King Abdullah II of Jordan said the country was looking forward to 'stopping working under the defence orders'. EPA
King Abdullah II of Jordan said the country was looking forward to 'stopping working under the defence orders'. EPA
King Abdullah II of Jordan said the country was looking forward to 'stopping working under the defence orders'. EPA
King Abdullah II of Jordan said the country was looking forward to 'stopping working under the defence orders'. EPA

Jordan's King Abdullah II set to lift Covid state of emergency in 'next few months'


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Jordan's King Abdullah II said on Wednesday he will lift the emergency laws imposed when the pandemic began more than two years ago.

In a televised speech he said authorities were also working on economic and public sector reform plans to modernise the country of 10 million people.

“We are looking forward to stopping working under the defence orders in the next few months, to turn the page on the coronavirus crisis,” the king said in his speech to mark the kingdom's independence day.

A short time after the speech, Jordan's prime minister issued a decision to drop mask mandates in public places and enclosed spaces, official news agency Petra reported.

The authorities lifted coronavirus rules last year, except mask wearing, which was loosely enforced.

In March 2020, the monarch handed expansive powers to the government and security forces to enforce a state of emergency to counter the pandemic.

Among the measures were curfews and bans on public gatherings — part of a crackdown on dissent.

In the aftermath, Jordan's economy plunged into recession, which the government blamed on the pandemic.

It contracted by 2 per cent in 2020, as unemployment reached a record of 25 per cent, official figures indicated.

However, the economy grew 2 per cent in 2021, official data showed. The government expects another 2 per cent growth this year. Economic stagnation and high unemployment has persisted in Jordan since the late 2000s.

The king, 60, said modernisation "is not complete without a strong economy that increases growth rates and creates job opportunities".

King Abdullah II holds all significant powers in the country. In the past few months he invited loyalist businessmen and academics to present their ideas on how to advance the economy at private seminars organised by the Royal Court.

He said "we will be launching an integrated economic vision for the years ahead, which will be a comprehensive point of reference".

Jordan is aid dependent, receiving an annual $1.6 billion in US aid and a similar amount of assistance from European countries. A large part of the country's foreign currency inflow comes from expatriate workers, particularly those from Gulf nations.

The king said a programme to make the public sector more efficient would soon be finalised.

He said it was aimed "at enhancing the level of services offered to citizens, streamlining bureaucratic procedures, bolstering workforce efficiency".

"Economic progress is not possible without prudent and efficient administration," the king said.

He said modernisation should have a "direct impact on citizens’ quality and standards of living".

Jordan became an independent kingdom in 1946, while maintaining strong ties with Britain, which played a vital role in the founding of the country in 1921. King Abdullah, the great-grandfather of the current ruler, was Jordan's first monarch.

The king received independence day congratulations from regional leaders on Wednesday.

These included the President, Sheikh Mohamed and Mohammed bin Rashid, Vice President and Ruler of Dubai.

Who are the Soroptimists?

The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.

The organisation said its name is best interpreted as ‘the best for women’.

Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.

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BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

Villains
Queens of the Stone Age
Matador

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 four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

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

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Global institutions: BlackRock and KKR

US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.

KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.

 

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Updated: June 19, 2023, 12:35 PM