Jordan Times
Tuesday, February 17, 2004
Kuwaitis pour 'huge' investments in Jordan
By Rami Abdelrahman
AMMAN — Soft loans extended by the Kuwaiti Fund for Arab Economic Development (KFAED) to Jordan since 1962 amounted to $313 million, besides $165 million in technical grants aimed at developing the livestock sector in the Kingdom, according to the information office of the Kuwaiti embassy.“The Fund helped in setting up Al Hussein Electricity Station and in developing potash as well as phosphate projects,” Faleh Motery, head of information office told The Jordan Times on Monday.
He indicated that KFAED was also involved in the development of the Zarqa River basin and other schemes related to Amman's water.
The Fund also supports the Arab gas pipeline that will pass from Egypt through Jordan, Lebanon and Syria, he indicated.
Motery highlighted Jordan as also a gateway through which development grants can be extended to the occupied Palestinian territories.
Motery described relations between Jordan and Kuwait as “dynamic” referring to several visits by His Majesty King Abdullah and other senior officials to Kuwait during the past few years.
Noting that relations between both countries are mainly economic, the information chief indicated that about 400,000 Kuwaiti tourists visited the Kingdom over the past two years.
Confirming that many Kuwaitis have rented or bought real estate in the country, Motery pointed out that “Kuwaitis are now buying real estate in Mafraq Governorate, because there are firms that promote those lands in Kuwait.”
Motery described the Kuwaiti investments in the Jordanian private sector as “huge,” noting that the Kuwaiti National Bank, considered one of the top Middle Eastern banks in terms of services and performance, is expected to open soon in Jordan.
Kuwaiti firms own 18.8 per cent of the Housing Bank for Trade and Finance (JD18.8 million), 52.1 per cent of Jordan Kuwait Bank (JD13 million), and 11.5 per cent of Jordan National Bank (JD4.6 million).
Entertainment and tourism sectors in the Kingdom are starting to witness the presense of Kuwaiti investments, as Kuwaiti businessmen recently bought 400 dunums in Amman to build a shooting club, according to Motery.
“Kuwaiti businessmen prefer strategic investments... Many of them are studying opportunities in the Dead Sea area related to tourism,” he said noting that Kuwaitis have a share in Le Meridian Hotel.
Other important Kuwaiti investments in the Jordanian private sector include: 97 per cent of Fastlink ($425 million), 15 per cent of Phosphates mines ($14.1 million), and 75 per cent of Safeway owned by Al Sultan Trade Centre.
Jordan and Kuwait signed a transportion deal that eased the importing and exporting process between both countries
“Now goods are easily transported between both countries, and tarrifs do not exceed four per cent to cover minor expenses,” Motery said adding that “Kuwaiti officials give Jordanian truck drivers a 3-month multiple entrance visa.”
Under a free trade deal signed between Jordan and Kuwait, all tarrifs will be lifted this year.
According to Motery, Jordanian exporters find the Kuwaiti market as “most profitable.”
“Jordan's food products are highly demanded by Kuwaiti consumers as well as the Jordanian workforce in Kuwait,” he said. “Kuwaitis prefer Jordanian vegitables, foods and building stones because of their high quality.”
He indicated that Kuwaiti businessmen find the Jordanian workforce “to be highly skilled and intellectual.”