As part of his first week in office, Dahabi briefed the Washington Institute for Near East Policy on the biggest threats to the kingdom’s economy.

Dahabi promised economic reforms to reduce the effects of rising oil prices without specifying what actions his government would take.

Finance minister Hamad Kasasbeh, who kept his post when Dahabi appointed the new government, promised back in September to end petrol subsidies in the New Year.

If he intends to keep to his promise, Kasasbeh will have to confirm the end of petrol subsidies during the next budget, which is expected in early December.

Jordan’s Ministry of Finance is forecasting a central government budget deficit of JD560.9m ($792.5m) for 2007.