Jordan - National US-Arab Chamber of Commerce

Volume XII, No. 7 • November/December 2004ArticlesPageJordan’s King Abdullah . . . . . . 1From the President’s Desk:Jordan: Leading the Packwith Vision and Verve . . . . . . . 2NUSACC Honors EnergySecretary Spencer Abraham . . 3Bahrain and U.S. Sign FreeTrade Agreement . . . . . . . . . . . 4Yemen Gaining Ground inSearch for Investment. . . . . . . 6Roundtable at NUSACCExplores Reform & Terrorismin Saudi Arabia . . . . . . . . . . . . . 7Jordan’s ICT Forum . . . . . . . . . 8Marketing ICT and ExtendingJordan’s REACH . . . . . . . . . . . . . 8The REACH Initiative: Why ItHas Flourished in Jordan . . . . . 9int@j: Jordan’s ICT Advocates . . 10Jordanian EducationalSoftware BenefitsNew Jersey . . . . . . . . . . . . . . . 10Intel Corporation: Helping toRealize Jordan’s Potential . . . 11Q&A with H.E. Karim Kawar,Jordan’s Ambassadorto the U.S. . . . . . . . . . . . . . . . . 12World Economic Forum 2005in Jordan . . . . . . . . . . . . . . . . . . . 13American University to beEstablished in Aqaba . . . . . . . 14ProgressSoft: A JordanianSuccess Story . . . . . . . . . . . . . . 14Jordan: Key BusinessContacts . . . . . . . . . . . . . . . . . 15NUSACC WelcomesNew Senior FellowKevin Woelflein . . . . . . . . . . . 16NUSACC1023 15th Street, NWFourth FloorWashington, DC 20005Tel: (202) 289-5920Fax: (202) 289-5938www.nusacc.orgE-mail: tradeline@nusacc.orgJordan’s King Abdullah: Giving Voice to ArabAspirations for ReformThe National U.S.-Arab Chamber of Commerce (NUSACC)is pleased to welcome H.M. King Abdullah bin Al-Husseinto the United States. King Abdullah II is a tireless advocatefor reform – evolutionary rather than revolutionary – andJordan has become a crucible for progressive change in theregion. With this in mind, NUSACC is pleased to provideexcerpts from a speech that H.M. King Abdullah deliveredrecently in Chicago, Illinois.✦ ✦ ✦countries large andToday, small, rich and poor, areinfluencing where our globalsystem is headed. As people’sactions impact events, so dotheir ideas, aspirations, andrelationships.Reform is an essential part ofmy region’s future, [yet] it mustemerge from within our ownsocieties. Leadership for suchreform has emerged. In supportof freedom and tolerance. Infavor of transparent, responsive,accountable governance. For acivil society, where human rights,gender equality, and the rule oflaw are all respected.And may I also say, these are the deepest valuesof Islam. They are the historic values that drove theancient Arab world’s humanism and its pioneeringcivic development. They are the values that, today,make millions of Muslims great citizens, here inAmerica and around the world.The equal dignity of all people; respect for reasonand law; tolerance; personal responsibility: theseand other principles can drive, and are driving, a newera of progress in the Middle East.But we must not think only in terms of individualprograms. There must also be a strong framework– a recovery plan that can give people, especiallyyouth, a sense that they will share in the promiseof our time. I’m talking about a Marshall Plan, asit were, for the recovery of the Middle East.As most of you know, the original Marshall Planreached out to the people of Europe at a time oftremendous scarcity and despair. It was a time whenthe forces of a closed world were actively trying to takeadvantage of people’s hopelessness and fear. But theMarshall Plan gave Europeans the support they neededto build strong, free societies.What could be a better description of what isneeded now for the Middle East?Make no mistake: the Arab-Israeli conflictremains the central hurdle to peace and progress inmy region, and in the world. While its violence anddespair continue, extremistswill continue to spread theirhatred and division. It is timeto listen to the people, Israelisand Palestinians, who tell us soclearly: “Give us security, peace,and justice.”✦ ✦ ✦Jordan was the first Arabcountry to sign a Free TradeAgreement with the UnitedStates, and that agreement hasalready contributed significantlyto economic growth andopportunity. In the economy,we have encouraged innovation,enterprise, and partnership withHis Majesty King Abdullah II of Jordanthe private sector.In education, our focus is on empowering youth.Today, whether in busy urban centers or remote desertcommunities, you will find students surfing theInternet. First-graders are learning English as a secondlanguage. University students are learning informationtechnologies and the skills of critical thinking.The American University of Jordan is one of theinitiatives for which H.M. Queen Rania and I havegreat hope. This private, non-profit institution isscheduled to open in 2009. It will be partnered withleading U.S. institutions; it will be open to all studentsin the region; and it will adopt the standards ofworld-class scholarship: open inquiry, freedom ofthought, and freedom of expression.Great opportunities lie ahead. A world where allpeople share in the promise of human knowledge,participate in global prosperity and growth, and fulfilltheir human potential. This is our goal in Jordan,and this is Jordan’s goal for the Middle East. ✦For related articles on Jordan’s economic reform and ITinitiatives, see pages 8 – 15.Courtesy of the Royal Court

From the President’s DeskJordan: Leading the Pack with Vision and VerveNUSACC President David HamodWe have adopted a far-reaching plan that addressesthe key areas of good governance, political freedoms,women’s rights, judicial reform, economic reform,education reform, and the liberalization of theeconomy. We also are strongly committed to a keyrole by civil society. Our aim is to move towardsa system that respects diversity and guaranteespluralism at all times so that democracy is notused by any who might opt to be subject to it onceand then deny it to others.H.M. King Abdullah IIWashington, D.C., May 6, 2004No Head of State in the Arab world today isbetter positioned than H.M. King Abdullah ofJordan to bridge the yawning gap between Eastand West.On the one hand, he is making the case tohis people and the nations of the region that theymust adopt unprecedented reforms if the Arabworld is to safeguard its political and economicfuture in an increasingly globalized world.On the other hand, in meetings with Administrationofficials, Members of Congress, and the U.S.business community, King Abdullah bravely carriesto U.S. policymakers the Arab world’s messagesabout terrorism, Islam, Palestine, and Iraq.It both cases, it is a challenging and oftenthankless job.King Abdullah is a regular visitor to the UnitedStates, yet his visit at this juncture carries a specialsignificance because the Middle East is in anextraordinary period of transition:• The Palestinian people are searching for newleadership after the passing of the PLO’s largerthan-lifeChairman, Yasser Arafat;• Iraq is battling widespread violence as it lurchesin fits and starts toward free and fairelections;• The region has lost one of its most pivotal “wisemen,” H.H. Shaikh Zayed of the UAE, whohistorically played a central role in helping theArab world to speak with one voice;• Ariel Sharon’s conflicted coalition in Israel isteetering on the edge of collapse, raising newfears about how deteriorating political conditionsmay stymie fragile new peace talks;• George W. Bush, about to start his second termas President, brings a new foreign policy teamto the equation – raising many questions abouthow this new team will tackle such sensitiveissues as U.S. security and democracy in theMiddle East.This is indeed a time of transition. And aswith any transition, there are remarkable opportunitiesand risks on the line.Jordan, of course, is no stranger to takingrisks. With very few natural resources, Jordanhas used the resourcefulness and determinationof its people to survive in a very tough neighborhood.Jordan’s extraordinary commitment tohuman resources has enabled the HashemiteKingdom to blaze trails that few others in theregion would even consider.Jordan was the first nation in the Arab worldto sign a Free Trade Agreement (FTA) with theUnited States, for example, nearly five years beforethe next signatory, Morocco (2004). As a resultof Jordan’s willingness to make sacrifices andtake a chance on the FTA, it has enjoyed unprecedentedaccess to the U.S. market.In the same spirit, Jordan made a commitmentin 1999 to launch the REACH Initiative in abid to become a world-class player in the field ofInformation Technology. As articles in this issueof U.S.-Arab Tradeline make clear, Jordan hassome remarkable home-grown success stories, inno small part as a result of close cooperationbetween Jordan’s public and private sectors.When it comes to bolstering its knowledgebasedeconomy, Jordan is once again pulling outall the stops. The Hashemite Kingdom has placeditself at the nexus of technology and educationalreform like no one else in the Arab world and,as a result, the people of Jordan are reapingbenefits in the workplace and at home.Jordan’s willingness to go out on a limb isgaining currency, so to speak, and this is not loston other nations in the region. Some of thesecountries will “draw even” with Jordan over time,of course. But for now, Jordan is enjoying theview at the head of the pack, and there’s nolooking back.David HamodPresident2 November/ December 2004 • US-Arab Tradeline

NUSACC Honors Secretary of EnergySpencer AbrahamOn September 29, in front of a crowd of some 200corporate leaders and ambassadors, NUSACC presenteda Lifetime Achievement Award to The Honorable SpencerAbraham, U.S. Secretary of Energy. In making thisaward, NUSACC’s leadershipcelebrated the more than two decadesof public service that SecretaryAbraham has given to his communityand the United States.“NUSACC is truly proud ofSpence and what he has achieved,and the honor that we bestow on him“He knows that governmentmust do what it can tocreate an economic climatethat fosters investment inemerging technologies.”NUSACC’s Chairman, Don DeMarino,about Secretary Abrahamtoday is a small token of our gratitudeand pride,” said Don DeMarino,NUSACC’s Chairman. “He has never lost his appreciationfor his roots, and that has served him well throughevery phase of his public life.”DeMarino continued, “Spence has a desire to bringnew solutions to bear on old problems, and this setshim apart from many in government. He appreciatesthe risks involved in exploring new paths, and he is notafraid to take those risks. He understands the hurdlesthat entrepreneurs face, particularly small businessowners, and he assists them. And he knows that governmentmust do what it can to create an economic climatethat fosters investment in emerging technologies. Forthese reasons and more, we are privileged today to honorSecretary of Energy Spencer Abraham (center) receives a Lifetime Achievement Award fromDan DeMarino, NUSACC’s chairman (left), and David Hamod, NUSACC’s President andCEO (right).Secretary Abraham receives a congratulatory handshake from Senator Chuck Hagel at an awrdsceremony sponsored by the National U.S.-Arab Chamber of Commerce.Spencer Abraham, a genuine American success story.”In receiving the Lifetime Achievement Award,Secretary Abraham said, “It is seldom the case that onehas the opportunity to be honored – particularly in thistown! – so I want to say how grateful I am to receivethis award. In addition to thanking NUSACC, I wantto express my appreciation to the members of the ambassadorialcommunity who came here today to share theirgoodwill.”In his concluding remarks,Secretary Abraham noted, “It isexciting to see organizations likethe Chamber doing such a great jobin tackling economic challengesand developing economic opportunitiesbetween the United Statesand the Arab world. It is also greatto see increasing collaborationbetween the Chamber’s small andlarge companies in pursuit of ahigher quality of life – both in theUnited States and in the MiddleEast. I hope that through thecontinuing success of this organizationwe will see even more of thatcollaboration in the future. Keepup the good work!” ✦U.S. Secretary of EnergySpencer AbrahamNUSACC would like tothank the followingsponsors for theirsupport of the awardsceremony:US-Arab TradelineDesignRick Clark Illustration& DesignNovember/ December 2004 • US-Arab Tradeline3

“I would like tosincerely thank theco-secretariats of theUS-Bahrain Free TradeAgreement Coalition,The Business Councilfor InternationalUnderstanding, TheNational ForeignTrade Council, andthe National US-Arab Chamber ofCommerce for theirtremendous effortsin support of thishistoric agreement;an agreementthat strengthensand deepens thedistinguishedrelationship betweenour two countries.”Shaikh Khalifa bin Ali Al-Khalifa,Bahrain’s Ambassador to the U.S.Bahrain and U.S. Sign Free Trade AgreementOn September 14, the United States and the Kingdomof Bahrain signed a Free Trade Agreement (FTA)that promises to give an important boost to trade andinvestment between the two long-time trade partnersand allies.Ambassador Robert Zoellick, U.S. Trade Representative,said that the new FTA will “enhance commercialrelations with an economic leader in the Gulf and setthe stage for improving trade relations and expandingopenness with other countries in the region, creatingprosperity, opportunity, and hope. This Free TradeAgreement is the next step for a nation on the move.Free trade negotiations often last more than a year, butBahrain’s decisive embrace of open trade and free marketspaved the way for these negotiations to close in fourmonths.”The Bahraini side was ledby the Minister of Finance andNational Economy, H.E.Abdulla Hassan Saif, whodescribed the agreement as “thecapstone of five millennia oftrade and commerce.”The signing ceremonycapped months of high-levelnegotiations between the twonations and ushered in the firstsuch agreement with an ArabianGulf nation. Before the FTAcan take effect, however, it muststill receive the official blessingof Congress, which is expectedto take action in the earlymonths of 2005. One Memberof Congress recently describedCongressional approval of theU.S.-Bahrain FTA as “as closeto a slam-dunk as you canget.”“It is not without significance that Bahrainstill finds itself as the most importantgateway to the region sitting along thepotentially crucial trade route between aresurgent Iraq and the great Indian-Pakistanisubcontinent.”H.E Abdulla Hassan SaifMinister of Finance and National EconomyThe Bahrain Caucus on Capitol Hill has been ledby Congressmen Paul Ryan (R-WI) and Jim Turner(D-TX), each of whom has been to Bahrain to gain afirsthand understanding of that Gulf Kingdom. BothMembers of Congress attended the signing ceremony,which took place in the historic Indian Treaty Roomof the Eisenhower Executive Office Building, where theUN Charter and the treaty establishing the InternationalMonetary Fund (IMF) were signed.Also attending the ceremony were members of theU.S.-Bahrain FTA Business Coalition, led by Alcoa andCitigroup and coordinated by NUSACC, the BusinessCouncil for International Understanding (BCIU), andthe National Foreign Trade Council (NFTC). TheBusiness Coalition represents a broad range of industriesincluding construction, energy, services, autos, pharmaceutical,information technology, and defense companies.According to the Office of the U.S. Trade Representative(USTR), two-way trade between the twonations was nearly $900 million in 2003. On the firstday that the new FTA goes into effect, 100 percent ofWhile Minister Saif and Ambassador Zoellick sign the FTA, government leaders look on. Standing(from left) Representative Jim Turner; Representative Paul Ryan; Dr. Naser Al Balooshi, Bahrain’sEconomic Representative in the U.S.; H.E. Khalifa Al-Khalifa, Bahrain’s Ambassador to the U.S.;Catherine Novelli, Assistant U.S. Trade Representative; the Honorable Ron Neumann, outgoingU.S. Ambassador to Bahrain.consumer and industrial products and 81 percent ofU.S. agricultural exports will be duty-free. Bahrainwill open its services market wider than any previousFTA partner, streamline digital trade, protect intellectualproperty, facilitate government procurement,and provide for effective enforcement of labor andenvironmental laws.In 2003, U.S. exports totaled more than half a billiondollars. This new trade opening will expand opportunitiesfor exports of aircraft, machinery, vehicles, pharmaceuticaland agricultural products such as meats, fruitsand vegetables, cereals, and dairy products.The FTA signing also fulfills an important recommendationof the 9/11 Commission Report, whichnoted:The U.S. government has announced the goalof working toward a Middle East Free Trade4 November/ December 2004 • US-Arab Tradeline

Area, or MEFTA, by 2013. The UnitedStates has been seeking comprehensivefree trade agreements (FTAs) with theMiddle Eastern nations most firmly onthe path to reform. The U.S.-Israeli FTAwas enacted in 1985, and Congressimplemented an FTA with Jordan in2001. Both agreements have expandedtrade and investment, thereby supportingdomestic economic reform. In 2004, newFTAs were signed with Morocco andBahrain, and are awaiting Congressionalapproval. These models are drawing theinterest of their neighbors. Muslimcountries can become full participantsin the rules-based global trading system,as the United States considers loweringthe trade barriers with the poorest Arabnations.Recommendation: A comprehensive U.S. strategyto counter terrorism should include economicpolicies that encourage development, moreopen societies, and opportunities for people toimprove the lives of their families and toenhance prospects for their children’s future.The 9/11 Commission Report, pages 378-379One week after the FTA was signed, the BahrainGateway held a luncheon with business leaders in NewYork City to commemorate the historic signing. A varietyof government leaders addressed the crowd, includingMinister Abdulla Saif of Bahrain and Assistant U.S.Minister Saif (center), Catherine Novelli of USTR, and David Hamod ofNUSACC visit at the Bahrain Gateway event in New York City.Trade Representative Catherine Novelli. Three representativesof the private sector also served as guestspeakers: Antranig Sarkissian, Vice President GroupMarketing Executive at Citigroup; Tawfiq Al Moayyed,Deputy Chairman, Bahrain Chamber of Commerceand Industry; and David Hamod, President & CEO ofNUSACC.“Even in these times of instantaneouscommunications, Bahrain’s uniquecombination of location and historypermits easy access to clients and homeoffices. It is often said by senior financialofficers that in Bahrain, one can dobusiness with both Tokyo and New Yorkduring a full working day.”H.E Abdulla Hassan SaifMinister of Finance and National Economy“This FTA is asolid agreement.It sets the pacefor the rest ofthe Gulf and is astrong model forthe Arab world asa whole.”David HamodPresident & CEO ofNUSACCMinister Saif (left) and Ambassador Zoellick (right) “shake on it.”In his remarks, Hamod described Bahrain as “theLittle Engine That Can. Bahrain – with its resourcefulness,determination, and visionary leadership – takeson tough jobs and succeeds at them in ways that biggerengines can only dream about.”In a recent statement, Hamod noted, “NUSACC isproud and grateful for the opportunity to support theFTA discussions between these two important allies.”Shaikh Khalifa bin Ali Al-Khalifa, Bahrain’s Ambassadorto the United States, expressed his appreciationfor the U.S.-Bahrain FTA Coalition this way: “I wouldlike to sincerely thank the Secretariat of the US-BahrainFree Trade Agreement Coalition – The Business Councilfor International Understanding, The National ForeignTrade Council, and the National US-Arab Chamber ofCommerce – for its tremendous efforts in support ofthis historic agreement, an agreement that strengthensand deepens the distinguished relationship between ourtwo countries.” ✦November/ December 2004 • US-Arab Tradeline5

“Yemen todayhas undergonea transformationin recognition ofthe fact that theprivate sector roleis essential fordevelopment.”Yemen Gaining Ground in Search for InvestmentOn November 17, NUSACC and the Middle EastFree Trade Agreement (MEFTA) Coalition cohosteda roundtable discussion featuring H.E. AhmedSofan, Yemen’s Deputy Prime Minister and Minister ofPlanning and International Cooperation. Held at theOffice of the U.S. Trade Representative in conjunctionwith Yemen’s Trade and Investment Framework Agreement(TIFA) talks, the event was limited to 25 U.S.business leaders.Yemen’s Deputy Prime Minister Ahmed Sofan (center) and USTR’s CatherineNovelli (right) address business leaders at a roundtable discussion on Yemen.Minister Sofan, who has helped to guide Yemen’sdevelopment efforts for much of the past two decades,highlighted some of the positive trends taking place inhis nation. The World Bank and Transparency International,he suggested, have both lauded steps taken byYemen in recent years to encourage transparency andfight corruption.In the same vein, the financial community is showingincreasing confidence in Yemen’s economic stability andfinancial institutions. Yemen has not defaulted on anyloans, for example, and its debt-to-GDP ratio (27 percent)is the lowest in the region, Minister Sofan said. Thenation’s cash reserves are in good shape, he continued,and rating agencies recently upgraded Yemen’s creditworthiness. In addition, the Export Import Bank of theUnited States has enhanced its presence and increasedits credit line in Yemen.On the security front, Minister Sofan said, Yemenhas closely aligned its policies of fighting terrorism withthose of the United States and the international community.He pointed out that since the bombing of the USSCole by Yemeni extremists, there have been no instancesof terrorism, and the Government of Yemen has crackeddown on local groups involved in questionable activities.In part because of this “get tough” approach, MinisterSofan suggested, there have been no kidnappings inYemen since 2001.Minister Sofan said that in the past, Yemen, like manydeveloping nations, relied very heavily on the governmentto drive the economy. Yemen today, he said, has undergonea “transformation” in recognition of the fact that the“private sector role is essential for development.” Onaverage, he said, it now takes 96 days to establish a businessin Yemen, and the government is working toreduce that number further.The hydrocarbon sector holds “greatpromise,” said Minister Sofan, noting thatthree-quarters (74 percent) of the hydrocarbon-richareas are not yet part of anyconcessions.Minister Sofan also touted the telecommunicationssector, noting that a major newopportunity is “nearly ready to go.” Yemenis actively seeking private investment in thetelecom sector and, to this end, some 25– 40 percent of the new venture’s shares willbe set aside for the public. Moreover,according to Minister Sofan, strict limitswill be placed on the number of shares thatcan be owned or controlled by any oneindividual.In some instances, the Government ofYemen is turning to outside consultants toprovide expertise or advice that will serve the businesscommunity and investors. Minister Sofan admitted, forexample, that there are some “holes to repair in Yemen’sprocurement practices.” In response to such problems,the Government of Yemen is now following the WorldBank’s procurement procedures and Yemen recentlyhired Crown Agents to help plug these holes. In anotherexample, the Government of Yemen asked Lloyds tolook into the tenfold increase in rates of maritime freightinsurance. Lloyds determined that Yemen is remarkablysafe and secure and that the huge insurance increase isunfounded.In concluding his remarks, Minister Sofan invitedmembers of the U.S. business community to come toYemen to see for themselves what steps the nation hastaken to reform its economy, bring about political change,and stabilize its financial markets. The new level oftransparency in business, he concluded, will “produceresults that will raise your eyebrows!” ✦For more information about specific projects in Yemen,click onto the Web sites of Yemen’s General InvestmentAuthority (www.giay.org) and the Aden Free Zone(www.aden-freezone.com).6 November/ December 2004 • US-Arab Tradeline

Roundtable at NUSACC Explores Reform andTerrorism in Saudi Arabia“Envision yourselves in a museum in front of anancient tapestry that depicts a famous and mythicaltale of love and pain. Being old, it has one smallsquare inch at the bottom right-hand corner withfrayed threads. Imagine that a camera zooms ontothis square inch and projects it onto a screen the sizeof the original tapestry. And so, through the powerof this medium, you have lost sight of the beautifulstory of the tapestry and you see only the negativeimage of the minute, frayed fault.”On October 7, NUSACC and the Center for InternationalPrivate Enterprise (CIPE) hosted aroundtable discussion on Reform and Terrorism in SaudiArabia. Mr. Amr Khashoggi was the featured speakerfor the event, which was held at NUSACC and attendedby upwards of 50 public and private sector representatives.Khashoggi is CEO of the Amkest Group in SaudiArabia and is a regular visitor to the United States.Khashoggi talked about internal pressures for reform,with more than 60 percent of the population under theage of 20, and external pressures, including those fromthe United States and Europe. Khashoggi noted thatAmr Khashoggi, CEO of Amkest Group, addressed a full house atNUSACC.many in the West seek to transform Saudi Arabia intothe image of America and Europe. “I believe this iscounter-productive,” Khashoggi stated, “and it underminesthe efforts of Saudis who want to move the countryforward, yet not lose sight of the important role Islamand our historical traditions play in the development ofthe individual, the family, and society.”Khashoggi noted that steps have been taken towardreform in such areas as the media, labor, insurance,capital markets, and tourism. There are now greateropportunities for women in the workplace, he noted,and municipal elections are on track.“Everyone recognizes that we must progress, and wemust overcome the challenges facing our nation,”Khashoggi stated. “We need to come up with internallydeveloped solutions that are the result of national debateand that have gained what you in America would call‘buy in’ from a highly conservative population. Thisdebate will take time and must be based on open,transparent, and honest dialogue, and the extent of itwill dictate the speed and pace of implementing reformsin Saudi Arabia.”On terrorism, Khashoggi noted that an environmentconducive to reform can only be maintained once mattersof terrorism and internal security have been adequatelyaddressed.He outlined steps that the Saudi government hastaken to address terrorism, including:• Improving coordination among security agencies;• Freezing the assets of individuals and groupsdesignated as supporter of terrorism;• Instituting new banking policies and procedures;• Monitoring financial transactions; and• Instituting harsh penalties for money launderingand terrorism financing.Khashoggi noted that Juan Zurate of the U.S.Treasury Department’s Office of Terror Financing saidrecently that the “targeted actions undertaken by theKingdom have already produced tangible results, andthe systematic changes made by the Kingdom couldprove even more effective in defeating terrorist financingover the long term.”Khashoggi highlighted the fact that Saudi Arabia isthe largest market for the U.S. in the Middle East, andSaudi private investment in the U.S. exceeds $500billion. “Saudi Arabia is ranked the 25th largest importer/exporter worldwide,” he said, “and in 2002, trade betweenthe Kingdom and the U.S. amounted to $18 billion.U.S. companies are the largest foreign investors in theKingdom, with over 280 Saudi-U.S. joint ventures.”The United States and Saudi Arabia “have been alliesand friends for 50 years,” Khashoggi observed. “Thetwo countries fought Iraqi aggression together in thefirst Gulf War and continue to cooperate after the falland capture of Saddam Hussein. The basis of ourrelationship is strategic cooperation, and we have a longhistory of successes.”Khashoggi expressed surprise at how little the Saudisand the Americans understand each other as people—even after all this time. “We need to reach out… tocommunicate with one another,” he noted. “It’s aboutbridging the gap of understanding, or bridging the gapof ignorance. We’re not there yet. Still, small steps arebeing taken in that direction.”“Let me close by saying that Saudi Arabia and theU.S., despite what anyone might say, share many importantvalues and respect and understand each other’sdifferences. Let us not allow the likes of Osama BinLaden to succeed in driving a wedge between our twonations.” ✦Amr Khashoggi takes questionsabout reform and terrorism inSaudi Arabia.“Everyonerecognizes that wemust progress, andwe must overcomethe challengesfacing our nation.”Amr Khashoggi, CEOAmkest Group of Saudi ArabiaNovember/ December 2004 • US-Arab Tradeline7

“Technologicaldevelopment,legislative change,and expansion ofthe capabilities ofhuman resourceshave all played a keyrole in convincingglobal andregional investorsthat investmentopportunities areavailable in ourdynamically growingmarket.”Dr. Fawaz Zu’bi, Jordan’sMinister of Information andCommunications TechnologyJordan ICT Forum: “A Global Meeting of the Mindsin the Heart of Digital Arabia”John Chambers of Cisco Systems Cites Explosion of ICT Use in the Arab WorldJordan recently staged its third Information andCommunications Technology (ICT) Forum, asuccessor to Forums that the Hashemite Kingdomhosted in 2000 and 2002. The September 14 & 15event, held on the shores of Jordan’s Dead Sea, focusedfor the first time on the regional ICT sector with a viewto consolidating the regional market, taking advantageof economies of scale, and promoting a more competitiveinvestment climate in the Arab world.“The Forum set the agenda for future developmentand growth of the region’s ICT market throughpromoting a path of a regional cooperation and synergy,”says Dr. Fawaz Zu’bi, Jordan’s Minister of Informationand Communications Technology. “Technologicaldevelopment, legislative change, and expansion of thecapabilities of human resources have all played a keyrole in convincing global and regional investors thatinvestment opportunities are available in our dynamicallygrowing market.”As if to underscore this point, John Chambers,President and CEO of Cisco Systems, noted that therehas been a 219 percent increase in Internet usage in theMiddle East during the period 2000 – 2004. Regionalleaders included Saudi Arabia (650 percent increase),Egypt (500 percent), Bahrain (389 percent), Qatar (320percent), and Jordan (273 percent). Chambers stressedthat future jobs will migrate to those nations with thebest educated work forces, the most supportive governments,the most reliable infrastructures, and the mostinnovative programs.Said Chambers: “The ICT market in this region isa dynamic and growing area, and I believe internationalenterprises recognize the value of the potential technologyopportunities available. I truly believe Jordan can playa key role in shaping the region’s critical technologyinfrastructure to create unprecedented growth, education,and productivity opportunities.”This year’s Forum drew more than 600 delegates fromaround the world and featured 40 speakers, includingH.M. King Abdullah II of Jordan. The Hashemite Kingtouted the many advantages of Jordan as an ICT hub,but he admonished the Arab world against resting on itslaurels. “As we move forward, the world moves faster,”he said, noting that the Middle East and North Africa(MENA) region is responsible for just 1.5 percent of worldexports and that only one out of three citizens in theregion is able to find local employment.Jordan used this year’s Forum to launch the NationalICT Policy and Strategy, inaugurate Jordan’s NationalBroadband Network, draw attention to Jordan’s e-Governmentprogram, announce the privatization of Jordan’s postalservice, and highlight an important new initiative to increasePC penetration and Internet uptake in Jordan.At the Forum, the Information Technology Associationof Jordan (int@j) announced that Jordan’s ICT sectorachieved 30 percent growth in revenues during the pastyear, with a particular increase in national exports.According to Int@j, domestic revenues of theKingdom’s ICT sector topped $226 million, achievinga growth of 20 percent compared to 2002. As for exportrevenues, they achieved 74 percent growth, reachingnearly $70 million. Total revenues for the ICT sectorhit $295 million, achieving a 30 percent growth incomparison with 2002.“Over the last few years, the ICT sector in Jordanhas succeeded in positioning itself among the leadingand fastest growing markets in the region; the resultsof our exports are further proof of the capabilities ofthis dynamic sector in sharing its expertise and solutionswith regional and international markets,” noted MarwanJuma, Chairman of int@j. “The development and thegrowth of the ICT sector has played a crucial role increating new job opportunities and has been one of thekey contributors in the growth of other sectors.” ✦Marketing ICT and Extending Jordan’s REACHTwo years ago, Craig Barrett, President & CEO ofIntel Corporation, noted that Jordan has “set aprecedent for change in the Middle East region. It hasdemonstrated the achievements that can result fromstrong cooperation between the public and privatesectors, particularly in the field of information andcommunications technology (ICT).”This is high praise from one of the world’s ICTpioneers. But it wasn’t always this way. A decade ago,Jordan’s Information Technology (IT) sector was virtuallynon-existent. Then came the REACH Initiative.8 November/ December 2004 • US-Arab Tradeline“For private firms, it was easy to blame governmentbureaucracy for lack of growth in the IT sector. Wewere given the opportunity to identify those obstaclesand suggest solutions to overcome them,” says KarimKawar, Jordan’s Ambassador to the United States, whowas one of the driving forces behind the REACH initiative.“Some saw it as a major challenge, to get fiercecompetitors to sit in the same room and discuss thefuture of this nascent industry. Some of us saw it as agreat opportunity!”continued on next page

continued from previous pageIn October 1999, Kawar and his colleagues in theJordan Computer Society sent a report to H.M. KingAbdullah II outlining an ambitious strategic planthat would turn Jordan into a regional ICT leaderand internationally recognized exporter of ICTproducts and services. Within five years, the reportnoted, the fruits of the REACH Initiativewould create 30,000 new jobs,attract $150 million in foreign directinvestment, and generate $550 millionin annual IT exports.Today, five years after the launch ofREACH, it is clear that the program hasnot hit all of its targets – in part becauseof recessions in the global ICT market, aswell as violence in the Middle East. Butthe REACH Initiative has accomplishedsomething that no one thought possible in the 1990s: Ithas developed an internationally competitive IT industryin Jordan – one that attracts foreign and local investment,generates high-value jobs, modernizes the nation’s publicand private sectors, and positions Jordan favorably in theworld’s increasingly important knowledge-basedeconomy.The REACH Initiative has also fostered unprecedentedlevels of cooperation between Jordan’s governmentand the business community. According to REACH4.0, the most recent report prepared by the InformationTechnology Association of Jordan (Int@j), “Public-privatepartnerships in Jordan have never been stronger or moredynamic, with the Ministry of Informationand Communications Technology(MoICT) working side by side withJordan’s IT industry association.”As a result, according to this samereport, “REACH is now part of a trulynational initiative for achieving e-readinessand beyond. The momentum thatthe launch of REACH first sparked hasinspired a host of new initiatives designedto employ technology as a tool forbridging the digital divide and enhancing the lives ofall Jordanians.”For more information about the REACH Initiative,check out its Web site at www.reach.jo. Ofparticular interest is the 2004 REACH 4.0 report,“An Updated Strategy and Action Plan for H.M.King Abdullah II.” ✦Jordan has “seta precedent forchange in theMiddle East region.It has demonstratedthe achievementsthat can result fromstrong cooperationbetween the publicand private sectors,particularly in thefield of informationand communicationstechnology (ICT).”Craig BarrettPresident & CEO ofIntel CorporationThe REACH Initiative: Why It Has Flourished in JordanJordan is on the cutting edge of ICT developmentin the Arab world. The centerpiece of this effort isthe REACH Initiative, which has become a worldclassprogram thanks to Jordan’s visionary leadershipand a remarkable partnership between that nation’spublic and private sectors.Five years ago, the founders of REACH pinpointedthe importance of developing a home-grown ICTindustry in these terms:“Rapid growth and accelerating innovation –central characteristics of the ICT industry – offerenormous opportunities. As with the IndustrialRevolution before, the timing, positioning and actionsof nations will determine those who will benefit fromthis Knowledge Revolution, and those who will beleft behind. It creates a great sense of urgency, sincedelay will lead to incalculable opportunity costs,making catching-up ever more difficult.”The REACH Initiative, supported by USAID’sAchievement of Market-Friendly Initiatives and Results(AMIR) Program, is a comprehensive framework thatembraces actions in terms of:Regulatory FrameworkEnabling Environment (Infrastructure)Advancement ProgramsCapital & FinanceHuman Resource DevelopmentJordan is uniquely qualified to excel in Informationand Communications Technologies for a varietyof reasons:Jordan’s favorable location and position in theregional market. Its talented workforce, bilingualArabic/English language capabilities, extensiverelationships in the region, and time-zone localadvantages, favorably position Jordan with respect topotential competitors.Human-resource intensity. Software and ITservices require skilled human capital. Jordan’s welleducatedworkforce provides a comparative advantagefor these activities. Students are enrolling in computerrelateddisciplines in record numbers, and there is anatural inclination and enthusiasm for developingIT skills that owes much to the country’s relativelyopen intellectual environment.Lack of distance or transportation constraints.Unlike manufacturing and tourism, which are affectedby transportation mechanisms, software services area “distance-less” industry. Its inputs and outputs aretransmitted electronically, and there is relatively littlefluctuation when it comes to disruptive externaldevelopments.Low start-up capital requirements. This makesit easier and less risky for market entry by Jordanianfirms, particularly small and medium-sized enterprises(SMEs). ✦“As with theIndustrial Revolutionbefore, the timing,positioning andactions of nationswill determinethose who willbenefit fromthis KnowledgeRevolution”REACH InitiativeNovember/ December 2004 • US-Arab Tradeline9

int@j is working topromote industryinvestmentopportunities inJordan, includingVenture Capital (VC)prospects and InitialPublic Offerings(IPOs)With EduWave,students are ableto access theirlearning contentinside and outsidetheir classrooms,during and afterschool hours.int@j: Jordan’s ICT AdvocatesThe Information Technology Association of Jordan(int@j), an outgrowth of the REACH Initiative, hasbecome the premier advocacy group for expandinginformation and communications technology in Jordan.The mission of this non-profit association is to “represent,promote, and advance the Jordanian software andIT services industry in the global market.”int@j is working to fulfi ll its mission through thefollowing objectives:Advocate industry issues – represent ICT industryinterests and lobby with government and internationalgroups; propose national initiatives and conduct publicrelations efforts.Promote industry investment opportunities inJordan – promote Venture Capital (VC) and InitialPublic Offerings (IPOs); form relationships with localexport-oriented groups; represent the industry at conferencesand trade shows; set up databases and publicizemembership through web sites, newsletters, hyperlinks,promotional materials and advertising.Provide industr y research and market information– conduct market studies; disseminate local, regional andinternational opportunities; monitor market trends.Effect standardization, certification and qualitycontrol in the ICT industry – promote certificationbodies and their value; enforce an ICT industry codeof ethics; standardize employment contracts and benefitpackages.Jordanian Educational SoftwareBenefits New JerseyIn one of the first instances of Jordanian informationtechnology fi nding a niche in the U.S. market, theIntegrated Technology Group (ITG) of Jordan hasbegun selling its “EduWave” software to school districtsin New Jersey.EduWave, an innovative K-12 instructional andelectronic learning management solution, strengthensthe ability of educators, students, and administratorsto harness and enhance the learning experience of theInternet. In Jordan alone, EduWave serves over 3,000schools, nearly 1.2 million students, over 50,000 teachers,and some 5,000 administrators. The Jordanian governmenthas made the system its core national e-learningSupport humanresource development –work with educationalinstitutions to focus oncritical skills; strengthenties with local universitiesand collaborate withoverseas universities; andinitiate industry programsto benefit universitystudents.Advance industry intellectual property rights(IPR) – certify IPR compliance; update members inIPR law changes; and work toward local IPR regulationsconducive to ICT industry growth.Form international ICT industry alliances –actively seek alliances with global players; develop andattract venture capital funds; and disseminate successstories.Manage industry stakeholder relations and resolveindustry conflicts – build and reinforce bridges amongassociation members and between association membersand government, media, universities, NGOs anddonors.For more information, check out the int@j Web site atwww.intaj.net ✦platform, and other countriesin the region are beginning tomove in the same direction.EduWave got its start in1999 when ITG recognizedthe vast potential in the globale-learning industry and thecritical need for learningmanagement systems that were comprehensive enoughto handle large-scale, countrywide deployments. Thefirm won its first major deal in 2003 when it contractedwith Jordan’s Ministry of Education to serve that nation’s3,200 public schools. A few months later, EduWavereceived the UN World Summit Award after beingselected from over 800 products from 135 countries.For more information onEduWave and other ITGproducts, please visit thecompany’s website atwww.itgsolutions.com. ✦10 November/ December 2004 • US-Arab Tradeline

Intel Corporation: Helping to Realize Jordan’sPotentialIntel Corporation, the world’s largest chipmaker, hasmade significant investments in Jordan in recent yearsas a result of the Hashemite Kingdom’s strong commitmentto information technology (IT). Intel offers thelatest technology solutions to multinational companies,local systems integrators, and independent softwareproviders.“Intel stronglybelieves in the needto spread the use ofIT in cross-sectionsof society to helpcountries achieve aknowledge-basedeconomy andcompete at the globallevel,” says AbdulJarrar, Intel’sRegional GovernmentAffairsManager for theMiddle East, Turkey,and Africa. “In viewof that, we supportJordan’s IT initiativesand want tocontinue workingwith the Jordaniangovernment to play a key role in enabling this transformationthroughout the Kingdom.”Intel’s first “Teach to the Future” program in theMiddle East was established in Jordan in 2003. To date,more than 15,000 teachers in Jordan have been trainedas part of this program, a worldwide effort to help bothexperienced teachers and pre-service teachers integratetechnology into instruction. Participating teachers receiveextensive instruction and resources to promote effectivetechnology use in the classroom.Launched in 2000, the “Teach to the Future” programhas trained more than one million classroom teachersin 30 countries, and this number is expected to rise totwo million teachers by the end of 2005.Intel is also about to open the second Intel ComputerClubhouse in Jordan. At the Clubhouse, underservedyouth have access to high-tech equipment and mentorsin order to develop skills that encourage self-confidenceand foster creativity and opportunities.In 2002, when Intel CEO Craig Barrett gave thekeynote address at the Jordan ICT Forum, Barrettinaugurated an Internet Laboratory (I-Lab) at theUniversity of Jordan. The first I-Lab in the Arab world,it forms part of the University’s King Abdullah II Collegeof Information Technology.The I-Lab provides an academic forum to test andevaluate new entrepreneurial business models and theirtechnical implementation with the assistance of Internettechnologies and high-tech solutions. The I-Lab alsoprovides a research and development environment forareas such as simulation, content translation and localizationinto the Arabic language, image processing,Craig Barrett , CEO of Intel Corporation, during his keynote speech at IDF Spring 2004 in San Francisco.voice recognition, and multimedia.”We thank Intel Corporation for its contributionand the support of all involved,” noted Dr. Ahmad AlJaber, Dean of the Faculty of Information Technologyat the College. “We want to create an incubator whereacademic staff can provide the support for start-upcompanies and innovative business and research ideas.We are really looking forward to a long, fruitful andcontinuous relationship with Intel.”Barrett concluded his 2002 visit on a cautionarynote: “Jordan is taking the right steps towards creatingits digital future, but long-term economic prosperitywill require new approaches to business and technologyinnovation,” he said in a speech to government andbusiness leaders. “Jordan should accelerate its investmentin the Internet, reduce taxes and tariffs on informationtechnology (IT) products, foster entrepreneurs, protectintellectual property, and build a strong educationalfoundation that trains the workforce tomorrow.”“In the digital future, people will access the Webany time and any place with devices and infrastructurethat offer both computing and communication capabilities,”Barrett said at the time. “Countries that intendto successfully compete in tomorrow’s global digitaleconomy will move fast to invest in education andinformation technology and let both flourish.” ✦The Teach to theFuture programhas trained morethan one millionclassroom teachersin 30 countries,and this numberis expected to riseto two millionteachers by theend of 2005.November/ December 2004 • US-Arab Tradeline 11

H.E. Karim Kawar, Jordan’sAmbassador to the United States“Like his father,our monarch (H.M.King Abdullah) is avisionary leader whobelieves in change,in reform, and ina better future foreach and everyindividual.”Q&A with H.E. Karim Kawar, Jordan’sAmbassador to the United States1) As the United States and Jordan prepare for thesecond term of President George W. Bush, how wouldyou assess relations between our two nations? Wheredo we go from here?Jordan enjoys excellent relations with the UnitedStates on all levels, including political, economic, culturaland educational. Jordan and the U.S. work together inthe pursuit of peace, progress and prosperity in theregion but also to build a better future for our twocountries and our two peoples. We certainly look forwardto continue working with the Bush Administrationduring the second term. H.M. King Abdullah will bevisiting Washington in December to discuss pressingissues in the region, namely the peace process, the situationin Iraq, reform, as well as other bilateral matters.2) What are the hallmarks of King Abdullah’s leadership,and how does it differ from that of his father, KingHussein?H.M. King Abdullah has certainly carried on H.M.the late King Hussein’s legacy in Jordan and in theinternational arena. Like his father, our monarch is avisionary leader who believes in change, in reform, andin a better future for each and every individual. Likehis father, King Abdullah II has faith in Jordan’s mostvaluable resource: its human capital. Hence, he hasspearheaded various initiatives to advance Jordan’ssociety, modernize our social and economic system, andintegrate Jordan as a knowledge economy and modernopen society into the global arena.Since King Abdullah’s accession to the throne in1999, Jordan has faced various challenges, internal andotherwise – from unemployment, to poverty, to thePalestinian-Israeli conflict, to the war on terror, and tothe war on Iraq. Those challenges were met with aforceful and far-reaching domestic agenda based oneconomic, social and political reform and a pragmaticand vigorous foreign policy in the pursuit of peace,stability, and economic prosperity. Moreover, KingAbdullah has worked tirelessly to confront the threatsof terrorism in Jordan and in the global arena, and toshow the true face of Islam to the world.3) The Social and Economic Transformation Program(SETP), established in 2002, places a heavy emphasison developing Jordan’s human resources. Is this programmaking a difference?Certainly and impressively. Jordan’s real GDP growthreached 7.2 percent in the first half of 2004, up from 3.2percent in 2003 and 5 percent in 2002. Per capita incomehas also witnessed modest growth. The SETP is ahomegrown program for social and economic reform thatis supported by donor countries, including the UnitedStates. In 2002 and 2003, $145.9 million was allocatedfor human resource development within the Social andEconomic Transformation Program (SETP).One of the most important achievements is theextensive effort to computerize schools. To date, 500schools – involving some 173,000 students – have beencomputerized, resulting in a decrease in the ratio ofstudents-to-personal-computers from 42 to 21. Moreover,32,000 teachers have been trained on ICDL, and anadditional 2,070 schools now have Internet access. 200kindergartens, 6 new schools, 374 additional classrooms,and 3 new educational directorates have also beenestablished throughout Jordan, leading to the phasingoutof double shifts in most governorates.Implementation of a quality control system hascommenced and Education Reform for a KnowledgeEconomy (ERfKE) program has been launched. TheEduWave initiative has also been launched, with theaim of incorporating ICT into every facet of life topromote education and the transformation of the educationalsystem to be a driver of the economy. Moreover,17 youth centers, 4 youth camps, and other investmentshave been channeled toward youth care to nurtureknowledge-acquisition, confidence, teamwork, andentrepreneurship.Vocational and technical training also ranks highon Jordan’s reform agenda, as 14 new training centershave been established. Through the National TrainingProgram, 8,000 people have received – or are still inthe process of receiving – demand-driven training.Furthermore, laws that regulate the labor market havebeen amended to encourage private sector participation,while other investments have been channeled towardupgrading the capabilities of existing training centers.4) You personally played an instrumental role in Jordan’spositioning itself as a center for IT activity in the region.How does Jordan intend to maintain its comparativeadvantage in this sector?In Jordan, our focus has been on building a competitiveadvantage rather than a comparative advantage.In the field of Information Technology, we are notcompeting with countries in the region, but with theworld leaders. Our competitive advantage lies in ourability to supply knowledge workers through our highereducation system, sustaining our open market policy,and growing the sophisticated demand from the localmarket. These are coupled with national and foreigninvestments that seek to capitalize on this advantage inthe value-added products and services that Jordanianfirms provide, thereby complementing the work carriedout by multinational firms supplying customers in theregion and around the world. In the long term, we willmaintain our leadership position through a significantinvestment in R&D that will sustain our edge.continued on next page12 November/ December 2004 • US-Arab Tradeline

continued from previous page5) The Free Trade Agreement (FTA) between the U.S.and Jordan is hailed as a major success story. Whatadvice might Jordan give to other nations that arecontemplating FTA’s of their own?Jordan, as you know, is the first Arab country to signa Free Trade Agreement with the United States. The FTAcertainly brought Jordan many advantages on the economiclevel. It not only boosted the level of trade between thetwo countries and ranked the U.S. as Jordan’s number onetrading partner, but it also instilled confidence in U.S.multinationals to invest in Jordan and through Jordan tothe regional market. Jordan’s trade with the U.S. increasedfrom $386 million in 2000 to $1.15 billion in 2003.Moreover, trade with the most sophisticated consumermarket in the world has helped our industries meet thehighest standards of quality and delivery which, in turn,enables us to compete in other Western markets.We certainly encourage other countries in the regionto follow suit, such as Morocco and Bahrain, and wehope that we can capitalize on cumulating rules of originto increase trade among the countries of the region.6) How has strife in neighboring Iraq affected Jordan?Jordan is one of Iraq’s six neighbors. Iraq was Jordan’stop trading partner before the war broke out in March2003. The conflict has certainly had a negative impact onour economy. We depended heavily on Iraq for oil, andthat was certainly disrupted during the war. Fortunately,and thanks to a vigorous economic plan, we have managedto pull through and advance even further this year. Tradewith Iraq is currently gaining more momentum.Jordan has become a safe haven and an operationalbase for U.S. and other foreign companies in Iraq.Serving as a launching pad for all humanitarian andtrade operations through the Gulf of Aqaba, Jordan isalso a business gateway to Iraq. A number of Jordaniancompanies have won subcontracts in Iraq and are nowhelping in the reconstruction effort. Moreover, Jordanand Iraq have set up various partnerships on the business,governmental and civil society levels. As you may know,Jordan is also providing training for Iraqi security forces,journalists, judges, engineers and others.7) In May 2005, Jordan will host the World EconomicForum meeting, “From Vision to Action: IdentifyingSolutions.” What do you expect to be the highlights ofthis gathering?The previous World Economic Forum meetings thatwere held on the shores of the Dead Sea (2003 and 2004)were very successful venues in which the challenges thatthe region faced were identified, discussed and debatedby world leaders, academics, professionals, entrepreneursand participating students. These meetings are extraordinaryas they bring the issues of the region to the regionin which representative delegates participate.There was also a general consensus about the differentways and means in which those challenges should andwould be met. We all shared a vision at the past two WorldEconomic Forum meetings that looked to the futuregenerations of the region as THE region’s future, therebyhighlighting the importance of reform, development andmodernization. We recognize that there is no one-sizefits-allsolution to the problems we face, so we meet toexchange ideas and to agree to disagree and accept ourdifferences. We hope this meeting will focus on puttinginto place plans of action through which our vision forthe future and our rhetoric translates into deeds. ✦“In the fieldof InformationTechnology, weare not competingwith countries inthe region, butwith the worldleaders.”Ambassador Karim KawarWorld Economic Forum 2005 in Jordan“From Vision to Action: Identifying Solutions”Dead Sea, Jordan20-22 May, 2005Topics of discussionwill include:• The future of Iraq• New directions in the Israeli-Palestinian dispute• Does Iran have a nuclear future?• Implications of the new USadministration• Inter-Arab relations• The Middle East and the new EUwww.weforum.org/jordanFor moreinformation on the Summit contact:jordanmeeting@weforum.orgNovember/ December 2004 • US-Arab Tradeline 13

“This projectrepresents a modelpublic-privatepartnership, andwe are delightedto providesignificant supportfor the creationof this importantnew Americanuniversity.”Imad FakhouryASEZA Deputy ChiefCommissioner and Chairmanof the Board of ADCAmerican University to be Set Up in AqabaBy Dalya DajaniAMMAN — The Kingdom is gearing up for thedevelopment of a new private, non-profit Americanuniversity on Aqaba’s southern shores, with a sistercampus in Amman.The Aqaba Development Corporation (ADC) andthe Aqaba Special Economic Zone (ASEZ) signed anagreement this week for the university’s constructionon 250 dunums of land on the Red Sea coastal shore.The agreement was signed between ASEZA DeputyChief Commissioner and Chairman of the Board ofADC Imad Fakhoury and Safwan Masri, professorand vice dean at Columbia University’s BusinessSchool on behalf of the university’s fund.Modeled on the American system of higher education,the university is expected to attract studentsfrom here and across the region. It is expected to caterto up to 6,000 students over the next 10 to 12 yearswith over 40 majors in schools for liberal arts andsciences, management, engineering, education andlaw. Around 2,500 of the total student capacity areexpected to be studying in Aqaba.Through its consortium of affiliations by academicprograms, the university will also expose students toa rich platform of educational and cultural exchangeswith top tier U.S. colleges.“This project represents a model public-privatepartnership, and we are delighted to provide significantsupport for the creation of this important newAmerican university,” said Fakhoury.According to Fakhoury, the university, which isscheduled for completion in 2009, is also expected toplay a significant role in the development of Aqaba,particularly in meeting ASEZ’s long-term developmentplans.“The establishment of this campus represents akey building-bloc in the ASEZ master plan and astrategic enabler within the comprehensive long-termplan of ASEZA and its development arm, ADC, totransform Aqaba into a leading business and leisuredestination on the Red Sea,” said Fakhoury.“The population of faculty, staff and students willboth contribute to and benefit from the diverse andvital community we plan to foster in the Aqaba SpecialEconomic Zone,” he added.Home to some 60,000 Jordanians, Aqaba, Jordan’ssole port city, was transformed into a special economiczone in 2001. It has since witnessed a rapid increasein infrastructure and commercial development thathas transformed the area into a breeding ground forinvestment.Such investment in the southern region falls inline with the vision of His Majesty King Abdullahfor the creation of a knowledge-based economy forthe future of Jordan and the region.During a visit with the Economic Club of Chicagoand the Chicago Council on Foreign Relations in June,King Abdullah described the university as one thatwould “adopt the standards of world-class scholarship,open inquiry, freedom of thought and expression.”Reprinted with permission fromJordan Times, November 29, 2004ProgressSoft: A Jordanian Success StoryJordan’s heavy emphasis onInformation Technology isgiving rise to a variety of worldclassJordanian IT companies. Onehome-grown success story that isnot new to Jordan is ProgressSoft, established in 1989and Jordan’s first software development company.According to Michael Wakileh, Chief Executive Officerof ProgressSoft, the firm’s solutions are “completely andindependently developed in Jordan by Jordanian softwareengineers and designers. The software meets the latesttechnological advances in software development and isbuilt according to international standards.”The ProgressSoft track record is impressive by anystandard:• ProgressSoft introduced the first signature14 November/ December 2004 • US-Arab Tradelineverification system in the region.• ProgressSoft solutions aredistributed and installed in 19countries worldwide, includingEngland, Germany, Canada,and the United States.• ProgressSoft has become a technology partner toAmerica’s Hewlett Packard, which is nowmarketing ProgressSoft’s electronic check clearingsolution around the globe.• ProgressSoft is the first company worldwide toestablish an Electronic “Image-Based” CheckClearing Solution. The software was first introducedby ProgressSoft in 1996 and will becontinued on next page

continued from previous pageimplemented in the United States in keeping withthe Check21 Act, which became effective onOctober 28, 2004.According to Wakileh, ProgressSoft is currently doinglive presentations of its pioneering product for such U.S.banks as Bank of America, Bank of New York, JP MorganChase, Citibank, The Federal Reserve and the ClearingHouse of New York – CHIPS. In addition, a pilot projectfor the electronic check clearing solution will be implementedby ProgressSoft in SWIFT (New York). The firmwas awarded the Electronic Check Clearing Project bythe Central Bank of Jordan in June 2004.ProgressSoft is a regular visitor to such internationalfairs as Sibos and CeBIT. Sibos 2004, the world’s premierfinancial event, was held in Atlanta, Georgia this year,where ProgressSoft demonstrated its revolutionary electroniccheck clearing solution to U.S. clearing houses, U.S. banks,and banking firms from all around the globe.In Wakileh’s words, “Jordan’s main treasure is thehighly intellectual human resource. With His Majesty’svision to employ this treasure in professional softwaredevelopment and IT services, Jordan is becoming asoftware development hub, hosting outstanding softwaredevelopment companies which offer professional softwaresolutions to countries all around the globe.” ✦ProgressSoftsolutions aredistributedand installedin 19 countriesworldwide,including England,Germany, Canada,and the UnitedStates.JORDAN: Key Business ContactsEmbassy of Jordan, Washington DCEconomic and Commerce Bureau (ECB)Mr. Maher Matalka, Director3504 International Drive, NW, Washington, DC 20008Tel: 202-362-4436Fax: 202-244-0239www.jordanembassyus.orgEmbassy of the United States in AmmanMr. Richard Eason, Economic CounselorP.O. Box 354, Amman-11118, JordanTel: +962-6-592-0101Fax: +962-6-592-7653EasonRM@state.govInformation Technology Association of Jordan (Int@j)Mr. Bilal Abuzeid, Acting CEOP.O. Box 2383, Amman-11953, JordanTel: +962-6-515-2322Fax: +962-6-515-2344www.intaj.netJordan American Business Association (JABA)Ms. Rose Al Issi, CEOP.O. Box 840817, Amman-11184, JordanTel: +962-6-565-1860Fax: +962-6-565-1862www.jaba.org.joJordan Dead Sea Products Manufacturers AssociationMr. Sami Bakir, Executive CoordinatorP.O. Box 9504, Amman-11191, JordanTel: +962-6-533-7748Fax: +962-6-533-7748www.deadseajordan.comJordan Export Development & Commercial CentersCorporation (JEDCO)Mr. Salah Ghunaim, Acting Director GeneralP.O. Box 7704, Amman-11118, JordanTel: +962-6-560-3507Fax: +962-6-568-4568www.jedco.gov.joJordan Foreign Trade Policy DepartmentMs. Maha Ali, DirectorP.O. Box 2019, Amman-11195, JordanTel: +962-6-560-7191Fax: +962-6-560-7640www.jftp.gov.joJordan Investment Board (JIB)Ms. Reem Badran, Director GeneralP.O. Box 893, Amman-11821, JordanTel: +962-6-553-9370Fax: +962-6-560-8416www.jib.com.joJordan Stone & Tile Exporters Association (JOSTONE)Mr. Rasmi Hamzeh, CEOP.O. Box 41865, Amman-11194, JordanTel: +962-6-565-0939Fax: +962-6-568-4266www.jostone.comJordan Telecommunications Regulatory CommissionMs. Muna Nijem, CommissionerP.O. Box 850967, Amman-11185, JordanTel: +962-6-586-2020Fax: +962-6-586-3641www.trc.gov.joJordan-US Business Partnership (JUSBP)Mr. Nayef Stetieh, Vice PresidentP.O. Box 941865, Amman-11194, JordanTel: +962-6-566-9135Fax: +962-6-568-4266www.jusbp.orgJordanian Association of Manufacturers ofPharmaceutical & Medical Supplies (JAPM)Ms. Hanan Sboul, Secretary GeneralP.O. Box 941247, Amman-11194, JordanTel: +962-6-560-5634Fax: +962-6-569-1116www.japm.comThe Executive Privatization CommissionMr. Adel Al-Kodah, ChairmanP.O. Box 941536, Amman-11194, JordanTel: +962-6-567-0556Fax: +962-6-462-6254www.epc.gov.joThe Institute of Management Consultants of Jordan (IMC)Ms. Salwa Bamieh, ChairmanP.O. Box 926550, Amman-11110, JordanTel: +962-6-553-0856Fax: +962-6-553-0858www.imc.com.joUS Jordan Business AllianceMs. Marjorie Adams, President1725 I Street, NW Suite 300, Washington, DC 20006Tel: 202.349.3792Fax: 202.349.3915www.usjba.orgNovember/ December 2004 • US-Arab Tradeline 15

NATIONAL US-ARABCHAMBER OFCOMMERCENational Headquarters:1023 15th Street, NWFourth FloorWashington, DC 20005Tel: (202) 289-5920Fax: (202) 289-59381330 Post Oak BoulevardSuite 1600, Office 1644Houston, TX 77056Tel: (713) 963-4620Fax: (713) 963-46098929 South SepulvedaBoulevard, Suite 310Los Angeles, CA 90045Tel: (310) 646-1499Fax: (310) 646-2462420 Lexington AvenueSuite 2034New York, NY 10170Tel: (212) 986-8024Fax: (212) 986-0216©2004 National US-Arab Chamberof Commerce (NUSACC). Allrights reserved. No part of thispublication may be reproduced,stored in a retrieval system, ortransmitted in any form or by anymeans, electronic, photocopying,recording, or otherwise, withoutprior written permission of theNational US-Arab Chamber ofCommerce.NUSACC Welcomes New Senior Fellow Kevin WoelfleinThe National U.S.-Arab Chamber of Commerce(NUSACC) has just named it first Senior Fellow,Kevin Woelflein, who brings a wealth of expertise ininternational banking.Until recently, Woelflein served in Iraq as the CoalitionProvisional Authority’s SeniorAdvisor on banking issues. In thatcapacity, he played an instrumentalrole in creating the Private Bankersof Iraq (PBI), a professional associationrepresenting Iraq’s 19 privatebanks.Prior to his tenure in Iraq,Woelflein served in senior positionsat a number of banks, including TheFirst National Bank of Chicago andAmerican Security Bank inWashington, D.C.Upon joining NUSACC,Woelflein said, “I want to express myappreciation for the opportunity tobe associated with NUSACC.NUSACC’s business objectives areimportant to the development ofprivate sector business between the United States andthe Arab world. I feel that my experience, especially myrecent tenure in Iraq, will help NUSACC to achieve itsobjectives.”Since his arrival at NUSACC, Woelflein has givenspeeches and participated in panel discussions in anumber of forums, including the annual meeting inChicago of the Trade Conference of the BankersAssociation for Finance and Trade, a conference hostedby the Middle East Economic Digest in Dubai, a Departmentof Commerce briefing on the banking situationKevin Woelflein (left) joined other bankers and economists inbriefing 40 Iraqi government officials undergoing training at theU.S. Department of Commerce.in Iraq, and a roundtable discussion jointly organizedby the Coalition for Employment Through Exports(CEE), the National Foreign Trade Council (NFTC),and NUSACC.Woelflein says there is good news to relate about theKevin Woelflein speaks at the Metropolitan Club at a luncheon co-hosted by CEE, NFTCand NUSACC.progress of the banking sector in Iraq. Among the pointsthat he has made in recent weeks:• Numerous international foreign banks are takingactive steps to establish their presence in Iraq,including HSBC, NBK, Standard Chartered,Export & Finance Bank, The Arab Bank, andArab Banking Corporation.• The Central Bank of Iraq has established muchhigher than minimum capital requirements fornew Iraqi investor groups planning to form sevennew private banks. This is intended to ensure thatIraq’s private banks will be well capitalized. Theresult is that the potential loan funds from privatebanks may be increased by about $750 million inthe near future.• New bank licensing by the Central Bank of Iraqincludes three banks to be headquartered in theKurdish region in northern Iraq. Thus, banklicensing will be one of the first importanteconomic developments to help integrate the KurdArea into Federal Iraq.• The private banks have organized themselves into aprofessional association in order to serve as a singlevoice on issues affecting private banks, to promotethe concept of bank accounts for Iraqis, and to linkthe Iraqi association to all bankers associationsworldwide. The private banks have also been activein establishing the Iraq Commercial BankingCenter, a facility to provide training for bank staff.NUSACC’s leadership is pleased and proud to welcomeKevin Woelflein to NUSACC! ✦