Latest news with #MahmoudAl-Tal
Ammon
01-05-2025
- Business
- Ammon
Jordan-Saudi electricity link: A strategic step toward Arab energy unity
The electricity connection project between Jordan and Saudi Arabia is an important step in strengthening cooperation between the two countries. It shows that both sides understand the value of building a shared energy network that supports economic growth and helps deal with growing energy project is part of a bigger plan to create a shared Arab electricity market. By working together, countries in the region can improve the way they produce and share electricity, which can lead to more stable economies and stronger regional connection between the two countries is not just about sharing electricity. It also helps both sides save money by using energy more efficiently. When one country has extra electricity, it can send it to the other, especially during high-demand periods. This means there is less need to build new power stations, which saves large amounts of money. The difference in energy demand between Jordan and Saudi Arabia during the day and across seasons creates a good chance for this type of big benefit is the support this project gives to renewable energy. Solar and wind power are not always steady, so having a wider network makes it easier to manage changes in energy production. This encourages more investment in clean energy and reduces the need for expensive backup systems. Jordan also wants to become a center for regional energy trade, and this project helps by building a strong, flexible project also improves energy security. By linking to another country's network, each side can get help quickly if there's a power shortage or technical problem. It also builds stronger economic relationships and opens the door for joint electricity projects that could sell power to other countries in the future. If the network connects with other Arab countries, such as Egypt and members of the Gulf Cooperation Council, it could become part of a much larger succeed, the project needs to finish the three main agreements, on operations, implementation and trade, on time. There also needs to be clear rules to share profits and responsibilities fairly, and a good environment for private investors. If all these parts come together, this project will not just be about moving electricity. It will help create a stronger, more efficient, and more stable Arab energy system that supports long-term growth and helps face future energy and environmental Mahmoud Al -Tal is head of economics department- University of Jordan
Ammon
20-04-2025
- Business
- Ammon
How agriculture is powering Jordan's economy
The agricultural sector has recently become a key driver of growth and development in Jordan. In 2024, it led the country's overall economic growth, with a 6.9 per cent increase over the year. In the fourth quarter alone, it grew by 8.4 per cent. Growth was steady throughout the year: 5.7 per cent in the first quarter, 6.2 per cent in the second, and 6 per cent in the sector is vital and has shown strong progress. It plays a major role in national security. Agriculture is connected to about 23.5 per cent of Jordan's economic activity through backward and forward linkages. About 27 per cent of its output is exported, and nearly 52 per cent of its production inputs are locally exports reached about 1.526 billion dinars in 2024, up from 1.1 billion dinars in 2023. That's a 39 per cent increase (426 million dinars). The top export markets were Saudi Arabia, Kuwait, and Iraq, making up 62 per cent of total what caused this growth? A big reason is the hard work of the Ministry of Agriculture. Their efforts follow the National Agricultural Strategy, which supports cooperatives, holds exhibitions to share knowledge, and builds strong partnerships with private workers have also helped this growth. More agricultural engineers and veterinarians have been trained and hired. New factories have been built—20 in total—and the quality and amount of production have sector employs around 80,000 people, which is about 5 per cent of Jordan's workforce. Jordanians make up about 40 per cent of that number. Although the sector lost 33,000 workers over the past ten years, it is now attracting more people again and contributing more to the Economic Modernization Vision (EMV) listed agriculture and food security as key priorities. Agriculture was ranked as a high-value sector because it adds a lot to the economy. The sector covers everything from farms to factories to markets. The plan includes nine main initiatives to boost food security and promote local food products both inside and outside the the sector still faces challenges. Farmland lacks enough water and resources. Agriculture uses over 50 per cent of Jordan's water, which is why using treated wastewater is being considered. Many farms are small and scattered, which lowers productivity. Also, although Jordan is near countries with high food demand, some crops are costly and low-yield, which makes it hard to compete in those focus on agriculture is crucial. Over the past decade, the sector has grown by 101 per cent, contributing an additional 1.5 billion dinars to the economy. Today, there is a greater recognition of its importance, particularly in ensuring food security and maintaining national Mahmoud Al-Tal is head of the Economics Department – University of Jordan- [email protected]
Ammon
27-03-2025
- Health
- Ammon
Food security and food waste: Are there solutions?
Raad Mahmoud Al-Tal Food waste is a global problem that directly affects food security. It includes all food that is lost from the human consumption system, whether during production, distribution, storage, or after reaching consumers. According to a 2024 report from the United Nations Environment Programme, the average amount of food wasted per person worldwide is about 79 kg per year. This accounts for 16% of the food lost during production and 14% of waste caused by consumer behavior, meaning around 30% of food produced globally is lost or wasted. Food waste in Arab countries is higher than the global average. Each person wastes about 113 kg per year, which adds up to nearly one billion tons of wasted food. In Jordan, the report states that the average person wastes about 101 kg of food annually. However, this number is based on estimates, not actual field studies, so it could be overestimated. Other studies show that food waste in Jordan is closer to 80 kg per person per year. Food security expert Fadil Al-Zoubi says that food waste in Jordan increases during special events, especially during Ramadan. The Consumer Protection Society reports that waste rises by 25 per cent to 30 per cent during this month. Promotional offers and discounts during Ramadan lead people to buy more food than needed, which then gets wasted due to expiration or poor storage. Al-Zoubi adds that consumer behavior plays a big role in food waste. Many people buy more food than they need due to sales or poor shopping planning. Also, not knowing how to store food properly can lead to spoilage before it is eaten. Around the world, the ability to afford healthy food is an important factor in food waste. Statistics show that 52 per cent of people globally can't afford healthy food, while 42% of people in Arab countries face the same issue. In Jordan, this percentage is lower at 14%, meaning that more people can afford healthy food, which may contribute to increased food waste. The food gap is another key issue related to food security. It's the difference between local food production and local demand for food. While the world produces enough food to feed everyone, millions of people still suffer from hunger and malnutrition. Over 800 million people are hungry worldwide, even though about one-third of the food produced globally is wasted. This shows the direct link between food waste and hunger. Reducing food waste can help improve food security by redistributing excess food to people in need. In Jordan, with only 14 per cent of people unable to afford healthy food, reducing food waste could improve food access and fairness. Efforts to reduce waste, such as donating unused food to charities or using it for animal feed and fertilizers, can help close the hunger gap. However, the real challenge is creating effective policies that encourage reusing food rather than throwing it away, to balance reducing waste and improving food security. The royal opening of the National Seed Bank, part of the National Agricultural Research Center, aims to improve food security by developing the agricultural sector and creating new crop varieties. The bank plays a key role in dealing with challenges like climate change, water shortages, and population growth, helping to protect crop diversity and ensure a steady, healthy food supply. It supports the country's vision for economic modernization, the National Sustainable Agriculture Plan (2022-2025), and the National Food Security Strategy, helping Jordan become more self-sufficient and less reliant on external food sources. Food waste is not just an economic issue; it impacts food security and environmental sustainability. In Jordan, as in many countries, reducing food waste requires changing how people shop and consume, and improving policies that support responsible consumption. By continuing these efforts, food security can be improved both locally and globally. Reducing food waste and investing in local agriculture are key to ensuring food security, closing food gaps, and preserving resources for future generations.
Ammon
30-01-2025
- Business
- Ammon
Foreign Aid: A double-edged sword
Raad Mahmoud Al-Tal Jordan receives three main types of foreign aid: grants, development loans and technical support. Grants help fund the government budget and support development or sectoral projects, including priority ones that are coordinated with relevant agencies. Development loans offer favourable terms, such as long repayment periods and low-interest rates, to finance important capital and development projects. Technical support aims to enhance skills and institutional capabilities through studies, expert assistance, equipment, training programs, and scholarships. According to the Ministry of Planning and International Cooperation (MoP), Jordan received around 2.067 billion dollars in foreign aid through grants and loans during the first half of 2024. This aid included 583.59 million dollars in regular grants and 1.350 billion dollars in concessional loans. The funds came from several donors, such as the United States Agency for International Development, Saudi Arabia, Canada, Kuwait, Germany, the United Kingdom, and other countries, in addition to the World Bank, the European Bank for Reconstruction and Development, and the International Finance Corporation. According to the Foreign Aid Financing Report from the Ministry of Planning (updated for June 2024), foreign funding totaling around 26.6 million Jordanian dinars was provided to associations, non-profit companies, and cooperative unions. This funding supported 175 projects after receiving Cabinet approval. the U.S. was the largest donor, contributing 42.1 per cent of the total, followed by the European Union with 9.9 per cent, and Germany with 8.1 per cent. Recently, US President Donald Trump decided to suspend aid to Jordan among other countries for the next three months, raising concerns about its potential impact on the Jordanian economy. US aid has been a vital part of the strategic relationship between the two countries, with the US being one of Jordan's biggest financial and political supporters. However, this decision could also present an opportunity to reconsider the reliance on foreign aid and focus on building a more independent and resilient economy. According to official figures, 70 per cent of foreign aid is allocated as direct support to the budget, where the external grants constitute only about 7 per cent of total public revenues. On December 9, Jordan signed a US grant agreement worth 845.1 million dollars, part of a 10.15-billion-dollar memorandum of understanding between the United States and Jordan for 2022. This grant is aimed at supporting the budget, education, healthcare, and water supply in Jordan. Jordan's economy has demonstrated remarkable resilience in dealing with crises throughout its history. The country has overcome challenges far more severe than the current regional situation and emerged stronger each time. While foreign aid has played an essential role in maintaining economic stability and addressing basic needs, relying on it long-term could impact stability. Aid often comes with conditions tied to the interests of donor countries, and continued dependence on it may delay sustainable development, reducing the country's ability to tackle crises on its own. On the other hand, Jordan has significant unexploited potential in various sectors, including agriculture, industry and tourism. For instance, stimulating investment in tourism could boost GDP by as much as 5 per cent annually. Instead of focusing on the short-term impact of aid cuts, this decision should push the government to explore long-term solutions for building a strong and sustainable economy. These include increasing local production, promoting exports, and diversifying international trade partnerships. Moreover, improving the use of natural resources like phosphate and potash, along with strengthening partnerships with the private sector, could help reduce the budget deficit over time. A useful example to draw from is Singapore, which transformed its economy from relying on foreign aid to becoming one of the world's strongest economies by focusing on investments in education, technology, and infrastructure. Jordan also has a talented workforce that can be utilized if the right environment for innovation and creativity is created. The self-reliance rate in the 2025 budget is estimated at around 86 per cent (with local revenues covering current expenses), up from 81.6 per cent in the 2024 budget. The decision to halt aid in the coming months will certainly place additional pressure on the public budget, which may impact the government's ability to finance development projects and provide essential services. However, the negative effect will be manageable if the government views this challenge as an opportunity to reassess its economic strategy, set new priorities, and build a more independent economy. Achieving this requires a clear strategic vision and ongoing efforts to diversify income sources and develop productive sectors. Financial self-reliance is not easy, but it is the only path to a more stable and prosperous future for Jordan and its people.
