Competition looks set to continue heating up in the Islamic finance sector, with the latest entrant to the market, Saudi giant Al Rajhi Bank, opening for business in late March. As new players work expand their reach, sharia-compliant financial services will become increasingly accessible for Jordanian customers, while meeting the Basel III capital adequacy and risk-management requirements will remain a top priority for the banks.
On February 27, when outlining his government’s proposed plan of action, Prime Minister Marouf Bakhit told parliament that he was firmly committed to extending financial support to the nation’s universities to overcome any funding shortfalls and to continue to expand their activities. Directing more energy and money towards courses that meet the needs of the economy will help give Jordan’s education system a sharper focus and provide students with the skills required to find employment after graduation.
With efforts to accelerate the pace of economic growth and boost domestic employment taking centre stage under the new government of Prime Minister Marouf Bakhit, a new law is under discussion that would focus state incentives more squarely on investments that add value, create jobs and make use of local resources.
While the Jordanian political landscape has been renewed, the new prime minister, Marouf Bakhit is expected to face a number of challenges confronted by his predecessor, Samir Rifai. Some argue he will have even less time to balance the necessity of reinvigorating the economy with the need to meet popular expectations.
In an effort to satisfy a growing appetite for energy, Jordan is working to wean itself off costly imported oil and make better use of its own resources. The country hopes to attract $14bn in investments in energy infrastructure, including the construction of a nuclear reactor scheduled to come on stream in 2018, and efforts focused on developing renewables and oil shale.
Jordan’s economy has entered 2011 in strong shape, having posted solid growth over the past 12 months and looking to do even better in the coming year, though progress has been patchy in some areas and there are more than a few potential potholes further down the road.
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