Jordan’s draft 2022 budget forecasts $15 billion in state spending

Jordan’s Cabinet approves the draft general budget law, and the government unit budgets draft law for the fiscal year 2022. (Petra)
Jordan’s Cabinet approves the draft general budget law, and the government unit budgets draft law for the fiscal year 2022. (Petra)
Short Url
Updated 28 November 2021

Jordan’s draft 2022 budget forecasts $15 billion in state spending

Jordan’s draft 2022 budget forecasts $15 billion in state spending
  • The government foresaw total revenues next year at 8.9 billion dinars, with 848 million in foreign grants
  • It has raised capital spending to 1.5 billion dinars, a 43 percent rise from the previous year

AMMAN: Jordan’s Finance Minister Mohamad Al-Ississ said on Sunday that the draft 2022 budget forecasts 10.6 billion dinars ($15 billion) in state expenditure and paves the way for a rebound in growth to 2.7 percent after the impact of the coronavirus pandemic.
Al-Ississ told a media briefing that Jordan had also last week successfully concluded the third review of a four-year program of International Monetary Fund (IMF) backed reforms to help it restore fiscal prudence for a sustained recovery.
Al-Ississ said that the government had increased its local revenues last year without raising taxes through a rare campaign to combat tax evasion and by a major restructuring of the tax and customs administration that ended exemptions.
It foresaw total revenues next year at 8.9 billion dinars, with 848 million in foreign grants.
Jordan’s economy was particularly hard hit last year by the shutdowns aimed at containing the virus, with unemployment at a record 24 percent amid the worst contraction in decades.
Inflation was, however, expected to rise to 2.5 percent next year from a projected 1.6 percent this year, Al-Ississ said.
Most state expenditure goes on salaries and pensions in a country which has among the highest government spending relative to the size of its $45 billion economy.
The government has raised capital spending to 1.5 billion dinars, a 43 percent rise from the previous year to help spur growth and improve infrastructure to help attract more investment, the finance minister said
Jordan’s commitment to IMF reforms and investor confidence in the country’s improved outlook helped it to maintain stable sovereign ratings at a time when other emerging markets were being downgraded, Al-Ississ said.
Al-Ississ said debt servicing on 29.4 billion dinars of public debt would drop next year with a push to expand preferential loans and grants away from more expensive commercial lending.


Turkey Dream Games triples in valuation after raising $255m in funding

Turkey Dream Games triples in valuation after raising $255m in funding
Updated 19 January 2022

Turkey Dream Games triples in valuation after raising $255m in funding

Turkey Dream Games triples in valuation after raising $255m in funding
  • Turkish mobile gaming start-up Dream Games raised an unprecedented $255 million in its latest Series C funding round

RIYADH: Turkish mobile gaming start-up Dream Games raised an unprecedented $255 million in its latest Series C funding round, almost tripling its valuation to $2.75 billion in six months, MAGNiTT reported.

This round of funding was led by Index Ventures, subscribed by returning investors such as Makers Fund, IVP, Kora, Balderton Capital and managed by BlackRock.

The company plans to use the funds for doubling its headcount to 200 people and launch a new game this year.

Founded in 2019, Istanbul-based Dream Games is a mobile gaming company that developed Royal Match — one of the highest grossing mobile games.


UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF
Updated 19 January 2022

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF
  • The United Arab Emirates, Saudi Arabia, and Qatar were ranked the most competitive Arab economies

RIYADH: The United Arab Emirates, Saudi Arabia, and Qatar were ranked the most competitive Arab economies for the period between 2017 until 2020, according to a report launched by the Arab Monetary Fund.

The fifth Arab economies competitiveness report showed that the UAE maintained its top ranking in the general index as it benefited from high scores in the business environment and infrastructure category as well as the organizational and government governance category.

The Kingdom ranked second after having performed well in the overall economic index, the external activities sector and the official reserves index.

Qatar followed in third place, after attaining first place in the real economy sector, the inflation index and GDP per capita index.

Four Arab nations advanced in terms of competitiveness compared to the previous period, including Sudan, Egypt, Morocco, and Mauritania.

Arab states and other non-Arab countries — such as Singapore, Malaysia, Turkey — are included also in the calculation of the index.

The report monitors the economic competitiveness of Arab countries and sheds light on the economic and political measures applied by decision makers for that purpose.


TRSDC closes financing for $3.76bn loan from four Saudi banks

TRSDC closes financing for $3.76bn loan from four Saudi banks
Updated 19 January 2022

TRSDC closes financing for $3.76bn loan from four Saudi banks

TRSDC closes financing for $3.76bn loan from four Saudi banks

RIYADH: Saudi Arabia's The Red Sea Development Co., or TRSDC, announced the financial closure of a SR14.12 billion ($3.76 billion) loan with four Saudi banks.

The financing will be in a form of a term loan facility and a revolving credit facility.

TRSDC, which is developing the world's largest sustainable tourism project, has obtained the loan from Saudi National Bank, Riyad Bank, Banque Saudi Fransi, and Saudi British Bank, according to a statement.

“This year, we have proceeded at pace with the delivery of our flagship project, all the while mindful of our commitment to not only reduce our impact on the environment but actively deliver a 30 percent net conservation benefit by 2040,” explained John Pagano, chief executive officer of The Red Sea Development Company.

GFC Media Group have recently awarded TRSDC’s Green Financing as Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards.


Egypt achieves a $204m initial budget surplus in six months 

Egypt achieves a $204m initial budget surplus in six months 
Updated 19 January 2022

Egypt achieves a $204m initial budget surplus in six months 

Egypt achieves a $204m initial budget surplus in six months 

RIYADH: Egypt’s general budget achieved an initial surplus of 3.2 billion Egyptian pounds ($204 million) during the first six months of the 2021/22 fiscal year, the minister of finance said. 

Mohamed Maait added that revenues grew by 10.3 percent on an annual basis during that period, while tax revenues increased by 15.7 percent, the Middle East News Agency reported. 

He also said that Egypt targets a budget deficit of 6.6 percent in the 2021/22 fiscal year and a primary surplus of 1.5 percent of gross domestic product. 

The minister’s comments came during the cabinet meeting held on Wednesday by the prime minister Mostafa Madbouly, to review the financial performance indicators during the six months period. 


UAE Barakah nuclear plant to reduce 22.5m tons of annual carbon emissions

UAE Barakah nuclear plant to reduce 22.5m tons of annual carbon emissions
Updated 19 January 2022

UAE Barakah nuclear plant to reduce 22.5m tons of annual carbon emissions

UAE Barakah nuclear plant to reduce 22.5m tons of annual carbon emissions

The UAE-based Barakah nuclear power plant is to reduce carbon emissions by a total of 22.5 million tons annually.

The figure represents a 6 percent increase when compared to previous calculations, however.

“The UAE's decision to add nuclear energy to the portfolio of energy sources shows its positive results today. The Emirates Nuclear Energy Corporation is moving forward to make the largest contributions aimed at achieving the goals of climate neutrality in the country by 2050,” WAM reported, citing Mohamed Ibrahim Al Hammadi, managing director and CEO of the nuclear energy firm.

Carbon emissions in Abu Dhabi are expected to decrease by 50 percent by 2025 as a result of operating the four Barakah plants at full capacity, launching new and large-scale solar energy projects, and increasing the efficiency of water desalination operations in the city.

Barakah will provide more than 85 percent of green electricity in Abu Dhabi by 2025.

When fully operational, Barakah will produce 5.6 gigawatts of electricity without any carbon emissions.