The year 2011 was a period of mixed fortunes for the construction industry. Although residential development was in strong demand – boosted by incentives such as government exemptions on property registration fees – construction work in other segments was less forthcoming. Government capital expenditures were restricted and banks remained risk-averse following the regional crash in property markets. Yet a revival via several new foreign investment initiatives spurred activity in the country’s…
Construction & Real Estate
From The Report: Jordan 2012
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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.