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Access to the Red Sea via the expanding port of Aqaba and proximity to emerging markets in the region, like Saudi Arabia and Iraq, has encouraged Jordan to strengthen its transport offerings and enabled it to support several key infrastructure and real estate projects. While fuel costs remain high, a $1.8bn investment programme to boost the road network, in addition to aviation, rail and maritime upgrades, stands to aid the sector in the medium to long term. Railway capacity is set to rise with the $2.43bn Jordan National Railway project. This chapter contains an interview with Søren Hansen, CEO, Aqaba Container Terminal.

The kingdom is expected to reduce its reliance on energy imports by tapping into domestic oil shale reserves and promoting renewable energy development. The construction of a nuclear power plant and increased use of solar power promise to further help diversify electricity generation in coming years. In addition, discussions are under way to liberalise fuel distribution by removing the set price for petrol that the government controls, allowing competition over prices. This chapter contains an interview with Alaa Batayneh, Former Minister of Energy and Mineral Resources.

The insurance sector contributed 1.2% of total trade in the first nine months of 2012, down 54% on the same period of 2011, when it stood at 2.6%. While things are looking more positive for the sector in 2013, it nonetheless faces some major challenges, particularly in the dominant motor segment. Regulatory issues have been on insurers’ minds in recent times too, with the industry’s overall profitability and sustainability likely to be affected by the outcome of these structural debates. Changes in the regulatory environment are in the offing, and liberalisation of the sector remains a contentious issue.

After the rough and tumble of the last few years, Jordan’s capital markets are now at a potential turning point. Although the Amman Stock Exchange saw four de-listings in 2012, it is still one of the most populous exchanges in the MENA region, with 243 companies listed. The three-tier market structure has been welcomed by investors for providing clarity on the status of companies. New regulations, including daily limits established on stock price volatility and different trading hours for the third tier of the exchange, are designed to increase stability and investor confidence. Further to this, a US offer to back Jordanian bond issues may help lower the kingdom’s borrowing costs, further boosting confidence in the country’s securities and aiding in reducing the budget deficit. This chapter contains interviews with Adel Kasaji, CEO, AB Invest; and Nader Azar, Acting CEO, Amman Stock Exchange.

The banking sector has shown signs of a brisk recovery in the past year, with expansion of both assets and deposits at major firms. Banks have boosted profits and built healthy balance sheets by tackling non-performing loans, auguring a return to the growth seen in pre-crisis years. Near-term sector growth is set to come from new lending to small and medium-sized enter-prises and Islamic financial products. This chapter contains interviews with Nemeh Sabbagh, CEO, Arab Bank; Ziad Fariz, Governor, Central Bank of Jordan (CBJ); and Ahmad Abu Eideh, CEO, Standard Chartered.

The state is pushing ahead with structural reforms that should provide a sound base for future development. GDP is forecast to expand by 3.5% in 2013, while the government has made reducing the fiscal deficit a priority. Trade opportunities with Iraq are also being explored, and longer-term initiatives, including the development of shale oil and renewables, should help to address long-standing energy challenges. This chapter contains interviews with Umayya Toukan, Minister of Finance; Awni Al Rushoud, Acting CEO, Jordan Investment Board; Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (KFAED); and Henry Azzam, CEO, Social Security Investment Fund (SSIF)