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Overseas grants to Jordan double.

A Jordanian Ministry of Finance preliminary website report has revealed that overseas grants to the Hashemite Arab Kingdom

had marginally more than doubled in the current year to date.

The ministry detailed receipts of US$ 293.58 million (208 million Jordanian Dinars equivalent) in grants from foreign benefactors

in the seven months to 31st July 2010. This compared with US$ 145.38 million (103 million Jordanian Dinars equivalent)

contributed in the same period in 2009.

Overall last year's overseas grants fell by 54 per cent to US$ 470.37 million (333.4 million Jordanian Dinars last year), according

to a report by the Finance Ministry published on February 28th 2010. The shortfall caused the country's 2009 budget deficit to

widen to 1.44 billion Jordanian Dinars (US$ 1.98 billion) compared with the 692.7 million (US$ 977.29 million) deficit incurred the

previous year. Figures exclude one-time revenue gained from land sales in 2008.

On a positive note, the combined effects of increasing grants and a reduction in government spending have seen the national

budget deficit contract to 281 million Jordanian Dinars (US$ 396.35) in the first seven months of 2010. Over the same period of

2009 the budgetary gap stood at 641 million Jordanian Dinars (US$ 904.35 million).

Jordan, imports over 90 percent of its oil supply and is therefore heavily reliant on direct foreign investment and grants to offset

budget shortfalls and fund its operating account.

According to numbers reported by the kingdom's Finance Ministry, foreign debt rose to 3.93 billion Jordanian Dinars

(US$ 5.54 billion), an increase of 1.6 per cent over the seven month period. Meanwhile, indigenous debt increased by 10.6 per

cent to 6.4 billion Jordanian Dinars (US$ 9.03 billion).

The anticipated post-grant deficit by the year end amounts to 1 billion Jordanian Dinars (US$ 1.41 billion) equating to 6 per cent

of GDP (gross domestic product).

Jordan has embarked on a number of large projects which it hopes will boost tourism, among them a resort on the eastern

shores of the Dead Sea along with further hospitality developments in the capital Amman and port city of Aqaba.

Copyright Andy McTiernan. All rights reserved.

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Publication:Andy McTiernan Property & Economy Bulletin
Date:Sep 3, 2010
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