February 28th 2019 saw London hold a conference with a central focus of improving the well-being of Jordan. Commitments were made to support the Jordanian economy and investment, to pursue reform, initiate growth plans and to create thriving opportunities. In follow up to the conference and to support the London initiatives a ‘Jordanian Task Force’ has been launched to ensure commitments are upheld for the greater benefit of Jordan. The Middle East is a rapidly growing region, in terms of economy, infrastructure and opportunities. From Saudi Arabia and UAE to Oman, it is evident that there are prosperous countries in the region, and now, with this commitment, Jordan could be able to provide a flourishing society of opportunities and growth.
What to Expect?
This task force will be composed of Jordan, UK, donors and private sector, civil society and international financial institutions, each with a vital role to play in the enhancements of the country. The London initiatives are planned to strategically build Jordan it up with a robust foundation for the long-term.
Jordan has proved to be a country with a resilient economy, grand opportunities for growth and the potential to transform for a better tomorrow. The country already shows great promise, for example, 75% of all Arabic content on the internet is generated in Jordan highlighting their technologically advanced culture. In addition to this, 68% of the population are below the age of 30, the country is young and full of optimism. Jordan has always put a lot of investment into their youth; take, for example, recent developments in satellite technology when a team of young Jordanian engineers launched their first nanosatellite.
The London initiatives are anchored around three main pillars:
- Robust reforms to stimulate inclusive growth and job creation (especially for women).
- Measures to improve macroeconomics and fiscal stability.
- An enabling business environment to attract investments.
These pillars have been deemed a clear and credible model for future growth with direct impacts on reducing unemployment. With a strategic plan in place, relevant assistance and support and a country destined for growth, the London initiative seems to have significant foundations to stimulate economic growth for investments. Jordan will potentially enjoy an unprecedented opportunity for growth for businesses and investors over the next 5 years. Guidance from the committee and an internal driving force of a young, diverse and educated population will bring opportunities to reform the nation.
Pillar 1: Robust Reforms
In the next 5 years Jordan plans to launch the Growth and Reform Matrix, which is, ultimately, a series of structural reforms, sequenced and prioritised for optimum potential. The Matrix has already begun, with reform implementations already started over the last 12 months. Some reforms are as follows:
- Regulatory Predictability Framework: Makes it mandatory for all business-related regulations to go through a public-private dialogue process.
- Unify and simplify monitoring and inspection procedures on economic activities: This will aim to minimise uncertainty, improve productivity and reduce costs.
- Electronic Public Procurement Platform: This strives to improve accountability, transparency and competitiveness of the public procurement procedure.
Pillar 2: Fiscal Stability
Jordan presented a comprehensive medium-term financing strategy; this alone moved its debt to a more sustainable footing. By maximising grants, Jordan showed robust commitment to its fiscal reform programme under the IMF Extended Fund Facility. However, debt sustainability calls for external and international support in order for Jordan to establish safe ground and to assuage medium-term risks. The London initiatives agreed on external financing to be moved to a more sustainable modality.
Pillar 3: Attracting Investments
This is of the utmost importance for the long-term success of Jordan. The private sector of Jordan will be a focal point for enhancements and to unlocking growth. Through an ambitious investment climate reform, Jordan sets it sights on creating new opportunities for business, initiating with a new Projects Pipeline Development Facility, holding 120 investment opportunities over the next 20 years. Each opportunity presents itself with the overriding goal of growth, with 26 plans set to be accomplished in 2019 alone. Core targeting sectors are: tourism, professional services and technology and entrepreneurism.
Opportunity for All
Jordan is becoming a thriving country with strategic, robust and expert plans in place to transform the nation. The potential of Jordan is very promising and it is supported on an international level.
Just like Jordan’s reform plans, necessary business intelligence steps must be taken in order to mitigate risks and ensure a safer passage of business. Before you take the leap you need to also take a structural route, plan your investments for stability. Cedar Rose can help you with this as we offer extensive data on Jordan and the whole of the Middle East. Whether you want detailed information on companies and individuals or in-depth extensive investigations, we have the right services for you. Cedar Rose provides high quality data with quick turnaround times and are renowned for our expertise within the Middle East. Just visit our website today and unlock the business intelligence to secure your next venture.
Written By Jack Evangelides, Marketing Assistant
Sourced Image: Pixabay
*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***