ESIS extension / Key Person Contacts and Organisations / Jordan / Update Memo 4

A number of changes took place to key people in Jordan in the first quarter of 2000. A new Chief to the Royal Court was appointed, a major cabinet reshuffle took place which involved the departure of six ministers, and the Deputy Prime Minister resigned.

There were also a couple of changes in key organizations with France Telecom buying a 40% stake in JTC, and with joint ventures and mergers also taking place in Jordan’s telecommunications industry. And at the forefront of King Abdullah’s agenda to make IT a national priority a new association has been formed in Jordan.

His Majesty King Abdullah designated Fayez Tarawneh as Chief of the Royal Court to succeed Abdul Karim Kabariti. King Abdullah issued a Royal Decree appointing Tarawneh as chief of the Royal Court and accepted Kabariti's resignation. Also Royal Decrees approved the resignation of Salah Abu Zeid, an advisor to the King and several-time former minister; the retirement of the King's military advisor Field Marshal Abdel Hafez Mirai Kaabneh, former joint chiefs chairman; the retirement of Michel Hamarneh, long-time advisor to His Royal Highness Prince Hassan; and the retirement of Abdullah Seraj, an advisor at the Royal Court.

King Abdullah also gave Prime Minister Abdur-Ra'uf S. Rawabdeh the green light to reshuffle his Cabinet on Saturday January 15, 2000 10 months after it was formed. The reshuffle will be the second since Rawabdeh took over as prime minister last March, the first under the rule of King Abdullah who ascended the Throne on Feb. 7, 1999. The first reshuffle took place in September. King Abdullah reiterated his confidence in Rawabdeh's government in December. The reshuffle involved the departure of six out of the 23 ministers, the new ministers are:

Deputy Prime Minister Rima Khalaf, the only woman in Prime Minister Abdur-Ra’uf S. Rawabdeh Cabinet resigned on Thursday, February 26, 2000. The Cabinet endorsed Khalaf's resignation, which brought to surface simmering differences between the outgoing minister and the premier, according to a minister. Rawabdeh appointed former Minister of Industry and Trade Mohammad Halaiqa to replace Deputy Prime Minister Khalaf. Khalaf, an economist who headed the planning and industry and trade ministries at different times since 1994, is expected to maintain her leading seat on the 20-member Economic Consultative Council, headed by the King.

Minister of Information Ayman Al Majali decided to establish a committee to restructure the Press and Publication Department. The PPD will be transformed into an information bank. The committee will hold two sessions and establish new sections in the department, one related to studies and publication and the other for media and Internet.

On January 23th, Jordan sold 40 per cent of the Jordan Telecommunications shares to the France Telecom-led consortium and minority Arab Bank. The rest of JTC shares are to be divided amongst three partners: the government, which remains the majority shareholder at 51 percent, the Social Security Corp (SSC) takes eight percent, and one percent is to be allocated to a special JTC employee saving fund. The acquisition is expected to boost the French firm’s regional presence, which already included interests in Egypt and Lebanon, and that France Telecom is planning to invest over $400 million in the next few years in modernizing Jordan Telecommunications Company. The deal will give the French company the privilege to monopolize telephone services by the year 2003. A new management board of JTC was formed in a new corporate entity in which the global consortium would have three sears of a seven-member board.

MobileCom signed a memorandum of understanding worth $35 million with leading GSM infrastructure manufacturer and supplier Ericsson earlier in March. MobileCom is the new Jordanian mobile telephone network operator, and is the operator of the mobile communications license granted to Jordan Telecom. The company formerly known as PetraCell, combines Jordan Telecom’s capability with the technological advantages and network management/operation experience of one of the world’s leading telecommunications operators France Telecom. The service itself will be launched in the final quarter of the year 2000 and there are plans to expand the network to 300,000 subscribers in the near future. CEO of MobileCom is Jean Luc Vuillemin.

Abu Dhabi-based Thuraya Satellite Telecommunications Co. has signed a service provider agreement for Jordan with ZAJEL – a company owned by the Saudi-based Silki La Silki Telecommunications Co. Under the agreement ZAJEL would distribute and market Thuraya services and products in Jordan. The agreement, signed on the 8^th of February, in Abu Dhabi in the United Arab Emirates includes distributing user terminals, subscriber identity module (SIM) cars, billing and customer-care management. Thuraya is building a regional mobile satellite network, is due to launch its satellite in mid-2000 and start services later in the year. The firm, with capital of $500 million, is owned by several major Arab enterprises, including the UAE’s Etisalat Telephone Co., Abu Dhabi Investment Co, Qatar Telecom (Q-Tel) and the Arab Satellite Communications Organization (Arabsat), itself owned by 21 Arab states.

Jordan’s first internet service provider, National Equipment and Technical Services (NETS), a limited liability company, announced that it would merge with FirstNet as a precursor to an eventual deal with Bahrain Telecommunications Company Middle East E.C (BMEC). FirstNet is the country’s only enterprise network provider and is listed on the Amman Stock Exchange. NETS claims the second highest number of subscribers among the Kingdom’s six operational ISPs. Batelco, NETS and FirstNet on Friday signed a memorandum of understanding governing BMEC’s pending acquisition of a strategic stake in the merged company. Marwan Jouma, NETS General Manager said the NETS-FirstNet Merger would create "a more solid company".

The "Information Technology Association of Jordan" - INTAJ was formed in the first quarter of 2000. INTAJ is a voluntary non-profit, private organization to effectively represent, promote and advance the Jordanian software and IT services industry in the global market. The new IT association is the focal point for all Jordanian IT industry-related activities. It is open to all value-added IT-related software development and support enterprises. Among INTAJ objectives are the promotion of industry investment opportunities in Jordan (venture capital and initial public offerings); the formation of relationships with local export-oriented groups; representation of the industry at conferences and trade shows; setting up databases and publicize membership through web sites, newsletters, hyper links, promotional materials and advertising. The new association aims at providing industry research and market information, as well as effecting standardization, certification and quality control in the IT industry. The Board of Directors is chaired by Mr. Karim Kawar.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.