Jordan Times
Wednesday, February 15, 2006
Sixteen Arab countries plan reforms
DEAD SEA (JT) — The ministerial meetings on
investment in the Middle East and North Africa (MENA) region concluded on
Tuesday with the announcement by 16 Arab nations of their intention to pursue
reform policies to improve their business environment.
During the meetings, organised by the Jordan Investment Board (JIB) in
cooperation with the Organisation for Economic Cooperation and Development
(OECD), ministers and economists set out common principles and good practices to
encourage investment.
They acknowledged the need for transparency and predictability of national
policies, laws, regulations, administrative practices and statistics affecting
foreign and domestic investments.
“To achieve higher level of investments, policy makers in MENA countries are
challenged to rethink their priorities in accordance with investors' needs,”
Industry and Trade Minister Sharif Zu'bi told the participants in a speech.
He said: “Effective integration into the world economy requires us to pursue
comprehensive reform; economic, political, social, educational, legal and
judicial. For such reforms to be successful and sustainable, they should be
self-initiated.”
Private sector investment has been identified as one of the keys to the economic
dynamism that many MENA countries are looking for.
In demonstration of their commitment to fostering private investment, the
participants named 21 companies in the MENA region as recipients of awards for
significant job creation and entrepreneurial innovation.
From Jordan, the Petra Engineering Industries Company was awarded one of the
prizes given for best investors.
Ahmad Jweili, head of the Council of Arab Economic Unity, said that Arab
countries will need $600 billion during the coming ten years to upgrade the
living standards of Arab citizens and to deal with the growing unemployment,
currently estimated at 20 per cent.
He also indicated that the Arab League has 3,700 projects valued at $100 billion
to be implemented in the Arab world, stressing the importance of boosting
cooperation among the Arab countries.
To face the growing populations, between 80 and 100 million new jobs are likely
to be needed between now and 2020.
Economic growth in the region has risen from 3.7 per cent in the period
1998-2002 to 5.4 per cent in 2005 and is forecast to remain stable at around 5.6
per cent in 2006. But growth will need to rise at least 6-7 per cent per year to
absorb new labour market entrants.
A number of MENA countries has already embarked on privatisation programmes and
other efforts to make themselves more attractive to investors.
Reflecting these trends, 2005 saw an increase in investment in the region,
particularly in the natural resources and infrastructure sectors.
Stock markets in several MENA countries have risen sharply in recent years.
Italy's Industry Minister Claudio Scajola, who attended the ministerial
meetings, said Italy seeks to increase its investments in the Kingdom, and is
working to obtain sufficient guarantees from the government through the
provision of investment conducive legislation.
During a press conference, Scajola said the meeting represented a chance to
reiterate Italy's interest in the region, particularly Jordan in light of its
moderate policies and high economic growth.
Deputy Prime Minister and Minister of Finance Ziad Fariz inaugurated Tuesday's
meetings by highlighting the Kingdom's efforts to improve its investment
environment through building institutions and adopting legislation that
facilitate investments as well as promotion campaigns.
Ministers of the countries participating in this year's MENA meetings will
convene during the first half of 2007 to review the progress made and follow up
on this year's recommendations.
The MENA-OECD Investment Programme is part of a two-pronged initiative on
“Governance and Investment for Development”, led by the governments of the MENA
region with support from the countries of the OECD.
A parallel initiative for “Good Governance for Development” aims to achieve
improvements in public governance as a major element in fostering a positive
climate for investment.