Jordan

The town of Aqaba and the short strip of coast on which it lies represent Jordan’s only access to the sea. This makes Aqaba a strategic location for a range of sectors in the economy, including transport, logistics and industry. Aqaba is also a premier tourism destination, boasting the highest number of hotel nights outside of the capital. Furthermore, its tourism capacity is set to be expanded...

Jordanian manufacturers continue to make up a sizeable slice of the country’s GDP. According to the Central Bank, in the first three quarters of 2011 the manufacturing sector made up 20.3% of GDP, expanding by 4.1% on the same period in 2010. Despite the political unrest that overtook much of the Middle East in 2011, Jordanian exports proved surprisingly resilient, both within the region and...

Unlike many of its neighbours, Jordan does not benefit from large hydrocarbons reserves. Consequently, around 96% of Jordan’s energy is imported, which costs as much as 20% of GDP on an annual basis. Spending on oil imports increased by 80% in January 2012 year-on-year, and this follows a 58% increase in spending between 2010 and 2011. To reduce dependence on foreign imports, policy makers are...

The transport sector accounts for around 12% of GDP and 10% of the country’s workforce, according to figures cited by the Ministry of Planning and International Cooperation in January 2012. The sector has traditionally been dominated by road infrastructure, with Aqaba’s seaport and air transport also playing an important role. The rail system is less developed, though the government is moving...

The country’s insurance sector is continuing to see steady growth despite difficult economic conditions and the burden of underwriting unprofitable motor insurance. In 2011 demand increased across all segments, particularly medical, fire and life. Indeed, the life insurance segment is seen as having one of the highest potentials for growth, due to its relatively low penetration compared to other...

Following four difficult years, 2012 looks set to be a turning point for the stock exchange as institutions and investors ready themselves for a stronger climate of investment and growth. In 2011, Jordan’s capital markets continued to suffer from wider regional and domestic events as investors’ fears were stoked by low economic growth, a tightening of fiscal spending and high interest rates. More...