A residential hill in Amman. EPA
A residential hill in Amman. EPA
A residential hill in Amman. EPA
A residential hill in Amman. EPA

Jordan's King Abdullah tells ministers to set clear timetable for new city


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King Abdullah II has told Jordan's government to set a clear timetable for building the country's new administrative capital.

The proposed city just east of Amman is the latest aspirational mega-project floated by the government in recent decades. Other projects include a desalination plant and an oil refinery.

Jordan's government has already announced plans for the city to become home to a million people.

"His Majesty affirmed the importance of going ahead with executing the new city project within clear and announced time frames, for it to be one of the main engines of the economy," state TV reported after a meeting late on Tuesday between the monarch and members of the cabinet.

It said King Abdullah directed the ministers to form a consultative committee for the project, which will be "a model for other cities" and have high environmental standards.

Jordan's government has not provided figures on how much the project will cost or when it could be completed.

But the head of a leading Middle East construction company said it would cost several billion dollars.

"They seem to be following the Egyptian model of wanting to build new cities out of scratch, when the priority should be building a transportation system and other basic measures," said the construction executive, who did not want to be identified.

"The Egyptian way is putting enormous financial pressures on the state. But Egypt has a bankable government and substantial revenue stream from the Suez Canal and other income. Jordan has nothing of that sort," he added.

The new city was included as part of an economic revival plan revealed in June. The government hopes to attract private investors to projects in industry, farming and real estate by giving them publicly owned land on a concession basis.

The economy of aid-dependent Jordan has been stagnant for more than a decade and unemployment is officially at 23 per cent. Amman has four million inhabitants, accounting for 40 per cent of the country's population.

Most of the budget goes on salaries and the majority of the infrastructure projects that have been built over the past few years have been financed by Saudi Arabia or other donors. These include the main desert road south and a new road linking Amman to Zarqa, Jordan's second city.

Government spokesman Faisal Al Shboulsaid it would take two years for the architectural plans for the new city to be completed. He said that in 2025 the government will start spending $70 million a year to build the infrastructure.

He said it would take another 25 years for the city to reach its one-million capacity, and that most government departments could eventually move there.

"It will be a modern city in every sense of the word," he said.

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Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

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Director: Edgar Wright

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Three and a half stars

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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: January 11, 2023, 10:51 AM