Economy
From The Report: Jordan 2013
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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)

Articles from this Chapter

Overview

Turning a corner: Fundamentals are strong despite a turbulent environment
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Faced with a number of external shocks in recent years, Jordan’s economy has shown a remarkable resilience in dealing with successive challenges. The Hashemite Kingdom has continued to grow in a recession-hit and risk-averse climate, and the government is demonstrat-ing a determination to tackle longstanding structural reforms. The administration has thus been taking impor-tant – if sometimes unpopular – steps to cut deficits, roll back subsidies and tackle inefficiencies; these moves…

Interview

OBG talks to Awni Al Rushoud, Acting CEO, Jordan Investment Board
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Interview:Awni Al Rushoud In light of the challenging economic environment, how is the Jordan Investment Board developing strategy to encourage foreign direct investment? AWNI AL RUSHOUD: Despite the continued turbulence fac-ing the region, we are optimistic about the investment environment. In fact, over JD1.6bn ($2.3bn) in invest-ments were registered at the One Stop Shop at the Jor-dan Investment Board in 2012. This represents an increase of more than 58% compared to figures over the same…

Interview

OBG talks to Awni Al Rushoud, Acting CEO, Jordan Investment Board
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Interview:Awni Al Rushoud In light of the challenging economic environment, how is the Jordan Investment Board developing strategy to encourage foreign direct investment? AWNI AL RUSHOUD: Despite the continued turbulence fac-ing the region, we are optimistic about the investment environment. In fact, over JD1.6bn ($2.3bn) in invest-ments were registered at the One Stop Shop at the Jor-dan Investment Board in 2012. This represents an increase of more than 58% compared to figures over the same…

Analysis

Tightening the belt: A programme of austerity is aimed at rebalancing the kingdom’s fiscal position
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In 2012, faced with a range of major economic chal-lenges, the Jordanian government began implement-ing a new macroeconomic programme. This aimed at reducing the kingdom’s vulnerability to external shocks, particularly in the realm of energy prices and supply, while also seeking a fair distribution of the burdens that the fiscal deficit was imposing on the state. Fundamentally, the new programme was aimed at ensuring future economic stability and growth, via a series of important structural…

Analysis

Over the border: A growing neighbour presents new opportunities
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To many regional investors, Jordan’s neighbour to the north-east – Iraq – has long been a glittering, if elu-sive, prize. With the world’s largest proven oil reserves at 350bn barrels and a population of 33m, Iraq is a major market on Jordan’s doorstep. Yet years of conflict and occupation have made steady nerves a requirement. For many years Iraq has been Jordan’s second-largest export market. The relationship has deep roots; Iraqi oil has long been a staple of Jordan’s energy…

Analysis

Grand designs: Scheduled reforms and new investment set the course for development
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In 1995 Jordan’s parliament passed the Investment Pro-motion Law, a wide-ranging instrument aimed at attracting foreign and domestic interest to key sec-tors. In 2000 the law was amended, giving priority to eight areas of the economy and to two sub-sectors, with investments in these fields receiving benefits that ranged from tax incentives to one-stop-shop services. Then, in 2003, the government introduced three more provisional laws to further develop the investment climate. A decade later,…

Interview

OBG talks to Henry Azzam, CEO, Social Security Investment Fund (SSIF)
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Interview:Henry Azzam To what extent can the government balance deficit cuts with maintaining a social support system? HENRY AZZAM: Jordan has tried to beef up the public sector to absorb the high level of unemployment, but this has failed to yield the desired results. The most important driver for the economy moving forward should be the private sector. Businesses need to step in, regain con-fidence and increase their investments in the country to create more employment opportunities. For…