Purchase OBG Publications

Life expectancy within the kingdom is above the regional average, with a medical insurance safety net available for citizens. Medical care is provided by public, private and aid operators. Advanced procedures and improving care standards are drawing health tourists to the kingdom, and Amman has become a growing medical manufacturing base, with free zones offering an attractive location for businesses looking to access Middle Eastern and East Asian markets. Industry leaders in the kingdom are looking to partner with ICT groups in the US, with a view to building Arabic-language editions of US software, and licensing US medical products by Jordanian firms.

Subscriber numbers among the four mobile operators have continued to grow in recent years. Operating costs have risen somewhat and profits have fallen, due mostly to heightened competition. The outlook for this sector remains positive – the kingdom’s telecoms industry is progressing toward a more IT-oriented future, as data demand grows and network operators ramp up their mobile broadband and mobile content offerings. As one of the most productive sectors of the Jordanian economy, ICT accounts for some 14.1% of the kingdom’s GDP, with operators continuing to invest in infrastructure. Further, the highly skilled local labour force, stable business environment and government support have helped to support IT sector growth. This chapter contains a roundtable with Jean-François Thomas, CEO, Orange; Ihab Hinnawi, CEO, Umniah; and Ahmad Hanandeh, CEO, Zain.

A major airport expansion, along with the addition of new international air routes, is expected to boost tourism and ease bottlenecks in the near term. Niche markets like medical tourism and ecotourism are offering promising avenues for sector expansion. The industry resumed brisk revenue growth in 2012, marking its continued recovery from the regional slowdown. The meetings, incentives, conferences and exhibitions segment is expected to continue to grow, and several medium-sized venues already exist in Amman for these purposes, further helping to boost tourism’s contribution to the economy.

While most economic activity in Jordan is concentrated in Amman, the southern city of Aqaba is playing an increasingly significant role. The population of the city is expected to increase by 130% to 250,000 by 2020, making expansion of Aqaba’s infrastructure to improve air and maritime links within and beyond the region a key objective. A mix of development projects is under way to widen the city’s image. Water security will be key to infrastructure development, along with transport upgrades that are necessary to sustain this diversification. Large-scale projects in the area are set to fuel construction growth, and a number of tourism-related projects have been planned for the city, including the development of hotels, entertainment areas, shops, restaurants and cafes, and a marina, which are all aimed at increasing tourist numbers.

Industry accounts for about one-fifth of GDP and around 90% of exports. Mining, chemicals, and textiles and garments manufacturing are the top segments, but the kingdom is also the largest exporter of pharmaceuticals in the Arab world. Several new free trade agreements –including one with Turkey – are expected to boost export volumes and revenues. More malls are expected to be added to the three shopping facilities already in place, further adding to the size of the retail sector.

Average rental and sales prices for residential real estate have remained steady, although there has been a slight drop in the capital’s commercial segment. The construction sector is characterised by a host of large-scale, mixed-use developments. Plans have also been announced for the kingdom’s first solar cooling plant, while multiple water projects are progressing well, offering a range of opportunities for contractors.