The World Economic Forum on the Middle East meeting which took place on the Jordanian side of the Dead Sea on the 15-17 May 2009 was the occasion of various key announcements.

Beyond the political developments made possible during the meeting, such as Mr. Peres’declaration regarding the commitment of Benjamin Netanyahu’s government to 'abide by past commitments of the past government [two-state solution of the Israeli-Palestinian issue]', many key economic projects for Jordan were unveiled.

King Abdullah of Jordan officially inaugurated the Dead Sea Development Zone, whose management will be modeled after the successful experience of the Aqaba Special Economic Zone Authority (ASEZA). Saleh Kilani, chief commissioner at the Development Zones Corporation (DZC) officially appointed Saud Nseirat as chairman of the Dead Sea Development Corporation, recently established to run the zone.

Along with several new business projects (military vessels production in Aqaba through a JV with American group RiverHawk, glass-coating factory in Maan with Kuwait-based SGI Group, hospitality projects in Amman by US MGM Mirage Hospitality and Jordan Dubai Properties, etc.), Jordan made strategic moves on 2 vital issues for the Kingdom: water supplies and energy.

European support to the Disi Water Conveyance Project was demonstrated by the commitment of French development agency AFD and the European Investment Bank to provide each a USD 100 million loan. GAMA, the Turkish contractor which will deliver the infrastructure and operate it under a BOT contract, will therefore be able to re-launch construction works. As for longer-term water supplies, the government of Jordan said it will implement the Jordan National Red Sea Water Development Project which implies pumping surface water from the Red Sea to pour it into the fragile Dead Sea, producing electricity along the way and also fresh water through desalination plants. This project is not to be confused with the much more controversial plan to open a canal between the 2 seas.

To address the issue of energy supplies (Jordan covers 95% of its needs through imports), the country eventually signed exploration contracts with Royal Dutch Shell and Russian Inter Rao UES, aimed at exploiting the country’s oil shale deposits. The exploration contracts still await the green light from the parliament. Regarding energy issues in the region, all participants agreed on the necessity to 'increase energy conservation; develop alternative energies; and utilize smart grids'.

Morocco will host the 2010 World Economic Forum on the Middle East from 22 to 24 October.

[Source: the Jordan Times]