In an interview with Al-Oula magazine, former Minister of Transport and Jordanian economist Dr. Khaled Seif expressed his optimism about the future of the Jordanian economy, noting that the economic modernization vision launched by King Abdullah II is a “lifeline” for Jordan, serving as a roadmap for the future. He added that this vision provides clear priorities for successive governments and helps address the current economic challenges.
Challenges Facing the Jordanian Economy
Seif emphasized that the biggest challenges facing Jordan include resource scarcity, high oil prices, and changing government policies. He also noted that Jordan’s steadfast positions on the Palestinian cause have contributed to increased economic pressures, especially given the large number of refugees hosted by the kingdom.
He pointed out that policies in neighboring countries offer preferential advantages to their investors, particularly in the energy sector, which presents an additional challenge for Jordan in attracting investments. Additionally, he highlighted that high operating costs due to unstable energy prices remain a major obstacle for both local and foreign investors.
The Investment Environment in Jordan
Despite these challenges, Seif affirmed that Jordan possesses many factors that make it an attractive investment environment, including political and economic stability, Hashemite leadership supporting the economy, and laws and regulations that protect investments. He also noted that Jordan is a significant regional logistics hub with strong infrastructure that helps stimulate various economic sectors.
He added that Jordan has made noticeable progress in several sectors, including industry, tourism, energy, and telecommunications, emphasizing that each sector supports the others, with no sector being more important than another. For example, the development of the transportation sector has been crucial in supporting growth in the tourism sector.
Public-Private Partnership
Seif stressed the importance of building a strong public-private partnership to stimulate economic growth and achieve the goals of the economic modernization vision. He explained that supporting investment funds and rethinking the tax law will be crucial for attracting both foreign and local investments.
He also pointed out the need to simplify bureaucratic procedures to facilitate company registration and improve the overall business environment. Seif emphasized that the success of foreign investors in Jordan is the best advertisement for the country’s investment climate.
Figures of the Jordanian Economy
Regarding the performance of the Jordanian economy in the past two decades, Seif noted a significant decline in foreign investment rates, with the highest level reached in 2006 at 2.5 billion dinars, dropping to the lowest level in 2022 at 600 million dinars. However, he expressed optimism that Jordan could enhance investment in 2024, particularly with the increase in first-quarter investments for this year, which reached 340 million dinars.
In conclusion, Seif stressed the importance of marketing Jordan as an investment destination, calling for improvements in the legislative and administrative environment to attract investments and ensure sustainable economic growth.
