Economy
From The Report: Jordan 2014
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The IMF has forecast Jordan’s GDP to expand by 3.5% in 2014 and the government remains committed to tackling long term structural issues in the economy including reducing the fiscal deficit. The role of the private sector is being boosted, particularly with regard to government support for SMEs. Stronger economic ties with Iraq have led to proposals for a Basra-Aqaba pipeline and this, along with the completion of the Aqaba liquefied gas facility next year, is expected to help address the kingdom’s heavy reliance on energy imports. Jordan’s membership in the Greater Arab Free Trade Area offers local companies advantageous access to 17 markets across the Middle East and North Africa, while free trade agreements with countries further afield such as Singapore and Canada offer global opportunities.

This chapter contains interviews with Umayya Toukan, Minister of Finance; Ibrahim Saif, Minister of Planning and International Cooperation; and Awni Rushoud, Investment Commissioner, Investment Commission.

Articles from this Chapter

Overview

The emphasis is now on reducing the fiscal deficit and resetting national strategies
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The kingdom’s economic journey from its emergence as a new state in 1946 to the regional business and financial hub that it is today is a remarkable one. Over this brief span Jordan has undergone a number of developmental phases, from an initial focus on massive public investment in basic utilities, health and education to the growth of an industrial and manufacturing base, the first attempts to attract sizeable foreign investment and the successive tranches of economic reform by which Jordan has…

Interview

OBG talks to Umayya Toukan, Minister of Finance
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Interivew: Umayya Toukan How is the government maintaining fiscal discipline in regards to repaying its IMF loans? UMAYYA TOUKAN: We have an agreement in place with the IMF to restore fiscal balance. Planning a budget is not the easiest task when we are faced with exceedingly uncertain regional tensions. Our budgetary difficulties are largely due to the global economic crisis, the Arab Spring and, of course, disruptions in the flow of natural gas from Egyptian pipelines. These challenges that we…

Interview

OBG talks to Umayya Toukan, Minister of Finance
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Interivew: Umayya Toukan How is the government maintaining fiscal discipline in regards to repaying its IMF loans? UMAYYA TOUKAN: We have an agreement in place with the IMF to restore fiscal balance. Planning a budget is not the easiest task when we are faced with exceedingly uncertain regional tensions. Our budgetary difficulties are largely due to the global economic crisis, the Arab Spring and, of course, disruptions in the flow of natural gas from Egyptian pipelines. These challenges that we…

Interview

OBG talks to Ibrahim Saif, Minister of Planning and International Cooperation (MoPIC)
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Interivew:Ibrahim Saif What impact could the $5bn Gulf Cooperation Council (GCC) grant have on the Jordanian economy? IBRAHIM SAIF: Over the past few years, Jordan has suffered from successive shocks that have negatively affected its macroeconomic situation. The global financial crisis and the regional situation as a result of the Arab uprisings have had an adverse impact on its growth, fiscal balance and balance of payments. The Syrian conflict has also impacted key economic sectors and…

Analysis

Evaluating the government’s privatisation programme
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The privatisation of state companies is almost always a process fraught with competing concerns. However, while controversies attached to the sale of state assets are ubiquitous, Jordan is unique in the region in its assessment of its privatisation programme. The last year has seen the completion of a painstaking evaluation process of nearly 20 privatisation deals carried out over recent years, the results of which have been crucial in neutralising the phenomena of rumour, claim and counter-claim…

Interview

OBG talks to Awni Rushoud, Investment Commissioner, Investment Commission
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Interivew:Awni Rushoud What sort of changes were involved in the transition from the Jordan Investment Board to the new Investment Commission? AWNI RUSHOUD: The major change is that we have unified various investment divisions – including the Jordan Investment Board, the development zones and the promotion department of the Jordan Enterprise Development Corporation –and wrapped them all into the new Investment Commission. The streamlining of these organisations should make our activities…

Analysis

Small but important: Supporting the growth of the nation’s SMEs
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It is hard to overstate the importance of the role played by Jordan’s small and medium-sized enterprises (SMEs) in the wider economy. The nation’s historical role as safe haven in a politically turbulent region has seen it welcome migrants from far and wide, most notably Palestine, Iraq and – more recently – Syria. Many have brought their capital with them, and deployed their business know-how to establish shops and small companies in Amman and other urban areas, activities which have served…

Analysis

Economic ties with Iraq are strengthening
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Jordan’s proximity to Iraq is of interest to the nation’s economic planners for obvious reasons. The troubled neighbour boasts proven oil reserves of 150bn barrels as of 2013, according to BP’s “Statistical Review of World Energy”, which are the third largest in the region, behind Saudi Arabia and Iran. With a population estimated by the World Bank at 33m, Iraq represents a major market with sizeable potential on Jordan’s doorstep. There is also a long history of trade between the two…

Analysis

Foreign assistance is a significant part of the economy
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There are several reasons why external aid plays such an important role in Jordan’s economy. The country’s modest geographic footprint and dearth of natural resources are chief among them, as is Jordan’s position between Israel, Syria, Iraq and Saudi Arabia. There are myriad geopolitical reasons why regional and global donors have determined that a stable Jordan is crucial to the security of the Middle East, and the funding that the nation has received as a result has allowed it to overcome…