Special Report: Jordan - Closer regional trade links benefit economy

The economic slowdown in the Gulf is having a direct effect on Jordan's economy, and highlighting its dependence on remittances from the 600,000 Jordanians working in the GCC.

Such is the volume of money these workers send back that remittances accounted for almost 15 per cent of the kingdom's gross domestic product (GDP) in 2008. But remittances fell to $273m in April this year, down almost 10 per cent compared with the same month in 2008.

Jordan's economy is also vulnerable to external shocks because of its reliance on foreign direct investment and global export markets. Both of these key GDP generators have recorded lower growth rates in 2009 than the previous year.

There is one area of optimism, however. Trade with its neighbour, Iraq, is providing Jordan with a much needed fillip to its economy. Baghdad's $70bn reconstruction plan is translating into orders for cement, bricks and other materials from Jordanian companies, while the port of Aqaba receives a large proportion of the overseas goods destined for Iraq.

A surge in Iraqi reconstruction efforts could not have come at a better time for Jordan, whose future economic prosperity relies on good relations with its often troubled neighbours.

Gama Enerji Secures Nearly $1 Bln For Water Pipeline Proj-IHA

8 juillet 2009

ISTANBUL (Dow Jones)--

Turkish firm Gama Enerji AS said Wednesday it has secured around $1 billion to build a 325 kilometer water pipeline in Jordan, the Ihlas News Agency, or IHA, reports.

In a press statement the company said U.S. investment firm OPIC, the European Investment Bank and French investment firm Proparco will provide $445 million for the project, while Jordanian Water Ministry will provide $300 million.

It noted that it will provide $190 million from its own capital for the project.

Gama Enerji is a joint venture between Gama Holding and GE Energy Financial Services.