AMMAN - The government will submit a draft law to Parliament in June to allow Jordan tap sukuk market, or Islamic bonds, Finance Minister Mohammad Abu Hammour said Tuesday.
"Once we have the legislation approved we will be able to diversify our borrowing options," he added, noting that the $750 million five-year bonds the government sold, for the first in the Kingdom's history, in international markets in November last year to help finance the budget deficit.
Speaking at Euromoney Jordan Conference, the first event to be held by Euromoney in the Kingdom, Abu Hammour briefed over 400 participants on the fiscal and economic conditions in Jordan in light of the political unrest in the region.
"Jordan is relatively a small economy which is good in a way as it makes the implementation of economic reforms faster, but however it makes the economy more vulnerable to external shocks," he stated, noting that over the past decades Jordan managed to turn regional challenges into opportunities.
"We are not happy with what's going on around us but we have to be prepared and take advantage of the stability the country enjoys," Abu Hammour remarked, expecting the tourism sector to perform well during the summer season.
Abu Hammour also expected Jordan's exports, particularly phosphate, to grow this year in addition to the higher education and medical sectors.
Nemeh Sabbagh, chief executive officer of the Arab Bank, said the strategic location of Jordan, being centrally positioned between Asia and Africa, and the continuedsecurity andstability has always made the country a unique destination for investors and organisation.
Sabbagh indicated that the financial industry in Jordan has shown strength throughout global economic cycles, noting that the banking sector has been well regulated and has been a key driver for growth at the private sector.
Richard Banks, director of Euromoney Conferences for the Middle East and North Africa, told reporters on the sidelines of the event that the conference seeks to promote and encourage the development of Jordan's financial sector and to improve access to international finance and financial investment.
The conference, which concludes Wednesday, will showcase investment opportunities, bring together representatives of leading local, regional and international financial institutions and highlight Jordan's story to the international capital markets, he said.
"With the current instability in the region Jordan needs to differentiate itself and tell the world that it is a stable country," Banks said.
Nadia Saeed, general manager of the Union Bank, said during a discussion session that the tourism industry in the region, including Jordan, has been hit hard by the political unrest, indicating that people abroad in the US, Europe or Japan see the region as a whole and they don't see Jordan as a stable country.
© Jordan Times 2011
