may

CONTENTS
05.15
“I used to do about seven
breast implants a year.
Suddenly, the number has
soared following the latest
fashion trends. Now it is a
very common request, and
I do a hundred a year.”
Dr. Ghaith Shubailat, the first
plastic surgeon certified by
The American Board of Plastic
Surgery in the Middle East.
56
10 | VENTURE MAGAZINE | MAY 2015

CONTENTS
05.15
64 Environment
Red Sea-Dead Sea Project: Too
Little, Too Late?
The Red Sea-Dead Sea conveyance project has finally
been given the green light, but doubts remain if it can
save one of the world’s unique natural wonders.
By Jane Hosking
70 Entrepreneurship
The Women Leading Lebanon’s
Startup Scene
The remarkable stories of four Lebanese women
entrepreneurs, whose startups and ideas are making a
mark in their country, the region, and beyond.
By Dina al Wakeel
features
74Cover story
What to Expect at the WEF
As Jordan hosts the World Economic Forum this
month, Venture takes a closer look at the forum’s
central themes, debates, and participants.
ByLaithAbou-Ragheb

43
54
82
regulars
CONTENTS
18
82
OPINION
18 The Economist
Let them Work
Why the government should allow
Syrian refugees to earn a living.
By Yusuf Mansur
20 Tech Talk
Beware the Brand Trolls
Internet trolls can do real damage to
your brand and business. Learn how
to spot and avoid them.
By Zeid Nasser
22 The Analyst
Setting Priorities in the
Electricity Sector
Why do Jordan’s struggling electricity
companies keep dishing out
dividends?
By Jawad Abbassi
54 Media and Society
A Furious Fall Out
The crisis engulfing Jordan’s daily
newspapers shows no sign of
abating.
By Osama Al Sharif
MONEY
50 Amman Stock Exchange
Index Slips despite
Strong Industrial
Performance
The ASE declines despite a strong
performance by the Industrial and
Services Indexes.
By Aram Rabadi
Review
82 Hot Wheels
A Centennial Special
Edition
The dramatic Maserati GranTurismo
MC Centennial.
By Ghaith Madadha
80 How to
Leveraging the
Potential of LinkedIn
How to use LinkedIn to advance your
career prospects.
By Jane Hosking
84
48
Anne Gronbjerg, Maersk Line Managing
Director for Jordan, Kuwait, and Iraq

Managing Director
Qais Elias
qais@jo.jo
Senior Associate
Dina al-Wakeel
dina@venture-mag.com
Editor
Laith Abou-Ragheb
laith@jo.jo
Staff Writers
Jane Hosking
jane@venture-mag.com
Elisa Oddone
elisa@venture-mag.com
Art Director
Heba Abu-Elayyan
heba@venture-mag.com
Photography
Alaa’ al-Sukhny
Contributing Writers
Aram Rabadi, Ghaith Madadha, Jawad
Abbassi, Nader Museitif, Osama al-Sharif,
Robert Carroll, Sadad Talhouni, Yusuf
Mansur, Zeid Nasser
Editorial Venture Magazine
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Published Monthly by
In this issue’s Postscript column,
Osama al Sharif praises public sector
departments like the Civil Status and
Passports Department for the swift
services they provide to Jordanians. I
couldn’t agree more.
I recently applied for a certificate of
good conduct and was delighted at
how quickly and easily it was issued.
The whole process—from filling out
the form to having the document
handed to me—took little more than
15 minutes. Renewing your passport
and ID cards has also become
relatively hassle free.
In this respect, we thank the
government for making our lives that
little bit easier. But we believe also it’s
high time the procedures for anyone
wanting to invest in Jordan were
speeded up. The consolidation of all
our investment bodies into the Jordan
InvestmentCommission is astepin the
right direction. We hope it can reduce
the red tape and uncertainty which
have so far stifled the investment flows
needed to boost our anemic economy.
I know of several Arab investors that
have called on the government to
acceleratetheprocessofgrantingthem
approvals and help them establish a
business in Jordan, this of course in
addition to reducing operating costs
like electricity and water. Many of
them, particularly Iraqi and Syrian
businesspeople, said this would make
it more feasible for them to operate
from Jordan, which today serves both
the Iraqi and Syrian markets and is
proximate to several large markets
like Europe.
We also hope the government will
sit up and take proper notice of the
importanceofe-government,whichhas
been shelved for years and is almost
non-existent. Providing e-government
services is sure to reduce the long
queues of people seeking government
services, cut operating costs and the
needtohiremorepeopleinthealready
bloated public sector. We should take
heed of the UAE experience which
today provides citizens, residents,
businesses,andvisitorswiththechance
to settle their fees online, pay for
some university courses, health card
renewals, and even their zakat online.
The developments in the services
providedbysomepublicsectorentities
are truly laudable achievements. But a
great deal more still needs to be done.
editor'sletter
Dina al-Wakeel Senior Associate
Let’s Expedite Investment

gateway
Jordan is hosting around 1.4
million Syrians, almost half of whom
are registered as refugees. They can’t
remain refugees forever, and donor
aid is starting to dry up. We need to
startthinkingaboutdevisinglong-term
solutions to this crisis. It’s possible for
Jordan to turn this injection of human
capital into a boon for its economy.
The general economic theory states
that net inflows of people can
potentially lead to an increase in
aggregate demand (the sum of the
demand of all residents) as well as
supply an economy with working-
age migrants, new technologies,
innovations, and capital. This should
increase aggregate supply, which is
the total product of all those residing
within the country. The increase in
the supply of labor and other factors
will thus be met with an increased
demandforlaborduetoincreasedtotal
spending, all else held equal.
Many think that refugees simply
increase the supply of labor and thus
take away jobs from locals. This is a
fallacy which simply assumes that if a
refugeehasajob,thenthey’redenying
that job to a Jordanian. It’s false
becausenotonlydorefugeesincrease
the supply of labor, but they also
concomitantlyincreasedemand,using
their wages to rent apartments, buy
goods and services, putting factories
and retailers to work. If refugees are
stealingjobsfromJordanians,thenour
young graduates who leave schools
and universities also steal jobs from
the older Jordanian labor force once
they enter the labor market.
In summary, net migration should
lead to an increase in the real GDP.
Therefore, the impact of the Syrian
refugees has been to increase the real
growth rate of the GDP in Jordan to
levels that were sufficient to counter
the would be negative growth rate
generatedbythegovernment’sagreed
IMF stand-by-arrangement of 2012.
An example of scientific research in
adevelopedcountryontheeconomic
impact of refugees comes from the
UK, which has seen a significant
increase in migration over the past
two decades. The UK research found
relatively little evidence to suggest
migration was a significant source of
labor displacement for UK natives
in periods of strong growth. In terms
of employment and wages, the UK
Migration Watch claims employment
displacement was observed mostly
in the low-skilled job sectors and
displacement effects quickly dissipate
as the labor market adjusts. Moreover,
the Migration Advisory Committee
suggests that migration has had small
to insignificant impacts on wages,
with low-skilled migrants putting
downwards pressure on low skilled
wages, and higher-skilled migrants
more likely to increase wages. Overall,
theUKresearchshowedanincreasein
the GDP, investment, and innovation.
InJordan,theDepartmentofStatistics
says only 4 percent of Jordanians
compete for low-skilled jobs that
refugees would be employed in.
They would primarily compete with
the 600,000 mainly-Egyptian guest
workers currently employed in the
Kingdom. Therefore, even if there
is competition between the refugees
and local workers, it’s confined to
a tiny niche of the Jordanian labor
market, and the primary competition
is with the other guest workers. In
Mafraq, for example, Egyptian guest
workers are the ones who are busy
informing labor inspectors and police
about the whereabouts of their Syrian
competitors, who are by-and-large
workingwithoutpermitsandformuch
lower wages.
As for the 100,000-or-so Syrians
confined to refugee camps in Jordan,
manyofthemarecapableofworkand
their dignity and wellbeing are being
harmed everyday with the paltry aid
they receive. Turkey is considering
giving work permits to its Syrian
refugees, so why doesn’t Jordan do
the same? Surely we are wasting a
tremendous opportunity here.
Yusuf Mansur is currently CEO and
consultant at Enconsult, and former
Director General of theTelecom
Regulatory CommissionTRC, CEO
of Jordan Investment Board JIB and
CEO of Jordan Agency for Enterprise
and Investment Development (DX).
You can contact him at ymansur@
enconsult.com.
THEECONOMIST Yusuf Mansur
LetthemWork
Syrians in Jordan could make a huge contribution to the Kingdom’s economy, if only we let them.

gateway
For those lucky enough to have
never encountered one, an Internet
trollisapersonwhostartsarguments,
upsetspeople,andpostsinflammatory
messages in an online community.
These undesirable personalities are
now also attacking brands.
To begin with, when you encounter
a comment or posting that’s
an expression of anger against
your business, it’s important to
differentiate between what is a
genuine complaint that can be
dealt with by a customer service
representative, or what is the start of
a trolling episode.
The average brand troll isn’t
difficult to spot, as their history
of comments can be easily found
online. That’s why it’s not difficult
to identify the nature of the person
you’re dealing with even before
responding to the negative and
aggressive messages. Usually,
companies don’t take the time to
do this, as responding to grievances
of customers online has become
an automatic process. That’s fine
if the customer service and online
communication departments know
when to hit the alarm after the
first round of exchanges, because
trolling can escalate into an all-out
attack on your company and brand
values if the ideas or issues raised
by the troll gain support from
others. If that happens, you’ll not
only have to worry about dealing
with an isolated case of trolling, but
also start thinking why your brand
or company policies have angered
other Internet users.
On social media—the troll’s online
playground—the reputation of your
product or service is considered fair
game. Hunting season is year-round,
and you had better be prepared to
take quite a few hits. In the Middle
East, the mélange of cultures in the
Gulf means it’s a huge challenge to
understand and analyze customer
complaints. While in Jordan, it could
perhaps be simpler if methods that
have worked before in handling
customer feedback locally are
repeated and improved upon in
the context of culturally accepted
norms of recognizing a problem and
dealing with it.
But more importantly, you must be
careful not to allow your corporation
to become a troll itself. Your social
media or customer service staff
might take things too far by getting
angry and end up trolling your own
customer base. If you don’t always
respond with facts and kindness,
no matter what’s thrown at you,
then other users will be offended
by your excessive use of force, and
that’s when you will be viewed as a
trolling brand.
And that’s not all, you’ll also
be feeding the trolls with your
own anger. It would be a case of
communication failure on all fronts.
To prevent it, make sure your
company’s response is based on
guidelinesandthatyourownpeople
stick to them.
The summary of advice provided by
specialists is to constantly monitor
the conversations your clients are
having with each other, then join the
conversation by tactfully stating the
facts and presenting a satisfactory
solution if required. If you have
actually made a mistake, apologize
tactfully and state the corrective
action you have taken to end the
matter before it snowballs. That’s
the point at which responses will
be directed at you, and where you
mustshowpatienceandkindnessno
matterwhatthenatureoftheattacks.
Nothing beats a troll, or bully, as
effectively as not stooping down to
their level. Don’t give them a battle,
but give the rest of your fans and
followers a clear explanation. The
trolls will then move on to obtain
their twisted satisfaction elsewhere.
Psychologists have been studying
trolling and their assessment should
make companies concerned about
what they could be dealing with:
dark personalities that show signs
of sadism, antisocial behavior,
psychopathy, and Machiavellianism.
Clearly, this isn’t a phenomenon that
can be dismissed lightly.
This is one of the reasons why
the new wave of social media
specialists, who you entrust your
brand with, must demonstrate
experience and knowledge in the
sciences of public relations and
consumer behavior, plus adherence
to your corporate guidelines. It can’t
be viewed anymore as a profession
for young digital stars, and you can’t
accept trial-and-error in handling
online reputation.
Whenever we delve into these
topics, it becomes even more
apparent how much the professions
of public relations and customer
service have had to evolve to deal
with the new realities. A whole new
set of skills is required, which has
opened up the door to a different
type of highly communicative,
empathetic, and technologically-
enabled professional. It’s another
example of how the future of
corporate communications and
customer service in the digital age
will be based on fusing them into a
new type of corporate department,
tentatively called Customer Analysis
and Communications. This could be
the organizational method to stop
brand trolls in their tracks.
TECHTALK Zeid Nasser
Zeid Nasser is a tech and media
writer and commentator since the
1990s. He’s also the founder of vari-
ous local and regional media projects.
zanasser@gmail.com
Brand trolling is making managing your online corporate identity even tougher.
BewaretheBrandTrolls

Jordan’selectricitygridlosses
problemcontinuedtomountin2014.
In the grids of Jordan Electricity
Company and Irbid Electricity
Company, total losses in 2014
reached 1870 GWh, 14.22 percent of
total power pumped into their grids.
Grid losses in 2014 exceeded JD224
million, and reached JD1.12 billion
between 2009 and 2014.
Jordan’s energy crisis has been
decades in the making. NEPCO,
the government owned company
that transmits electrical power
from the generation companies
to the three grid distribution
companies, has accumulated
debts of over JD4 billion by the
end of 2014, roughly equal to its
accumulatedlossesstemmingfrom
selling power below cost.
A big part of the problem is the
issue of electricity grid losses.
These are the difference between
electricity pumped through the grids
and electricity billed. The losses are
a combination of technical losses
that are related to the networks
themselves,andnon-technicallosses
that are basically theft of power
through illegal connections.
In Amman and central Jordan, where
Jordan Electrical Power Company
(ASE symbol JOEP) operates, grid
losses peaked in 2014 at 15 percent.
In 2010, the loss rate was 12.9
percent. Losses in 2014 reached
1550 GWh, up 38 percent from 1124
GWh in 2010.
The grid losses problem in Irbid
Electricity Company (ASE IREL),
which distributes electrical power in
the north of Jordan, also worsened in
the past five years. The utility’s grid
losses rate was 11.3 percent in 2014,
up from 9.9 percent in 2010. Losses
in 2014 reached 319 GWh, up 47
percent from 217 GWh in 2010.
Spiraling grid losses are far from
irreversible. Investments in network
upgradesandtechnologicalsolutions
will reduce both technical losses
and theft. Globally acceptable grid
losses rates hover around 5 percent.
Reducing Jordan’s grid losses by a
third saves the economy more than
JD100 million a year.
With funds needed to upgrade
networks and reduce grid losses,
the dividend policy of the JOEP
and IREL is both ill-advised and
shameful. Both companies insist
on distributing profits instead of
investing in their infrastructure to
reduce the grid losses problem.
Over the past three years, the two
companies distributed dividends
totaling JD37 million. Investing
this money in upgrading their
grids, would have contributed to
reducing grid losses and enhancing
profitability. It would have also
remained as shareholders rights.
Instead, JOEP actually borrowed
from the legal reserves to pay all of
2013 dividends and some of 2014
dividends. In total, JOEP borrowed
JD9 million from its statuary
reserves to pay dividends (i.e. it paid
profitsitdidn’tactuallygeneratethat
year). IREL too dipped into the legal
reserves to partially pay for 2014
dividends. Both companies need to
get their priorities in order.
THEANALYST JAWAD J. ABBASSI
Jawad J. Abbassi is the founder and
GM of Arab Advisors Group. Contact
him on jawad@arabadvisors.com.
Jordan’s struggling electricity companies should be more concerned with upgrading their grids
than dishing out juicy dividends.
SettingPrioritiesintheElectricitySector
gateway
Combined Losses IREL and JOEP
2009
2010
2011
2012
2013
2014
1387.56441
1341.51218
1456.205701
1617.081107
1654.104507
1869.817764
-3.3%
8.5%
11.0%
2.3%
13.0%
13.6%
12.3%
12.6%
13.2%
13.3%
14.2%
GWhYear Change % % of total
With funds needed to upgrade
networks and reduce grid losses, the
dividend policy of the JOEP and IREL is
both ill-advised and shameful

BELGIUM, April 20
A paper boat is placed in front of the European Parliament in
Brussels to protest against the death of immigrants trying to cross
the Mediterranean Sea.
EGYPT, April 21
Egyptian police stand guard in front of the police academy where
former Islamist President Mohammed Morsi’s trial took place. The
Egyptian Court sentenced Morsi to 20 years in prison over the killing of
protesters in 2012.
MONTHIN PICTURES
gateway
NEPAL, April 25
People try to lift the debris from a temple at Hanumandhoka Durbar Square after a massive earthquake struck Kathmandu, capital of Nepal,
killing at least 4,000.
© Anthony Kigondu/Demotix/Corbis
©BarryLewis/InPictures/Corbis
©SKHASANALI/Demotix/Corbis
©FrederikSadones/Demotix/Corbis
©AnthonyKigondu/Demotix/Corbis
©CuiXinyu/XinhuaPress/Corbis
UNITED STATES, April 1
A water pipe is seen in California’s Central Valley, where water content is
currently only 5 percent of historic average, the lowest since 1950. The
state recently announced the first-ever mandatory water restrictions as it
battles a four-year drought.
KENYA, April 7
A graffiti artist works on a mural during a vigil in Nairobi to commemorate the 147 university students killed during an Al Shabab terrorist attack on a
university in the city of Garissa.
BANGLADESH, April 19
Two Bangladeshis evacuated from war-torn Yemen arrive at Shahjalal
International Airport in Dhaka.
VENTURE MAGAZINE | 2524 | VENTURE MAGAZINE | MAY 2015

Drones
What are they?
Also known as Unmanned Aerial Vehicles (UAVs),
drones are aircraft without a human pilot on board.
They can either fly autonomously or be operated
by remote control.
What are they used for?
Militaries around the world have used drones
since the early 1980s for surveillance missions and
airstrikes, mainly because they’re considered cheaper,
safer, and more accurate than using human aircrews.
The US Air Force is estimated to have around 7,500
drones, which is almost a third of its total number
of aircraft. But drones have a huge array of other
applications besides just acting as a quick and easy
way of eliminating members of the Taliban. They’re
used to survey crops, film Hollywood blockbusters,
deliver medical supplies in disaster zones, and
prevent wildlife poaching. Amazon even plans to
develop a fleet that will deliver packages to your
doorstep, and flying toy drones have also become
hugely popular amongst hobbyists.
Any drawbacks?
There are big legal and ethical questions
surrounding the use of drones in warfare, such
as who’s responsible for an autonomous aircraft
that wrongly targets a school bus instead of a
tank? Toy drones are also becoming a worry for
air safety officials. In January, flights in and out of
Dubai airport were halted for several hours because
a drone strayed dangerously close to vital flight
paths. And then there are the potential privacy
concerns of having a drone with an onboard camera
buzzing around your bedroom window.
amsung said there’s strong demand in Jordan
for the Galaxy S6 and S6 Edge, two premium
devices the South Korean tech giant launched in
Ammanlastmonthandhopeswillrestoreitsfortunes
in the closely fought global smartphone market.
“We have received a great demand through the pre-
orderchannelsandthroughstrongdemandfromour
distributors in Jordan and our great offers with the
telecom partners,” Mutasem Shehadeh, the head of
Samsung’s Mobile and IT Division in the Levant,
said at the official launch of the devices in April.
Unlike their poorly performing predecessor, the S5,
the new S6 and S6 Edge have both received rave
reviews and Samsung expects to shift 70 million of
them before the end of the year. Samsung’s
dominant position in the smartphone market is
increasinglycomingunderthreatfromChinesefirms
manufacturing cheap and feature-packed devices.
Both the S6 and S6 Edge feature a 5.1 inch Super
AMOLED screen with 577 ppi density (and
curved screen edges for the S6 Edge), super
charging capability that is 1.5 times faster than the
previous S model, and Samsung Pay technology
for mobile payment.
Shehadeh said Jordan is an important market for
Samsung. “The Jordanian market is one of the
strongestmarketsintheregion,andit’sakeymarket
in the Levant region, which is all attributed to its
economic policies and the country’s position in
adapting technologies, among others.”–ST
Technology
Samsung sees “strong”
demand for S6
S
CheatSheet n a move which brings Jordan’s
controversial nuclear energy
program a big step closer to reality,
the government recently signed a
$10 billion agreement with Russia’s
Rosatom to build the Kingdom’s first
nuclear power plant.
Chairman of the Jordan Atomic
Energy Commission Khaled Toukan
believes nuclear power has a vital
role to play in weaning the Kingdom
off its overwhelming reliance on
expensive oil and gas imports.
What does the agreement with
Rosatom entail?
The Russian-Jordanian
intergovernmental agreement nails
the principles that will govern the
construction of the project and its
future years of operation. The first
of the two 1,000-megawatt reactors
is expected to be up and running
by 2022, with the second following
one year later. We demanded that
the total cost of the project, which
includes the infrastructure of the
water cooling towers, emergency
ponds, two nuclear reactors, and
electricalsystems,shouldnotexceed
$10 billion. Russia will meet 49.9
percent of the project’s costs and
Jordan the remaining 50.1 percent.
Rosatom will supply fuel for 10
years. After that, it will be up to us
to look for more competitive bids.
All the nuclear waste will be sent to
Russia for treatment.
Jordan must guarantee a supply of
water for the estimated 60 years
lifetime of the plant, its security,
and the purchase of the electricity
produced by the two 1,000 MW
reactors for an 18-years payback
period.Thepowerpurchaseagreement
has not been negotiated yet.

How much energy will the
plants generate?
Ifthereactorswereoperationaltoday,
theywouldprovidealmosttwo-thirds
of the country’s base load. But the
plant will be operational in seven
and eight years. So by that time,
estimations suggest that they will
Energy
Russian Nuclear Energy Deal Signed
I
KhaledToukan, Chairman of the
Jordan Atomic Energy Commission
gateway news&views
generate 40 percent of the country’s
total electricity.

Why did you choose Amra for
the location of the plant?
The 16 square-kilometer area chosen
for the plant in the country’s north
has a very low seismic activity
level compared to other areas of
the country. It’s in the desert and
far from marine life. Earthquakes
might happen everywhere in the
world at any moment, but new
generation plants are built to resist
them. Rosatom has promised to use
Russia’s 70 years of experience
with nuclear energy, as well as post-
Fukushimalessonstobuildtheplant.

The plants will need a lot of
water to run. Where will it
come from?
We will use a closed loop system.
This means the same water keeps
circulating inside the system and gets
cooled through a fan, like in a car’s
radiator. In this model, the water
consumption is reduced to 20 million
cubic meters per each reactor. We will
take the majority of the water from
the Al-Samra Waste Water Treatment
Plant in nearby Irbid. Al-Samra is
undergoing expansion and will soon
reach capacity at 160 million cubic
meters of water and provide the plant
with some 30 million cubic meters.

Wouldn’t it be possible to make
a better use of the renewable
energy available in the country
instead of going nuclear?
Renewable energy comes
intermittently. One cannot generate
electricity 24 hours a day or store it.
So far, solar energy cannot provide
more than two percent of Jordan’s
electricity needs. Technology is
simply not available yet for these
purposes. If countries like Germany
have started a nuclear phase-out, it is
becausetheyhavealternatives.Jordan
does not. –EO

“Palestine has decided to seek
justice, not vengeance.”
Palestinian Foreign Minister
Riyad al-Maliki after the
Palestinian Authority
formally joined the
International Criminal
Court.
“I have lost my baby but I
shall create another.”
Former Top Gear
presenter Jeremy
Clarkson on the BBC’s
decision not to renew
his contract after he
assaulted a producer on
the show.
“The first genocide of the
twentieth century.”
Pope Francis’
controversial
description of
the slaughter of
Armenians
by Ottoman
Turks that
began in 1915.
“I’m running for
president.”
Hillary Clinton
announcing
hercandidacy
for President
of the United
States in
2016.
QUOTED
lmost half of Syrian refugee
children in the region are not
receiving any form of education,
according to a recent report from Save
the Children.
The report also revealed that school
enrollment within Syria had fallen
from 95 percent to an average of 50
percent. This equates to around 2.8
million children being out of school in
the war-ravaged state, one of the
lowest enrollment rates in the world.
UNICEF Chief Education Officer
Susan Ayari said that out of the
220,000 school-aged Syrian refugees
in Jordan, 88,000 weren’t in
education. She said they weren’t
enrolled mainly because there was no
room for them in existing schools.
“Jordan has reached its maximum
absorptioncapacity,”shesaid,adding
there were already around 35,000
students on waiting lists.
Economic hardship is another
important factor to consider. “The
familiescan’taffordtheirnotebooksor
whatever is needed to go to school,”
she said. Ayari added that many
childrenarealsoforcedintochildlabor
to help support their families.
She said UNICEF was working to
improveeducationforbothSyrianand
Jordanian children enrolled in the
Kingdom’soverstretchedpublicschool
system. “It’s not simply a question of
education for Syrians improving, its
education for all children,” she said.
“What we’re trying to do is to support
the Ministry of Education until such
time that they have the ability to
provide education for more Syrians.”
As the conflict enters its fifth year,
almost four million Syrians have fled
to neighboring countries. There are
estimates that 1.4 million Syrians are
currently in Jordan, of which over
620,000 are officially registered as
refugees. According to the Ministry
of Education Secretary General
Mohammad Okour, over half of this
population are children.–JH
Education
A
Half of Syrian Refugee Children out of School - Report
gateway news&views

UAE
SME Lifeline
In an effort to boost innovation, Dubai has launched a new fund to provide
loans to Emirati SMEs.
The new Mohammed bin Rashid Fund for SMEs will provide SME owners
with two types of loans: The Seed Capital Loan, which provides funding of
between $13,600 and $136,000, and the Credit Scheme Loan, which
offers funding of more than $136,000 and $1.36 million through banks.
“The Fund follows clear procedures within the Dubai SME services,
allowing entrepreneurs to benefit from integrated funding solutions,”
said Sami al Qamzi, director general of Dubai’s Department of
Economic Development.
QATAR
Energy Endowment
Qatar spends less on energy subsidies than any other GCC country, a new
report by the International Monetary Fund said.
On-budget subsidies in Qatar amounted to 2 percent of GDP in 2010, the
IMF said in its Article IV consultation report 2015 on Qatar. Bahrain had the
highest subsidy rate at 12.5, followed by Saudi Arabia at 9.9 percent, Kuwait
at 7 percent, Oman at 6.2 percent, and the UAE at 5.7 percent.
Despite raising gasoline and diesel prices over recent years as part of
wider energy subsidy reforms, the report said prices in the Gulf were still
well below international levels.
UAE
The IT Capital
The UAE has cemented its position as the region’s main tech hub after
Twitter and Apple recently announced they had launched bases in the
Gulf country.
Although Twitter started selling ads in the region back in 2013 via a Cairo-
based agency, it will now launch an office in Dubai to serve the whole
Middle East. According to Twitter, the number of active Twitter users in the
region now stands at almost 6 million.
Apple, which has already established its regional headquarters in
Dubai, is said to be preparing to open its biggest Apple Store in the
UAE. It has already announced several vacancies from sales and
marketing to retail positions.
GULFROUNDUPInflation watch
Inflation in March dropped by 1.2
percent over the same month
last year. Indicators for Rent rose
by 5.8 percent, Education by 3.7
percent, Communication by 0.22
percent, and Clothing and Footwear
by 6.7 percent. However,
Transportation, and Fuel and
Lighting dropped by 15.8 percent
and 12.16 percent respectively.
Food Items
CLOTHING AND FOOTWEAR
HOUSING
COMMUNICATION
EDUCATION
FUEL AND LIGHTING
TRANSPORTATION
-0.15 0.2 0.21 0.22
2.5 3.8 3.66 3.7
-5.6 -10.3 -13.12 -12.16
-5.6 -16.2 -15.8-18.85
1.9 2.3 1.22 1.4
9.2 8.5 7.03 6.7
0.94 1.9 -0.09 0.11
Month on month Percentage
of change in major consumer
categories
(DepartmentofStatistics,2015)
dec'14 JAN'15 FEB'15 MAR'15
gateway news&views

he location is
what makes
the villas
such an at-
tractive buy,”
said Wissam
Qaissi, owner
of the 12-villa
development
in Dabouq
to be completed by early next year.
“The villas are located in a neigh-
borhood full of palaces,”he said,
adding that the luxury and eco de-
signs add further appeal.
Each three-storey villa is built on a
500 square-meter plot in one of the
most sought after areas of Dabouq.
The basement features a kitchen,
bedroom, laundry, bathrooms, and
a large room that can be made into
either a sauna, gym, office or even
an extra bedroom. The ground floor
consists of a large living room, din-
ing area, kitchen, and bathrooms.
While the upper floor has four bed-
rooms, each with their own walk-in
wardrobe, en-suite bathroom, and
curtain-wall windows that provide
natural light.
“You won’t find such an attractive
Smart Villas:
where the grass is greener
T
Wissam Qaissi and Partners’ Smart Villas are proving that luxury
living in Dabouq is more affordable than you think.
Wissam Qaissi, Owner of the
12-villa development in Dabouq
buy anywhere else in the Kingdom,”
said Qaissi, adding that the villas
havebeenmadeusingfirstclassma-
terials in all stages of building. This
he explained includes cutting edge
technology such as a smart system
for lighting and heating.“What this
means is that you can turn off all the
lights in one touch,
set an automatic
timer for the villa’s
shutters, and each
room can be heated
or cooled individu-
ally using both the
floor heating and the
central air condition-
ing system,”he said, adding that
all this can be done either from one
system in the house or remotely us-
ing a mobile phone.
As well as a heated swimming pool,
which can be transformed into an in-
doororanoutdoorpooldependingon
the season, each villa is packed with
eco-friendly features. Not only do
theygeneratesustainablepowerusing
solar energy, but they are also fully
insulated due to their double-glazed
windows and special stone cladding.
This green tech-
nologyhelpskeep
energy use to a
minimum and
also ensures that
the villas stay
warm in winter
and cool in sum-
mer. As a result,
the villas meet the standards of the
Leadership in Energy and Environ-
mental Design (LEED) green build-
ing certification and have also been
recognized by the Jordan Green
Building Council.
The Smart Villas development is
located within walking distance of a
wide variety of shop and amenities,
including a well-regarded school
and kindergarten. While such a
prime location is rarely affordable,
Qaissisaidthatthecompoundreally
makes this popular area a lot more
accessible.“In this district normally
you can’t get such a villa for such
a price because the minimum cost
of land that you can construct on is
2,000 square meters. So if you want
to own a villa in this neighborhood
you will be paying at least JD1.7
million and then you will have the
additional cost of constructing your
own villa on it,”he said, adding that
the Smart Villas give people the op-
portunity to have such a villa in this
location for a much lower price.
Eachthree-storeyvilla
isbuiltona500square-
meterplotinoneofthe
mostsoughtafterareasof
Dabouq
Youcanturnoffallthelights
inonetouch,setanautomatic
timerforthevilla’sshutters,
andeachroomcanbeheated
orcooledindividuallyusing
boththefloorheatingand
thecentralairconditioning
system
For more information:
Dana Obidat: +962 79 0482748
ADVERTORIAL

s part of an aggressive regional
expansion drive, Jordan’s Eat
Restaurant Group opened a flagship
branch of its popular Azkadenya chain
in Dubai last month.
The new branch, which is located in a
shopping mall in the city’s high-end
Jumeirah district, forms part of Eat’s
plan to open 25 new regional outlets of
the Arabic food chain by 2020.
“We have signed a joint venture with
the Emirati company Gourmet Gulf
coveringtheGCCandEgyptandweare
looking to open at least 25 stores in the
next five years,” Eat group CEO and
owner Omar Tabbaa told Venture in a
phone interview from Dubai.
Branches of Azkadenya, with their
unconventionalpopartthemes,opened
in Amman and Irbid three years ago.
“We serve the traditional Levantine
dishes of the good old days with a
contemporary twist,” Tabbaa said.
“Creativity is in the essence of the
restaurant,whetherinthemenuorinthe
design and décor, and it is also the
secret of its success.”
Plans are already underway to open a
Saudi Arabia location next year.
As for the development of the
Azkadenya brand, Tabbaa envisions
developing a Hard Rock Café for
Arabicfood,introducingtheconceptof
the Arabic casual diner to the region
and, eventually, to the world.
“Weareaddressingeveryone,thisisone
of our strengths,” the CEO said. “Our
Lebanese neighbors have always been
verysuccessfulinbrandingthemselves.
This is something Jordanians need to
learn too, with Azkadenya being one
first successful example.”–EO
A
OmarTabbaa, Azkadenya
CEO and owner
Hospitality
Azkadenya Eyes Regional Expansion
gateway news&views

TECH SUPPORT
Finance Apps
Roambi Analytics
Hours Tracker
Expensify
Freshbooks
Keep your money matters in order with the help of these sophisticated but easy-to-use finance apps.
By Jane Hosking
Thisbusinessintelligenceapptakesrawbusinessdataandtransformsitintosimpleandengaging
graphstohelpyouunderstandyourfiguresbetter.Theappalsoallowsyoutouploaddatafrom
Excel spreadsheets and other data sources.
Price: Free for the lite version
Available on: iOS and Android
Features
Usability
If you’re a frequent business traveler or constantly accruing business-related expenses, then
Expensify is for you. This simple and intuitive app keeps track of your expense receipts by
capturing receipt images and managing reports. Not only will it make life easier for you, but for
your admin staff as well.
Price: Free
Available on: Android, BlackBerry, iOS, and Windows Phone
Features
Usability
Freshbooksisaniftycloud-basedaccountingappforsmallbusinesses.Ithelpsyoumanageyour
invoices and expenses, and can keep track of your clients and projects. It’s simple to use, while
at the same time it includes many basic bookkeeping features useful for small businesses or
independent contractors.
Price: Free for limited features and plans from $29.95 per month
Available on: Android and iOS
Features
Usability
Hours Tracker turns your iPhone into a timesheet, allowing you to clock in and out from not
just one project, but many. This clever little app automatically calculates your hours and your
payaccordingtothedetailsyouenter.It’snotonlygreatforfreelancersandcontractors,butalso
employees who are paid by the hour and want to anticipate what their next paycheck will be.
Price: Free for limited features
Available on: iOS
Features
Usability
gateway news&views

New National
Strategy to Boost
SMEs
n a sign that crowdsourcing is set
tobecomeanimportantfundraising
option for the region’s cash-starved
SMEs, Amman-based peer-to-peer
lender Liwwa recently closed a
successful financing round involving
three major investors.
The round was led by DASH
Ventures, with the participation of
Bank al Etihad and MENA Venture
Investments (MVI), Liwwa said in
statement,withoutstatinghowmuch
was raised.
Liwwa said the investment
would be used to hire several
new team members to enhance
data collection, technology
development, underwriting, and
modeling capacities.
“We have a deeply ingrained
commitmenttotheroleoftechnology
and data analysis in driving our
user growth and scaling up our
credit assessment processes. It’s
something we’ve been investing in
continuously,” said Liwwa Chief
Technology Officer Samer Atiani. “In
order to truly make capital available
for the SMEs that need it, we have to
usetechnologytoachieveeconomies
of scale and drive down the costs of
the SME lending process.”
Atiani founded Liwwa alongside
Ahmed Moor in 2012 with the aim of
alleviating an estimated $250 million
funding gap for Middle Eastern
SMEs, which remain responsible
for the great majority of economic
activity in the region.
MVI Investment Manager Fares
Ghandour said he decided to back
Liwwa because peer-to-peer lending
is growing fast worldwide, with
several billion dollars worth of debt
underwritten to date. “Liwwa is
developing as a regional pioneer with
vast potential to serve the Levant,
Egypt, and Gulf markets,” he said. –LA
Finance
LiWwa P2P Lender
Scores New
Investment
I
he Jordan Enterprise
Development Corporation
(JEDCO) has recently announced a
new national strategy to support
SMEs, which includes tax incentives,
as well as financial and legislative
protection to boost job creation.
“The goal of the strategy is to create
a conducive environment for
businesses and entrepreneurship to
grow,flourish,compete,andcreatea
dialogue between them. It is also an
overall platform for continuous
development,”saidthecorporation’s
CEO Hana Uraidi.
About two thirds of all workers in
Jordan are employed by SMEs,
almost all of which have fewer than
10 employees. Jordanian and
international economic experts
drafted the new strategy over two
years and now believe the second
half of 2015 is a feasible time for its
implementation.
The strategy aims to create jobs and
generate income by fostering the
growth of new startups and
improving the performance of
existing SMEs.
Allocating budget funds, setting-up
entrepreneurship support networks,
implementingprofessionaldevelopment
programs, enhancing skills, and
establishing supporting infrastructure
across all governorates are also pivotal
parts of the strategy. –EO
Economy
T
oogle have never been a
company to shy away from
a challenge. With Project Loon,
the tech giant is having a crack
at connecting millions of people
around the world to the Internet
via balloons drifting around the
stratosphere.
According to Google, two-thirds of
the world’s population doesn’t yet
have Internet access. Project Loon,
which has been in development for
about four years, aims to provide
a cheaper alternative to expensive
Internet infrastructure in remote or
rural areas and also to provide much
needed access to information, such
as education, medical knowledge,
and weather forecasts.
Google has just released a video
showing how the LTE-enabled
balloons can travel approximately
20 km above the earth’s surface,
and provide connectivity to a
ground area of around 40 km in
diameter. The balloons can float
through the sky for more than one
hundred days and provide Internet
speeds of 15 MB per second to a
phone or other device.
Technology
Google’s Internet Balloons Near Lift Off
G
How do they work?
The fleet
Project Loon balloons do not hover in a stationary position above an area
requiring Internet, as one might expect. This would require far too much
energy to work against the wind. Instead, each balloon is part of a larger
fleet of balloons that work with the wind, so that when one balloon leaves a
location, another replaces it, providing continuous Internet connection.
Steering
Tosteeritsthousandsofballoonsacrosstheglobe,ProjectLoonwillmakeuse
of the different layers of wind in the stratosphere, which each vary in speed
anddirection.Bymovingtheballoonupanddown,thedirectionoftheballoon
is changed.
Technology
Theballoonsareequippedwithaformofwirelesscommunicationstechnology
called LTE, short for Long Term Evolution. To use LTE, Project Loon
partners with local telecommunications companies around the world. –JH
gateway news&views

gateway executiveinterview
HopeforStartupsStartup guru Christopher Schroeder is a firm believer in the MENA region’s entrepreneurial spirit,
which he says is inspiring young, tech-savvy Arabs to leverage the little they have to shape a better
future for themselves and those around them.
By Dina AlWakeel
In his book Startup Rising: The
Entrepreneurial Revolution Re-
making the Middle East, American
entrepreneur and venture investor
Christopher Schroeder focuses on
theentrepreneurshehasencountered
on his travels around the region. Not
onlydoeshementionthembyname,
including several Arab female entre-
preneurs and their role in economic
development,buthealsoshowcases
their startups and the idea behind
each one of them.
Despite the many economic and
security challenges these remarkable
young entrepreneurs face in getting
their projects off the ground,
Schroeder still writes in his book’s
afterword that “every entrepreneur
and startup I described … is not
only continuing to fight, but they are
succeeding as well.”
Through your frequent travels
to the region and familiarity
with the startup world here,
what do you think differentiates
Arab entrepreneurs from their
peers in other countries?
One of the things I’ve come to
realize is that when you put great
entrepreneurs from anywhere in the
same room, they are often more alike
than any border. They think similarly,
speak similarly, have an urge to solve
problems, have hyper focus on great
product, etc. Access to technology
has merely unleashed millions more
at greater scale than ever before.
Having said this, the Middle East—
like any region—has its own unique
opportunities,challenges,andcultural
uniqueness that have an exciting
voice of its own.
But why do you care about the
Middle East’s entrepreneurship
and startup scene and when did
that begin?
I care about individuals actualizing
anywhere, which is why I have loved
beinganentrepreneurandsupporting
them.Beingexposedtotheregion—a
region so closely associated with my
country too often with difficulty—I
was so stunned at all that was going
on, never shown on CNN, that I
became fascinated. I realized it was a
lensonwhatishappeningeverywhere
in the world when people have
ubiquitous access to technology. But,
I must confess, the more time I spent
there, the more I simply fell in love
with the region.
What are the most prominent
challenges they face, and
are they the same that say
American entrepreneurs face?
All entrepreneurs face similar
challenges of their own psyche—can I
do this, will I do this?—and of finding
the best ideas, money, and mentors.
Beyond the obvious political and
societal unrest in parts of the region,
rule of law, [including] allowing ease
of people, ideas, products, protecting
capital, etc, are real challenges.
Infrastructure, particularly inadequate
education for twenty-first century
skills is hard. But these are true in
mostemerginggrowthmarketsand,of
course,evenentrepreneursaretryingto
solve these, not waiting for traditional,
top-downinstitutionsto“gettothem.”
Access to capital remains an
issue in the region for most
entrepreneurs, how do you
think they can overcome this
enormous hurdle to scale?
Risk capital is absolutely a challenge,
though we are seeing significant
improvement in the early stage
(angel) and at the established stage
(profitability, near private equity
kinds of assets). The middle—A/B
rounds—whereentrepreneursgetthat
$1 to $5 million to really scale is too
hard. I see players now raising funds
for this, and it’s a gaping opportunity.
Do you think there’s enough
innovation in the region, or
do most end up becoming
copycats?
I, of course, have a problem with piracy
but hate the word “copy cats.” I call
Christopher Schroeder, American
entrepreneur and venture investor
VENTURE MAGAZINE | 43

them “improvisers” in my book. They
take something that works elsewhere
and make it relevant for their regions.
In the early stages of ecosystem
development, it always starts this way;
think Yandex in Russia, Mercado
Libre in Brazil, Ten Cent or Alibaba or
Baidu in China. It makes perfect sense
to break through the risk aversion in
early markets. Success breeds success.
Remember, also, that “innovation”
isn’t just the bright shiny new thing.
If you live in a community that never
had a phone, and now everyone has
a mobile device, that is innovation.
And, by the way, we can bet that all
these mobile-first societies will have
global innovation soon. I watch crypto
currencies closely on this, as I believe
they will be more likely to take off in
emerging markets.
Have you invested in an Arab
startup yet? If not, are you
interested in doing so?
In writing the book, I decided I’d
pick no favorites and ask nothing of
the entrepreneurs there, so I have not
invested directly. I have since joined
the investment committee of the
new Wamda A-round fund, and am
plotting new activities shortly.
Are you providing any
mentorship to any Arab
entrepreneurs? How is
mentorship helpful and how do
you choose your mentees?
Perhapsbythehundreds,whichmeans
I’m not very scalable right now. It
helpsmewhentheyhavebeenfiltered
by people and groups I trust: Wamda,
Oasis500, Flat6Labs, and Endeavor.
But I also can tell at conferences and
in emails people who really want it,
and try to help where I can.
Do you think there are enough
opportunities in the region for
young creative entrepreneurs
to build their businesses?
Whereverthereareproblemsneeding
tobesolved,wherevertherearepeople
passionateaboutbetteringthemselves,
there is mass opportunity.
Can technology be a solution to
some of the region’s ailments?
It already is. People get hung up even
on the word “technology” thinking it
is some high-flying, upper crust thing.
As I said before, even a basic mobile
phoneatscalechangesentiresocieties
because it opens up the ability to
reach, engage with, collaborate, and
understand thousands and millions of
others. We don’t talk about electricity
anymore as a thing; we assume it. But
once it was the crazy new technology.
The tools that are available to us, and
improving exponentially, will be in
the hands of almost everyone within a
decade. Think about the ramifications
on health care, education, economic
growth, etc. Think of what Korea was
like30yearsagoascomparedtotoday,
and any society with the will can look
more like that, in their own ways, in a
fraction of the time now. Certainly the
money and resources are there.
How do you foresee the future
of the region’s startup world?
With tremendous hope if
governments, private sector, and
investors embrace it. Though it will
happen with or without them, they
can affect speed and scale.
gateway executiveinterview

The Maersk Line service that stops
off at the Port of Aqaba has faced
many challenges down the years.
But Anne Gronbjerg, the Danish
shipping giant’s managing director
for Jordan, Kuwait, and Iraq, says
even the threats of pirates, regional
instability, port strikes, and fierce
competitionhaven’tbeenenoughto
weaken her company’s commitment
to the Jordanian market.
Considering the instability in
the region, is Maersk’s market
growing in Jordan or is it in
decline?
The macro trend that we can see is
that the local Jordanian market is
growing at a reasonable rate. Where
we can see some challenges is in the
transient market into Iraq because
of the unrest there now. But we
also know that there is very strong
expertise in Jordan for handling
transport cargo into Iraq, and in the
long-term we think that this market
is going to come back.
How much of an impact have
worker strikes in Aqaba over
the past year had on your
business?
It has had an impact on all the
carriers. We are all hit the same
when there are strikes or when
things aren’t running as smoothly
as they should be in the port. It
incurs extra costs for the customers,
extra costs across the line, and it
makes it difficult to plan. We run a
very reliable network with a fixed
weekly schedule, so strikes are really
toxic and are a really big problem.
However, we are pretty confident
nowthatwe’reenteringintoaperiod
of more stability. We’re hoping
that this will make 2015 a much
better year for all parties, including
businesses,theauthorities,andforus
as a service provider for Jordan.
Has Maersk faced any
problems with piracy on the
route into Jordan?
Piracy was a big issue around 2010.
But because of a well-coordinated
internationalresponse,thatproblem
has now been very much reduced.
It was never a problem in Jordanian
waters or even the international
waters outside of Aqaba, but it was
a problem off the coast of Somalia,
the south end of Yemen, and so on,
where you enter into the Red Sea.
But it’s almost nothing now.
How much competition do you
face in the region?
Globally, container shipping is a
very competitive industry because
the basic balance between supply
of container carrying capacity and
demand for carrying containers
is that there is an oversupply of
capacity. So that makes the industry
as a whole very competitive. If
we look at Jordan, the picture is
basically the same. So it is very
competitiveonsometraitsmorethan
others. But again we are happy with
the position we have in the market
today. We are not looking to grow it
or shrink it. That also is the approach
of our global company; that we’re
just absolutely happy where we are.
How important is Aqaba for
Maersk?
Aqaba is important to Maersk
because Jordan is a growing market
and it also serves as a gateway to
Iraqandotherneighboringcountries.
We see this as an interesting market
in the long-term and as a growing
market. So that’s why we’re
committed today and also in the
long-term to Jordan. As for how
strategic the Jordanian market is to
Maersk clients globally; it’s not one
of the biggest markets, but it’s a
market that makes a lot of sense for
us to be in. We have some very good
customers here that we really value
collaborating with and that we want
to continue working with.
Sailing AheadDespite regional turmoil, Maersk Line’s Anne Gronbjerg says Jordan continues to show promise.
Soundbite
By Jane Hosking
Anne Gronbjerg, Maersk Line Managing
Director for Jordan, Kuwait, and Iraq

MarketBrief
IndexSlipsdespiteStrong
IndustrialPerformance
March 19, 2015 – April19, 2015
BY ARAM RABADI
T
he General Index retreated
0.17 percent despite a strong
performance by the Industrial
Index, which gained 4.19 percent,
as well as a 0.41 percent gain by the
Services Index. The decline of the Amman
Stock Exchange came in a time when the
GCC capital markets also declined. In the
meantime, the trading activity reached
JD211 million as the number of traded
shares came in at 189 million. The financial
sector accounted for 59 percent of the
market’s activity compared to 28 percent
and 13 percent for the services and industrial
sectors, respectively.
The tobacco sector was the star performer
of the industrial sector, as the Tobacco
Index gained 17.95 percent and the sector’s
trading reached JD1.8 million. Al-Eqbal
for Investment Company (EICO) gained
20.25 percent to close at JD14.31, as Union
Tobacco and Cigarette Industries (UTOB)
dropped 8.62 percent to JD4.56. The Glass
& Ceramic Industries Index followed with a
10 percent gain thanks to a similar gain by
Jordan Ceramic Industries (JOCF), which
closedatJD1.43.Anotherstrongperformance
came from the Pharmaceutical & Medical
Industries Index, which gained 9.39 percent.
Jordanian Pharmaceutical Manufacturing
(JPHM) led the sector with a 27.42 percent
gain to close at JD0.79 and was the market’s
third best performer. At the same time, Arab
Center for Pharmaceutical and Chemical
Industries (APHC) gained 17.07 percent, and
Dar Al-Dawa Development and Investment
(DADI) gained 11.46 percent.
The Food & Beverages Index gained 6.01
percent as Jordan Dairy (JDA) gained 57.02
COMPANY
BEST PERFORMERS
WORST PERFORMERS
MOST ACTIVE
CLOSE
(JOD)
CHANGE
(%)
TURNOVER
(JOD)
TRADING ACTIVITIES
AMI: AB Invest Market Index
ASMI: AB Invest Smaller Market
Index
ASE: Amman Stock Exchange Index
Trailing P/E: Market capital weighted
P/E of index elements
MARKET BREADTH
51 114 57
ADVANCERS
DECLINERS
UNCHANGED
CLOSE
CHANGE (%)
YTD (%)
Y-o-Y (%)
Trailing P/E
ASEINDEX
2154.11
-0.17
-0.52
-1.09
13.18
VOLUME (SHARES)
188,791,701
VOLUME (JD)
211,244,206
VOLUME (US$)
297,854,330
INDUSTRIES13%
SERVICES28%
FINANCIALS59%
TRADING VALUE
UNIVERSAL CHEMICAL INDUSTRIES
JORDAN DAIRY
JORDAN PHARMACEUTICAL MANUFACTURING
1.07
5.37
0.79
0.65
0.68
1.26
1.18
5.28
6.32
87.72
57.02
27.42
-32.29
-25.27
-24.55
-7.81
-2.22
-5.67
5,098
115,906
265,659
3,565
3,140,382
109,474
27,942,228
15,760,601
13,785,377
MIDDLE EAST PHARMACEUTICAL & CHEMICAL
TUHAMAFOR FINANCIAL INVESTMENT
JORDAN PRESS FOUNDATION
AD-DULAYL INDUSTRIAL PARK & REAL ESTATE
JORDAN PROJECT TOURISM DEVELOPMENT
ARAB BANK
percent to close at JD5.37, becoming
the second best performer for the
period. The Printing & Packaging
Index also gained 9.21 percent as the
Mining & Extraction Index gained
0.02 percent. The chemical industries
sector was interesting to watch.
While the sector’s index retreated
3.75 percent for the period, Universal
Chemical Industries (UNIC) led the
market with an 87.72 percent gain to
close at JD1.07. At the same time, the
trading of the sector reached JD8.8
million, as the trading of Jordan
Industrial Resources (JOIR) reached
JD7.8 million.
The Services Index gained despite
a 22.01 percent decline by the Media
Index,whereJordanPressFoundation
(PRES) shed 24.55 percent to close at
JD1.26 to become the market’s third
worstperformer.Muchofthepositive
push came from the utilities & energy
and technology & communications
sectors. In the utilities & energy
sector, Jordan Petroleum Refinery
(JOPT) gained 8.32 percent to close
at JD5.47, and in the technology
& communications sector Jordan
Telecom (JTEL) gained 1.57 percent
to close at JD3.24.
The Educational Services
Index also gained 0.74 percent
as Philadelphia International
Educational Investment (PIEC) led
the sector with a 4.44 percent to
close at JD4.70. Meanwhile, Arab
International Company for Education
and Investment (AIEI) gained 2.25
percent to close at JD4.55. AIEI’s
shareholders approved a cash
dividend of JD0.3 per share.
The Transportation Index dropped
1.06 percent as Barter Company for
Investment and Transport (NAQL)
dropped 20.90 percent to JD0.53.
However, Royal Jordanian Airlines
(RJAL) managed to gain 8.77
percent to close at JD0.62, and Ubour
Logistic Services (TRUK) gained
7.32 percent to close at JD0.44. At the
same time, the health care services
dropped 6.58 percent, and the
Commercial Services Index retreated
4.04 percent as the Hotels & Tourism
Index declined 5.22 percent.
The Insurance Index managed
to gain 0.70 percent as the rest of
the financial sub-indices declined.
Arab Orient Insurance (AOIC) led
the sector with a 16.22 percent
gain to close at JD2.15, and Jordan
French Insurance (JOFR) gained
8.11 percent to close at JD0.40.
At the other end, the Diversified
Financial Services Index was the
worst performing financial sub-
index after dropping 2.72 percent.
Tuhama for Financial Investment
(THMA) declined 25.27 percent to
JD0.68 and was the market’s second
worst performer for the period. In
the same sector International Card
Company (CARD) dropped 22.58
percent to JD0.24.
The Real Estate Index retreated
2.18 percent and Real Estate
Development (REDV) was the
sector’s worst performer after
shedding 18.52 percent to close
at JD0.22. Moreover, Real Estate
and Investment Portfolio Company
(PETT) dropped 15.00 percent to
JD1.02. However, Jordan Masaken
forLandandIndustrialDevelopment
Projects (MSKN) managed to gain
22.06 percent to close at JD0.83.
On a different note, AD-Dulayl
Industrial Park and Real Estate
Company (IDMC) was the most
active stock in the market with
JD27.9 million in trading. In the
meantime, the Banking Index
dropped 1.51 percent. The Arab
Bank (ARBK), which was the most
active banking stock with JD13.8
million in trading, making it the
market’s third most active stock,
dropped 5.67 percent to JD6.32, and
Bank of Jordan (BOJX) retreated
5.63 percent to JD2.68 as Arab
Jordan Investment Bank (AJIB)
dropped 5.37 percent to JD1.94. At
the other end, Jordan Islamic Bank
(JOIB) led the sector with a 2.86
percent gain to close at JD3.60.
PROVIDED BY:
AL ARABI INVESTMENT GROUP
“Member of the Arab Bank Group”
research@ab-invest.net
brokerage@ab-invest.net
Thetobacco sector
wasthe star
performer ofthe
industrial sector,
astheTobacco Index
gained 17.95 percent

previous year, thanks in part to a rise
in tourists from the Gulf region.
Jordanianexpatriatesaccountedfor
the largest number of all visitors in
2014, making up just under a third of
all overnight stays in 2014, marking
an increase of 10.8 percent on the year
before. Overnight arrivals from Gulf
countries, which made up 17.3 percent
of the total number of visitors, rose 3.1
percent. However, visitors from other
Arab countries, which represented
the largest group of visitors in 2013,
slipped 7.6 percent to make up 27.6
percent of total overnight arrivals in
2014.
Industry figures believe regional
instability, typified by the rise of
Islamic State in neighboring Syria and
Iraq, is largely responsible for visitors
staying away, even though internally
Jordan remains stable. “A lot of winter
J
ordan’sall-importanttourismsec-
tor is having a rough time of late.
According to the Jordan Tourism
Board (JTB), the number of visitors
to Jordan in 2014 dipped 1.2 percent
year-on-year, reaching 5.3 million.
The number of tourists arriving on
day trips slipped 7.4 percent over the
same period to 1.3 million. While the
amount of overnight visitors fared
slightly better, rising 1.1 percent to
reach nearly 4 million (but according
to the latest data, the tally for January
and February is down 8.3 percent).
But despite the drop in overall
numbers, tourism receipts remained
stable throughout 2014, totaling JD3.1
billion, according to Central Bank
of Jordan data, up 6.3 percent on the
OxfordBusinessGroup
WordsByOliver Cornock
Oliver Cornock, Regional Editor
THE INSIDE EDGE
www.oxfordbusinessgroup.com
bookings were cancelled in the wake of the
Gaza conflict and since then the issue of
Islamic State … has become more and more
prominent,” said Peter Hoesli, general manager of the
Mövenpick Resort Dead Sea.
The fall in visitor numbers has prompted the authori-
ties,supportedbyindustryrepresentatives,tointroduce
measuresaimedatboostingactivity.Acabinetreshuffle
in early March led to the reappointment of a dedicated
minister for tourism in a widely welcomed move.
Later in the month, the Ministry of Tourism and
Antiquitieslaunchedacampaigninconjunctionwiththe
JTB and tour operators to rally domestic tourism. The
campaignincludespromotionsontravelpackagestothe
Dead Sea and historical sites such as Petra.
But keen to see more done, industry players have
also drawn up a number of other proposals, which
include a reduction of entry fees to Petra for visitors
staying in nearby hotels, as well as proposals to
supportthestrugglinghotelindustrywithtaxcutsand
lower electricity prices.
As well as this, it’s hoped new developments in the
aviation sector could prove instrumental in boosting
visitornumberstotheKingdom.TheUAE-basedbudget
airline Air Arabia recently bought a 49 percent stake in
Jordanian charter carrier Petra Airlines, which is being
rebranded Air Arabia Jordan.
The firm plans to open a new international hub at
Amman’s Queen Alia International Airport (QAIA),
becoming Air Arabia’s fifth in the region and operating
flights to Europe, the Middle East, and North Africa.
“The acquisition is good news for the industry, as
Air Arabia represents a new, large potential source of
capital,” said Kjeld Binger, CEO of Airport International
Group, which manages QAIA. “It will bring more jobs
and contracts for services, and more competition will
give rise to market growth and more innovation.”
Directivesfromthegovernmenttoboosttourismnum-
bers are spurring other carriers into action. In March,
the national flag carrier, Royal Jordanian, announced
planstoofferdiscountedticketstotouroperatorsforuse
in package deals. The initiative is targeted primarily at
the GCC and European markets, which, between them,
account for almost half of overnight arrivals before the
inclusion of Jordanians living abroad.
Thetourismindustryisalsocallingforothermeasures
to be introduced including the abolition of a departure
tax for charter flights and low-cost carriers using
Amman Civil Airport at Marka.
Whilst perhaps little can be done to boost senti-
ment amongst travelers, the Jordanian authorities and
stakeholders in the tourism sector are looking to do all
theycantotrytocreateanenvironmentfortheindustry
to grow. In the long-term, they will certainly be hoping
for more favorable regional headwinds.
regional instability,typified bythe rise
of Islamic State in neighboring Syria and
Iraq, is largely responsible for visitors
staying away
Regional Volatility Hits TourismA concerted drive is underway to reinvigorate Jordan’s important tourism sector that
has been shaken hard by regional instability.

They too are against restructuring and suggest that
the government adopts measures to exempt the
newspapers from paying sales tax and import duty,
among other incentives. The Jordan Press Association
(JPA) is also against adopting any plan that involves
firing journalists.
Ironically, Al-Rai’s new editorial line was seen as
a positive sign, with readers and observers saying
newspapers should always aim to check government
power. The Jordan Times, another JPF title, quoted Al
Rai Assistant Chief Editor Khalil Shobaki as saying
his newspaper would continue playing its role as the
fourth estate even if the dispute comes to an end.
yber attacks against various media
increased last month with hackers
attacking the websites of French,
Belgian, and Arabic media outlets.
London-based Al-Hayat had its website
taken over for more than a day by a group calling itself
theYemenCyberArmy,whichpostedanti-Saudislogans
and a photo of Hizbollah leader Hassan Nasrallah. The
group is believed to be from Iran, which opposes Saudi-
led air strikes on Houthi rebels inYemen.
Islamic State hackers attacked the leading French
broadcaster TV5 Monde, disrupting its transmission
and website, and infiltrating its Twitter, Google+, and
Facebook accounts. The cyber-jihadists posted pro-
Islamic State images, flags, and slogans, in addition to
statements warning French soldiers to cease fighting
the terrorist group.
It took experts hours to regain control of the
channel’s website and the management said it was
still trying to understand how the hackers were able
to carry out their attack in spite of a sophisticated
firewall and security system.
The website of leading Belgian newspaper Le Soir
was also hacked as well. The site was down for hours
and the identity of the hackers is still not known.
But in Egypt terrorists resorted to a more primitive
way to disable the media. Last month, an unknown
group blew up electricity towers feeding the Media
Production City west of Cairo, effectively taking tens
of stations off the air for hours before emergency
generators were brought in.
Cyber-jihad has become the latest weapon in the
arsenal of insurgents and terrorist groups. Its main
objective is to create chaos online and bring attention
to their causes as part of a propaganda war.
WordsByOsamaal-Sharif
MediaandSociety
he crisis engulfing
Jordan’s daily
newspapers continues
to show no sign of
abating after Al-Rai’s
editorial board declared war on the
government of Abdallah Ensour last
month. The newspaper’s employees
took the unprecedented decision to
block coverage of all government
activities to protest the failure of
the Social Security Investment Fund
(SSIF), which owns 55 percent of the
newspaper’s shares, to fire the board
of directors. But that’s not all. Shortly
after implementing its blackout of
government news, the newspaper
actually began publishing articles
critical of the government.
Al Rai, which is published by
the Jordan Press Foundation (JPF),
has traditionally been a staunchly
pro-government newspaper. As a
majority owner, the government,
throughtheSSIF,haslongappointed
the majority of the newspaper’s
board of directors and other key
editorial positions.
The leading newspaper has seen
better days financially. It’s been
losing money for the last three years,
especially after the previous board
approved the purchase of a JD35
million printing press. Employees say
the project has drained the finances
of the JPF, with millions of dinars
pumped into the project every year to
keepitrunning.Theywanttheprinting
presstobetransformedintoaseparate
company and sold to the SSIF in order
to relieve the company and help it
return to profitability. They accuse
the board of seeking to implement a
restructuringplanthatwouldterminate
the employment of hundreds of
employees, including journalists.
But Addustour, which is in an even
worse financial position, has taken
the decision to continue covering
government activities. Al-Rai’s harsh
criticism of the government came at
a time when deputies intervened to
find a solution to the mess Jordan’s
newspapers find themselves in.
Al Rai’s relations with the government have soured as the rancorous debate continues over the
future of Jordan’s troubled daily newspapers.
AFuriousFallOut
CyberJihadistsCause
HavocOnline.
T
C
Al-Rai’s new editorial line was seen as a
positive sign, with readers and observers
saying newspapers should always aimto
check government power

Nip andTuck:
Jordan’s Plastic
SurgeryBoomWhether they’re carrying out nose jobs on women wanting to look
like film stars, or liposuction on men hurtling towards middle age,
Jordan’s plastic surgeons say they’ve never been busier.
By Elisa Oddone
PHOTOGRAPHY BY ALA'A SUKHNY
health
s we become more and more accustomed to
images of surgery-enhanced celebrities, an
increasing number of Jordanians are book-
ing themselves into the country’s cosmetic
surgery clinics seeking features resembling
their favorite stars.
Women swarm to Jordan clinics asking for
noses like Lebanese singer Nancy Ajram,
best-selling recording artist Elissa’s breasts,
or Meryam Fares’ voluptuous curves.
Men also want to sport noses or six-pack
abs like American actor Taylor Lautner and
wrestler Dwayne Johnson.
No official figure is available, but the
Jordanian surgeons Venture contacted said
they have witnessed a 100 percent rise in
demand over the last decade for procedures
ranging from eye-lid lifts and rhinoplasty, to
liposuction and breast implants. The average
patient age is between 25 and 45 for women,
and between 40 and 50 for men.
Top-Notch Services
DespitetheconservatismofJordaniansociety,
The Jordanian surgeons
venture contacted said
they have witnessed a 100
percent rise in demand over
the last decade
A

the stigma attached to cosmetic
surgery appears to be waning as
the Kingdom becomes ever more
inextricably linked to the world
around it. “The impact of the open
media and globalization has had a
huge influence on people’s demand
for aesthetic treatments,” Jordanian
consultantplasticandreconstructive
surgeon Dr. Walid Karhchule said.
On the morning Venture visited
Dr Karhchule’s clinic, around 10
men and women were waiting in
the reception area. Some suffered
injuries that required reconstructive
surgery, while the remainder were
likely seeking Dr. Karhchule’s
expertise in carrying out cos-
metic procedures, including botox,
liposuction,andbreastaugmentation.
“Plastic and reconstructive surgeries
are considered to be an essential
issue in many people’s lives today,
since it improves their mental and
psychological status,” he said. “Both
women and men are pleased if they
look better or younger and feel more
confident when people approach
them in a very positive way.”
While in the 1960s patients were
interested in reconstruction and
correcting deformities caused by
accidents, burns, or congenital
anomalies, the early 1990s saw more
patients looking for enhancements.
As the market has widened through-
out the years, aesthetic surgery has
also lost much of its exclusivity.
Surgeries that were initially reserved
for the yacht-owning wealthiest
echelons have been made available
to the masses.
Today, Jordan is the leading destination for
medical tourism in the region, with plastic
surgery high in demand. “This is due to the in-
creasingnumberofadvancedhospitalsequipped
withcutting-edgetools,thecountry’sreasonable
surgery prices, and the large number of highly
qualified doctors,” he said.
But Jordan’s journey to reach this primacy
began some 50 years ago with a surgeon who
has done more than any other to launch the
Kingdom to the vanguard of plastic surgery: Dr.
Ghaith Shubailat.
Trained in the UK and the United States,
Shubailat was the first plastic surgeon certified
by The American Board of Plastic Surgery in
the Middle East. He said he has performed 500
operations annually for the past 30 years.
“There was only one plastic surgeon in Jordan
in the 1960s, he was my teacher and got me
hooked to this profession. Following my studies,
I started the plastic reconstructive surgery
section at the King Hussein Medical Center,”
Shubailat told Venture at his practice in an
upscale neighborhood of Amman.
Dr. Shubailat trained dozens of plastic sur-
geons and invited others for short-term courses
and visits until he left the army in 1984. Many
of his alumni have gone on to found their own
practices, and the training program he helped
start still operates to this day.
The surgeon first honed his skills treating
patients who were burned or disfigured in the
1967 Middle East war, when the deployment
of napalm bombs—now internationally prohib-
ited—left civilians with horrific scars.
Today, the surgeon who reached the rank
of major general, only performs cosmetic
treatments. “The majority of my patients are
women while men make around 15 percent of
my clients,” he said. “Arabs often have crooked
noses, so almost half of my work are nose jobs.
Until 2003, I used to do about seven breast
implants a year. Suddenly, the number has
soaredfollowingthelatestfashiontrends.Nowit
The impact of the
open media and
globalization has had
a huge influence on
people’s demand for
aesthetic treatments
The majority of my patients
are women while men make
around 15 percent of my
clients
health
Dr.Walid Karhchule, Jordanian Consultant
Plastic and Reconstructive Surgeon
Dr. Kusai Elmusa, a Prominent Plastic Surgeon
and Secretary General of the Jordanian Society
of Plastic and Reconstructive Surgeons

is a very common request, and I do a
hundred a year.”
The surgeon said women in their
30s come to him for breast lifting
operations after deliveries, while
many foreigners opt for liposuction
treatments, especially patients from
the Gulf countries, where obesity is
a huge problem.
Costs at Dr. Shubailat’ s practice
start from JD3,000 for a nose job,
JD3,500 for breast implants, and
between JD3,000 and JD6,000
for liposuction, depending on the
person’s size.
A Medical Hub
Jordan has grown in reputation as a
center for plastic surgery excellence
down the years, luring more and
more patients from abroad.
Dr. Kusai Elmusa, a prominent
plasticsurgeonandsecretarygeneral
of the Jordanian Society of Plastic
and Reconstructive Surgeons, esti-
mates that 20 percent of his patients
come from the Gulf, and a further 10
percent from other countries like the
United States. He said they opt to
cometoJordanbecauseofthe“qual-
ity of the practices and especially for
the lower prices.”
Cosmetic surgery is among the
must-dos for many tourists, accord-
ing to Elmusa.
Patientstendtoundergosurgeries
during their holidays, as operations
are not invasive anymore, and can
be done almost entirely under local
anesthetic. Free of bleeding or
bruising, patients can usually walk
out of the operating room and go
home the same day.
Despite the vast majority of
patients still being women, a grow-
ing number of men are resorting to
surgical and non-surgical aesthetic
interventionsinJordaninadherence
to international trends. “Men go for
solutions that highlight their mascu-
linity, like more projection to their
chins, a more manly nose, six-pack
abs, liposuction, and tightening,”
Elmusa said.
But while demand for plastic
surgery appears to be growing in
Jordan, leading surgeons always
try to encourage patients to go for
natural looks during surgeries.
“We want our patients to ask for
natural results, since it is impos-
sible to go under the knife every
day to change looks,” Elmusa said.
“Patients will also be happier in
the long-term, sporting bodies and
features detached from temporary
standards of beauty dictated by the
latest fashion.”
Patients tend to
undergo surgeries
during their holidays,
as operations are not
invasive anymore
health
Dr. Ghaith Shubailat, the First Plastic
Surgeon Certified by The American Board
of Plastic Surgery in the Middle East

The $950 million Red Sea-Dead Sea conveyance project has finally been given the go-ahead.
While it will likely save Jordan money and provide it with much-needed fresh water, doubts
remain about whether it can save the fast-shrinking Dead Sea over the long-term.
Red Sea-Dead Sea Project:
Too Little, Too Late?
By Jane Hosking
environment

he Dead Sea is shrinking at
an alarming rate—at over a
meter per year, in fact. If no
actionistakensoon,experts
believe the unique natural wonder
could disappear completely within a
mere four decades.
But now, after years on the drawing
board, a multi-million-dollar, World
Bank-sponsored project primarily
designed to save the Dead Sea from
extinction has finally been allowed to
proceedbyJordan,Israel,andPalestine.
The Red Sea-Dead Sea project will
involve building a desalination plant
in Aqaba to provide fresh water to the
three parties for agriculture and drink-
ingpurposes.Brinewater,abyproduct
of this process, will then be pumped
north via a pipeline to replenish the
Dead Sea.
This is the first time Jordan, Israel,
and Palestine have come together
to collaborate on a trilateral project
since the Oslo Peace Treaty in 1995.
Unsurprisingly, political and environ-
mental controversy has surrounded
the deal, along with concerns that the
initial project—proposed in 2005 at a
cost of $11 billion—was not economi-
cally feasible.
The project has since been scaled
down significantly from the version
originally envisioned. The parties
involvedhaveagreedtoimplementthe
first of five potential phases at a cost of
approximately $950 million.
Phase one of the project, which will
be constructed on a build-operate-
transfer basis, will soon be tendered
out.Theaimistocommenceconstruc-
tion in 2017, and to have the project
completed by 2019.
The water intake infrastructure will
be located in the northern part of the
Gulf of Aqaba, inside Jordan, and the
desalination plant will be constructed
just north of Aqaba airport. A hydro
electricity plant will also be part of
the deal, generating 20 percent of the
needed power for the project.
The desalination plant is expected
to produce 120 to 130 million cubic
meters of brine to be pumped into
the Dead Sea, along with 85 million
cubic meters of fresh water per year.
Of this fresh water, up to 50 million
cubic meters will be sold to Israel and
the rest—around 35 million cubic
meters—will go to Aqaba city.
In return, Israel will sell 50 million
cubic meters of water to Jordan from
Lake Tiberias in the north, for around
$0.40 cents per cubic meter—cheaper
than the expected $1 per cubic meter
that they will be paying Jordan for the
desalinated water.
“This water will be supplied to
Jordan’s northern governorates
which are suffering from water
shortages because they have very
limited water sources, especially due
to the Syrian refugee influx,” said
Saad Abu Hammour, Jordan’s
Secretary General of the Ministry
of Water and Irrigation.
Palestinians are also set to benefit
from the deal, receiving 20-30 million
cubic meters per year, not from the
desalination plant, but from Israel’s
existing water sources.
“This is the condition of the Israelis
getting water from the project,” said
Abu Hammour, adding that it would
havebeentooexpensiveatthisstageto
construct a pipeline from the desalina-
tion plant to the West Bank, but it was
consideredimportantthatPalestinians
benefited from the deal as well.
For Jordan, the project is projected
to save the country at least $2.1 billion
per year, while each water unit will be
25 percent cheaper than the Disi water
project, according to Abu Hammour.
In order to fund the project, the
Jordaniangovernmenthopestoreceive
$350 million in grants from interna-
tional donors, which will be allocated
totheconstructionofthebrinepipeline
tohelpsavetheDeadSea.Theremain-
ing $600 million will be sought from
investors for the desalination plant.
Yet despite all this progress, the
future of the Dead Sea still looks bleak,
and as a result, the environmental and
economic consequences for Jordan
could be huge.
Why So Low?
While evaporation is the main factor
causingthedepletionoftheDeadSea,
thishasonlybecomeamajorproblem
since the disruption of the Jordan
River and its tributaries, which previ-
ously fed the sea with up to 2 billion
cubic meters of water per year. Today,
the Dead Sea receives only around
200 to 300 million cubic meters, and
according to the project website, 80
percent of the Dead Sea’s decline has
occurred within the last 30 years.
“If I wanted to blame anyone I would
blame Israel first, Syria second, and
Jordan third,” said Abu Hammour,
referring to the countries primarily
responsiblefordivertingwaterfromthe
Jordan River since the 1950s.
Butanotherlesswell-knowcontribu-
tor to the Dead Sea’s depletion are the
large chemical industries in Israel
and Jordan—namely the Dead Sea
Works Company and the Arab Potash
Company—at the southern end of the
expanseofwater,whichuseitswaterto
extract minerals for fertilizers.
“The industries in the south right
now are responsible for at least 25 to
30percentoftheproblemsoftheDead
Sea,” said Munqeth Mehyar, president
and director of Eco Peace Middle East,
formally Friends of the Earth.
According to Abu Hammour, these
companies are extracting around 600
million cubic meters of water from the
Dead Sea per year. But he said that
someofthiswaterisreturnedtothesea
after the minerals are extracted.
If nothing is done to replenish
the Dead Sea, the environmental
consequences will go beyond the
sea’s extinction, according to Elias
Salameh, professor of Hydrogeology
and Hydrochemistry at the University
of Jordan. “The continuous drop in the
level of the Dead Sea will lead to the
formation of sink holes, landslides, and
freshgroundwaterdischargingintothe
sea,whichwilldegradetheenvironment
around it. It’s a catastrophe,” he said.
Salameh’s research shows the Dead
Sea’s falling water level is causing
it to absorb the fresh ground water
surrounding it. “It’s a problem for
Jordan, Palestine, and Israel because
thegroundwaterlevelshavestartedto
dropintheimmediateareasurrounding
theDeadSea,andnowthisisextending
eastward, westward, northward, and
southward,” he said, adding that many
natural springs are also drying up.
This all spells trouble for Jordan’s
farmers, and a shrinking Dead Sea
also threatens Jordan’s tourism sector,
which contributes up to 14 percent of
GDP. “There will be a lot of damage to
tourism,” warned Abu Hammour.
Salameh similarly believes that
tourism is at risk, not only because
of the likely decline in visitors to the
environment
The governments are now seeing the real
picture. They are coming to terms with the
reality of the problem
The Dead Sea is jointly
owned by Jordan,
Palestine, and Israel.
Nobody is allowed
to implement such a
project alone because
it will affect the
shores of every other
country
T

sea, but also from potential damage
to tourism developments such as
hotels, some of which are threatened
by landslides.
Opposition
While phase one of the project is no
doubtahugeundertakingforthethree
parties involved, it’s a far cry from the
original plan, which ambitiously aimed
to produce around 350 million cubic
meters of desalinated water per year,
and pump up to 2 billion cubic meters
of brine into the Dead Sea.
The environmental concerns
surroundingtheinitialplanwereoneof
the main obstacles preventing it from
going ahead. These concerns were
investigated in 2012 by a World Bank
feasibility and environmental study,
which warned that the large influx of
water from the Red Sea could result in
algae blooms and the stratification of
the Dead Sea’s water.
Thestudy,however,foundthatupto
400 million cubic meters of brine could
be released into the Dead Sea without
causing any damage. The project was
therefore given the all clear to go
ahead on a smaller scale, with a plan to
conductstudiesthatwouldmeasurethe
environment
waters. “Unfortunately it will not be
enough,” said Mehyar.
Abu Hammour similarly believes
thattheDeadSeacannotbesaved,but
expects that the brine will stop the de-
cline by 20 percent. “With this project,
itmeansweareputtingthegovernment
ontherighttrack,andatleastit’sbetter
than nothing,” he said.
But Abu Hammour admits that the
deal has come too late. “There is some
blame concerning the cooperation
between [Israel and Jordan], because
the peace treaty says that protecting
the environment of the Jordan River
and the Dead Sea is the responsibility
ofbothcountries.Butweneverstarted
seriously with the Israelis until four
years ago,” he said.
According to Salameh, in order for
it to survive, the Dead Sea needs to go
backtoreceiving2billioncubicmeters
of water per year. While the future
phases of the project are expected to
have the capacity to provide it with
1.2 billion cubic meters of brine per
year, not only is this not enough, but
theDeadSeamaybegonebeforethese
phases can be implemented.
Alternative sources of water to
replenish the Dead Sea are therefore
being sought through the release of
water into the Jordan River and its
tributaries. “The rehabilitation of
the Jordan River is a must, and the
reform of the water sectors in all three
countries is also a must,” said Mehyar.
Watershortagesintheregion,
however,makeitdifficulttoimaginethat
thediversionsoftheJordanRiverwill
ceaseanytimesoon.Nonetheless,some
progresshasbeenmadesofarwiththe
Israelisreleasingaround10millioncubic
metersperyearbackintotheriversince
2013.Theplanisforthistoincreaseto30
millionbytheyear2017.
While such initiatives will slow the
declineofthesea’swaters,thequestion
remainsastowhetheritwillbeenough
to save the Dead Sea. According to
Abu Hammour, the answer is still no.
Mehyar, on the other hand, is slightly
more positive. “The governments are
now seeing the real picture. They are
coming to terms with the reality of the
problemandaretryingtoberealisticin
solving it,” he said.
Dead Sea Level 1930 to 2009
DeadSeaLevel
Water Level of the Dead Sea 1976 - 2010
impact of the brine.
Asaresult,environmentalgroups,such
asMehyar’sEcoPeaceMiddleEast,who
wereinitiallyopposedtotheproject,have
becomesupportersorit.“TheWorld
Bankstudycameoutwiththesame
reservationsandconcernsthatwehad
before,”saidMehyar.“Butwearehappy
withtheagreementasitisnow.”
Yet even with the large-scale version
oftheproject,Salamehdoesn’tbelieve
that the release of brine into the Dead
Sea would cause it harm. He said:
“There were some doubts about what
will happen with the magnesium and
sulfate in the water. But my question
is: Did the water that formerly fed the
Dead Sea not contain magnesium?”
The Jordan River has always contained
these minerals, as well as algae, bacte-
ria, and even animal remains, he said.
“The Dead Sea was able to assimilate
all of that. So why can’t it assimilate
organic matter from the Red Sea?”
Salameh believes that counter to
what some people believe, the project
will be extremely beneficial for the
Dead Sea. “There is no significant
negative environmental impact of the
project.Butthepositiveenvironmental
impacts are really very, very high.”
Political controversy has also
threatened to derail the project. As the
recent gas deal between Jordan and
Israel has shown, any association with
Israel has the potential to generate
opposition in the Kingdom, particularly
from the Boycott, Divestment, and
Sanctions (BDS) movement. However,
when contacted for the purpose of this
article,aJordanianrepresentativeforthe
movementsaidthattheypreferrednotto
comment on this issue at this time.
The project, nonetheless, has
experienced opposition from a
number of politicians who object to it
on the grounds that Jordan shouldn’t
have any dealings with Israel. But
according to Salameh, there’s no
other option but to cooperate with
the Israelis. “The Dead Sea is jointly
owned by Jordan, Palestine, and
Israel. Nobody is allowed to imple-
ment such a project alone because it
will affect the shores of every other
country,” he explained.
A Drop in the Ocean
Despite the efforts being made to save
the Dead Sea, all are in agreement that
phase one of the project doesn’t have
the capacity to reverse the declining

Name: Christelle Fakhoury
Title: Cofounder and CEO of C2C (Le Club Des
Deux Clowns)
Beirut is rapidly shaping up as a crucial player in the region’s startup scene. Venture spoke to
four Lebanese female entrepreneurs who have made major headway in Lebanon, the region,
and even the world with their startups and creations.
By Dina AlWakeel
The Women
Leading Lebanon’s
Startup Scene
The Lebanese economy is mired in prob-
lems. Growth and consumer and investor
confidence continue to be held back by
regional instability and a long-standing
local political impasse.
Still, the Lebanese are a resilient bunch,
with an abundance of potential and in-
novation. A positive development for all
Lebanese startups has been a recent
Central Bank decision to unlock $400
million for startup investments. This move,
coupled with a serious attempt to create
a tech hub in Beirut, will boost Lebanese
startups’ competitive edge.
Here, Venture features four diverse
Lebanese entrepreneurs, all of whom
are women, for creating a successful
business in a strenuous environment,
for acting as a boon to the local, and in
some cases even regional and global,
economy, and the arduous task they still
have ahead to maintain their success.
s part of a mechanical
engineering course at the
American University of
Beirut, Chantal Abou Jaoude spent a
summer in Germany interning with
Maschinenbau Haldenwang, a major
manufacturer of automobile servic-
ing equipment.
Before returning home,
Abou Jaoude negotiated with
Maschinenbau Haldenwang’s sales
manager to allow her to distribute
the company’s products in Lebanon.
“So at the age of 21, with one tough
year left to complete at university,
zero capital, and a very challenging
and specialized industry to discover,
I started my own company with the
support of my brother, who remains
my indispensible partner,” she said.
Abou Jaoude’s company provides
customized and standard
solutions for vehicle service
and repair facilities, private
workshops, repair centers
for organizations with fleets,
and governmental vehicle
inspection centers.
The company has evolved
from selling a specific line of
products from one sole manu-
facturer to providing comprehen-
sive solutions for vehicle workshops
and inspection centers. Edge Middle
East represents more than 12
European and US manufacturers in
Lebanon and Iraq.
For Abou Jaoude, the opportunity
to enter into the Iraqi market was
so irresistible that couldn’t be
passed up. “Despite the instability,
alarming security conditions, and
Name: Chantal Abou Jaoude
Title: Cofounder, Managing Partner at EDGE and
EDGE Middle East
entrepreneurship
dependable head technician who
were willing to jump in.”
According to Abou Jaoude, who
now visits Iraq every 6 to 8 weeks,
one major achievement was intro-
ducing the periodic technical inspec-
tion, especially to the rural areas of
Kurdistan, through the development
of high-end inspection centers.
Today, her customers in Iraq
include official service centers
such as Mercedes Benz and
Bridgestone, government-certified
vehicle inspection centers, es-
pecially in Kurdistan, as well as
organizations with fleets like North
Oil Company, North Gas Company,
and the American Embassy.
But Abou Jaoude makes double the
effort to gain her customers’ respect
in an industry that’s largely dominated
by men. If the primary contact with
customers is by e-mail, she said, then
they always assume that she is a man,
addressing her as ‘Mr. Chantal. ’Then
when the first meeting takes place,
the clients are usually shocked to see
that she’s a woman.
Besides the common challenges
faced by most entrepreneurs in
the region, including the political,
economic, and security instability, the
high level of corruption dominating
business practices in both the public
and private sectors pose a particular
challenge for Abou Jaoude.
The underdeveloped automotive
industry also presents its own
challenges. “There is little aware-
ness on road transport safety and
the vast majority is focused on a
car’s esthetics while neglecting
safety and functionality,” she said.
“There are also no standards set
for service centers and workshops,
which render upgrading or investing
in quality equipment and solutions
more of a relaxed choice rather than
a professional obligation.”
Yet, despite the drastic security
and economic situation, the com-
pany’s annual sales have witnessed
a three-fold increase since they first
started in Iraq in 2010.
Abou Jaoude hopes to expand
her work into other markets in the
region and in Central Africa, as well
as expanding the scope of her work
to include more activities. To do so,
she might consider external funding,
something she has so far managed
to steer away from, particularly in
light of the new drive in Lebanon to
support SMEs.
For Abou Jaoude, work has helped
trigger her creativity and hone her
skills. “It has shaped up the biggest
part of the person I am today and I
perfectly agree with the founder of
BestBuzz that ‘entrepreneurship is
not a part-time job and it is not even
a full-time job, it’s a lifestyle’.”
or Christelle Fakhoury,
necessity is indeed the
mother of invention. She
created her business 11
years ago at the age of 21 primarily
to fund her education and become
financially independent. She was
also driven by her love of children
and entertainment.
Fakhoury decided to take advan-
tage of the big gap that existed
in the market to create a special
concept that would benefit both the
kids and their parents. “When we
started the company in 2004, there
were no proper places or systems
for kids entertainment. Parents
didn’t know where to take their
kids or what to do on their
birthdays,” she said.
More than a decade on,
C2C now has 150 employees
and is one of Beirut’s leading
children’s events companies.
It offers customers a myriad
of services, including organiz-
ing birthday parties, festivals,
summer camps, and product
launches. C2C began by organizing
around 100 events annually. Today
the number has grown to almost 800.
The company started with $20,000 in
seed capital, and their revenue now
has reached approximately $2 million.
But despite this impressive perfor-
mance, Fakhoury isn’t resting on
her laurels. “Today, I look back and
feel proud of my accomplishments,
but realize that the only way to grow
as an organization is by continually
questioning our business model
and seeking new ways of delivering
value to our customers,” she said.
“My business is my baby because
I put all my dreams and passion to
see it grow.”
The difficult economic and
corruption, I could only see Iraq as a
too-tempting-to-ignore blue ocean,”
she said. “Market penetration was
indeed tricky, but it was made easier
by partnering up with a trustworthy
Iraqi friend and coordinating with a
Fakhoury decided to take advantage
of the big gap that existed in the
market
A
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