Jordan

With the ongoing expansion of the port and container terminal at Aqaba and the new terminal at the Queen Alia International Airport, there is a sense of cautious optimism in the kingdom’s transport and logistics sector.

Large-scale overseas investments, combined with increased state spending on infrastructure projects, has resulted in the Jordanian construction industry shifting its focus from the capital Amman, which had long been the centre of building activity, to the port city of Aqaba.

Ongoing energy concerns continue to plague Jordanian manufacturers despite an overall resilient performance from the sector in 2012. As the country grapples with slow economic growth, subdued international investment and a mounting public budget deficit, industrialists are working to combat a new wave of electricity tariffs that have already contributed to a rise in production costs.

Uncertainty over the economy’s medium-term outlook, combined with concerns over regional instability, are likely to result in a subdued 2013 for Jordanian retailers, with many indicators pointing to conservative spending by consumers through the year.

The government is working hard to keep telecoms investment from leaving the country and expand the sector’s role in domestic employment, particularly as the short-term economic outlook looks set to remain strained. As a result the Kingdom is considering the possibility of allowing a new provider to enter the mobile telephony segment.

Domestic and external pressures have made it a challenging year for the Jordanian economy, with most indicators pointing to 2013 being much the same, as the state seeks to curb spending, promote growth and maintain calm.