MASE Energy specializes in developing renewable energy projects in Jordan such as solar and wind farms. It offers solar and wind energy solutions to households and businesses. The company also operates and maintains existing solar plants, currently managing over 2 MW of solar energy assets.
3. Utility
Retail
Operations and Maintenance
We plan, design, develop, construct and manage grid-connected utility solar power
plants. Our flagship project, the Arabia One 10 MW Solar Photovoltaic Power Plant is
currently under construction in Ma’an, has been co-developed with leading international
firms and is being co-financed by the World Bank’s IFC and Finland’s Finnfund – a world-
class stamp of approval.
• a 5 MW Solar PV Plant in Azraq
• the “Arabia One” 10 MW PV Plant in Ma’an
• In the pipeline: a 50 MW PV Plant in Safawi
We offer households and businesses turn-key clean energy solutions comprising solar
and wind energy. We help our clients reduce their dependence on traditional electricity
sources through sustainable and predictable clean energy sources which make perfect
financial sense.
• Amman’s first net-metering wind turbine
• JREEEF’s first multi-household community PV project comprising 400 households
• In the pipeline: a sector-leading wheeling project for one of the country’s leading
business groups
MASE’s O&M Department is responsible for ensuring that our installations operate at
peak efficiency year-round. We are the leading provider of O&M and Asset Management
services for solar plants and hold the largest single O&M reference in Jordan, one of the
largest regionally. We currently operate and maintain a growing number of rooftop and
ground mounted PV plants.
• Over 2 MW of O&M PV assets currently under management
• Unique industry and expert reports published periodically
• In the pipeline: 60 MW of O&M assets under management by 2017, of which 10 MW
to join MASE’s O&M portfolio by Q1 2016
At MASE we specialize in turnkey integration, implementation and operation of
renewable technology systems. We also develop, own, manage and operate utility-
scale clean energy plants. We were established by the Arabia Group of Companies
(“Arabia Group”) and are today at the forefront of the clean energy sector in Jordan.
We operate within both the retail and utility clean energy sectors.
Tel: +962 6 5630 449
Email: enquiries@mase-energy.com
www.mase-energy.com
4.
5.
6.
7.
8. CONTENTS
10.15
76
Moayad Samman, Chairman of the
King Hussein Business Park.
“I am confident that the
company will be able
to generate investment
opportunities valued at
around JD5 billion within the
lifetime of the project.”
14 | VENTURE MAGAZINE | October 2015
9. CONTENTS
10.15
56 The Rush for Renewable Energy
Jordan plans to achieve energy independence with the help of cutting-edge renewable power projects.
By Elisa Oddone
66 Going to Waste: Recycling in Jordan
A new government strategy aims to introduce a nationwide recycling program. What chance does it have of success?
By Jane Hosking
62 The Sun Shines on Jordan’s EV Dream
With a plan to build thousands of solar-powered charging stations, the Kingdom is gearing up to embrace the electric car.
By Laith Abou-Ragheb
72 Zorba: Growing Green
How Zorba is transforming the way food is farmed in Jordan.
By Elisa Oddone
TheGreenIssuefeatures
16 | VENTURE MAGAZINE | October 2015
10. 82
22
regulars
CONTENTS
42
48
36
Opinion
The Economist
The Refugee Crisis: Don’t
Forget Jordan
While the media spotlight focuses
on the refugee crisis in Europe, the
economic burden on Jordan is growing.
By Khalid W. Wazani
24 The Analyst
Banking Sector Ripe for
Consolidation
The Central Bank should encourage
more consolidation in Jordan’s
overpopulated banking sector.
By Jawad J. Abbassi
54 Media and Society
The Case for a
Complaints Commission
Why an ombudsman is needed to
handle complaints against the media.
By Osama Al Sharif
Interviews
46 Executive Interview
Future Fuels
Minister of Energy and Mineral
Resources Ibrahim Saif on Jordan’s
renewable energy drive.
By Dina al-Wakeel
MONEY
50 Amman Stock Exchange
Weakened China, Oil
Price Drag ASE Down
MENA markets decline under the
pressure of China’s slump and the
continued slide in oil prices.
By Aram Rabadi
Review
Hot Wheels
An Innovative Executive
The high tech Infiniti Q50 S Hybrid is
set to revolutionize the Infiniti brand.
By Ghaith Madadha
Stefano Rossati, Le Gaz Integral CEO
18 | VENTURE MAGAZINE | October 2015
11. Managing Director
Qais Elias
qais@jo.jo
Senior Associate
Dina al-Wakeel
dina@venture-mag.com
Editor
Laith Abou-Ragheb
laith@jo.jo
Staff Writers
Jane Hosking
jane@venture-mag.com
Elisa Oddone
elisa@venture-mag.com
Senior Designer
Ahmad Aliah
Ahmad@venture-mag.com
Photography
Alaa’ al-Sukhny
Contributing Writers
Aram Rabadi, Ghaith Madadha, Jawad
Abbassi, Khalid W. Wazani, Nader Museitif,
Osama al-Sharif, Zeid Nasser
Editorial Venture Magazine
P.O. Box 941426 Amman 11194 Jordan
Tel: +962 6 5630430
Fax: +962 6 5630440
Printing
National Press
Advertising
Al-Faridah for Specialized Publications
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hakam@alfaridah.com.jo
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Comments and questions are welcome
info@venture-mag.com
twitter: @VentureJO
www.venturemagazine.me
Published Monthly by
Thismonth,we’vedecidedtohighlight
theexcitingstridesbeingaccomplished
to make Jordan’s economy more
environmentally sustainable. We
take an in-depth look at the huge
renewable energy projects which are
well underway and which promise
to diversify the country’s energy
mix away from its overwhelming
reliance on importing polluting
fossil fuels. We also examine efforts
to encourage more recycling and
greener farming methods, as well
a plan to kick start an electric car
revolution through a network of
solar-powered charging stations.
The government has thankfully
begun to realize the importance of
harnessing the power of the wind
and sun. With the endorsement of
the Renewable Energy and Energy
Efficiency Law in 2012, the Ministry
of Energy laid the foundations for
a slew of projects that the private
sector, in partnership with foreign
companies, quickly jumped on. As
well as being ecologically sound,
it’s important to remember these
projectsalsorepresentsoundbusiness
investments. We also applaud the
government’s decision to exempt
electric vehicles from fees and taxes.
While this will reduce Jordanians'
reliance on petrol, it will more
importantlyreducecarbonemissions.
Jordan wants to increase the share of
renewable energy in its total energy
mix to 15 percent by 2020, which
seems to be the logical thing to do
considering we enjoy an estimated
330 days of sunshine per year. But
in order to absorb more renewable
energy, Jordan needs to invest in
upgrading its grid capacity, and
work on further developing a ‘green
corridor’ to connect the different
renewable energy projects.
Jordan is the perfect country to test
these exciting innovations. We still
have a lot to learn and we certainly
need to further explore the world of
eco-friendly solutions if more sectors
are to benefit over the long-term. But
as time goes by, these projects will
help Jordan’s economy grow in a
greenerway,andtheexpertisegained
can also be exported abroad.
editor'sletter
Dina al-Wakeel Senior Associate
Going Green
20 | VENTURE MAGAZINE | October 2015
12. Two years ago, the Ministry of
PlanningandInternationalCooperation
joined forces with the United Nations
Development Programme to launch
a national response plan designed to
support Jordan’s efforts in mitigating
the negative economic impact of the
Syrian refugee crisis.
The plan is run on a yearly basis so that
internationaldonorscanallocatesome
of their annual budgets towards its
upkeep. Apparently, the plan’s annual
budget has never been fully funded
since its inception. The government
has said that only one-third of the
plan for 2015 had been covered by
the international community until the
end of August. This means that the
maximum the country could receive
until the end of this year is barely 50
percentofthetotalannualburdenofthe
Syrian refugees on Jordan’s economy.
The tragic images of Syrian refugees
trying to reach Europe has dominated
the front pages of many international
newspapers over recent months.
However, the humanitarian dimension
of this crisis has taken the media
spotlight away from the huge financial
burden the crisis has placed on
countries bordering Syria like Jordan
and Lebanon.
Jordan was unable to close its doors
to the huge influx of refugees that
reached almost 6,000 per day last
summer. This might be attributed to
humanitarian, social, ethical, and even,
to a lesser extent, political reasons.
Absorbing around 1.4 million people
over a period of four years is not an
easy task for any country, regardless of
how wealthy or developed it is. Some
Europeancountries,inanefforttokeep
wary taxpayers onside, have made a
big issue out of receiving a couple of
hundredthousandrefugees.ButJordan,
where Syrians now compose almost
20 percent of the population, is paying
$3,000 annually for each refugee in
terms of all types of direct and indirect
costsontheeconomyinfrastructureand
the public budget. Furthermore, this
doesn’t look like a short-term burden.
The best optimistic scenario says that
at any time the crisis in Syria ends, the
refugees will need over a decade to be
able to go back to their homes, which
aremostlydestroyedandareinneedof
a very long reconstruction period.
To this end, Jordan and its national
response plan will need to be
preparedforatleastanannualburden
of $4 billion over the coming couple
of decades. With a total public debt
today of almost $31 billion—almost
90 percent of GDP—Jordan and its
tax payers are subject to an extra
burden of this same amount if it
continues to receive or retain the
same number of refugees for the
coming decade. The international
community has a duty to stand by
Jordan, not only through some direct
minor supporting programs in host
communities and areas, but also by
direct support to the public budget
orbyabsorbingasubstantialnumber
of the refugees in both countries.
However, if a peaceful solution is
in the offing, then the burden of
refugees will still be there but not
for a long period of time. Therefore,
directbudgetsupportschemes,along
the national response plan, might be
sufficient enough to minimize the
financial burden on Jordan.
TheEconomist Khalid W. Wazani
KhalidW.Wazani is the Chief
Economist/ Strategist and CEO of
IssnaadConsulting. Dr.Wazani can
be reached at kwazani@issnaad.com
and his twitter account @khwazani
Europe’s refugee crisis shouldn’t blind the international community to the heavy economic toll the Syrian
conflict is having on Jordan.
TheRefugeeCrisis:Don’tForgetJordan
gateway
22 | VENTURE MAGAZINE | October 2015
13. gateway
A common measure for market
concentration is the Herfindahl–
Hirschman Index, or HHI. It’s defined
asthesumofthesquaresofthemarket
shares of the firms within a sector. The
HHI number can range from close to
zero to 10,000. The closer a market is
to being a monopoly, the higher the
market'sconcentration(andthelower
its competition). If,
for example, there
were only one firm
in a given industry,
thenthatfirmwould
have a 100 percent
market share, and
the HHI would be
10,000, indicating a
monopoly. If there
were thousands of
firms competing,
each would have
nearly a 0 percent
market share, and
the HHI would
be close to zero,
indicating nearly
perfectcompetition.
Calculating the HHI
index for Jordan’s
banking sector,
with its 25 groups, reveals the market
isn’t concentrated and has ample
competition. In 2014, banks’ assets
totaled JD43 billion and the HHI
measure for assets was 911. Credit
faculties totaled JD19.2 billion and the
HHI index was 795. Deposits totaled
JD31.4 billion with the HHI index
measuring 926.
Whereas the top three banks have
over 40 percent in assets, credit
facilities, and deposits, Jordan’s
banking sector is also characterized
by the presence of many smaller
scale banks. The smallest 10 banks’
share of total assets, deposits, and
credit facilities was less than 10
percent of total market size in 2014.
This suggests that the market can
accommodateconsolidationamongst
the smaller banks without negatively
affecting its market concentration
index. If the smallest five banks
merged,theHHIindexinassetswould
only rise by 16 points, by 7 points for
credit facilities, and by 11 points for
deposits. While if the top three banks
merged, the HHI index would rise by
over 1,000 points making the market
highly concentrated.
For a long time, consolidation
has been a Central Bank declared
policy. Yet very little consolidation
happened in the market due to what
observerscall“familyentrenchments.”
Basically, smaller banks dominated by
owner-managers have no interest in
diluting controlling stakes that would
result from mergers.
The Central Bank can encourage
more consolidation in the market by
opening the door to more licenses
for Jordanian banks. The de-facto
freeze on new bank licenses in Jordan
negatively affects the objective of
encouraging consolidation amongst
smaller banks by making existing
licenses seem “valuable” in their own
right. Basically, as no one can enter
themarket,thecurrentmarketplayers
view their current licenses as scarce,
and hence more valuable.
With central banks across the world
aiming to have no one bank as “too-
big-to-fail,” allowing new bank licenses
in Jordan could be the road towards
consolidation amongst smaller banks
and even lower market concentration
in the industry. The
“optimal” number of
banks in the country
should be left to
market forces rather
than by the current
de-facto ban on new
licenses. In return for
issuing new licenses,
the government can
charge relatively high
licensing fees with
conditionsthatrequire
high initial capitals for
any new bank.
Finally, the potential
for new innovative
models in banking
would rise with the
opening up of the
market.Jordancould,
for example, end
up with branch-less Internet banks
that are able to pay higher yields
on deposits and more competitive
rates on credit facilities since their
cost structure would be much lower
than traditional banks with extensive
branch and ATM networks. These can
attractmoredepositsfromJordanians
abroad and avail cheaper credit to
businesses in Jordan’s economy.
THEANALYST JAWAD J. ABBASSI
Jawad J. Abbassi is the founder and
GM of Arab Advisors Group. Contact
him on jawad@arabadvisors.com.
With no less than 25 competing groups, Jordan’s banking sector could benefit greatly from a little consolidation.
BankingSectorRipeforConsolidation
gateway
24 | VENTURE MAGAZINE | October 2015
15. What is it?
The Schengen Agreement, named after the village in
Luxembourg where it was signed in 1995, allows for
passport-free travel through 26 European countries,
including most members of the EU.
What did it help achieve?
The agreement succeeded in fostering greater
economic growth across the region by easing the
movement of people, goods, and services.
But the agreement seems to be at risk.
Why?
The viability of the agreement is being called into
question due to this year’s surge in migration from
war-torn and economically-crippled countries in Africa
and the Middle East, such as Eritrea, Syria, and Iraq.
Under the separate Dublin Convention, anyone seeking
asylum in Europe must register in the first country
they enter. But many of the hundreds of thousands of
migrants reaching Europe have been taking advantage
of the Schengen zone’s lack of border controls to travel
en masse to countries where they believe they have a
better chance of gaining asylum and a better standard
of living. This has led to widespread confusion and
resentment building up amongst member states.
Germany temporarily reintroduced border checks
last month, with several other European countries
following suit.
So what’s the solution?
Germany wants European countries to agree to a
common asylum seeker policy which would share
the responsibility of refugees more equally. But other
European states, such as non-Schengen member
Britain, have said the only way to truly ensure the
future of borderless travel in Europe is to focus on
resolving the conflicts pushing people to migrate in the
The Schengen
Agreement
Cheat
Sheet
EBRD Loans $21 million to
Al Jazeera Agricultural
Company
n an effort to foster economic development in
rural areas of Jordan, the European Bank for
Reconstruction and Development (EBRD) has loaned
$21 million to the Al Jazeera Agricultural Company
to help expand and upgrade its facilities.
TheinvestmentwillprovidetheMafraq-basedpoultry
producer with working capital and support for its
expansionplansthatincludetheconstructionofanew
grain mill.“Through this investment, the bank will
contribute to increasing employment opportunities
and economic growth in rural areas,”said EBRD Vice
President Philip Bennett.
The loan will also be used to help cut Al Jazeera’s
fuel consumption by at least 20 percent, and comes
as part of EBRD’s Finance and Technology Transfer
Center for Climate Change program (FINTECC).
“There is an increasing demand in the region for
cost-effective energy efficiency solutions,”said
Terry McCallion, the director of the EBRD’s
Energy Efficiency and Climate Change team.“This
investment will act as a regional demonstrator of
the cost and environmental savings that are possible
through installation of the right technologies.”
Since it began operating in Jordan in 2013, the EBRD
invested $422 million in 22 projects that mainly
focus on renewable energy and providing SMEs with
greater access to funding. –DW
I
Development
gateway news&views
28 | VENTURE MAGAZINE | October 2015
16. “Cool clock, Ahmed. Want to bring
it to the White House?”
US President Barack
Obama via Twitter,
after 14-year-old
Ahmed
Mohamed was
arrested for
bringing his
homemade
clock to school in
Texas.
"I'm proud of what we've
achieved over the past
two years."
Australia’s Prime
Minister Tony Abbott
after being toppled by
his own party—the
5th change
of prime
minister for
the country
since 2007.
“Any more provocations in
Jerusalem will affect the
relationship between Jordan
and Israel.”
HM King Abdullah during
British Prime Minister
David Cameron’s visit
to Jordan, regarding
the clashes between
Palestinians and Israeli
soldiers in Al Aqsar
Mosque.
“If Europe fails on the
question of refugees
… it won’t be the
Europe we wished
for.”
Germany’s
Chancellor Angela
Merkel on the
thousands
of refugees
fleeing to
Europe.
QUOTED
Relief Shortfall Forcing Syrian Refugees to Leave
Jordan - UNHCR
he UNHCR said a desperate
lack of funding for its relief
efforts in Jordan is forcing more
Syrian refugees to return to their
war-ravaged country, with many
then hoping to travel on to Europe to
seek asylum.
The head of the UN refugee agency
in Jordan, Andrew Harper, said the
number of Syrians leaving refugee
camps in the Kingdom between July
and August doubled to 120 per day.
Harperexpectsthisnumbertocontinue
rising amid a $500 million shortfall in
the region’s overall refugee response,
which includes cuts in food assistance.
“We need at least that amount of
money to provide services and
protection to refugees in Jordan. It
may seem like a lot, but compared to
whatEuropeisnowthrowingat[their
crisis], this amount of money in a
countrylikeJordanorLebanonmeans
a lot,” he said. “The system here
works, the infrastructure is in place,
and we can deliver what refugees
need. We just need resources and a
political stage to do it.”
Harper added that inaction on the
Syrian crisis was one of the reasons
why European countries like Germany
were receiving a record number of
asylum requests this year, many from
the millions of Syrians displaced
because of the conflict raging in their
home country. “Ignore Syria and
ignore the refugees situation and you
will see the repercussions,” he said.
“I do believe that at least partially
whatishappeningwiththemovement
of the population towards Europe is
because the international community
didn’t take Syria’s situation seriously
despite 250,000 people being killed
and four million made into refugees
…Ittooktherefugeestotakematters
in their own hands before the world
decided to react.”
According to government figures,
1.4 million Syrians currently live in
Jordan, half of whom are registered
as refugees with the UNHCR.
Harper urged the government to
open up Jordan’s job market further
to Syrians, many of whom work
informally. “People are going back
(to Syria) despite the camps and
services provided here because one
can keep them alive, but what one
needs is to give them a future,” he
said. “What we are doing in refugee
camps is basically keeping people
alive but they need instead to go out
and work, children need to go to
school and have a plan and future.
They need a purpose in life.”
Jordan’s official crossings with
Syria are closed, forcing refugees to
cross through informal passages in
an eastern desert area. Only several
dozens per day are permitted to cross
into the country amid ramped up
border security, leading Harper to call
on authorities to speed up the entry
process to Jordan. –EO
Development
T
Andrew Harper, UNHCR Representative to Jordan
gateway news&views
30 | VENTURE MAGAZINE | October 2015
17. Tourism
n a move designed to boost visitor
numbers to Jordan, the Ministry of
Tourism has begun offering tourists
the chance to buy a single ticket that
gives them access to most of the
Kingdom’s major acrcheological sites
and museums.
TheJordanPass,whichgrantsentryto
over 40 sites, can be purchased online
for JD70, JD75, or JD80, depending
on whether tourists choose one, two,
or three days in Petra. The cost of
Jordan’s JD40 tourism visa is also
waived as part of the deal.
Ali Ajaj, CEO of Imagine
Technologies, the company that
developed the pass, said it would
encouragevisitorstoJordantoextend
their stay. “Usually tourists stay in
the country only for a couple of days,
visiting the most famous attractions
and then leaving. The ticket will
trigger visitors’ curiosity and entice
them to stay longer and see more of
Jordan’s heritage,” he said.
Travel journalist Matthew Teller
said the pass represents good
value for money and will prove
particularlyattractivetoindependent
travelers. “It’s one of the first
steps by the Jordanian authorities
to recognize that tourism patterns
havechangedandthatindependent
travelers really matter,” he wrote on
his blog. “The Jordan Pass is about
making life easier for individual
tourists. And the future of Jordanian
tourism lies in encouraging
individual tourists.”
Visitor numbers to Jordan fell almost
14 percent in the first five months
of the year compared to the same
period in 2014. Besides introducing
the Jordan Pass, the government has
takenseveralotherstepstosupportthe
struggling sector over recent months.
This included reducing electricity
tariffs for hotels by 50 percent and
boosting the budget of the Jordan
Tourism Board, which is charged with
marketing the Kingdom as a tourism
destination abroad. –EO
Unified Tourist Site Ticket Launched
I
Jordan Secures $3 Billion ITFC Import Loan
ordanhassigneduptoafive-year,
$3 billion loan package with the
International Islamic Trade Finance
Corporation (ITFC) to finance the
import of energy and food staples.
MinisterofPlanningandInternational
Cooperation Imad Fakhoury said
the country’s private sector would
also benefit from the financial and
advisory services of the ITFC.
The Jeddah-based ITFC promotes
Islamic trade financing, which follows
religiousprinciplesandbansinterests
on payments. Its 56 shareholders
extenddirectfinancingandcooperate
with other providers to support
sharia-compliant trade. The Islamic
Development Bank is the largest
shareholder in the ITFC, with a stake
worth $266 million, according to
Reuters. The ITFC has total paid-up
capital of $701.9 million.
Jordanian economist Jawad Anani
welcomed the deal and said
the ITFC’s system has proved
a successful bridge-financing
instrument to fund the purchase of
large amounts of commodities. “This
facility was originally created by the
Islamic Development Bank in Jeddah
andthendevelopedintoafull-fledged
institution because it worked very
well,” Anani said. “Both people
and countries found it was a very
convenient tool for them to use.”
Anani said that instead of charging
interest on the loans it provides,
the ITFC buys the commodity and
resells it at a profit. “It finances
the purchase of certain goods, and
what the borrower eventually pays
is the slightly higher price that has
been agreed upon. It is like a short
loan,” Anani explained. “It is more
relaxing than a typical loan because
it allows one to pay back once the
cash is there without resorting to
financial reserves.” –EO
Economy
J
gateway news&views
32 | VENTURE MAGAZINE | October 2015
18. UAE
Pricey Property
Dubai ’s most expensive apartment has gone on sale for a cool $49 million.
The luxury penthouse sits at the top of the 25-storey the One at Palm
Jumeirah building. It features eight bedrooms, infinity pool, spa, and
12-space garage.
The lavish complex is due for completion in 2017 and is being
constructed by Omniyat and Drake & Scull International.
KUWAIT
Fighter Jet Deal
Kuwait has signed a $9 billion memorandum of understanding to buy 28
Eurofighter jets, Reuters reported.
"We consider this agreement as a strong market signal for additional
orders in the next few years," Eurofighter spokesman Theodor Benien
said, adding that Denmark, Belgium, Malaysia, Indonesia, and Saudi
Arabia were among other interested customers.
Kuwait is also negotiating with the United States to buy 24 Boeing Co
F/A-18E/F Super Hornets, a deal valued at over $3 billion.
SAUDI ARABIA
Investor Incentive
To offset the falling revenues from oil and diversify its economy, Saudi
Arabia has allowed foreigners to own 100 percent of retail and
wholesale businesses.
The announcement was made by the Saudi Arabian General Investment
Authority (SAGIA) during a visit by King Salman to Washington.
According to Reuters, SAGIA wants to attract more high-end investors
who can create white collar or technical jobs for Saudi citizens, as well
as introduce new technology and maintain economic growth.
Low oil prices have proved a drain of Saudi Arabia’s budget, forcing the
government to cut spending and delay projects.
GULFROUNDUPInflation watch
Inflation in August fell by 0.74
percent over the same month
last year. Indicators for rental
housing rose by 4.45 percent,
Education by 3.6 percent, Meat and
Poultry by 4.15 percent, and Clothing
and Footwear by 4.47 percent.
However, Transportation, and Fuel
andLightingdroppedby13.7percent
and 14.11 percent, respectively.
Food Items
CLOTHING AND FOOTWEAR
HOUSING
COMMUNICATION
EDUCATION
FUEL AND LIGHTING
TRANSPORTATION
0.2 0.19 0.19 -0.11
3.7 3.6 3.6 3.6
-11.8 -11.2 -12.3 -14.11
-13.1 -11.0 -13.7-11.5
1.4 0.73 0.47 0.08
4.9 4.8 4.9 4.47
2.4 3.6 0.98 2.25
Month on month Percentage
of change in major consumer
categories
(DepartmentofStatistics,2015)
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
MAY'15 JUNE'15 JULY'15 AUG'15
gateway news&views
34 | VENTURE MAGAZINE | October 2015
19. gateway news&views
Environment
ccording to the United States
Green Building Council,
buildings are one of the heaviest
consumers of natural resources and
account for a significant portion of
greenhouse gas emissions.
But in recent years a move towards
implementing green building
practices has picked up momentum,
with the value of the global green
building market in 2013 reaching
$260 billion. A World Green
Building Trends report published in
the same year said that in addition
tobeingmotivatedbyenvironmental
concerns,companiesacrosstheworld
are increasingly turning to green
building practices out of business
imperative and market demand.
AccordingtoAbdullahBdeir,chairman
of the Jordan Green Building Council
(GBC), companies in Jordan are
likewise starting to realize the value
of going green in terms of helping the
environment and cutting operational
costs. Compared to their conventional
counterparts, he said green buildings
use on average a third less energy, up
to 20 percent less water, and generate
up to 60 percent less waste.
The ultimate aim for any green
building project globally is to be
awarded a Leadership in Energy
and Environmental Design (LEED)
certification. The US-based
organization responsible for the most
widely used green building rating
system has so far awarded three
buildings in Jordan with the coveted
accolade, while a further 23 projects
haveregisteredaninterestinbecoming
LEED certified. –JH
The Middle East Insurance Company building
was the second in Jordan after the WHO
regional headquarters to receive a LEED
certification gold rating. The building
was constructed using green architecture
strategies, which included energy efficient
designs and sourcing 20 percent of
manufactured materials regionally.
Environmentally-friendly building
features, such as gray water reuse and
rainwater harvesting mean the building
has achieved a 50 percent reduction
in potable landscape water use, a 40
percent reduction in indoor water
use, and a 50 percent reduction in
wastewater generation.
The WHO Regional Office Building
was the first to be awarded a gold
LEED rating for the entire Eastern
Mediterranean region. The building
was constructed with almost half
of the materials sourced locally
and using environmentally-friendly
features aimed at improving energy
efficiency by 22.5 percent, and
saving water by 60 percent. Other
energy efficient technology was
used in order to significantly reduce
the building’s contribution to
carbon dioxide emissions and other
greenhouse gases.
Jordan’s Greenest Buildings
A
World Health Organization (WHO) Regional Office Building
Date built: 2011
Location: Mohammad Jamjoum Street, Amman
Designer: Engicon
The Middle East Insurance Company
Date built: 2013
Location: Zahran Street, Amman
Designer: Faris Bagaeen
The Dutch Embassy was the first
building in Jordan to receive the
prestigious international LEED-
certification for green buildings
in 2010 with a silver rating. This
environmentally-friendly and energy-
efficient building was constructed by
transforming and renovating an old
villa. The architect was inspired by
traditionalJordanianbuildingpractices
and used thick walls made from local
materials to act as natural insulation.
The villa’s original swimming pool
was reused as a thermal buffer, so that
in the summer the cold night breeze
is captured and pumped back into the
building during the day as a natural
cooling system. While in winter, solar
panels warm the water inside which is
then pumped into the central heating
system. Other green features of the
building include a low-water intensive
garden,glasswallstomaximizenatural
light, and canvass shades to keep the
building cool.
The Dutch Embassy
Date built: 2010
Location: Abu Bakr Siraj Al-Din Street, Abdoun, Amman
Designer: Rudy Uytenhaak
VENTURE MAGAZINE | 3736 | VENTURE MAGAZINE | October 2015
20. TECH SUPPORT
Eco Apps
Rippl
Seafood Watch
Buycott
Farmstand
While many of us would like to live more sustainably, it’s sometimes hard to know where to start. But
with the help of these four eco apps you’ll be on the right path to greener living.
By Jane Hosking
Buycott is one of the best apps out there to help you learn about the social
and environmental impact of the products you buy. By simply scanning the
barcodeofaproduct,youcanseeinformationaboutthecompanyandifthere
are any campaigns against them due to questionable ethical practices. By
checking these campaigns and becoming a more informed consumer you can
useyourbuyingpowertotakeastandagainstharmfulproductsorcompanies.
Price: Free
Available on: iOS, Android
Most of us know that buying locally grown food from markets means that
you not only get better quality produce and support local farmers, but it also
helps reduce the carbon footprint of transporting food long distances. With
Farmstand you can now easily register and find locally grown food at farmers
markets near you. The app provides information on each market, its opening
times, photos, and a map of its location. This app has yet to take off in
Jordan, but when and if it does it should become an incredibly useful resource
for finding fresh, eco-friendly food.
Price: Free
Available on: iOS, Android
Overfishing of our oceans is one of today’s biggest environmental problems.
So how can we make sure that we’re not part of the problem? Seafood Watch
helps you choose ocean-friendly seafood by allowing you to search what is
sustainable to eat and what’s not. The app also allows you to share and locate
businesses that serve sustainable seafood.
Price: Free
Available on: iOS, Android
Living a green life largely comes down to our daily habits, and while we
may have good intentions, sticking to our aims is easier said than done. Rippl
is effectively an eco personal assistant that helps you build green living
habits into your daily life by suggesting changes you can make, allowing
you to set goals, and then reminding you to follow through. So whether it’s
remembering to take reusable shopping bags, or encouraging you to recycle,
this app will keep you accountable and track your progress in going green.
Price: Free
Available on: iOS, coming to Android soon
gateway news&views
38 | VENTURE MAGAZINE | October 2015
21. gateway news&views
Learning from a Google Success Story
JGeewaxisthecelebratedGoogle
engineer whose Invite Media
advertising company was famously
sold to the search giant for $81 million
in 2010. He dropped by the offices of
Oasis500lastmonthtoshareafewtips
andinsightswiththetechaccelerator’s
budding entrepreneurs.
What advice do you have for
young entrepreneurs hoping
to have a similar success as
yourself?
You’ve got to focus on the customer. If
you’re trying to build something to sell
tosomeone,youhadbetterknowwhat
they’re trying to buy and you’ve got to
figureoutwhatpeoplewantbeforeyou
buildit.Oneofthecommonthingsthat
I think people do is to come up with a
great idea and then spend all this time
building it and then they go and show
it to the customer. Then they have to
go back and redo this cycle again and
again instead of consulting with the
customer earlier on. Tech is one of
those things where it’s not really about
whatyoucanbuildbutwhatyoushould
build. You can build almost anything,
but you can also drive a car with your
feet if you wanted to, but that doesn’t
make it a good idea.
How important is it for startups
to secure investment to help
build their company?
It’s very easy to get swept up in the
hype of ‘I raised this much money and
therefore I’m cool.’ Raising money is
not necessarily a thing to be proud of.
It means you’re selling parts of your
company. Ideally you would instead
have so many customers throwing
money at you that you wouldn’t need
toraiseanythingfromanybody.What’s
important is building something that
actuallymattersandalsofindingpeople
who are willing to pay for it.
How did you manage to build
the company to the point where
it was acquired by Google?
It was all about customers. We found
therightpeoplewhowantedwhatwe
sold them and we really focused on
what our customers actually wanted.
When Google acquired the company
theyhadactuallybeentryingtobuild
something similar for a while but it
wasn’t doing so well and we were
stealing a lot of their customers.
Most of their customers were telling
them that they should buy Invite
Media because they liked what we
were offering. –JH
Technology
J
40 | VENTURE MAGAZINE | October 2015
22. Technology
ith millions in the region
displaced due to ongoing
conflicts in countries like Syria,
the question of how best to shelter
refugees from the elements has
become more pressing than ever.
Jordanian designer Abeer Seikaly
believesshehasananswerintheform
of a Bedouin-inspired, concertina-like
tent that’s easy to erect and fold away,
collectsrainwater,andevengenerates
solar power.
“The response to the masses of
people forced out of their homes
and sometimes their countries is
based on antiquated design systems
that are non-functional as well as
uninspired,”she said.“This project
proposes a new kind of disaster
shelter for refugees based on a
system that is inspired by nomadic
tribes that travel across the land
setting up temporary shelters that
were their only homes.”
Siekaly said she’s currently working
alongside various relief agencies,
including the UNHCR, to produce a
prototype of the tent that was one of
the winners of the prestigious Lexus
Design Award in 2013. –JH
Jordanian Designer Creates Next-Gen Refugee Tent
W
The Arab Monetary Fund, a regional organization that aims to improve Arab monetary cooperation and
encourage the development of the region’s financial markets, has used World Bank data to gauge the size of
the region’s public sector workforces. At 40 percent, it found Jordan’s had the largest.
Jordan’sPublicSectortheRegion’sLargest-Report
GOFIGURE
Jordan Saudi
Arabia
Palestine Algeria Iraq Kuwait Egypt Syria Qatar UAE
40% 38%
32% 31%
26% 25% 21% 20% 19%
30%
gateway news&views
42 | VENTURE MAGAZINE | October 2015
23. gateway news&views
Jordan and China Sign Agreements Worth $7 Billion
ordan and China signed
agreements worth over $7 billion
last month, which included projects
to build the Kingdom’s first oil
shale-firedpowerplantandanational
railway network.
The deals were signed in the presence
of HM King Abdullah on the sidelines
of the China-Arab States Expo in the
Chinese city of Yinchuan.
China signed a $1.7 billion financing
agreementwithJordan’sAttaratPower
Company (APCO) to build the oil
shale-fired power plant, and another
$2.8billiontofinancetheconstruction
of the country’s railway network.
Meanwhile, China’s giant Hanergy
pledged to build a 1,000 megawatt
renewable energy power plant in
the Kingdom at a cost of nearly
$1 billion. The two countries
also struck a $1.7 billion project
deal to establish a training center
in Jordan in partnership with
China’s Huawei Technologies Co.
Ltd, the world’s fourth-biggest
smartphone maker.
Trade exchange between China and
Arab states has grown steadily over
the past years, reaching a total of
$240 billion in 2014, compared to
$25 billion when the Arab-Chinese
Cooperation forum was launched in
2004, The Jordan Times reported.
According to the daily, the trade
volume between Jordan and China
reached $3.6 billion last year. Jordan’s
exports to China rose 200 percent
between 2013 and 2014. These mainly
consisted of potash and phosphates
valued at around $300 million. –EO
Economy
J
44 | VENTURE MAGAZINE | October 2015
24. gateway executiveinterview
FutureFuelsJordan’s energy minister is convinced sun and wind power hold one of the keys to energy independence.
By Dina AlWakeel
demand was there and will there
be a third round?
We had the first round, and it was a
little bit expensive but it was a learning
process,andwehavethesecondround
which was more successful.
Now we are implementing some of
the projects.TheTafilehWind project
is fully operating and we hope to see
more.Wealsohaveothersmallprojects,
andsomearefundedbythegovernment
through the Gulf grant.
We will not go into the third round
before finishing with the second.We
will assess how much we implemented
from the first and second rounds, how
much excess capacity we have in the
grid, and accordingly we will announce
if we need more or not. Or we might at
least delay, it’s not something definite.
Itdependshowmuchprogresswemake
from here until 2016.
I’m happy about the process through
which we get to these (PPA) prices.
[In round two] it’s cheaper for us.
It was transparent from day one
and it was the private sector who
came up with these prices. We are
quite satisfied that this reflects how
everybody has done their homework.
Most of the renewable projects
have been solar. Will we see
more wind projects in the near
future?
TheTafileh project is now connected
to the grid.What we have is a very
successful company that secured
funding and managed to finish
everything, some others are still in the
process.This takes two parties: the
government which signs the PPA and
thedeveloper,andweneedbothtowork
togethertoimplementtheprojects.We
recently signed a second PPA for the Al
RajefWind Farm. So we are moving,
althoughsometimestherearetechnical
issuesandwindprojectstaketime;they
have to measure wind for almost two
years, they have to find the land, and
secure the funding.
Why do you think international
companies are keen to invest in
these projects?
It means we are doing the right thing
and that Jordan is very attractive.
Energy projects are long-term by
nature, so that also reflects confidence
inthefutureofthesectorandthefuture
of our economy.
Overall, how happy are you with
what’s been achieved in terms of
implementing these projects?
I’m satisfied. It’s an ongoing project.
Probably what we need to do is to
expedite, to set more tough deadlines
for companies that we are dealing
with, and also to ensure delivery and
implementation of these projects to
meet the objective of our strategy.
Otherwise I think the implementation
of the first round has been quite
difficult due to the nature of the
project; it’s something related to the
factthatthesearenewprojects,thatwe
are introducing new legal framework
to govern this process and when you
start implementation you realize that
itneedssomeexemptionsanditneeds
some support. But if you ask me now I
would say that there’s no excuse for us
not to move quickly.
Are you past the trial and error
phase?
More or less, I think we’ve learned a lot.
Probably there are some more lessons
that we should learn but I think even at
theregionallevel,Jordanismovingvery
fast in terms of introducing renewable
projects.We always say that we need a
kindofabalancebetweenconventional,
renewable, and other energy sources.
Investors in renewable projects
have called for the grid’s
capacity to be upgraded so that
it can absorb greater amounts
of energy. What’s the latest
on plans to create a “Green
Corridor” that will enhance the
grid capacity and boost the flow
of energy from the south?
WewillbetenderingtheGreenCorridor
before the end of the year. Its cost is
somewhere between the range of $150
million to $200 million.
How do you see the future of
the sector and do you fear that
significantly lower oil prices
could divert investors’ attention
from renewables?
Renewable energy is sustainable, it is
clean. Now of course cheap oil prices
will discourage more investment into
the sector. But in the long-run we need
to diversify the energy mix in Jordan.
I can see that we are ahead of many
other countries in the renewable field.
It was an expensive technology before
andnowitbecameacheaptechnology.
I think we are doing fine, we are one of
the pioneering countries in the region.
Ithinkweareadoptingthestrategyand
weareabouttoachievethetargets,and
I believe that the more sustainable, the
more diversified the sector is, the more
progressivelegislationthatwehave,the
morewecanachieveandcomeupwith
innovativesolutionsatthegreenlevel.
Decision makers seem to have finally
realized that part of the solution to
Jordan’s pressing energy challenge lies
in diversifying its energy basket away
from a near total reliance on imported
fossil fuels.
A string of big solar and wind projects
havebeenlaunchedoverrecentmonths
that aim to generate 20 percent of
Jordan’s electricity needs by 2017.
Minister of Energy and Mineral
Resources Ibrahim Saif believes
renewableshaveacrucialroletoplayin
gaininggreaterenergyindependencefor
the Kingdom.
Why is the government putting
so much faith in renewable
energy?
I think it’s extremely important for
Jordan to look at the overall sector
and to insure the security of supply.
You need to rely on a more sustainable
source of energy as well. So renewable
in general—solar and wind or bio-
fuel—it all falls under this umbrella.
Wehaveastrategythatwearetryingto
adhere to and hope to achieve and it is
that20percentofelectricitygeneration
by 2017 should be from renewables.We
have already prepared the institutional
structure,thelegalframework,andnow
we are investing in the infrastructure.
You put out tenders for these
renewable projects. How much
Ibrahim Saif, Minister of
Energy and Mineral Resources
VENTURE MAGAZINE | 4746 | VENTURE MAGAZINE | October 2015
25. Harmful sulfur dioxide emissions
havealmostbeeneliminatedatJordan
Petroleum Refinery Company’s
(JPRC) Zarqa facility after Le
Gaz Integral recently replaced its
incinerator with a gas recovery unit.
Le Gaz Integral CEO Stefano Rossati
said the refinery, which processes
about 70,000 barrels of crude oil per
day,hasnowreduceditssulfurdioxide
emissions by 99 percent.
How does the new gas recovery
unit work?
The recovery unit captures the sulfur
contained in the gases emitted by the
refinery, storing it first as a liquid
and then transforming it into solid
sulfur pastilles. These pastilles are
later delivered to the JPRC’s clients
and used in other economic sectors.
We have so far exported 400 tons of
solidified sulfur and saved 800 tons of
sulfur dioxide from the atmosphere.
However, with a market price of
approximately $100 per ton, revenues
from the selling of the sulfur is
minimal, especially if compared to the
multi-million investment made by the
refinery to implement this project.
How did the project come about?
We have been involved in this project
since the year 2000, when JPRC
approached us with first inquiries on
howtolimititsairpollutionemissions.
Later, JPRC decided to bolster its
initial plans, so we made a proposal
based on our past experience with
major international oil companies like
Total, Exxon, and Chevron and came
upwithaplanforgastreatmentwitha
very efficient pollution abatement.
What results have you achieved
so far?
Before the creation of the new unit
in June, the refinery emitted some 50
tonssulfurdioxideintotheatmosphere
per day. One month on, the refinery
only emits one percent of that initial
amount, which is an excellent result;
even better of what we achieve in
refineries in Europe. It was a very
tough decision on the refinery's side
to go for such a project. The pollution
was a disturbance for the citizens. This
was the main drive behind JPRC’s
decisiontobuildthisenvironmentally-
friendly unit. The environmental
difference is now very easy to see.
Whenwestartedtheproject,therewas
a big white yellow plume of heavy
gases flowing over nearby villages.
Now, it has completely disappeared.
Do you have any plans for other
projects in the region?
The refinery in Zarqa is undergoing
an expansion, which means that it will
producemoresulfur.Therefore,wewill
continue our collaboration with JPRC
withnewplansfortheenlargedfacility.
This was the first refinery we worked
with in the region, and are now trying
toexpandourbusinessfurthertoEgypt,
the UAE, and Kuwait.
A Cleaner Way to RefineFrance’s Le Gaz Integral has helped slash emissions at Jordan Petroleum Refinery Company’s Zarqa facility.
Soundbite
By Elisa Oddone
Stefano Rossati, Le Gaz Integral CEO
48 | VENTURE MAGAZINE | October 2015
26. MarketBrief
WeakenedChina,Oil
PriceDragASEDown
Aug 20, 2015 – Sep 17, 2015
BY ARAM RABADI
T
he market suffered a 3.6
percent decline and is now
down by 4.7 percent for
the year and 2.6 percent
compared to the same period of
last year. Meanwhile, the market’s
activity reached JD233 million as
the number of traded shares reached
174 million. The Services Index
dropped 4.68 percent and hence
underperformed the Financial Index,
which shed 2.74 percent, and the
Industrial Index, which lost 2.01
percent. Meanwhile, the financial
sector accounted for 73 percent of
the market’s activity compared to 18
percentfortheservicessectorandjust
9 percent for the industrial sector.
Global and regional forces played
some role in the decline of the
Amman Stock Exchange, which
was not alone as it retreated. The
majority of the MENA markets
declined under the pressure of
negative data emerging from China,
and the continued slide in oil prices.
In addition, the global equities
markets were volatile as the world
waited for the US Federal Reserve
decision to raise interest rates or not.
Despite the overall decline
in the financial sector, the Real
Estate Index managed to gain 1.94
percent as Jordan Masaken for
Land and Industrial Development
Projects (MSKN) led the market
with a 152.13 percent gain to close
at JD2.37. MSKN gained 208
percent since it started its ascent
COMPANY
BEST PERFORMERS
WORST PERFORMERS
MOST ACTIVE
CLOSE
(JOD)
CHANGE
(%)
TURNOVER
(JOD)
TRADING ACTIVITIES
AMI: AB Invest Market Index
ASMI: AB Invest Smaller Market
Index
ASE: Amman Stock Exchange Index
Trailing P/E: Market capital weighted
P/E of index elements
MARKET BREADTH
64 100 58
ADVANCERS
DECLINERS
UNCHANGED
CLOSE
CHANGE (%)
YTD (%)
Y-o-Y (%)
Trailing P/E
ASEINDEX
2063.64
-3.61
-4.70
-2.60
13.79
VOLUME (SHARES)
174,089,740
VOLUME (JD)
233,080,697
VOLUME (US$)
328,643,783
INDUSTRIES9%
SERVICES18%
FINANCIALS73%
TRADING VALUE
JORDAN MASAKEN FOR LAND & INDUSTRIAL
AMMOUN INTERNATIONAL FOR INVESTMENT
AL QARIA FOOD & VEGETABLE OIL INDUSTRIES
2.37
0.51
0.54
1.05
5.88
0.38
1.69
1.14
6.51
152.13
50.00
31.71
-58.50
-25.38
-22.45
-15.08
-19.15
-9.46
11,110,268
2,821,149
597,693
53
31,663
1,354,809
58,933,619
25,049,313
19,993,753
NATIONAL POULTRY
JORDAN DAIRY
AL QUDS READY MIX
AD-DULAYL INDUSTRIAL PARK & REAL ESTATE
AL-AMAL FINANCIAL INVESTMENT COMPANY
ARAB BANK
on August 10 and is now up 259
percent since the start of the year.
Moreover, Amoun International
for Investment Company (AMON)
gained 50 percent to close at JD0.51
and was the market’s second best
performer for the period. The real
estate sector also accounted for 45
percent of the market’s activity with
AD-Dulayl Industrial Park and Real
Estate Company (IDMC) leading the
market with JD59 million in trading.
IDMC declined 15.08 percent to
close at JD1.69.
In other financial sectors the
Diversified Financial Services Index
shed 5.09 percent and was the worst
performing Financial Index. Al-
AmalFinancialInvestmentCompany
(AMAL), which was the most active
diversified financial services stock
with JD25 million in trading, was
also the sector’s worst performer
after shedding 19.15 percent to close
at JD1.14. Meanwhile, the Banking
Index dropped 3.17 percent as Arab
Bank (ARBK) dropped 9.46 percent
to JD6.51, and Jordan Kuwait Bank
(JOKB) declined 5.3 percent to
JD3.75. Only three of the banking
sector’s fifteen stocks managed
to gain. Finally, the Insurance
Index retreated 0.11 percent after a
mixed performance by the sector’s
constituents. On one end Yarmouk
Insurance (YINS) led the sector
with a 6.09 percent gain to close at
JD1.22, and at the other end Jordan
French Insurance (JOFR) posted a
sector worst 11.36 percent decline to
close at JD0.39.
The strong decline of the
Technology & Communications Index
(-19.03 percent) weighed heavily on
the services sector. The Technology
& Communications Index fell on
the back of a 19.03 percent drop by
Jordan Telecom (JTEL) to JD2.17.
Moreover, the Utilities & Energy
Index shed 5.9 percent as Jordan
Petroleum Refinery (JOPT) dropped
6.55 percent to JD4.42, and Jordan
Electric Power Company (JOEP)
dropped 5.28 percent to JD2.33. In
addition, the Commercial Services
Index dropped 4.93 percent and Injaz
for Development and Projects (LIPO)
was the sector’s worst performing
stock after dropping 9.35 percent to
JD0.97.
Nonetheless, there were some
good performers in the services
sector, including Al-Ittihad Schools
(ITSC), which gained 9.01 percent
to close at JD1.2. Moreover,
International Company for Medical
Investments (ICMI) and Ibn Al-
Haytham Hospital (IBNH) gained
15.76 percent and 9.84 percent,
respectively. In the transportation
sector Jordan National Shipping
Lines (SHIP) gained 18.85 percent
to close at JD1.45, and in the hotels
& tourism sector Al-Tajamouat for
Touristic Projects (TAJM) gained
4.35 percent to close at JD0.48.
The Printing & Packaging Index
was the top performing Industrial
Index, gaining 8.97 percent thanks
in principle to a similar gain by
Al-Ekbal Printing and Packaging
(EKPC). The Electric Industries
Index also gained 2.43 percent and
Middle East Specialized Cables
Company (JNCC) led the sector with
a 20 percent gain to close at JD0.18.
The Tobacco Index managed to gain
1.91 percent as Al-Eqbal Company
for Investments (EICO) gained 2.13
percent to close at JD14.40.
At the other end, the Mining &
Extraction Index dropped 4.19 percent
as Jordan Steel (JOST) declined 8.93
percent to JD0.51 and United Iron and
Steel Manufacturing (MANS) shed
9.59 percent to close at JD0.66. In
addition, the Food & Beverages Index
dropped 5.22 percent despite Al-Qaria
Food and Vegetable Oil Industries
(UCVO) gaining 31.71 percent to close
at JD0.54, becoming the market’s third
best performer for the period. Other
notableretreatsincludea25.38percent
drop by Jordan Dairy (JDA) to JD5.88
to become the market’s second worst
performer for the period.
PROVIDED BY:
AL ARABI INVESTMENT GROUP
“Member of the Arab Bank Group”
research@ab-invest.net
brokerage@ab-invest.net
Global and
regional forces
played some role
inthe decline of
the Amman Stock
Exchange
VENTURE MAGAZINE | 5150 | VENTURE MAGAZINE | October 2015
27. OxfordBusinessGroup
WordsByOliver Cornock
Oliver Cornock, Regional Editor
THE INSIDE EDGE
www.oxfordbusinessgroup.com
Iran Nuclear Deal Set to
Boost Dubai Economy
Iran’s recent nuclear deal with world powers is expected to create a raft of trade and
investment opportunities for Dubai, which is widely seen asTehran’s stepping stone to
global markets.
ran’s nuclear deal, announced
on July 14, allows Tehran to
resumetradeontheinternational
energymarketandregainaccess
to an estimated $100 billion
in frozen foreign assets, giving it vast
resources to revive its stalled economy
and boost trade and investment with
neighboring Dubai.
While bilateral trade between Dubai
and Iran fell by almost one-third
between 2011 and 2012 due to
sanctions, the UAE remains Iran’s
second largest trading partner after
China, and the return of Iran to the
global marketplace offers extensive
opportunities for Dubai. In particular,
Dubai’s relative strength in terms of
logisticsandfinance—twosectorsthat
have stagnated in Iran as a result of the
sanctions—bode well for the emirate.
Trade between Iran and the UAE
couldsurge15to20percentinthefirst
year following the lifting of sanctions,
said Hossein Haghighi, vice-president
of the Iranian Business Council in
Dubai. While Dubai’s economy
could get a boost of up to 5 percent,
according to Hasnain Malik, head
of frontier market equity strategy at
Exotix Partners in Dubai.
Thanks to heavy investment in
transport and logistics, Dubai is well
placedtotakeadvantageofhighertrade
volumes, allowing it to act as a port of
entry for regional freight movements
and trans-shipment to Iran.
This will become more significant as
Iran opens up to world markets and
rampsupspending,withanalystsfrom
Bank of America Merrill Lynch expect-
ingIran’simportdemandtomorethan
double from $80 billion today to $200
billion by 2020.
Investorshavealreadyflockedtostocks
in companies that stand to benefit
from more open relations with Iran,
such as DP World, which operates
the Jebel Ali deepwater port in Dubai.
The company’s shares jumped nearly
9 percent in the week following the
announcementoftheinitialframework
for the preliminary deal in early April.
Dubai’s role as a major air transit hub
will also be bolstered, with carriers
looking to add more routes to Iran
in anticipation of higher passenger
volumes. Dubai’s Emirates Airlines has
led the way in increasing connections,
announcing in mid July it would
I
begin flying to Mashhad in
September, its second Iranian
destination after Tehran.
Sharjah-based Air Arabia, which al-
ready serves seven cities in Iran, is also
set to benefit from greater air traffic.
Given its proximity to Iran, Dubai is
well positioned to become a base for
foreign firms looking to capitalize on
the Iranian market, much like Hong
Kong has been for China. Garbis
Iradian,chiefeconomistattheInstitute
of International Finance, told local
press in mid July that “more foreign
companiescouldbeattractedtoDubai
to do business in Iran.”
Some firms are already making moves
in the emirate. In late June, Sweden’s
Assa Abloy, the world’s largest lock
manufacturer, acquired Dubai-based
Prometal Group, a leading producer
of security doors. According to the
company’s President and CEO Johan
Molin, the move was aimed at taking
advantage of opportunities in the
Iranian market.
“We are ready,” Molin said in an
interview with Sweden’s TT news
agency on the prospects of doing
business in Iran. “Among other things,
we’veboughtacompanyinDubaithat
wethinkshouldbeabletoexportsafety
doors to Iran.”
While analysts forecast Iran’s return
to energy markets could see oil prices
fall by a further $5 to $10 per barrel,
this will have less of a direct impact on
Dubai than other parts of the region,
with oil revenue accounting for less
than 2 percent of the emirate’s GDP.
Although weaker energy prices could
still result in slower economic growth
across the wider UAE, increases in
trade and business opportunities will
likely more than offset this.
Dubai’s role
as a major air
transit hub will
be bolstered, with
carriers looking
to add more
routesto Iran
VENTURE MAGAZINE | 5352 | VENTURE MAGAZINE | October 2015
28. Press Association (JPA). This in turn
raised questions about the scope of
the commission’s mandate and how
binding its rulings should be.
The Jordan media scene is often
describedaschaotic,especiallywiththe
preponderanceofelectronicmediaand
thegovernment’sattemptstoregulate
onlinenewswebsites.Thegovernment
and the JPA have tried to give a draft
honor code for journalists and media
practitioners some sort of authority.
Discussions about the need for a
complaintscommissioncontinuebut
havegainedmomentumfollowingthe
publication by Al-Ghad newspaper
of a vague news item alleging that a
female UN representative had filed
a sexual harassment suit against a
senior Jordanian official.
Social media was then inundated with
posts purportedly naming the official,
and it took the newspaper a few days
before its chief editor categorically
deniedthatthenewsitemhadanything
todowiththenamedminister.Shealso
attacked irresponsible websites that
made such a claim. Minister of Foreign
AffairsNasserJudehsaidthecampaign
was a form of character assassination
anddemandedthatAl-Ghadrevealthe
name of the accused official.
This would have been a perfect
case to bring before a complaints
commission. Al-Ghad is a serious
newspaperbutitspublicationofsuch
a vague news item that caused the
controversy could be considered a
violation of the ethics code. Such
antics are usually associated with
sensationalist tabloids.
Anotherincidentthatcouldhavebeen
handled by a complaints commission
is the uproar over Ro’ya television’s
airing of a comedy skit that was seen
by some as obscene. Social media
was flooded with posts calling for
the closure of the station on the
grounds it was part of a conspiracy
to corrupt society, and the Jordan
Media Commission decided to file a
lawsuit against the station.
Ro’ya defended its position, arguing
the program was directed towards
adult viewers and that it was
lampooning Arab TV stations’ choice
of children’s programs. If the station
was guilty of anything, it was the lack
of good taste. But the case proved
how divisive media related issues can
be in our society. Once again,
this should have been a case for
a complaints commission rather than
the courts.
A complaints commission board
should include veteran journalists,
retiredjudges,andrespectedmembers
of society. It should have a clear
mandate and must be independent
from governments and influential
media establishments. Its main
objective would be to reconcile those
who believe they had been insulted
or libeled with the alleged offending
mediaoutlet,allwithouttheneedtogo
through the courts. The commission
couldalsoimplementandimprovethe
code of ethics that journalists adhere
to. Its rulings wouldn’t always prove
conclusive, and if all fails then the
injured party could go to court. There
are different forms and types of such
commissions, and in some cases there
could be more than one body dealing
with a specific media activity.
Media outlets function in an
increasingly complex world and as
a result are more likely to err. The
media scene in Jordan is diverse
and Jordanians aren’t bashful about
expressing their opinions on public
issues on social media. Sometimes,
a single criticism can swell into an
unjustified onslaught on a particular
medium, as was the case with Ro’ya.
One small step towards setting up a
complaints commission would be for
the JPA to appoint an ombudsman
to handle complaints concerning
newspaper coverage and to try to
reconcile various parties. Such a
movewouldestablishtheprincipleof
settling complaints outside of court
while strengthening adherence to an
ethical and professional code within
most media outlets.
WordsByOsamaal-Sharif
couple of incidents
lastmonthhaveledto
calls for the creation
ofamediacomplaints
commissiontohandlecasesofalleged
ethical and professional violations.
Setting up such a commission is part
of the objectives of the media strategy
adoptedbythegovernmentafewyears
ago. Such commissions, which exist in
various shapes and forms in advanced
countries, play an important role as a
bridgebetweenindividualsandgroups
and the media body in general. Their
mission is to resolve disputes that may
arise as a result of media coverage
away from courts or as a last resort
before legal action is taken.
Calls to set up a complaints
commissioninJordanarenothingnew.
It’sbeendiscussedbefore,butthesame
legal and structural obstacles seem to
keep cropping up. Participants in an
open dialogue with the government
failed to agree on key issues such
as whether the commission should
be independent or part of the Jordan
MediaandSociety
Media outlets function in an increasingly
complex world and as a result are more
likelyto err
THE COMMISSION should have a clear
mandate and must be independent from
governments and influential media
establishments
Rather than resorting to the courts, Jordan desperately needs an ombudsman
dedicated to settling complaints against the media.
TheCasefora
ComplaintsCommission
A
54 | VENTURE MAGAZINE | October 2015
29. Following the severe disruption of energy supplies in the wake
of the Arab Spring, plans are underway for Jordan to reach
energy independence with the help of cutting-edge renewable
power projects.
By Elisa Oddone
Photography by Alaa’ al Sukhny
The Rush for
Renewable
Energy
A
heavy reliance on
imported energy
has weighed heavily
on Jordan’s already
stretched budget
over recent years,
promptingthegovernmenttolaunch
a strategy that aims to raise the
proportion of energy consumption
met by local supplies from around
twopercenttoalmost40percentover
the next 10 years.
Jordanimportsthegreatmajorityof
its energy needs, spending 20 percent
of its GDP to produce electricity from
cheap oil from Iraq and gas from
Egypt up until recent years. Ongoing
unrest in these neighboring countries
has disrupted these once dependable
supplies, forcing Jordan to turn to
expensive oil imports.
The disruption of Egyptian gas
flows, which generated 80 percent
of Jordan’s electricity in the past,
has spurred the Kingdom to invest in
alternativeenergyprojectstoquellthe
growingpressureonanationalbudget
officials have called unsustainable.
But the country has made im-
portant progress this year towards
improving its energy independence.
This is particularly true in the
case of locally-sourced renewable
power, the contribution of which the
government intends to raise from 1.5
percent of the total energy mix to
10 percent by 2025. “This is a very
ambitious target,” said Ziad Jibril
Sabra, the director of the Ministry
of Energy and Mineral Resources’
renewable energy department.
While he believes the contribution
of renewables might actually reach as
high as 15 to 20 percent, he stressed
that Jordan’s quest to develop green
fuels has not been easy. The country’s
energypolicieshavefordecadesbeen
based on favorably-priced oil pipe-in
from its neighbors, which hampered
any incentive to push for renewable
energy projects.
“Since we as a ministry have to
provide energy resources to people
at the cheapest price, and our state
electricity firm NEPCO also has to
purchase power from the cheapest
sources,itwouldnothavebeenlogical
to resort to something else like the
renewablesthatwereexpensiveatthe
time, when we were instead able to
producepowerfromverycheapheavy
fuel and natural gas,” Jibril explained.
But Jibril added that Amman has
also spent a lot of time in the past
decadetryingtosetupanappropriate
Energy
A major turning point came in 2012 with
the introduction of the Renewable Energy
and Energy Efficiency Law
Arabia Group's Solar Facility in Azraq
VENTURE MAGAZINE | 5756 | VENTURE MAGAZINE | October 2015
30. framework upon which to build the
country’s renewable energy produc-
tion. He said the process had been a
steep learning curve for his ministry.
“We have floated numerous tenders
and projects since 2007 and had to
establish many regulations to attract
investors in the meanwhile. But we
havealsolearnedmanythings,mainly
the legal framework, pricing mecha-
nism, and our grid capacity.”
A major turning point came in 2012
withtheintroductionoftheRenewable
Energy and Energy Efficiency Law,
the first of its kind in the region. The
law dictates that the ministry issues
tenderstoattractcompetitivepropos-
als for the development of renewable
energies on selected sites. As a way
to ease the project implementation
process, it also allows domestic and
international companies to bypass a
previously complex bidding process
and negotiate directly with the
Minister of Energy.
In 2014, and under the first round
of tendering, the ministry signed
12 deals with private companies to
generate 200 MW. In April this year,
the government announced it had
pre-qualified 15 companies for the
construction of a $150 million, 65 to
75 MW solar power plant in Quweira
in southern Jordan. Four more
companies were selected in a second-
round tender the following month
to develop 50 MW of solar capacity
each, exploiting irradiance levels in
the country’s south that are amongst
the highest in the world at around 6.4
KWh/sq meters/day.
In this second round of national
renewableenergyIndependentPower
Producer (IPP) tenders, a consortium
comprisingJordan’sArabiaGroupand
three other solar developers clinched
a deal to provide a combined capacity
of 200 MWp in power plants and
sell electricity at record low tariffs of
around $0.06 per kWh.
Arabia Group, the only company
to be involved in both rounds, has
already started working on a 10 MW
solar energy plant in southern Jordan,
said the group’s Project Development
Director Tareq Khalifeh. “Most of the
projects [in round one] are planned to
start generating electricity by the first
quarter of next year,” he said.
Also the biggest project to be
approvedunderthefirsttenderround,
the 52.5 MW Shams Maan Solar
Photovoltaic Project—the largest
privately developed solar energy
project in the Middle East, according
to Jordan’s Prime Minister Abdullah
Ensour—has started construction on
the $170 million development in June,
due to be completed next year.
Khalifeh said the process leading to
the second round of national renew-
able energy IPPs is progressing much
faster than the previous one, when it
took developers two years to finalize
the Power Purchase Agreement (PPA)
with the government. He estimates
the same negotiation for round two
projectswillbecompletedinlessthan
a year.
“We have templates in place, the
bank agreements, and a proof of
concept from the first round,” he said.
“This makes it much easier to find in-
vestorsandbankstolendmoneytothe
projects. In the first round, most of the
lenders were financial institutions like
the European Bank for Reconstruction
and Development (EBRD)
and the International Finance
Corporation. There weren’t
many commercial banks.”
Khalifeh said entrepreneurs
looking for round two
backers have spoken instead
to several commercial banks
and discussed lending terms,
whichareevenmorecompeti-
tive than the ones offered by
international lenders. Still, he
would like to see more op-
portunities for local banks to
invest in those projects, since
they have been prevented
from doing so by limitations
on lending cycles by Jordan’s
Central Bank.
FOREIGN INVESTMENT
But the void left by local
investors seems to be easily
replacedbyinternationalones,
who are eyeing the rising
renewable energy sector in
Jordan with piqued interest.
This is the backdrop on which
Jordan has recently signed
a memorandum of understanding
with the Chinese Hanergy Thin Film
Power Group for the construction of 1
GW-worth of wind and solar energy
projects, worth an estimated $1.5
billion and an associated 20-year PPA.
Also, Jordan’s first utility-scale
wind project, run by Jordan Wind
Project Company, started operation
in September in Tafileh. Funding for
the 117 MW wind farm came from a
syndicate of six international banks:
the IFC, the European Investment
Bank, the Dutch Development Bank,
the OPEC Fund for International
development, the Europe Arab Bank,
and the Danish Export Credit Agency.
According to Jibril, the wind project
will account for some five percent of
the country’s electricity generation.
The EBRD, which has so far
invested $75 million in solar projects
for the construction of a 60 MW
round-one site in Ma’an, also hopes to
increase its shares in the sector. “We
hope to be part of the financing in the
secondround.Discussionsareongoing
with all four companies selected,”
said Heike Harmgart, the head of
the EBRD’s Jordan office. “This is a
real growth area for us. We are very
keen to scale up our investment into
renewable energy in the country, an
uncontroversially beneficial area of
growth for Jordan.”
Harmgart said the scale of the
projects has so far been small, but still
shows investors Jordan’s know-how in
the sector, helping attract a number of
jointventureswithinternationalplayers
and putting the country in the perfect
position to pitch for larger projects.
Even with these milestones, there
are still a number of issues that have
to be dealt with for the sector to
advance further. Amongst the most
pressingistheneedtoenhanceenergy
transmission and grid capacity across
the country. At the moment, Jibril said
the grid can handle between
800 MW and 1000 MW of
renewable energy without
any reinforcement. But a
new push is needed to launch
the third round of renewable
energy projects and to reach
Jordan’s target of 1,600 MW
from renewables by 2020.
This is where plans for a
“Green Corridor” come into
play. Jibril said NEPCO has
secured financing from the
French Development Agency
and the EBRD, and will sign
the agreement and float the
tender for the project next
month. It will be ready by mid
2018 with some additional
600 MW of renewables to the
grid. Chinese Hanergy is also
providingtheKingdomwitha
$310 million grant to expand
the grid.
Meanwhile, smaller-scale
solar electricity generation
is also expanding at a rapid
pace in Jordan. Following
the 2012 Renewable Energy
Law, households and businesses
have been allowed to generate 100
percent of their electricity consump-
tion through their own solar panels
and sell excess output back to the
grid. This has led to the installation
of around 25 MW of capacity over
At the moment, the grid can handle between
800 MW and 1000 MW of renewable energy
without any reinforcement
Ziad Jibril Sabra, the Director of the
Ministry of Energy and Mineral Resources’
Renewable Energy Department
Tareq Khalifeh, Arabia Group's
Project Development Director
Every house should have a PV system
on the roof and a solar water heater in
Jordan
Energy
VENTURE MAGAZINE | 5958 | VENTURE MAGAZINE | October 2015
31. the last year.
To further boost uptake, the Ministry
of Energy and Mineral Resources'
renewable energy fund signed agree-
ments to fit 600 houses in northern
Jordan with photovoltaic panels. The
fund is also set to allocate $35 million
in funding for sustainable energy
projects over the next three years
throughout the country.
Former Minister of Energy and
Mineral Resources Malek Kabariti
said his own domestic electricity
bill was slashed to some $7 a month
from over $140 since installing a
PV system on his own roof. Despite
the red tape associated with fitting
these systems, he urged others
to follow his lead. “Every house
should have a PV system on the roof
and a solar water heater in Jordan.
This would benefit the economy,
the pockets of consumers, and the
environment.“
Khalifeh agrees and said he hoped
to see more renewable energy
projects,bothonacountry-widescale
and a local level.
“There are still some bureaucratic
difficultiesbuttheframeworkisdevel-
oping as we talk,” he said. “The sector
is becoming a place where people
jumpandtaketheirchances,itisgoing
to be the natural selection, and this is
going to happen soon.”
The business rush to renewables
With electricity bills running into the
millions each year, it’s no surprise
that some of Jordan’s bigger
companies are turning to generating
their own renewable energy to keep
costs down.
Orange Jordan, whose annual energy
bill currently stands at JD16 million,
is building a series of solar farms up
and down the country that aim to
cover 80 to 100 percent of the telco
giant’s total energy needs.
Orange Jordan Deputy CEO Raslan
Deiranieh said the technology to
achieve these remarkable savings
has only recently become viable.
“In the past, limitations on energy
storage technologies impeded the
implementation of large-scale solar
power projects,” he explained.
“Today, storage technologies have
improved considerably, with many
companies making substantial
strides in the arenas of research
and development to create viable
solutions for organizations and
homes seeking to implement more
sustainable practices.”
As well as making financial sense,
Deiranieh hopes the solar project,
which is slated to come online in
the third quarter of next year, will
encourage other firms to adopt
greener business practices. “As
Jordan annually imports about 97
percent of its energy needs, such
projects will go a long way toward
reducing the Kingdom’s reliance
on fossil fuels, the inflated prices
of which have continually resulted
in greater operational costs for all
business sectors,” he said.
Malek Kabariti, Former Minister
of Energy and Mineral Resources
Energy
60 | VENTURE MAGAZINE | October 2015
32. The Sun Shines on
Jordan’s EV Dream
With a deal in place
to fit thousands
of solar-powered
charging stations
around Jordan, the
Kingdom looks set
to embrace the elec-
tric car.
I
tmightnotseemobviousatthe
moment, but Jordan is gearing
up for what could be a trans-
port revolution. You may only
have so far spotted the odd
Teslaferryingaboutagovernmentof-
ficial, but the foundations for a switch
from gasoline to electric vehicles are
slotting into place—and at a quicker
pace than you might think.
As part of a broader effort to wean
Jordan off its overwhelming reliance
on expensive and polluting fossil
fuels, the government is keen to
encourage the mass adoption of
electric vehicles, or EVs, for short.
To this end, EVs were recently
exempted from taxes and fees,
and late last year the government
signed a letter of commitment with
Chicago-based battery-maker AllCell
Technologies to build a network of
3,000solar-poweredelectriccharging
stations over the next decade.
Under the $120 million deal, charging
stations are to be installed at gas sta-
tions to allow motorists to replenish
most of their car’s battery in about 10
to 20 minutes. While other charging
stations that take around four to six
hours to refill a battery are set to
appear in locations where motorists
are likely to be stopping for longer
periods, such as shopping malls. An
app will be available to find and book
the closest available charging point.
AllCell’s Jordanian CEO Said
al-Hallaj predicts his agreement with
the government, combined with the
tax and fee exemption, will result
in roughly 50,000 to 100,000 of
Jordan’s 1 million-plus cars becom-
ing electric within five to seven years.
Zero emission EVs have obvious
environmentalandhealthadvantages.
But al-Hallaj, who also teaches
renewable energy at Chicago’s
University of Illinois, said there’s
now a major cost incentive that will
convince the average Jordanian
motorist to dump their gas guzzling
vehicles and go electric.
The government was never going to
beabletointroducethesameelectric
carsubsidiesorgrantsthathavebeen
introduced in some wealthy Western
countries. So it came up with the next
best thing. “If you import an electric
car you are exempt from all charges
and taxes –that’s almost double
the price of the car. You’re making
electric cars more competitive than
gasoline cars,” al-Hallaj said. The
licensing bands for electric cars is
Technology
By Laith Abou-Ragheb
Photography by Alaa’ al Sukhny
Said al-Hallaj, AllCell’s CEO
VENTURE MAGAZINE | 6362 | VENTURE MAGAZINE | October 2015
33. still not clear, but they're likely to be
similiartotheirgasolinecounterparts.
It’s also important to note that the
price of solar electricity is plunging
and has passed grid parity in Jordan,
thepointatwhichitbecomesascheap
to produce as electricity from fossil
fuels. So according to al-Hallaj, the
debate over the commercial viability
of solar power has been settled in
Jordan, a country which gets around
330 days of sunshine per year.
“The minute that solar reaches grid
parity, it’s over,” he said, pointing to
the fact that the government is now
signing Power Purchase Agreements
with solar power companies for
around 5 piasters per kilowatt hour.
This saving will in turn be passed on
to motorists charging their electric
cars by solar power, al-Hallaj said,
with the cost of traveling 120
kilometers working out at less than
JD2, compared to roughly JD10 for a
gasoline car.
Al-Hallaj said he’s been working
closely with all the major car dealer-
ships in Jordan to raise the profile of
EVs, adding that it’s been a positive
experience so far. “They’ve been
very supportive and we’re trying to
make sure that they start their job of
educating people.”
Earlier this year, BMW launched
Jordan’s first EV in the form of the i3.
At the unveiling event, the Managing
Director of BMW Group Middle East
JohannesSeibartappearedconfident
hecouldfindbuyersforthefour-door
hatchback, which has an official-
range of about 130 kilometers. “We
see that we will have a medium to
long-term sustainable demand,” he
said. BMW’s local sales agent, Abu
Khader Automotive, said it expected
to sell 25 to 30 units this year.
The i3 retails from around JD33,000.
But al-Hallaj said car dealerships
would have to import even cheaper
models for the mass take-up of EVs.
“My target segment of the market
is not the rich people, not the Tesla
drivers,” he said, referring to the
electric car maker that currently only
sells vehicles at the luxury end of
the market. Rather, al-Hallaj said
he’s more interested in targeting the
motorists who commute 100 to 200
kilometers daily and earn between
JD400 and JD700 a month. “Their
income is eaten by fuel that’s pollut-
ing the air. If we provide them with
the latest electric cars with robust
technology, it’s a win-win,” he said.
He added that these particular
motoristsmightbeinterestedtoknow
they now could import a Nissan Leaf
electric supermini, with only a few
thousand kilometers on the clock, for
around JD10,000.
But before you dash out to buy
an EV, it’s important to note that
regulations still have to be put in
placebeforetheprojectcanadvance.
There’s already a law in place
that governs the transportation, or
‘wheeling’ofrenewableenergyalong
transmission lines. But AllCell is still
waiting on the government to create
further legislation that will oversee
its business model, which includes a
30 MW solar farm that will feed into
the grid to cover the electricity being
suckedupbytheproposednetworkof
charging stations.
“There are laws for renewable energy
wheeling, but in our case, we’re sell-
ing to consumers and offering them
a service that needs to be regulated,”
al-Hallaj said. “We’re waiting to
clarify and get proper government
agencies to draft and implement the
right rules and regulations that cover
this concept.”
USAID is helping the government
develop a legal and regulatory
framework that will allow investment
in electric vehicle infrastructure and
incentives for the use of renewable
energy to charge them.
USAID said this includes legisla-
tion that permits the retail sale
of electricity by private service
providers, an electricity tariff system
that’s attractive to investors and to
the government, linking financial
incentivesandexemptionsonvehicle
taxes with the need to use renewable
energy sources, and other non-
financial incentives to encourage EV
ownership such as dedicated public
parking spaces.
Al-Hallaj remains confident the
benefits of using solar energy to
powerelectricvehiclesareobviousto
lawmakers, and the required legisla-
tion will be passed shortly. Until
then,atestchargingstationisalready
up and running at the King Hussein
Business Park and the Greater
Amman Municipality has agreed to
launch a further 10 within a year.
As battery and solar technologies
advance and fall in price, al-Hallaj is
confident developing countries will
come to see their adoption as a clear
no-brainer. What’s more, they will
adoptandbenefitfromthetechnology
at a rapid rate, effectively leapfrog-
ging the stop-start transitionary
periodthetechnologiesareundergo-
ing in more mature economies. They
“can’t afford to go down the same
path and make the same mistakes as
the Western world did,” he said.
The success of AllCell’s pioneering
project in Jordan will be crucial for
the long-term global ambitions of
this fast growing company, which
began production in 2012 and now
has a staff of 45 and is expected to
clear $5 to $10 million this year.
“Nobody has done this yet in the
world. So you take a business model,
you implement it with the latest
technology, and you prove it in
Jordan and it becomes financeable.
The minute it becomes financeable,
you can take it anywhere in the
world,” he said.
Al-Hallaj predicts his agreement with the
government will result in roughly 50,000
to 100,000 of Jordan’s 1 million-plus cars
becoming electric
Technology
64 | VENTURE MAGAZINE | October 2015
34. M
any of us don’t
think twice
about tossing
out bottles, cans,
and paper along
with the rest of
our trash. In fact, a mere 7 percent
of the 2 million tons of municipal
waste produced annually in Jordan is
recycled. The Kingdom doesn’t even
haveanationwidehouseholdrecycling
program, and up until now, the
practice has been largely carried out
by informal collectors, also referred to
as "scavengers", who sift through the
nation’s dumpsters and landfill sites
looking for trash to turn into cash.
But this may be set to change with
the development of the National
Strategy for Municipal Solid Waste
Management,whichwasintroducedby
the Ministry of Municipal Affairs and
adoptedbytheCabinetlastmonth.The
new strategy, which is the first of its
kind in the Kingdom, acknowledges a
“completeabsenceofregularsorting-at-
sourceprograms”andthereforeoutlines
a nationwide plan to set up separate
collectionsystemsforrecyclables,such
as paper, metal, plastic, and glass, by
the year 2034.
Hussain Mhaidat, the director of
local councils at the ministry, said the
implementation of the strategy will
commence next year and will include
a pilot project for recycling that will
involve four municipalities in the
northern region of the Kingdom.
Mhaidat, who is heading the
technical committee that’s working
to implement the strategy, said this
project would involve incentives for
Environment
Going to Waste:
Recycling in Jordan
Household recycling in Jordan is next to
non-existent, but a new strategy for solid
waste management introduced by the
Ministry of Municipal Affairs hopes to
change this.
By Jane Hosking
Photography by Alaa’ al Sukhny
Recyclables are a largely untapped
resource in Jordan that have the
potential to create a lot of economic
growth and jobs
VENTURE MAGAZINE | 6766 | VENTURE MAGAZINE | October 2015
35. households to sort their own waste
and separate the recyclable materials.
“We will try at first to give each house
a small bin and later we will try to put
certainbinsforeachkindofrecyclables
in each neighborhood,” he said.
When implementing the project,
the ministry will conduct a public
awareness campaign within the
selected municipalities. This will be
funded through a JD2.8 million grant
provided by the German Corporation
for International Cooperation.
Mhaidat hopes the project can also
employ some of Jordan’s informal
collectors. “They have been working in
this field for a long time and we don’t
want them to lose their jobs. So we
wanttoregulatetheirworkthroughour
formal plan,” he said.
Prior to drafting the new strategy,
action taken by the government to
encourage recycling was limited, and
will likely remain so until the pioneer-
ing strategy really starts to take off.
In the meantime, the government
is carrying out some other smaller
initiatives. According to Mohammad
Khashashmeh, director of chemical
waste management at the Ministry of
Environment, this includes collection
stations that have been set up in the
northernpartsofJordanforthedisposal
of electronic waste, such as comput-
ers, televisions, and mobile phones.
Plansarenowunderwaytoexpandthe
scheme to Amman.
In addition to this, tentative steps
are being made to sort waste at the
Ekedar and Ghabawi landfills via
a mechanical conveyor belt. “The
Ministry of the Environment is
planning the mechanical segregation
before dumping the waste to benefit
from the recyclable material,” said
Khashashmeh, adding that not only
will this reduce the amount of waste
going into the landfills, but it will also
generate income.
However, this income will unlikely
be large enough to cover the cost
of the waste management programs
for these landfills. Raouf Dabbas,
senior adviser to the Minister of
Environment, said that sorting landfill
waste downstream is much less effi-
cientthansortingitclosertoitssource.
“It’s more cost effective if you do it
upstreamandthefurtherupstreamyou
go, the more effective it becomes. If
youwaitfortheunsegregatedwasteto
go all the way down to the landfill, by
then it’s more expensive to segregate
it,” he explained.
Mhaidat agrees. “First we should
start from the source, especially from
houses, universities, and schools. And
if we can start with the separation at
the source we will be able to reduce
the amount of waste that will be sent
directly to the landfills,” he said.
According to the new strategy report,
currently only 1 percent of recycled
materials in Jordan are being sorted at
their source.
Filling the void
In the absence of a government-led
nationwide recycling program, a
number of non-profit initiatives have
emerged to fill the void. For example,
waste management company BE
Environmental Services established a
household recycling center in 2012 at
theCozmosupermarketnearAmman’s
Seventh Circle.
Smaller educational recycling
initiatives are also underway, such as
a recent initiative called Dawerha, led
by the Jordan Green Building Council
andtheEmbassyoftheNetherlands,in
cooperation with the Queen Rania Al
Abdullah Secondary School for Girls
in Amman’s Abdoun district. As part
of this pilot project, 20 recycling bins
havebeendistributedtobusinessesand
residences in the area and three large
bins are located at the school for the
collection of paper, plastic, metal, and
old clothing.
The Jordan Environment Society
(JES) is another example of the non-
profit sector stepping up to the plate
wherethegovernmenthassofarfailed
todoso.Thegroupestablisheditsrecy-
cling program in 1995, and is probably
the most comprehensive and longest
running non-profit recycling initiative
in Jordan. According to Ahmad al-
Kofahi, executive director of JES, the
programhasover200collectioncenters
in schools, offices, shopping centers,
and embassies, and has employed out
of work Jordanians to collect, sort, and
then sell the recyclables to a recycling
contractor.
While larger than Dawerha, the JES
recycling program is still a small-scale
pilot project and relies on support
from the Greater Amman Municipality
(GAM). “Without the reasonable in-
kind support from GAM, the program
will not be lasting and feasible,” said
al-Kofahi, adding that they would like
to expand their work further but that
this would require more funding and
theparticipationofprivatesectoractors
who have experience in managing
waste and turning it into a profit.
Thesenon-profitrecyclingprograms
are certainly valuable contributions to
the cause of recycling in the Kingdom,
but being on such a small-scale, the
benefitsgainedaresmallincomparison
to what a government-led nationwide
recycling program could achieve.
The consensus appears to be that,
in addition to being good for the
environment, recyclables are a largely
untappedresourceinJordanthathave
the potential to create a lot of eco-
nomic growth and jobs if a nationwide
program was implemented. “The
country is strapped for resources. We
haven’t got many and what we have is
also very scarce. So it’s important to
cut down on a lot of the costs that we
must incur in importing these things:
themetals,thealuminum,theglass,and
thepaper.Sohavingarecyclingsystem
that is appropriate for Jordan is very
advantageous,” said the Ministry of
Environment’s Dabbas, who believes
that between 40 and 60 percent of
wastecouldberecycled.“Inadditionto
impactingourenvironment,therefuse
left over constitutes a large amount of
our municipal waste. So it’s extra cost
forthemunicipalitiestotakethiswaste
and throw it away into the landfills,
whicharecausingthemtobecomefull
before their time.”
He added that municipalities spend
more than 80 percent of their budget
onwastemanagementinsteadofusing
the waste as a source of income and
job creation.
Mhaidat agrees. “If this sector was
invested in and regulated well I think
this would create many jobs and
income would be very high,” he said.
“I used to manage two landfills in the
north of Jordan so I know how much
benefit you can get from recyclables. It
can be very profitable.”
In order for the new strategy to be
a success all parties are also in agree-
ment that new legislation is needed
to provide the legal framework for
implementing the strategy and to
govern the relationships between all
the stakeholders involved. “The most
importantmeasurebythegovernment
is the issuing of a new and modern law
of waste and this should be supported
by incentives to encourage residences
toseparatetheirwasteinaproperway,”
said al-Kofahi.
According to Dabbas, a law is
especially important in order to attract
theprivatesector—amovethatisseen
as an essential step for the recycling
program. “There needs to be a legisla-
tion that is conducive for the private
sector to come forward,” he said.
“We’vehadmanycompaniescomeand
they’reinterestedinstartingsomething
up, but without the proper legislation
there’snoguaranteeforthemthatthey
would be able to get their money’s
worth of a recycling plant if there’s no
regulation in place.”
It’s clear that the government
needstodrafttheappropriatelegisla-
tion quickly if it really is serious
about implementing the recycling
strategy. The strategy report itself
warned that a further increase in
population due to instability in the
region could lead to the collapse of
the plan, which is much needed and
already well overdue.
Currently only 1 percent of recycled
materials in Jordan are being sorted at
their source
Raouf Dabbas, Senior Adviser to the
Minister of Environment
Ahmad al-Kofahi, Executive
Director of JES
Mohammad Khashashmeh, Director
of Chemical Waste Management at
the Ministry of Environment
Hussain Mhaidat, Director of Local
Councils at the Ministry of Municipalities
VENTURE MAGAZINE | 6968 | VENTURE MAGAZINE | October 2015
36. In the absence of a national recy-
cling program, some Jordanians
have taken a creative approach to
make use of the trash they see
going to waste around them. In
2008, Hana Faouri established a
community space called Khorda
in Jabal Al-Weibdeh, where she
coordinates a number of projects
that involve working with communi-
ties to recycle old materials into
handmade crafts.
What do you make out of old
materials?
We have a project with different
women in a number of different
governorates making handmade
products. One of them is in Sahab
where we teach the women how
to fuse and weave plastic bags and
how to make bags, shade lamps,
and things like that out of them.
Because Sahab is an industrial area it
has many scrap yards where you can
find a lot of materials. So we have
made lots of furniture from objects
we found there. Basically we reuse
old materials in a way that can make
them functional again.
What was the initial idea behind
Khorda?
I wanted it to be a space where people
could come and sell their products and
connect with each other to develop
other projects. And I wanted it to be a
community space where people can
also teach workshops. I also wanted
to do something more with my hands,
using affordable materials, so I started
with recycled materials.
Why do you think it’s important to
use recycled materials?
I think it’s a very good way of making
money for the communities we
work with because the cost is really
nothing. It is the perfect solution to
reuse old materials in a creative way
to make something valuable. We con-
sume a lot in our culture and there’s a
lot of waste so I feel that it’s a natural
reaction to what’s happening.
The Craft of Recycling
70 | VENTURE MAGAZINE | October 2015
37. With his range of naturally grown
fruits, vegetables, and herbs, Azzam
Zorba is on a mission to improve our
diet and transform the way food is
farmed in Jordan.
By Elisa Oddone
Photography by Alaa’ al Sukhny
Zorba:
Growing Green
G
erman philosopher
Ludwig Fuerbach
wrote around 200
years ago that “man
is what he eats.”
Jordanian farmer
Azzam Zorba couldn’t agree more.
When he launched his eponymous
range of naturally grown produce in
2002,Zorbasetouttoprovetotherest
of Jordan’s farming sector that being
environmentally friendly can actually
be good for business. “I wanted to
showthemthatonecanproducegood
products and be successful by follow-
ing different cultivation procedures
and not only by focusing on being
commercial,” he said.
The use of pesticides and water
are kept to an absolute minimum
on Zorba’s three farms, where 50
different types of herbs, fruits, and
vegetables are grown mostly for sale
inselectsupermarketsaroundJordan.
Zorba also contracts cultivators
across the Kingdom to grow crops us-
ing his techniques and guidelines, and
the origin of his products are clearly
labeled,whichisanotherimportantway
his business has differentiated itself
from the start. “When a person goes
to any of the Jordanian markets to buy
vegetablesorfruits,oneproductwould
be simply equal to the other. I took up
the responsibility, instead, to create a
brand which conveys more informa-
tion,” he said. “We don’t only sell
vegetables, but put our face on them.”
Naturally grown and organic food
products worldwide are usually
significantlymoreexpensivethantheir
conventionally farmed counterparts.
Zorba said his produce roughly sells
for double the country's price, mainly
due to the stricter growing process
overseen by his 50 employees. “We
follow our products from the seeds,
whichweimportfromSpain,uptothe
shelves.”
Located in the Jordan Valley,
some of the most fertile land in the
Middle East, Zorba’s first farm has
never stopped growing the high
quality herbs, vegetables, and fruits
the brand has become widely known
for. Down the years, Zorba has added
two additional farms to his business,
one in the outskirt of the city of Jerash
and the other along Amman’s Airport
Road. There,greenhousessprawlover
an area between 35 and 40 dunums,
about10regulation-sizedsoccerfields.
To limit water consumption and
waste in Jordan, one of the world’s
driest countries, Zorba’s farms
employ the so-called “spaghetti”
irrigation system, which connects
small diameter vinyl tubes to
multiple-outlet emitters to regulate
water output for the plants.
Inthefuture,computerizedsystems
will regulate the process, allowing
water to drip slowly to the roots of
plants in combination with mist and
fog irrigation.
Jordan’s water scarcity and low
quality, which often fails to meet inter-
nationalsafetystandards,havespurred
Zorba to start contracting farmers to
work under his company’s strict rules.
This means the use of chemicals and
pesticidesonthevegetablesinhisfarms
isalsominutelymonitored—fromhow
muchisusedtowhentheyareapplied.
About90percentofZorba’sproducts
are green leafy vegetables spanning
Rocca and Japanese Mizuna, which is
a piquant, mild peppery flavor used in
stir-fries and soups, to Italian lettuce,
parsley, and mint. “We are … about
to start introducing niche vegetables
impossible to find in Jordan, like leaves
from the Far East and other spices
whicharesuitableforthepreparationof
Mexican food,” he said.
Crops spanning the renowned San
Marzano tomato, famed as the only
tomatoes that can be used for a true
We don’t only sell vegetables, but put our
face on them
Agriculture
VENTURE MAGAZINE | 7372 | VENTURE MAGAZINE | October 2015