activate the FTA in 2023.

In 2022, Jordan and Canada traded a total of JD116 million worth of goods and services, with the Kingdom coming out on top due to its comparatively higher exports to Canada (around JD80 million) compared to its relatively lower imports (around JD36 million).

Jordan’s exports to Canada included textiles, machinery, electrical equipment, food sector products, and plant products, among others. In contrast, the majority of the Kingdom’s imports from Canada were plant-based goods, machinery for the transportation industry, goods for the food industry, goods for the chemical industry or related industries, and pharmaceuticals.

Khalil ElHaj Tawfiq, chairman of the Jordan Chamber of Commerce, told the Jordan News Agency on Sunday that the limited economic exchange between Jordan and Canada is due to the public and private sectors’ failure to utilize the FTA.

“The private sector failed the most since it did not benefit from the FTA despite the fact that Canada is one of the top producing and consuming nations with sizable Arab and Muslim populations,” he added.

He emphasized the need for a realistic analysis that takes into account the materials used by Canadian citizens, which are, under the FTA, exempted from customs, noting that the study must be offered to Jordanian investors who are prepared to sell in international markets.

Source: Jordan News Agency

Prime Minister Dr. Bishr Khasawneh directed ministries and concerned institutions to fully prepare for the holy month of Ramadan, follow up on all issues related to commodity availability, monitor prices and food safety, and alleviate burdens on citizens.

Chairing a Cabinet session on Sunday, the PM stressed the need to constantly ensure stock sufficiency of basic commodities and their availability in adequate quantities in the local markets.

He also directed to intensify operations of the relevant monitoring authorities and their workers to monitor commodity prices, prevent overpricing and speculation, ensure foodstuff safety and implement health requirements, stressing that citizens should feel impact of these gov’t monitoring efforts on the ground.

PM noted the “important” role played by the civilian and military consumer institutions in providing commodities and food supplies at reduced prices and making “competitive” offers, which would contribute to controlling prices, ensuring available commodities and alleviating burdens on citizens.

In addition, the PM directed necessity of coordinating with administrative governors on charity campaigns, scheduled to be held during the holy month in all their forms, in a bid to prevent any irregularities that may occur in this regard.

The Council of Ministers was briefed by Minister of Industry, Trade and Supply, Yousef Shamali, about the ministry’s preparations, in coordination with other ministries and relevant institutions, on goods stocks and market monitoring measures.

Noting all basic commodities are available for “comfortable periods ” at stable prices, Shamali said no manifestations of overpricing or exaggerated prices were observed in the local market.

The ministry, alongside competent supervisory authorities, is constantly monitoring markets and establishments, and will work to intensify monitoring during the coming days and throughout Ramadan, Shamali said.

The ministry, he noted, owns “strict” tools to control any violations, primarily overpricing, monopolizing goods, or violating foodstuff safety and citizen health.

Source: Jordan News Agency

The International Finance Corporation’s (IFC) said it is pioneering investment in Jordan’s first green bond, in order to help funding green projects in the country, addressing growing climate challenges and supporting sustainable economic growth, according to an IFC statement on Sunday.

IFC is investing up to $50 million in the five-year bond, issued by leading private sector bank Jordan Kuwait Bank (JKB). The financing comprises up to $36 million from IFC’s own account, and a blended finance co-investment of up to $10 million from the Canada-IFC Blended Climate Finance Programme and $4 million from the Dutch-funded MENA Private Sector Development Facility, both implemented by IFC.

Jordan’s first green bond will be fully compliant with the International Capital Market Association’s green bond principles, which offer best practices to issuers with regard to transparency and disclosure, the statement said.

JKB will earmark the proceeds for green projects and assets including renewable energy projects, low-carbon vehicles, green infrastructure such as low-carbon transport, new energy-efficient green buildings, and sustainably managed water resources and waste.

IFC’s advisory services will also help build the bank’s technical capacity so it can identify eligible projects and develop a framework to measure and report on impact.

“We are introducing a new asset class to the Jordanian capital market that is designed towards building an environmentally sustainable and responsible banking industry. This partnership with IFC supports JKB’s strategy in advancing its positioning and adaptability to the correct and potential demand for sustainable financing by providing innovative financing solutions in the Jordanian market. This significant initiative further aligns with Jordan’s Economic Modernisation Vision in which sustainability is a cornerstone of this vision,” said Haethum Buttikhi, CEO of Jordan Kuwait Bank.

Jordan, one of the world’s most water-stressed countries, is facing severe climate change risks, aggravated by inconsistent rainfall, higher temperatures, and a population increase driven by the current refugee influx.

Despite this, green and climate finance are still nascent in the country and there is no green bond market.

“Mobilising private sector financing and exploring innovative financing options for climate mitigation and resilience projects are crucial to address the drivers and impacts of climate change,” said Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan, and Afghanistan. “We hope this first green bond will not only promote climate-smart, sustainable projects in Jordan, but also set the standard for green bonds in the market and encourage others to follow suit.”

According to the World Bank Group’s Country Climate and Development Report, Jordan needs $9.5 billion in investments to move towards low-carbon development and foster a greener economy. Over 60 per cent of that figure will need to come from the private sector.

IFC has contributed to Jordan’s private sector development for half a century and invested more than $2 billion in the country. IFC’s presence has helped deliver pioneering projects, including the region’s first-of-its-kind Project Pipeline Development Facility, Jordan’s first wind farms, and its largest renewable energy project at the time, Seven Sisters.

Source: Jordan News Agency

Aqaba Special Economic Zone Authority (ASEZA) demanded the Jordanian Maritime Commission (JMC) to seize (MSC ALANA2) ship for dumping a yellow substance in Gulf of Aqaba waters pending investigations to asses ecological damage and calculate the required compensation before leaving the port.

In a statement on Sunday, ASEZA received a tipoff from its operations and control room at 2am stating that yellow-colored materials were dumped in the sea water by MSC ALANA2 ship, which was docking at the container terminal and ASEZA ecological team moved immediately to follow up on the incident.

Joint technical inspection team comprised of ASEZA, JMC, and the Naval Force reported that the ship, upon its departure from the container port berth, dumped waste water from the ship’s tank, as clearly seen in photos and videos from surveillance cameras, the statement added.

At the beginning of investigation, the ship’s captain denied that this substance was dumped from the vessel, which was contrary to evidence provided by the joint technical inspection team.

After confronting the captain with evidence, he admitted that the chief engineer made an error by opening the valve on the tank pump, which led to discharging waste water in the sea, the statement said.

As a quick measure, the ASEZA sent a letter to JMC to seize the ship in accordance with the rules in force.

In addition, a meeting was held today by ASEZA Environmental Damage Assessment Committee to identify quantity of the pollutant material to calculate the ecological financial compensation for the incident, according to instructions.

The case was referred to the public prosecutor and in the event that the ship left Aqaba port as a matter of urgency, it will be allowed to leave after depositing a financial guarantee decided by the ASEZA to cover all financial claims resulting from the incident as a compensation for environmental damages.

Source: Jordan News Agency

The European Jordanian Institute for Business Development (Ejabi),the training arm of Amman Chamber of Industry (ACI), held a training workshop, dubbed: “Concepts of the Fourth Industrial Revolution and Enhancing Readiness for its Implementation in the Industrial Sector,” in partnership with the Danish-supported “Najahna (our success), ” project, attended by 60 participants.

In a statement on Sunday, ACI Head, Fathi Jaghbir, said Ejabi’s management is “keen” to cooperate with Jordanian experts to benefit from their expertise and knowledge in developing the local industry.

For his part, Ejabi Chairman, and ACI Vice President, Tamim Qasrawi, said workshops seek to develop human competencies in industrial companies, as their topics are based on the industrial sector’s needs, which would contribute to developing worker performance and efficiency.

Ejabi, he noted, seeks to obtain a concession from multiple local and international training institutions and signs partnership agreements with a number of Jordanian and international universities.

This future effort aims to launch programs that help Jordan’s industrial sector keep pace with the rapid changes in the business world, primarily agreements with the American University of Missouri, UK Durham University and German- Jordanian University, he added.

During 2023, the Institute is scheduled to hold a set of courses aimed at developing human resources, improving work conditions at industrial facilities and improving product quality to meet market requirements, the statement announced.

Source: Jordan News Agency

Prime Minister Bisher Khasawneh commended the efforts of the Ministry of Finance in maintaining financial stability and adopting prudent policies in dealing with public finances after the inauguration of the ministry’s new building in Shmeisani in Amman on Sunday.

In a meeting with the Minister of Finance Mohammad Ississ and other officials, the Prime Minister underscored that these prudent policies have maintained the standard of living, particularly protecting the middle class from the repercussions of global crises.

The ministry’s efforts, he indicated, have exceeded the target figures for public revenues without raising taxes and maintained the Kingdom’s standing on global credit ratings at either a fixed rate or higher, pointing to the success of the five revisions of the economic reform program with the International Monetary Fund and maintaining an acceptable inflation rate.

Khasawneh stressed the need to continue enhancing performance and address any issues to achieve national goals and serve the national economy, instructing the ministry’s staff to continue working on programs to automate services and facilitate procedures.

Source: Jordan News Agency