Jordan

By encouraging banks to step up lending to private firms at favourable terms, Jordan hopes to be able to assist managers of small and medium-sized enterprises (SMEs) obtain financing for growth. With the threat of recession looming in Europe and a general slowing of the global economy, however, banks may be hesitant to loosen the purse strings.

2012 began with a particularly hefty reckoning for Jordan when the government received the largest energy bill in the Kingdom’s history: JD2.75bn ($3.87bn). Jordan relies heavily on imports for its energy needs – some 98% – and in 2011, energy amounted to 26% of total Jordanian imports. Yet cooperation with other regional states may hold the answer to the Kingdom’s current energy supply challenge.

As the Middle East and North Africa’s top health tourism destination, according to the World Bank, Jordan and its medical tourism sector are looking for ways to regain their competitive edge after regional unrest in 2011 impacted revenues. To confront declining medical tourist numbers, Jordan will host two major international health expos in 2012 and will also be promoting its Dead Sea region.

Looking to a bit of belt-tightening in its public spending scheme, the Jordanian government is working to mitigate the effects of recent turmoil in the global financial markets, the Arab Spring uprisings and the eurozone sovereign debt crisis on the local economy.

Political and economic reforms promised for 2012 are expected to improve Jordan’s business environment and restore confidence after a challenging year.

Amidst a slowdown in the Middle East’s private equity industry, Jordan’s small and medium-sized enterprises (SMEs) are set to get a boost from a new private equity fund.