The Gulf of Aqaba in the north of the Red Sea. Reuters
The Gulf of Aqaba in the north of the Red Sea. Reuters
The Gulf of Aqaba in the north of the Red Sea. Reuters
The Gulf of Aqaba in the north of the Red Sea. Reuters

New shipping line between Jordan's Aqaba port and US aims to cut journey to 22 days


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A direct shipping line has opened between Jordan's only port of Aqaba and the US, the official Jordanian news agency reported.

The agency said the line inaugurated on Sunday would cut a container ship's journey between the two countries by 37 per cent to 22 days.

“It is a big opportunity for Jordanian industrial companies to increase their exports at competitive prices to the United States,” said Nayef Al Fayez, head of the Aqaba Special Economic Zone Authority.

During the first 10 months of last year, Jordan exported $2 billion worth of goods to the US, compared with $1.8 billion in the same period of 2021, according to central bank figures.

US exports to Jordan rose to $1.2 billion from $821 million over the same period.

But Jordan's overall container exports from Aqaba remained steady at 86,229 containers last year, according to official figures.

Jordan is a main recipient of US aid, receiving $1.3 billion to $1.4 billion in development, military, and other aid from Washington every year. The kingdom hosts several thousand US troops under a 2021 defence pact.

In May last year, American carrier United Airlines started flights from Washington to Amman, connecting the two capitals directly for the first time.

During the past two decades Jordanian authorities have been trying to expand Aqaba by offering investors concessions and trying to spur consumption through lower taxes than in the rest of Jordan. Aqaba enjoyed a mini-boom in the 1980s, when its port served as a main conduit of supplies and weapons to Iraq during its eight-year war with Iran.

In 2018, officials said they wanted to revive an oil refinery project in Aqaba that was first conceived in the 1990s. Under the new proposal, the refinery would process Iraqi crude delivered via pipeline from Basra, doing away with the need for Iraqi oil imports by road. But the idea never gained traction because of the unstable relations between the two countries.

Last week the first cruise ship terminal opened just outside the city under a deal with the Emirati Abu Dhabi Ports Group.

Jordanian authorities have offered the group property and other concessions to upgrade the infrastructure in the city and build residential and commercial compounds.

At the end of 2021, the parties signed several deals to build tourism, transport, logistics and digital infrastructure in Aqaba.

They include the proposed $10 billion Marsa Zayed real estate project, a new communications system, additional berths at the main port and an expansion at Aqaba's airport.

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Pakistan v New Zealand Test series

Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza

New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner

Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)

Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am

The specs

Engine: 2.0-litre 4-cyl, 48V hybrid

Transmission: eight-speed automatic

Power: 325bhp

Torque: 450Nm

Price: Dh289,000

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

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Kathryn Hawkes of House of Hawkes on being a good guest (because we’ve all had bad ones)

  • Arrive with a thank you gift, or make sure you have one for your host by the time you leave. 
  • Offer to buy groceries, cook them a meal or take your hosts out for dinner.
  • Help out around the house.
  • Entertain yourself so that your hosts don’t feel that they constantly need to.
  • Leave no trace of your stay – if you’ve borrowed a book, return it to where you found it.
  • Offer to strip the bed before you go.

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.”

The biog

Year of birth: 1988

Place of birth: Baghdad

Education: PhD student and co-researcher at Greifswald University, Germany

Hobbies: Ping Pong, swimming, reading

 

 

Updated: January 30, 2023, 12:56 PM