The kingdom’s current economic model is highly integrated with its ability to trade with its neighbours, a model that, thus far, appears to be working well. Despite less than favourable economic headwinds, the World Economic Forum’s (WEF’s) “Global Competiveness Report” for 2012-13, ranked Jordan 64th out of 144 countries surveyed, rising seven places over the previous year.
The early August approval of a $2bn loan by the IMF to Jordan has once again brought the Kingdom’s financial concerns into the spotlight. However, the IMF was quick to point out most of the problems the economy faces come from external factors, and in particular the country’s reliance on foreign sources of energy, which is why much of the IMF’s money will be used to support a number of energy projects well under way.
Longstanding plans to develop Jordan’s nuclear energy resources gained some momentum, but also suffered some setbacks . The controversial project remains politically divisive and has several obstacles yet to navigate, including the selection of an appropriate site for a planned reactor, the provision of adequate financial and human resources, and...
In an effort to supplement increasingly disrupted supplies of Egyptian liquid natural gas (LNG), Jordan is urgently seeking alternative import solutions. Securing new sources of gas is of vital importance in the short term, given that the government is having to spend billions of dollars per year on diesel and heavy fuel in order to make up for the...
With an attractive regulatory environment for investment in electricity generation, the sector has seen new injections of foreign capital in recent months. Jordan’s privately owned distribution companies are in a similarly favourable position; their power purchase agreements (PPAs) ensure that the state-owned National Electric Power Company (NEPCO)...
Addressing Jordan’s energy imbalance had already been at the top of the government’s agenda before its Egyptian natural gas imports began to be disrupted in early 2011. But in view of the ongoing attacks on the Egyptian gas pipeline, policymakers now see the country’s energy balance as an issue of national security. As such, the government is keener...
Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.
Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.
Register Here×