Jordan's foreign reserves surges 18.45% in March
Released by the Central Bank of Jordan, the data 'reflects the country's stable external financial position,' the Jordan News Agency reported.
This aligns with S&P Global's decision in September to upgrade Jordan's long-term foreign and local currency ratings to 'B+' from 'BB-.' The agency also reaffirmed its 'B' short-term ratings and raised its transfer and convertibility assessment from 'BB' to 'BB+.'
S&P noted at the time that Jordan's structural economic improvements are expected to remain resilient, despite regional pressures.
The agency also indicated at the time that Jordan is well-positioned to leverage international support and has sufficient domestic policy buffers to mitigate impacts from regional conflicts on tourism and the broader economy.
Tariff items exemptions
Up to 91 percent of tariff items enjoy full or partial exemptions under Jordan's policy of promoting investment and supporting production, according to the Customs Department Director General.
In his remarks to the Jordan News Agency, Ahmed Akalik explained that the exemptions cover various items under international agreements, local decisions, or investment incentives, with the largest waivers to raw materials.
He highlighted that just 9 percent of items are subject to duties between 0 and 25 percent, depending on the commodity type, and that domestic exports are completely duty-free.
Akalik went on to note that the department processed over 950,000 customs declarations in 2024, underscoring the need for new strategies to improve efficiency and transparency, in alignment with King Abdullah's vision to enhance government performance and empower the private sector.
Arab Fund plans $750m for Jordan
The Arab Fund for Economic and Social Development plans to allocate approximately $750 million to Jordanian projects in the coming years, leveraging partnerships with international and regional institutions such as the World Bank and the European Investment Bank.
A major focus will be the National Water Carrier project, designed to transport desalinated water from Aqaba to Amman, tackling significant water shortages.
The fund will prioritize sustainable energy initiatives such as solar and wind power to address Jordan's increasing energy needs.
Plans also include investments in education and healthcare infrastructure, such as building new schools and developing hospitals.
AFESD plans to promote regional economic integration, establishing Jordan as a key hub in the energy, healthcare, and education industries. The strategy will emphasize job creation, youth empowerment, and gender equality.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
3 days ago
- Asharq Al-Awsat
S&P Upgrades Lebanon's Local Credit Rating, Keeps Foreign Debt in Default
Standard & Poor's (S&P) has raised Lebanon's long-term local currency credit rating to CCC from CC, maintaining a 'stable' outlook. However, the agency left the country's foreign currency rating at Selective Default (SD), underscoring Beirut's ongoing failure to honor certain obligations. The upgrade reflects what S&P described as Lebanon's improved capacity to service domestic commercial debt, supported by fiscal surpluses over the past two years and initial progress on reforms tied to a prospective IMF program. The 'selective default' designation refers to a situation where an entity defaults on specific commitments while continuing to meet others. Lebanon remains among the world's weakest credit risks. Fitch downgraded the country to Restricted Default (RD) in mid-2024 for both local and foreign currencies before withdrawing its ratings altogether, citing lack of essential financial data. Moody's still places Lebanon at C, its lowest rating. Lebanon's local-currency debt has shrunk dramatically, falling to around 2 percent of GDP - less than $1 billion - by the end of 2024, down from roughly 100 percent before the financial collapse in 2020. This was largely the result of a 98 percent collapse in the Lebanese pound's value between 2019 and 2024. Despite the turmoil, the government has maintained payments on local commercial obligations. It resumed interest payments to the central bank in 2024 after a three-year halt and has pledged to start repaying arrears this year. The government formed in early 2025 under President Joseph Aoun and Prime Minister Nawaf Salam has pushed through several reforms, including a revised banking secrecy law and a bank restructuring bill. However, the crucial 'financial gap' law - needed to apportion past losses and protect depositors - remains stalled. The IMF, following a recent mission to Beirut, stressed that passing this law and approving the 2026 budget are essential. The fund has urged Lebanon to adopt a revenue-boosting and spending-rationalization strategy before further support can be unlocked. S&P cautioned that major debt restructuring is unlikely before the May 2026 parliamentary elections, five years after Lebanon defaulted on its Eurobonds. The ongoing conflict between Israel and Hezbollah, despite a November 2024 ceasefire, continues to darken economic prospects. Lebanon's economy contracted by 6.5 percent in 2024, following smaller declines in 2022 and 2023. In dollar terms, GDP has halved from $55 billion in 2018 to $28 billion last year. S&P projects modest average growth of 2.3 percent in 2025–2026. Since February 2024, the pound has stabilized around 89,500 to the dollar. Government net debt is expected to fall to 113 percent of GDP by end-2025, down from about 240 percent in 2022, thanks to fiscal gains, currency stability, and inflation-driven nominal growth.
Al Arabiya
6 days ago
- Al Arabiya
Singapore property tycoon linked to jailed minister fined S$30,000
Property tycoon Ong Beng Seng was fined S$30,000 ($23,000) by a Singapore court on Friday as part of a landmark case that led to the jailing of former Transport Minister S. Iswaran last year. Ong, the 79-year-old founder of Hotel Properties Ltd ( and rights holder to the Singapore Grand Prix, was accused of giving Iswaran, who was an adviser to the Grand Prix's steering committee, high-value gifts including tickets to the Formula One race, English Premier League soccer matches, and West End musicals. Ong last week pleaded guilty to one charge of abetting the obstruction of justice after arranging to bill Iswaran for a flight ticket months after it had taken place. A second charge of abetting an offence was also taken into consideration by the court. The S$30,000 was the maximum fine the court could impose. Ong, who was given a fine in lieu of three months' jail, stepped down as managing director of HPL in April. The case has attracted widespread public interest in Singapore, a wealthy financial hub that pays ministers salaries of more than S$1 million that it says are needed to deter graft and prides itself on its reputation for clean governance. At last week's hearing, the prosecution and defense agreed that because Ong was in poor health with advanced cancer he could be granted judicial mercy, which meant the court could impose a more lenient than normal punishment. In a written judgment, District Judge Lee Lit Cheng wrote: 'The critical question is not whether an offender may receive a lower standard of healthcare in prison, but whether imprisonment would create heightened risks to the offender's life. 'I am satisfied that the circumstances in this case are exceptional and meet the high threshold for the grant of judicial mercy.' Iswaran was sentenced to 12 months in prison last October, the first time a former cabinet member had been jailed in Singapore. He had faced a total of 35 charges, two of which were corruption-related but were amended to charges of receiving S$384,340 worth of gifts from Ong while a public servant. In February, Iswaran was granted house arrest for the remainder of his sentence. ($1 = 1.2831 Singapore dollars)
Arab News
05-08-2025
- Arab News
Kuwait, Qatar, UAE maintain non-oil growth momentum; Egypt shows recovery signs while Lebanon struggles
RIYADH: Non-oil business activity in the Middle East showed mixed trends in July, with Kuwait, the UAE, and Qatar maintaining strong growth while Egypt demonstrated signs of recovery and Lebanon remained under pressure. According to the latest Purchasing Managers' Index report released by S&P Global, Kuwait's PMI ticked up to 53.5 in July from 53.1 in June, signalling a solid monthly improvement in the health of the non-oil private sector. This robust performance of non-energy business conditions in Kuwait aligns with the wider trend observed in the Gulf Cooperation Council region, where countries are pursuing economic diversification efforts to reduce dependence on crude revenues. 'Kuwait's non-oil private sector began the second half of 2025 in much the same way as it ended the first, with output and new orders up markedly again in July,' said Andrew Harker, economics director at S&P Global Market Intelligence. Survey panelists linked higher new orders in July to advertising efforts and price discounting, which helped to further raise the output. According to the report, employment levels in Kuwait's non-oil sector remained broadly unchanged in July, following a record increase in June. S&P Global added that inflationary pressures softened in the seventh month of the year, with purchase prices and staff costs increasing at the slowest rates in six and four months, respectively. 'Firms will have been cheered by a softening of inflationary pressures during the month, but the reluctance to hire extra staff did mean that backlogs of work accumulated again,' said Harker. The survey data also revealed that Kuwaiti companies remained strongly optimistic about future growth, on the hopes that output will rise further in the remaining months of the year. 'The prospects for further expansions in new business in the months ahead appear bright, and we'll hopefully see this reflected in renewed hiring activity soon,' added Harker. UAE's PMI declines amid geopolitical tensions UAE's PMI slipped to 52.9 in July from 53.5 in June but remained well above the 50 mark that signals expansion of the non-energy business conditions. S&P Global attributed this decline to a slowdown in new business growth across the non-oil economy, as ongoing regional tensions made some clients hesitant to commit to new spending. Panelists who took part in the survey also pointed to weaker tourism activity and headwinds from global trade disruptions to lower activities in July. Despite this decline, output expanded sharply in June, as non-oil firms in the Emirates sought to prevent further increases in backlogs of work. 'Business conditions improved in July, but the rate of growth was the weakest since the middle of 2021. As has been the case recently, output was supported by positive demand trends,' said David Owen, senior economist at S&P Global Market Intelligence. He added: 'New order volumes helped firms to expand, but this trend is declining, with the latest data indicating the softest rise in incoming new work in almost four years.' The softer increase in new orders contributed to a slight easing in the rate of activity expansion in July, which was further dampened by intensified competitive pressures The report also revealed that some firms reported that output increased in response to new sales opportunities, rising client incomes, advancements in technological investment, and the clearance of pending work. The July survey data indicated that job growth softened in over the month, marking the weakest uplift in four months. 'Should regional tensions ease, we may see a recovery in sales growth in the coming months. This would also be supported by the subdued price environment, with input costs rising only modestly despite the pace of increase reaching a three-month high,' said Owen. He added: 'Nevertheless, the ongoing trends of rising competition, limited inventory, constrained hiring growth and relatively low confidence among surveyed firms suggest that downside risks remain elevated.' In the same report, S&P Global revealed that Dubai's PMI rose to 53.5, up from a 45-month low of 51.8 in June, signalling a solid upturn in operating conditions across the Emirate's non-oil private sector economy. Dubai non-oil firms also expanded their output at the sharpest rate in five months in July, while continuing efforts to increase employment and inventories. Non-energy business conditions improve in Qatar In a separate report, S&P Global revealed that business conditions in Qatar's non-energy sector continued to improve in July, with the country's PMI remaining above the 50-expansion zone for the 19th consecutive month. The country's PMI fell to 51.4 in July from 52 in June. The report revealed that non-energy private sector employment in Qatar increased at the second-strongest rate in the eight-year survey history, driving a further sharp increase in wages. 'The PMI remained above the neutral threshold at 51.4 in July, signalling sustained overall growth in the non-energy private sector. But the headline figure continues to mask underlying weakness in demand and output, being heavily supported by another round of strong employment growth,' said Trevor Balchin, economics director at S&P Global Market Intelligence. Companies in the non-energy private sector remained optimistic regarding the 12-month outlook for activity in July, due to expected growth in investment, tourism, and industrial development, as well as a recovery in construction, population expansion, and government initiatives. Egypt's PMI nearing growth trajectory In another report, S&P Global revealed that Egypt's PMI increased to 49.5 in July, up from 48.8 in June, but still remaining below the 50 no-change threshold for the fifth consecutive month. According to S&P Global, Egyptian non-oil business conditions deteriorated for the fifth consecutive month in July, although the decline was less severe than in June, with firms reporting softer contractions in both activity and new orders. The report added that businesses increased headcounts for the first time since last October, while cuts in purchases softened. 'Although the Egypt PMI stayed below 50 in July, indicating a worsening of non-oil business conditions, the latest survey data provided some cause for optimism. Several firms reported the securing of new work, which helped to soften the rate of decline in sales,' said Owen. He added: 'Businesses also had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one.' Input prices also rose at a slightly quicker pace in July, with survey panelists attributing this trend to higher costs for items such as cement, fuel and packaging. Increased staff wages also contributed to cost pressures, although the rate of growth was mild. Regarding future activity, companies in Egypt continued to express concerns about demand strength and broader economic uncertainty, with optimism improving slightly from June's record low. Lebanon's PMI drops According to the latest report, Lebanon's private sector economy remained under pressure at the start of the second half of the year, with the PMI in July dropping to 48.9 from 49.2 in June. The report revealed that business activity volumes across Lebanon's private sector fell further in July, extending the current sequence of contraction to five months, driven by subdued demand conditions, particularly from abroad. 'The July 2025 BLOM Lebanon PMI dropped to 48.9. This result was not unexpected as the economy lacked any meaningful demand stimulus: the government does not have any money to spend and the private sector is not able and willing to spend,' said Ali Bolbol, chief economist and head of research at BLOMInvest BANK. Private sector companies in Lebanon lowered their purchasing volumes as a part of their efforts to reduce costs. Looking ahead, surveyed companies remained pessimistic toward the year-ahead outlook for business activity, with these firms expressing negative consequences of a potential escalation of conflict and tensions across the Middle East region.
