Purchase OBG Publications

Making up more than 15% of its exports – up from 12.7% in 2007 – the agricultural sector in Jordan is small but strong. Produce makes up the majority of exports, with livestock farming also playing a significant role locally and abroad. In particular, Jordan has the potential to increase its exports to the European market. Although few Jordanian companies are currently certified to export to the EU, the number that are is expected to grow. At the same time however, demand in Syria for Jordanian produce declined in 2011, and Iraq has banned imports of Jordanian vegetables, claiming that its local production was sufficient. More positively, recent moves by Saudi Arabia to allow Jordanian produce imports provide new opportunities in the sector. Lastly, in an effort to boost its agricultural sector and improve access to water, Jordan has developed strategies to alleviate the water burden; wastewater treatment and water desalination are among the solutions. This chapter includes an interview with Mousa Al Jamaani, Minister of Water and Irrigation; and Jean Louis Chaussade, CEO of Suez Environnement.

With nearly universal levels of basic education and the majority of graduates enrolling in a university, Jordan was ranked fourth in the Middle East and North Africa on the Education Index of the UNDP. Furthermore, the kingdom’s top public universities are ranked among the best in the region, and have been rising in international rankings as well. Jordan is also host to several foreign universities and is attracting an increasing number of international students. However, challenges remain. Public sector salaries for teachers are an issue, with complaints over wages leading to a three-week strike in early 2012. Moreover, ensuring the employability of university students is a priority as graduate unemployment rates rose to 16.2% in 2009, up from 12% in 2008. A number of initiatives are underway to bridge the gap from education to employment. This chapter includes an interview with Professor Labib Khadra, President of the German-Jordanian University.

Tourism is a crucial element of the economy, accounting for 14% of GDP in 2010. Petra remains the country’s major tourist attraction, with 459,629 visitors to the site in the first nine months of 2011. However, the tourist industry was hit hard by regional unrest in early 2011, and many joint package trips to Jordan and neighbouring countries were cancelled. Economic woes in parts of Europe have also contributed to a drop in visitors. Nevertheless, there are some signs of recovery and efforts continue to develop the sector, which benefits from the diversity of the country and the wide range of tourism products on offer in a relatively small area. This chapter includes an interview with Nayef Al Fayez, Minister of Tourism and Antiquities.

Although 2011 was a difficult year for the industry, the construction and real estate sector displayed encouraging signs of a rebound. This was especially the case in the residential construction segment, which saw strong demand, boosted by mechanisms such as government exemptions on property registration fees. However, fiscal constraints that were the result of the global and regional economic slowdown have led to tighter government budgets and delays in payments for commissioned projects. More positively, Jordan is benefitting from collaboration with Saudi Arabian, which has allocated funds for development projects and the hiring of several local contractors. This collaboration is further evidence that Jordan stands out in the wider Middle East for its relatively efficient and quick construction licensing and permit process, which requires roughly half the time as neighbouring countries. This chapter includes interviews with Yahya Kisbi, Minister of Public Works and Housing; and Yousef Al Nowais, Managing Director at Al Maabar.

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 by three real estate mega-projects, namely the Ayla, Saraya and Marsa Zayed developments. The projects will see numerous hotels and residential units built, as well as the extension of the coastline. However, as in the rest of the country, the local tourism sector has recently been negatively affected by regional instability and the eurozone crisis. Development and growth will continue to depend on this and other external factors such as the national economy, the regional real estate market, and the political and security situation in neighbouring countries. This chapter includes an interview with Nasser Madadha, Chief Commissioner of Aqaba Special Economic Zone Authority; and Chairman of the Board of the Aqaba Development Corporation.

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 further afield, and are being encouraged by free trade agreements (FTAs). A number of FTAs have come into effect in recent years, including one with the US, the kingdom’s primary clothing export market. Foreign investment may continue to be deterred by regional uncertainty, although the first two months of 2012 saw a notable increase in investor interest. Going forward, the phosphate and potash industries, as well as fertiliser manufacturers, look set to continue on a path of strong growth. This chapter includes interviews with Hatem Halawani, Chairman of the Jordan Chamber of Industry; and Bashar Arafeh, Director and CEO at ePoints.