Economy Of Jordan

The World Food Programme classifies the economy of Jordan as an upper-middle income economy, reflecting the nation’s moderate level of economic development relative to global standards. Despite this classification, Jordan faces significant structural challenges due to its scarcity of natural resources and limited agricultural land. The country’s terrain and climatic conditions restrict the availability of arable land, thereby constraining agricultural productivity and necessitating a reliance on imports for many foodstuffs. This resource scarcity has historically shaped Jordan’s economic strategies and development patterns. During the 1970s, Jordan experienced a remarkable surge in economic growth, with its gross domestic product (GDP) per capita increasing by an impressive 351%. This period of rapid expansion was fueled by various factors, including increased foreign aid, remittances from Jordanians working abroad, and the exploitation of mineral resources such as phosphates and potash. However, the momentum of growth was not sustained into the following decade. In the 1980s, Jordan’s GDP per capita declined by approximately 30%, reflecting economic difficulties that arose from regional instability, fluctuating commodity prices, and internal fiscal challenges. The downturn underscored the vulnerability of Jordan’s economy to external shocks and the limitations imposed by its resource constraints. The 1990s saw a partial recovery, with GDP per capita rising by 36%. This resurgence was supported by economic reforms, the signing of peace treaties, and efforts to diversify the economy. The accession of King Abdullah II to the throne in 1999 marked a significant turning point in Jordan’s economic trajectory. Under his leadership, the government implemented liberal economic policies aimed at fostering private sector growth, attracting foreign investment, and integrating Jordan more fully into the global economy. Between 1999 and 2008, these reforms contributed to an average annual economic growth rate of 8%, one of the highest in the region during that period. The momentum of economic growth slowed considerably following the Arab Spring uprisings in 2011, with annual growth rates dropping to around 2%. The regional unrest led to decreased investor confidence, disruptions in trade, and a decline in tourism, which had been a vital sector for Jordan’s economy. Concurrently, the country faced demographic pressures from a rapidly growing population and increasing public debt levels. These factors combined to exacerbate poverty and unemployment rates, posing significant social and economic challenges. As of 2023, Jordan’s GDP stood at approximately US$50.85 billion, ranking it 89th in the world by nominal GDP. This position reflects the country’s modest economic size relative to global economies, but also its strategic efforts to engage in international trade. Jordan has established free trade agreements with a diverse array of partners, including the United States, Canada, Singapore, Malaysia, the European Union, Tunisia, Algeria, Libya, Turkey, and Syria. These agreements facilitate the reduction of tariffs and trade barriers, thereby enhancing Jordan’s access to key markets and promoting export-led growth. In addition to these active agreements, Jordan has planned free trade arrangements with Iraq, the Palestinian Authority, the Gulf Cooperation Council (GCC), Lebanon, and Pakistan, aiming to further expand its regional economic integration. Jordan is also a member of several multilateral trade frameworks, including the Greater Arab Free Trade Area (GAFTA), the Euro-Mediterranean free trade area, and the Agadir Agreement. These memberships provide Jordan with preferential trade terms and foster cooperation with neighboring countries. Moreover, Jordan holds an advanced status with the European Union, enabling it to benefit from enhanced trade relations, technical assistance, and economic cooperation programs. Such affiliations underscore Jordan’s strategic positioning as a trade hub bridging the Middle East and Europe. The country’s primary economic resources include phosphates, potash, fertilizer derivatives, tourism, overseas remittances, and foreign aid. Phosphates and potash mining constitute significant sectors, as Jordan is among the world’s leading producers of these minerals, which are essential inputs for the global fertilizer industry. Tourism, historically a major source of foreign currency, capitalizes on Jordan’s rich cultural heritage and natural attractions such as Petra and the Dead Sea. Additionally, remittances from Jordanians working abroad and foreign aid play crucial roles in sustaining the economy, providing vital hard currency inflows that support the balance of payments and government budgets. Despite these resources, Jordan lacks several key natural endowments that many other economies rely upon. The country has no coal reserves, limited hydroelectric potential due to its geography, and lacks large forested areas. Furthermore, commercially viable oil deposits have not been discovered within its borders, compelling Jordan to depend heavily on energy imports. Currently, natural gas supplies approximately 93% of Jordan’s domestic energy needs, highlighting the country’s reliance on this resource for electricity generation and industrial use. Historically, Jordan depended on Iraq for oil imports, but this arrangement ended following the 2003 invasion of Iraq by the US-led coalition, which disrupted regional energy supplies and necessitated diversification of Jordan’s energy sources. Jordan’s industrial sector is characterized by the presence of specialized zones producing a range of goods, including textiles, aerospace components, defense equipment, information and communications technology (ICT) products, pharmaceuticals, and cosmetics. These industrial zones have been developed to attract foreign direct investment and promote export-oriented manufacturing. In recent years, Jordan has also emerged as a knowledge economy, leveraging its educated workforce and technological infrastructure to develop sectors such as ICT and research and development. This transition reflects the government’s strategic emphasis on innovation and human capital as drivers of sustainable economic growth. However, several persistent obstacles hinder Jordan’s economic development. Scarce water supplies represent a critical constraint, as the country’s arid climate limits the availability of fresh water resources. Less than 10% of Jordan’s land is arable, and groundwater sources are limited and largely non-renewable, placing severe restrictions on agricultural expansion and necessitating careful water management. Rainfall in Jordan is both low and highly variable, exacerbating water scarcity and impacting agricultural productivity. Additionally, Jordan’s heavy reliance on imported oil for energy exposes the economy to price volatility and supply disruptions. Regional instability, including conflicts in neighboring countries, further complicates economic planning and deters investment. The country’s fiscal position has been under strain due to these challenges. In 2011, Jordan’s total foreign debt amounted to $19 billion, representing 60% of its GDP. By 2016, this debt had escalated to $35.1 billion, or 93.4% of GDP, reflecting a significant increase in borrowing. The rise in debt was driven by multiple factors, including regional instability, which led to decreased tourism revenues and foreign investment inflows. Increased military expenditures to ensure national security, repeated attacks on the Egyptian gas pipeline that supplied Jordan with energy, the collapse of trade relations with Iraq and Syria, and the substantial costs associated with hosting a large number of Syrian refugees all contributed to fiscal pressures. Additionally, accumulated interest on loans further compounded the debt burden. The influx of Syrian refugees has imposed considerable economic costs on Jordan. Hosting refugees has cost the country over $2.5 billion annually, equivalent to 6% of GDP and accounting for 25% of the government’s annual revenue. The presence of refugees has intensified competition for jobs, leading to declining wage growth and increased unemployment among Jordanians. These refugee-related economic pressures have contributed to a prolonged economic downturn that persisted from 2011 until 2018. The top five sectors contributing to Jordan’s GDP—government services, finance, manufacturing, transport, and tourism/hospitality—were severely impacted by the Syrian civil war, as regional instability disrupted trade routes, reduced tourist arrivals, and constrained economic activity. Foreign aid has played a role in mitigating some of these costs, but it has covered only a small portion of the total expenditure associated with the refugee crisis and regional instability. Approximately 63% of the total costs have been borne by Jordan itself, placing considerable strain on public finances. In response, the Jordanian government adopted an austerity program aimed at reducing the debt-to-GDP ratio to 77% by 2021. This program included measures to control public spending, increase revenues, and improve fiscal management. The government’s efforts succeeded in preventing the debt ratio from exceeding 95% in 2018, thereby stabilizing the country’s fiscal position. Economic growth during the period from 2016 to 2019 averaged 2% annually, a marked slowdown compared to the 6.4% growth rate experienced during the decade from 2000 to 2009. This deceleration reflected ongoing challenges related to regional instability, fiscal constraints, and structural economic issues. Nevertheless, Jordan continued to pursue policies aimed at economic diversification and integration into global markets. On 15 May 2025, Jordan and the United Arab Emirates (UAE) activated their Comprehensive Economic Partnership Agreement (CEPA), a landmark trade accord signed in 2023 under the auspices of King Abdullah II and UAE President Sheikh Mohamed bin Zayed. The CEPA is designed to strengthen bilateral trade relations by reducing tariffs and non-tariff barriers, thereby facilitating increased commerce between the two countries. It also aims to promote investment in key sectors such as industry, renewable energy, and tourism, which are considered vital for sustainable economic development. The agreement establishes cooperation frameworks, including a joint investment council, to oversee the implementation of trade and investment initiatives. A key objective of the Jordan-UAE CEPA is to increase non-oil trade between the two countries to over $8 billion by 2032. This target underscores the strategic importance of diversifying trade beyond hydrocarbons and fostering deeper economic integration within the Arab region. The agreement represents the UAE’s first such comprehensive economic partnership with an Arab country, highlighting its commitment to regional integration, the empowerment of small and medium-sized enterprises (SMEs), and the establishment of a long-term economic partnership. This development is expected to provide new opportunities for Jordan’s economy, enhance competitiveness, and contribute to broader regional economic stability.

The Central Bank of Jordan commenced its operations in 1964, establishing itself as the principal monetary authority within the country. It was vested with the exclusive right to issue the national currency, thereby centralizing the control of monetary policy and currency issuance. This institutional framework was instrumental in stabilizing Jordan’s financial system and facilitating economic development by regulating money supply and maintaining currency stability. The establishment of the Central Bank marked a significant milestone in Jordan’s economic history, as it provided the government with a tool to implement monetary policies aimed at controlling inflation, managing exchange rates, and fostering overall economic growth. The official currency of Jordan is the Jordanian dinar, symbolized as JOD. Since its introduction, the dinar has been the cornerstone of the country’s monetary system and is widely used in all domestic transactions. A key feature of the Jordanian dinar is its fixed exchange rate regime, as it has been pegged to the United States dollar. This peg has played a crucial role in maintaining currency stability and investor confidence, particularly given the regional economic volatility. By anchoring the dinar to the US dollar, Jordan has sought to mitigate exchange rate risks, control inflation, and attract foreign investment, which has been vital for its economic resilience and integration into the global economy. The economic performance of Jordan, as measured by its gross domestic product (GDP) at market prices, has been tracked and reported by the International Monetary Fund (IMF) in terms of millions of Jordanian dinars across several years. This data provides insight into the country’s economic growth trends and structural changes over time. The GDP figures reflect the aggregate value of all goods and services produced within Jordan’s borders, adjusted for market prices, and serve as a key indicator of economic health. Tracking GDP in local currency terms allows for a more accurate assessment of domestic economic activity and facilitates comparisons over time, despite fluctuations in exchange rates or external economic shocks. For purposes of international economic comparisons, particularly those based on purchasing power parity (PPP), the Jordanian dinar is exchanged at a rate of 0.710 per US dollar. This PPP exchange rate is used to adjust for differences in price levels between countries, providing a more realistic measure of the relative purchasing power of the dinar compared to the dollar. By applying this rate, economists and policymakers can better compare Jordan’s economic output and living standards with those of other nations, accounting for the cost of living and inflation differences. The use of PPP exchange rates is especially important for cross-country analyses of income, productivity, and economic well-being, as it reflects the actual volume of goods and services that currency units can purchase domestically. Jordan’s population, estimated at approximately 6,342,948 inhabitants, forms the demographic basis upon which economic indicators such as GDP and wages are analyzed. Population size and growth rates influence labor market dynamics, consumption patterns, and the overall demand for goods and services. The demographic profile also affects policy decisions related to education, healthcare, and social welfare, which in turn impact economic productivity and development. Understanding the scale and characteristics of Jordan’s population is essential for contextualizing economic data and designing strategies that promote inclusive growth and sustainable development. In 2009, the average wage in Jordan was recorded at $4.19 per man-hour, reflecting the prevailing labor market conditions and productivity levels at that time. This wage rate provides a snapshot of the remuneration earned by workers, which influences household income, consumption capacity, and standards of living. The average wage is also indicative of the country’s competitiveness in the regional and global labor markets, affecting foreign investment decisions and economic diversification efforts. Monitoring wage trends over time helps to assess the effectiveness of labor policies, the impact of inflation, and the distribution of income across different sectors and population groups within Jordan.

Jordan is classified by the United Nations as an “Upper-middle-income country,” a designation that reflects its moderate level of income per capita and a corresponding stage of economic development. This classification situates Jordan above lower-middle-income countries, indicating a relatively advanced economic structure and a higher standard of living compared to many of its regional neighbors. The country’s economic indicators demonstrate progress in sectors such as services, industry, and trade, which collectively contribute to its income status. This status also implies that while Jordan has made significant strides in economic growth and development, it continues to face challenges typical of countries transitioning towards higher income levels, including the need to diversify its economy and enhance productivity. According to the Heritage Foundation’s Index of Economic Freedom, Jordan possesses the fourth freest economy in the Middle East and North Africa (MENA) region, surpassed only by Israel, Bahrain, and Qatar. On a global scale, Jordan ranks as the 32nd freest economy worldwide, a position that underscores its relatively open market policies and regulatory environment. This ranking reflects Jordan’s commitment to economic liberalization, including efforts to reduce barriers to trade, protect property rights, and encourage entrepreneurship. The country’s economic freedom has been bolstered by reforms aimed at improving the business climate, fostering competition, and attracting foreign investment. Despite regional challenges, Jordan’s economic policies have allowed it to maintain a degree of openness and flexibility that supports private sector growth and integration into the global economy. The World Economic Forum’s Index of Economic Competitiveness highlights Jordan’s infrastructure as the 35th best worldwide, a ranking that places it ahead of many peers in the Persian Gulf and Europe, including Kuwait, Israel, and Ireland. This assessment reflects the country’s investments in physical infrastructure such as transportation networks, telecommunications, energy supply, and utilities, all of which are critical for supporting economic activity and competitiveness. Jordan’s relatively advanced infrastructure facilitates trade, logistics, and business operations, contributing to its attractiveness as a regional hub for commerce and industry. The country’s infrastructure development has been a key component of its broader economic strategy, aimed at enhancing connectivity both domestically and internationally. In 2010, the AOF Index of Globalization ranked Jordan as the most globalized country in the Middle East and North Africa, a distinction that signals its high levels of economic integration and openness to international markets. This ranking takes into account factors such as trade flows, foreign direct investment, information exchange, and cultural connectivity, all of which illustrate Jordan’s active participation in the global economy. The country’s strategic geographic location, combined with its trade agreements and diplomatic relations, has facilitated this integration. Jordan’s openness to globalization has enabled it to attract foreign investment, expand export markets, and benefit from knowledge transfer, which are essential drivers of economic growth and development. Jordan’s banking sector is classified as “highly developed” by the International Monetary Fund (IMF), placing it on par with the banking systems of the Gulf Cooperation Council (GCC) economies and Lebanon. This classification reflects the sector’s robustness, regulatory framework, and capacity to support economic activities through financial intermediation. Jordan’s banking institutions are characterized by strong capitalization, liquidity, and a relatively low level of non-performing loans, which contribute to financial stability. The sector plays a pivotal role in mobilizing savings, providing credit to businesses and consumers, and facilitating domestic and international transactions. The development of the banking sector has been supported by regulatory reforms and modernization efforts aimed at enhancing transparency, governance, and risk management. The official currency of Jordan is the Jordanian dinar, which is subdivided into 100 qirsh, also known as piastres, or alternatively into 1000 fils. This currency structure facilitates transactions at various denominations, supporting both everyday commerce and larger financial operations. The Jordanian dinar serves as the primary medium of exchange within the country and is a symbol of monetary sovereignty. Its stability and acceptance are crucial for maintaining economic confidence and facilitating trade and investment. The currency’s subdivisions enable precise pricing and accounting, which are important for both consumers and businesses. Since 23 October 1995, the Jordanian dinar has been officially pegged to the International Monetary Fund’s (IMF) special drawing rights (SDRs), a basket of major international currencies. This peg provides a stable reference point for the dinar’s value, helping to reduce exchange rate volatility and enhance monetary policy credibility. By linking the dinar to the SDRs, Jordan aims to maintain external stability and foster investor confidence, which are vital for economic stability and growth. The peg also facilitates trade and financial transactions by providing predictable exchange rates against major currencies included in the SDR basket. The fixed exchange rate of the Jordanian dinar is approximately 1 US dollar to 0.709 dinar, which equates to about 1 dinar being equal to 1.41044 US dollars. This exchange rate regime supports stability in foreign exchange markets and helps to anchor inflation expectations. The relative strength of the dinar against the US dollar reflects Jordan’s monetary policy objectives and economic fundamentals. Maintaining this fixed rate requires active intervention by the Central Bank of Jordan to manage currency supply and demand, ensuring that the exchange rate remains within the targeted band. The Central Bank of Jordan operates a narrow band for buying and selling US dollars to maintain the currency peg. It buys US dollars at 0.708 dinar and sells them at 0.7125 dinar, while currency exchangers buy US dollars at 0.708 dinar and sell at 0.709 dinar. This system of rates ensures a controlled and stable exchange market, reducing speculative pressures and providing clarity for businesses and consumers engaging in foreign exchange transactions. The small spread between buying and selling rates reflects the Central Bank’s commitment to maintaining liquidity and stability in the foreign exchange market, which is essential for economic confidence and international trade. In 2011, Jordan’s market was considered one of the most developed Arab markets outside the Persian Gulf, highlighting its advanced commercial infrastructure and dynamic economic environment. This development was characterized by a diversified economy with significant contributions from sectors such as services, manufacturing, and trade. Jordan’s market development was supported by regulatory reforms, improvements in the business climate, and the expansion of retail and financial services. The country’s strategic location and political stability relative to the region further enhanced its attractiveness as a market for regional and international investors. Jordan ranked 18th on the 2012 Global Retail Development Index, which lists the 30 most attractive retail markets worldwide. This ranking reflects the country’s growing consumer base, rising income levels, and increasing urbanization, which have collectively driven demand for retail goods and services. The retail sector’s expansion has been supported by the entry of international brands, the development of shopping centers, and improvements in supply chain logistics. Jordan’s retail market attractiveness also stems from its regulatory environment, which encourages foreign direct investment and supports the growth of domestic enterprises. In 2010, Jordan was ranked as the 19th most expensive country in the world to live in, and notably, it was the most expensive Arab country in terms of cost of living. This ranking considered factors such as housing, food, transportation, and other consumer goods and services, reflecting the relatively high prices faced by residents. The elevated cost of living in Jordan can be attributed to several factors, including limited natural resources, reliance on imports for many goods, and the impact of regional instability on supply chains. Despite the high cost of living, Jordan’s economic policies have aimed to balance affordability with the need to maintain quality services and infrastructure. Jordan has been a member of the World Trade Organization (WTO) since 2000, a membership that has facilitated its integration into the global trading system. WTO membership has enabled Jordan to benefit from the multilateral trading framework, including the reduction of trade barriers, dispute resolution mechanisms, and access to global markets. This membership has also encouraged domestic reforms to align Jordan’s trade policies and regulations with international standards, enhancing transparency and predictability for traders and investors. Jordan’s participation in the WTO has been a cornerstone of its strategy to promote export-led growth and economic diversification. In the 2009 Global Enabling Trade Report, Jordan ranked 4th in the Arab World, behind the United Arab Emirates, Bahrain, and Qatar, indicating a favorable environment for trade facilitation. This ranking reflects the country’s effective customs procedures, quality of trade infrastructure, and regulatory environment that supports the smooth movement of goods across borders. Jordan’s strategic location as a gateway between Asia, Africa, and Europe further enhances its role in regional trade. The government’s efforts to streamline trade processes and invest in logistics infrastructure have contributed to this positive trade facilitation environment, which is essential for economic competitiveness and growth. The free trade agreement between Jordan and the United States, which commenced in December 2001, phased out duties on nearly all goods and services by 2010, significantly enhancing trade relations and market access. This agreement was the first of its kind between the United States and an Arab country, marking a milestone in Jordan’s economic diplomacy. The phased elimination of tariffs under the agreement opened new opportunities for Jordanian exporters, increased foreign investment, and diversified the country’s trade portfolio. The agreement also included provisions on intellectual property rights, labor standards, and environmental protections, aligning Jordan’s trade practices with international norms and fostering deeper economic integration with the United States.

Jordan has historically grappled with high unemployment rates, a persistent challenge that has significantly influenced its economic landscape. Official statistics from the fourth quarter of 2010 indicated an unemployment rate of 11.9%, reflecting a considerable portion of the labor force without employment. However, these official figures are often regarded as conservative estimates, with some analyses suggesting that the actual unemployment rate could be substantially higher. Certain assessments have posited that unemployment might affect as much as 25% of the working-age population, highlighting the depth of the labor market difficulties beyond what official data may reveal. By 2021, the unemployment situation in Jordan had deteriorated markedly, with the rate reaching 25%, the highest level recorded in over a quarter of a century. This sharp increase underscored the growing economic pressures faced by the country, exacerbated by various internal and external factors, including regional instability and the economic repercussions of the COVID-19 pandemic. The 2021 unemployment rate represented a significant escalation, standing 6 percentage points higher than the rate recorded in 2019. This jump within just two years illustrated the rapid worsening of employment conditions and the challenges in absorbing new entrants into the labor market. When compared to earlier periods, the 2021 unemployment rate was more than double the rate observed in 2011, reflecting a long-term trend of rising joblessness despite efforts to stimulate economic growth and job creation. This doubling over a decade pointed to structural issues within Jordan’s economy, including limited private sector expansion, skill mismatches, and demographic pressures from a young and growing population. The persistence and escalation of unemployment have made it one of the most pressing economic issues confronting Jordan, with widespread implications for social stability and economic development. Unemployment in Jordan is not evenly distributed across the population; rather, it disproportionately affects certain demographic groups, intensifying social and economic disparities. Young people, in particular, bear the brunt of unemployment challenges, with rates exceeding 45%. This exceptionally high youth unemployment rate reflects difficulties faced by recent graduates and young job seekers in finding suitable employment opportunities. Factors contributing to this include a mismatch between education and labor market needs, limited availability of entry-level jobs, and economic sectors that are unable to generate sufficient employment to keep pace with the growing youth population. Women in Jordan also experience disproportionately high unemployment rates, with figures surpassing 30%. This gender disparity in employment is influenced by a range of social, cultural, and economic factors that limit women’s participation in the workforce. Barriers such as traditional gender roles, limited access to certain types of jobs, and workplace discrimination contribute to the elevated unemployment rates among women. The high female unemployment rate not only reflects gender inequalities but also represents a lost opportunity for economic growth and diversification, as the underutilization of women’s skills and talents constrains the country’s overall productivity. Similarly, individuals holding university degrees face unemployment rates exceeding 30%, indicating that higher education does not necessarily guarantee employment in Jordan’s labor market. This phenomenon points to structural inefficiencies and a mismatch between the skills provided by the education system and those demanded by employers. Graduates often find themselves competing for a limited number of skilled jobs, while many sectors remain unable or unwilling to absorb the influx of educated job seekers. The high unemployment rate among degree holders also suggests a need for reforms in education and vocational training, as well as policies to stimulate sectors that can offer meaningful employment opportunities for skilled workers. Overall, unemployment remains a critical economic challenge for Jordan, with its highest impact felt among youth, women, and university graduates. The persistence of elevated unemployment rates over the past decade and the sharp increase witnessed in recent years underscore the urgency of addressing structural labor market issues. Efforts to enhance job creation, improve the alignment between education and labor market demands, and promote inclusive economic participation are essential to mitigating the social and economic consequences of unemployment in Jordan.

Across Arab communities, the challenge of youth unemployment has been particularly acute, with approximately 15 million young men reported as unemployed. This widespread phenomenon reflects broader structural difficulties within the labor markets of the region, where demographic pressures, economic stagnation, and limited job creation have converged to restrict opportunities for young people entering the workforce. Within this regional context, Jordan has consistently exhibited a youth unemployment rate that is significantly higher than that of many neighboring countries. Historically, the rate of unemployment among Jordanian youth has been a persistent concern, underscoring the country’s ongoing struggle to integrate its young population into productive economic roles. Over the past decade, Jordan’s youth unemployment rate has remained relatively steady, hovering around 23%. This persistence suggests that despite various governmental initiatives and international support aimed at job creation and skills development, systemic barriers have continued to impede substantial progress. Factors contributing to this stagnation include mismatches between educational outcomes and labor market demands, limited industrial diversification, and a public sector that, while a major employer, has not expanded sufficiently to absorb the growing number of job seekers. The stability of this unemployment rate over ten years indicates that the problem is deeply embedded within the economic and social fabric of the country, requiring multifaceted and sustained interventions. In recent years, there has been a noticeable shift in public discourse regarding the causes of youth unemployment in Jordan. A growing perception has emerged among segments of the population that attributes the high unemployment rates primarily to individual shortcomings rather than systemic societal issues. This viewpoint emphasizes personal responsibility, suggesting that young people’s lack of motivation, inadequate skills, or failure to adapt to market demands are the main reasons for their inability to secure employment. Such a perspective tends to downplay the structural challenges, including economic constraints, labor market rigidities, and limited availability of quality jobs, which continue to shape the employment landscape for Jordanian youth. This shift in public opinion has influenced policy debates and may affect the design and implementation of programs intended to address youth unemployment. The issue of youth unemployment in Jordan has also been closely linked to increased pressure on the country’s service sectors, which traditionally serve as major employers for young people. As industrial and agricultural sectors have not expanded sufficiently to absorb the growing labor force, many young Jordanians have sought employment in services such as retail, hospitality, education, and public administration. These sectors, while significant in terms of employment share, often offer jobs that are low-paying, part-time, or lack long-term security, which can exacerbate underemployment and job dissatisfaction. The concentration of youth employment in service industries also reflects broader economic trends in Jordan, where the service sector has become a dominant component of the GDP but has not necessarily translated into robust, high-quality employment opportunities for young workers. One of the most profound social consequences of youth unemployment in Jordan has been its impact on marriage patterns, particularly the phenomenon of delayed marriage ages. Traditionally, marriage in Jordanian society is closely tied to economic stability and the ability of young men to provide for their families. The inability to secure stable employment has therefore led many young people to postpone marriage, contributing to a measurable increase in the average age at which individuals marry. This delay has significant social implications, affecting family formation, fertility rates, and intergenerational relationships. The postponement of marriage due to economic insecurity reflects the deep interconnection between employment status and social norms in Jordan, highlighting how economic challenges can reverberate through various aspects of personal and community life. In addition to its demographic and social effects, youth unemployment in Jordan has been associated with a rise in mental health problems among young people. The stress and uncertainty caused by prolonged joblessness can contribute to feelings of frustration, anxiety, and depression, which have been increasingly recognized as critical public health concerns. Mental health issues linked to unemployment may also affect young people’s ability to seek and maintain employment, creating a vicious cycle that perpetuates economic and psychological hardship. The growing awareness of this connection has prompted calls for integrated approaches that address both economic and mental health needs, emphasizing the importance of supportive services, counseling, and community-based interventions to mitigate the adverse effects of unemployment on youth well-being. By 2019, the youth unemployment rate in Jordan had escalated to an estimated 35%, marking a significant increase from the steady levels observed over the previous decade. This sharp rise underscores the intensification of challenges facing young Jordanians in the labor market, possibly exacerbated by regional instability, economic slowdowns, and demographic pressures. The 2019 figure highlights the urgency of addressing youth unemployment as a critical national priority, given its far-reaching implications for economic development, social cohesion, and the overall stability of Jordanian society. The escalation in unemployment rates among youth calls for renewed efforts to create sustainable employment opportunities, enhance vocational training, and reform labor market policies to better accommodate the needs and aspirations of the country’s young population.

Remittance flows to Jordan experienced rapid growth during the late 1970s and 1980s, a period that coincided with the country’s significant export of high-skilled labor to the Persian Gulf States. This migration wave was largely driven by the oil boom in the Gulf region, which created a substantial demand for skilled professionals, including engineers, medical personnel, and technicians, many of whom originated from Jordan. The inflow of remittances from these expatriates became a vital source of foreign exchange, providing much-needed capital to support Jordan’s balance of payments and foster economic development. As a result, remittances emerged as a cornerstone of Jordan’s external funding, playing a crucial role not only in the national economy but also in the livelihoods of numerous Jordanian families. Remittances have remained a significant source of external funding for Jordan, mirroring a broader trend observed in many developing countries. These financial transfers from Jordanians working abroad contribute substantially to household incomes, poverty alleviation, and domestic consumption, thereby stimulating economic activity. The consistent inflow of remittances has helped stabilize the country’s foreign currency reserves and has often been more reliable than other forms of external capital, such as foreign direct investment or official development assistance. This steady stream of income has also served as a buffer against economic shocks and regional instability, underscoring the importance of the Jordanian diaspora in sustaining the country’s economic resilience. In 2010, Jordan received approximately US$3,000 million in remittances, a figure that positioned the country as the 10th largest recipient among developing nations according to World Bank data. This substantial inflow highlighted Jordan’s prominence as a remittance-dependent economy and reflected the enduring ties between the expatriate community and their homeland. Over the past decade, Jordan has consistently ranked among the top 20 remittance-recipient countries globally, underscoring the sustained importance of migrant workers’ financial contributions. This ranking reflects both the size of the Jordanian diaspora and the relatively high earnings of Jordanians employed abroad, particularly in the Gulf Cooperation Council (GCC) countries. According to statistics published by the Arab Monetary Fund (AMF) in 2010, Jordan was the third-largest recipient of remittances among Arab countries, following Egypt and Lebanon. This regional ranking illustrates Jordan’s significant position within the Arab world as a beneficiary of migrant remittances. The AMF data also highlight the interconnectedness of Arab economies through labor migration and financial flows, with Jordanian expatriates predominantly residing in the Gulf States. These remittances have not only supported household consumption but have also contributed to national economic stability and development efforts. The primary host countries for Jordanian expatriates are Saudi Arabia and the United Arab Emirates (UAE), which together account for approximately 90% of Jordanian migrants working in the Persian Gulf region. These countries have historically offered abundant employment opportunities, particularly in sectors such as construction, healthcare, education, and information technology, attracting a large number of skilled and semi-skilled Jordanian workers. The concentration of Jordanian expatriates in these Gulf States reflects longstanding economic and cultural ties, as well as the demand for Jordan’s skilled labor force. This diaspora plays a pivotal role in sustaining the flow of remittances that underpin the Jordanian economy. The proportion of skilled workers in Jordan is among the highest in the Middle East region, a factor that has contributed significantly to the country’s labor export success and its reputation as a hub of human capital. Jordan’s emphasis on education and professional training has resulted in a workforce that is well-prepared to meet the demands of both domestic and international labor markets. This high level of skill among Jordanian workers has facilitated their employment in specialized fields abroad, enhancing their earning potential and, consequently, the volume of remittances sent back home. The country’s skilled labor force also supports the development of knowledge-based industries within Jordan itself. Jordan hosts many major software and hardware information technology (IT) companies, underscoring its attractiveness as a stable base with high-caliber human resources to serve the wider region. The IT sector has grown steadily, benefiting from the country’s educated workforce, strategic location, and relatively stable political environment. These companies provide a range of services, including software development, IT consulting, and hardware manufacturing, catering to both local and regional markets. The presence of such firms has helped diversify Jordan’s economy beyond traditional sectors and has positioned the country as an emerging technology hub in the Middle East. A January 2012 report by Rachid Sefraoui, founder of the venture capital firm Finaventures, ranked Amman as one of the top 10 best cities worldwide to launch a tech start-up. This recognition reflected Amman’s growing reputation as a center for innovation and entrepreneurship, supported by a vibrant community of young professionals, access to venture capital, and a favorable business environment. The city’s rising status in the global start-up ecosystem has been fueled by government initiatives, incubators, and accelerators that nurture new ventures, particularly in the technology sector. Such developments have contributed to Amman being increasingly referred to as the “Silicon Valley of the Middle East.” Despite these economic advancements, approximately 13.3% of Jordanian citizens live below the poverty line, highlighting ongoing challenges related to income inequality and social welfare. Poverty remains a critical issue, particularly in rural areas and among vulnerable populations, including refugees and displaced persons. The government and international organizations have implemented various programs aimed at poverty reduction, social protection, and economic inclusion, but disparities persist. The reliance on remittances has helped mitigate some of these challenges by providing additional income to many households, although it has not eliminated poverty entirely. Since the mid-1970s, remittances from migrants have been Jordan’s most important source of foreign exchange, significantly contributing to the country’s economic development and improving living standards. These financial inflows have supported government budgets, foreign currency reserves, and private consumption, enabling the country to invest in infrastructure, education, and health services. The steady remittance income has also cushioned the economy against external shocks, such as fluctuations in aid or trade revenues. This reliance on migrant remittances underscores the critical role of the Jordanian diaspora in the country’s socioeconomic fabric. In the early 1950s, agriculture accounted for nearly 40% of Jordan’s Gross National Product (GNP), reflecting the country’s predominantly agrarian economy at that time. However, by the eve of the June 1967 War, this share had decreased to 17%, signaling a structural shift towards other sectors such as services and industry. By the mid-1980s, agriculture’s contribution to the GNP further declined to about 6%, illustrating the rapid transformation of Jordan’s economy over three decades. This decline was influenced by factors including limited arable land, water scarcity, urbanization, and the expansion of other economic activities, which collectively reduced agriculture’s relative importance. Jordan hosts SOFEX, the world’s fastest-growing and the region’s only special operations and homeland security exhibition and conference. This event serves as a platform for showcasing advanced military technologies, equipment, and services, attracting participants from across the globe. SOFEX has enhanced Jordan’s reputation as a regional leader in defense and security, facilitating knowledge exchange and business opportunities in these critical sectors. The exhibition reflects the country’s strategic focus on developing capabilities in security and defense industries, which are integral to its economic diversification and geopolitical positioning. As a regional and international provider of advanced military goods and services, Jordan has developed a robust defense industry that caters to both domestic needs and export markets. The country’s military manufacturing capabilities include the production of armored vehicles, munitions, and defense electronics, supported by a skilled workforce and strategic partnerships. Jordan’s defense sector contributes to national security, job creation, and technological innovation, while also generating foreign exchange through exports. This industry forms a key component of Jordan’s broader economic strategy aimed at fostering self-reliance and regional influence. The King Abdullah II Design and Development Bureau (KADDB) Industrial Park, focused on defense manufacturing, was opened in September 2009 in Mafraq. This specialized industrial zone was established to consolidate and expand Jordan’s defense production capabilities, providing infrastructure and support services to defense companies. By 2015, the KADDB Industrial Park was expected to generate around 15,000 jobs and attract investment volume estimated at JD500 million (Jordanian dinars), highlighting its significance as an engine of economic growth and employment. The park exemplifies Jordan’s commitment to developing a competitive defense manufacturing sector that can meet both domestic and international demand. The Strategic Foresight Group estimated the opportunity cost of conflict in the Middle East from 1991 to 2010 at $12 trillion, with Jordan’s share approximately $84 billion. This figure represents the economic losses incurred due to regional instability, including disruptions to trade, investment, and development. For Jordan, the cost of conflict has manifested in reduced growth potential, increased security expenditures, and challenges to attracting foreign investment. Despite these obstacles, Jordan has managed to maintain relative stability and pursue economic reforms, leveraging its strategic location and human capital to mitigate some of the adverse effects of regional turmoil. Jordan has a mobile phone penetration rate of 138%, indicating that the number of mobile subscriptions exceeds the total population, a common phenomenon in many countries due to multiple device ownership or SIM card usage. This high penetration rate reflects the widespread adoption of mobile technology across all segments of society, facilitating communication, commerce, and access to information. Additionally, the country boasts an internet penetration rate of 63%, demonstrating substantial connectivity and digital engagement among its population. These figures underscore Jordan’s progress in telecommunications infrastructure and the digital economy. About 41.6% of mobile phones in Jordan are smartphones, a proportion that compares favorably with 40% in the United States and 26% in the United Kingdom. This relatively high smartphone penetration indicates a technologically savvy population with access to advanced mobile devices, which supports the growth of mobile applications, e-commerce, and digital services. The prevalence of smartphones enhances opportunities for innovation and entrepreneurship, particularly in the technology sector, and facilitates the government’s efforts to promote digital inclusion and e-governance. Television remains a dominant medium in Jordanian households, with 97% owning at least one television set and 90% having satellite reception. This widespread access to television provides a primary source of news, entertainment, and cultural programming, connecting Jordanians to regional and global content. Satellite reception expands the range of available channels, reflecting the population’s diverse interests and the influence of international media. The high rate of television ownership highlights the importance of broadcast media in shaping public opinion and social dynamics within the country. In terms of computing technology, 61% of Jordanian households own at least one personal computer or laptop. This level of computer ownership supports educational attainment, business activities, and access to digital resources, contributing to the development of a knowledge-based economy. The availability of computing devices in the home environment facilitates remote work, online learning, and participation in the global digital marketplace. This penetration rate reflects ongoing efforts to bridge the digital divide and enhance technological literacy across Jordanian society. Jordan has been ranked as the 9th best outsourcing destination worldwide according to an investment survey, underscoring its competitive advantages in the global business services sector. Factors contributing to this ranking include the country’s skilled workforce, proficiency in multiple languages, political stability, and favorable business environment. The outsourcing industry in Jordan encompasses sectors such as information technology, customer service, and back-office operations, attracting multinational corporations seeking cost-effective and high-quality service providers. This recognition has bolstered Jordan’s reputation as a regional hub for business process outsourcing (BPO). Amman, the capital city of Jordan, was recognized as one of the top 10 cities globally to launch a tech start-up in 2012, further cementing its status as a burgeoning center for innovation and entrepreneurship. The city’s dynamic ecosystem includes incubators, accelerators, co-working spaces, and access to venture capital, fostering the growth of new technology ventures. Amman’s strategic location, combined with its educated workforce and supportive government policies, has led to its increasing reference as the “Silicon Valley of the Middle East.” This nickname reflects the city’s ambition to emulate the success of global technology hubs and to position itself as a leader in the regional digital economy. Jordan has hosted the World Economic Forum on the Middle East and North Africa six times, demonstrating its role as a key player in regional economic dialogue and policy development. The country’s stable political environment, strategic location, and commitment to economic reform have made it an attractive venue for this high-profile international gathering. Plans were in place to host the forum again at the Dead Sea in 2013, reflecting Jordan’s ongoing engagement with global economic leaders and its desire to influence regional economic integration and development strategies. Hosting the forum has also enhanced Jordan’s visibility and credibility on the international stage. Amman hosts the Mercedes Benz Fashion Week semiannually, distinguishing itself as the only city in the region to hold such a prestigious event typically reserved for fashion capitals like New York, Paris, and Milan. This biannual event showcases the work of regional and international designers, attracting industry professionals, media, and fashion enthusiasts. The presence of Mercedes Benz Fashion Week in Amman highlights the city’s cultural vibrancy and its growing importance as a center for creative industries in the Middle East. It also reflects Jordan’s efforts to diversify its economy by promoting sectors such as fashion, tourism, and the arts.

Jordan has long been recognized as one of the most liberal countries in the Middle East, distinguished by its openness to political discourse and reform. This liberal atmosphere has fostered an environment where debates regarding the potential introduction of a secular government have taken place, reflecting a degree of political pluralism uncommon in the region. The country’s political landscape, while rooted in a constitutional monarchy, has allowed for discussions that challenge traditional religious frameworks, signaling a gradual shift toward more inclusive governance models. In terms of human development, Jordan achieved significant recognition in the 2010 Human Development Index (HDI), where it was classified within the “high human development” bracket. This classification placed Jordan seventh among Arab countries, trailing only behind the Persian Gulf states and Lebanon. The HDI assessment, which considers factors such as life expectancy, education, and per capita income, underscored Jordan’s progress in improving the quality of life for its citizens despite regional challenges. This ranking highlighted the country’s strides in healthcare, education, and economic development relative to its Arab neighbors. The 2010 Quality of Life Index, compiled by International Living magazine, further illuminated Jordan’s favorable living conditions within the Middle East and North Africa (MENA) region. Jordan was ranked second in this index with a score of 55.0 points, surpassed only by Israel. This index evaluates various components including cost of living, health care, infrastructure, and safety, indicating that Jordan provided a relatively high standard of living compared to other countries in the MENA region. The ranking reflected Jordan’s balanced approach to economic development, social services, and infrastructure improvements. Jordan’s reputation for political stability and security has been a cornerstone of its social and economic environment. Decades of consistent political stability, coupled with stringent law enforcement practices, have contributed to Jordan being ranked among the top ten countries worldwide in terms of security. This high level of security has been instrumental in attracting foreign investment and tourism, as well as fostering a sense of safety among residents. The government’s commitment to maintaining public order and preventing internal conflict has distinguished Jordan as a rare example of stability in a region often marked by turmoil. In the 2010 Newsweek “World’s Best Countries” list, Jordan was placed 53rd globally, reflecting its positive international standing. Within the Arab world, it ranked third, following Kuwait and the United Arab Emirates (UAE). This ranking took into account various factors such as economic potential, quality of life, and social progress. Jordan’s position in this list underscored its relative advancement compared to many other countries in the region, highlighting its efforts to balance modernization with cultural preservation. Safety perceptions among Jordanian citizens also rank highly on a global scale. Jordan is among the top ten countries where residents feel safest walking the streets at night, a metric that reflects both the effectiveness of law enforcement and the social cohesion within communities. This sense of security is particularly notable given the broader regional context, where many neighboring countries have experienced significant unrest and insecurity. The high level of personal safety contributes to the overall quality of life and supports the country’s attractiveness as a place to live and work. Social security coverage in Jordan has expanded significantly, with 63% of employed Jordanians insured through the Social Security Corporation as of 2011. This institution also provides insurance coverage to approximately 120,000 foreign workers residing in the country. The government has articulated plans to extend social security coverage more broadly, aiming to include all Jordanian workers both inside and outside the kingdom. Additionally, there are initiatives to incorporate students, housewives, business owners, and the unemployed into the social security system, reflecting a comprehensive approach to social welfare and economic inclusion. Poverty rates in Jordan are notably low compared to many developing countries. According to the Human Poverty Index, only 1.6% of Jordanians live on less than $2 per day, positioning Jordan among the countries with the lowest poverty rates in the developing world. This statistic indicates the relative success of Jordan’s social and economic policies in alleviating extreme poverty and improving living standards for the majority of its population. The low poverty rate is a testament to the country’s efforts in economic diversification, social safety nets, and targeted poverty reduction programs. The 2010 Gallup Global Wellbeing Survey revealed that 30% of Jordanians described their financial situation as “thriving,” a figure that surpassed most other Arab countries except Qatar, the United Arab Emirates, Kuwait, and Saudi Arabia. This measure of subjective financial well-being reflects not only income levels but also perceptions of economic security and optimism about the future. The relatively high percentage of Jordanians feeling financially secure suggests that economic growth and development initiatives have had a tangible impact on the population’s quality of life. In 2008, the Jordanian government initiated the “Decent Housing for a Decent Living” project, a significant housing program designed to address affordability and improve living conditions. The project aimed to construct 120,000 affordable housing units within a five-year period, targeting low- and middle-income families to reduce housing shortages and improve urban infrastructure. Recognizing the potential for increased demand, the government also planned to build an additional 100,000 units if necessary, demonstrating a proactive approach to urban planning and social welfare. This initiative was part of broader efforts to enhance the standard of living by ensuring access to adequate and affordable housing for a growing population.

The economic indicators for Jordan from 1980 to 2024 reveal a dynamic trajectory marked by periods of rapid growth, contraction, inflationary pressures, and fluctuating government debt levels, providing a comprehensive overview of the country’s economic performance over more than four decades. In 1980, Jordan’s gross domestic product (GDP) measured 8.82 billion US dollars in purchasing power parity (PPP) terms, reflecting the size of its economy adjusted for relative price levels. The GDP per capita stood at 3,978 US dollars (PPP), indicating the average economic output per person, while the nominal GDP, which does not account for price level differences, was 3.93 billion US dollars. During this year, the country experienced a robust real GDP growth rate of 11.1%, signaling a strong expansion of economic activity. However, this rapid growth was accompanied by an inflation rate of 10.9%, suggesting rising prices that could erode purchasing power. Data on government debt for this year was not available, leaving the fiscal position less clear. By 1985, Jordan’s economy had expanded, with GDP increasing to 14.65 billion US dollars (PPP) and the GDP per capita rising to 5,326 US dollars (PPP). The nominal GDP also grew to 5.03 billion US dollars. Despite this nominal growth, the economy contracted in real terms by −1.1%, indicating a decline in the volume of goods and services produced when adjusted for inflation. Inflation moderated significantly to 2.8%, reflecting a more stable price environment compared to 1980. This period likely reflected the impact of regional and global economic conditions, as well as domestic policy adjustments. Moving forward to 1990, Jordan’s GDP reached 16.83 billion US dollars (PPP), while the per capita GDP decreased slightly to 4,834 US dollars (PPP), and the nominal GDP fell to 4.19 billion US dollars. The economy contracted further by −1.6% in real terms, suggesting a continued slowdown. Inflation, however, surged dramatically to 16.2%, indicating a period of significant price increases and economic instability. Government debt at this time was alarmingly high, recorded at 227.5% of GDP, highlighting a severe fiscal imbalance and potential challenges in debt servicing and economic management. The mid-1990s saw a marked improvement in Jordan’s economic indicators. In 1995, GDP grew substantially to 24.31 billion US dollars (PPP), with the GDP per capita increasing to 5,453 US dollars (PPP), and the nominal GDP rising to 6.76 billion US dollars. The economy expanded at a healthy rate of 6.0%, reflecting recovery and growth momentum. Inflation was contained at a low rate of 2.4%, indicating price stability and effective monetary policy. Government debt decreased significantly to 117.8% of GDP, suggesting improved fiscal discipline and a more sustainable debt burden. By the year 2000, Jordan’s GDP had further increased to 31.00 billion US dollars (PPP), with a per capita GDP of 6,131 US dollars (PPP), and a nominal GDP of 8.73 billion US dollars. The economy continued to grow at 4.2%, while inflation remained minimal at 0.7%, reflecting a stable economic environment. Government debt was reduced to 99.3% of GDP, marking a critical milestone as the debt-to-GDP ratio approached a threshold often considered more manageable for emerging economies. Between 2005 and 2007, Jordan experienced substantial economic growth. The GDP rose from 47.66 billion US dollars (PPP) in 2005 to 59.34 billion US dollars in 2007, demonstrating a rapid expansion of the economy. Correspondingly, the GDP per capita increased from 8,392 US dollars to 9,166 US dollars, indicating improved average economic output per individual. Nominal GDP also surged from 13.13 billion to 17.96 billion US dollars, reflecting both real growth and inflationary effects. This period likely benefited from favorable regional conditions, increased foreign investment, and structural reforms. In 2008, GDP reached 64.95 billion US dollars (PPP), with the GDP per capita rising to 9,792 US dollars, and nominal GDP climbing to 22.65 billion US dollars. The economy grew robustly by 7.4%, signaling strong economic momentum. However, inflation spiked to 14.0%, indicating overheating pressures and rising consumer prices. Government debt was recorded at 54.2% of GDP, showing a relatively moderate fiscal position compared to previous decades. The global financial crisis and its aftermath influenced Jordan’s economic performance in 2009, with GDP reaching 68.63 billion US dollars (PPP), and the per capita GDP increasing to 10,122 US dollars. Nominal GDP stood at 24.54 billion US dollars. Growth slowed to 5.0%, reflecting the impact of external economic shocks. Inflation turned negative at −0.7%, suggesting deflationary pressures or a decline in consumer prices during this period. Government debt increased to 58.0% of GDP, indicating a modest deterioration in fiscal health as the government potentially increased borrowing to counteract economic slowdown. In 2010, GDP grew to 71.07 billion US dollars (PPP), with a per capita GDP of 10,254 US dollars, and nominal GDP rising to 27.13 billion US dollars. Real growth slowed to 2.3%, while inflation rose to 4.8%, reflecting a rebound in economic activity and price levels. Government debt slightly increased to 59.4% of GDP, maintaining a stable but cautious fiscal stance. The year 2011 saw GDP at 74.52 billion US dollars (PPP), with a per capita GDP of 10,482 US dollars, and nominal GDP at 29.52 billion US dollars. Economic growth was modest at 2.7%, with inflation at 4.2%, indicating a relatively stable macroeconomic environment despite regional uncertainties. Government debt rose to 62.1% of GDP, reflecting ongoing fiscal pressures. In 2012, GDP increased to 77.76 billion US dollars (PPP), with a per capita GDP of 10,782 US dollars, and nominal GDP of 31.68 billion US dollars. Growth slowed slightly to 2.4%, while inflation edged up to 4.5%. Government debt climbed further to 70.5% of GDP, signaling increasing fiscal challenges. The 2013 figures showed GDP at 81.14 billion US dollars (PPP), with a per capita GDP of 10,545 US dollars, and nominal GDP of 34.50 billion US dollars. Economic growth was 2.6%, inflation at 4.8%, and government debt rose to 75.6% of GDP, continuing the trend of rising public debt. In 2014, Jordan’s GDP reached 85.35 billion US dollars (PPP), with a per capita GDP of 9,858 US dollars, and nominal GDP at 36.90 billion US dollars. Growth improved to 3.4%, while inflation decreased significantly to 2.9%, suggesting easing price pressures. Government debt stabilized at 75.0% of GDP, indicating a plateau in debt accumulation. The following year, 2015, saw GDP at 88.29 billion US dollars (PPP), with a per capita GDP of 9,300 US dollars, and nominal GDP of 38.64 billion US dollars. Growth slowed to 2.5%, inflation turned negative at −0.9%, signaling deflationary tendencies, and government debt increased to 78.4% of GDP, reflecting ongoing fiscal strain. In 2016, GDP was 90.91 billion US dollars (PPP), with a per capita GDP of 9,123 US dollars, and nominal GDP of 39.95 billion US dollars. Economic growth further decelerated to 2.0%, inflation remained negative at −0.8%, and government debt slightly decreased to 77.4%, suggesting minor fiscal consolidation. The year 2017 recorded GDP at 94.83 billion US dollars (PPP), with a per capita GDP of 9,283 US dollars, and nominal GDP at 41.67 billion US dollars. Growth rebounded to 2.5%, inflation increased to 3.3%, and government debt declined to 75.7% of GDP, indicating modest economic recovery and improved fiscal management. In 2018, GDP slightly declined to 94.60 billion US dollars (PPP), with a per capita GDP of 9,045 US dollars, and nominal GDP rising to 43.43 billion US dollars. Growth slowed to 1.9%, inflation rose to 4.5%, and government debt stood at 74.3%, reflecting ongoing economic challenges and inflationary pressures. The 2019 data showed GDP at 100.63 billion US dollars (PPP), with a per capita GDP of 9,405 US dollars, and nominal GDP of 44.57 billion US dollars. Growth was modest at 1.8%, inflation was low at 0.8%, and government debt increased to 78.0% of GDP, highlighting fiscal pressures amid slow economic expansion. In 2020, the global COVID-19 pandemic impacted Jordan’s economy, with GDP at 104.08 billion US dollars (PPP), and a per capita GDP of 9,524 US dollars. Nominal GDP was 43.76 billion US dollars. The economy contracted by −1.1%, reflecting the pandemic’s adverse effects on economic activity. Inflation was minimal at 0.3%, indicating subdued price movements. Government debt rose significantly to 88.0% of GDP, as the government increased borrowing to finance pandemic-related expenditures and economic support measures. The 2021 figures showed GDP at 101.62 billion US dollars (PPP), with a per capita GDP of 9,115 US dollars, and nominal GDP at 46.36 billion US dollars. The economy rebounded with growth of 3.7%, inflation remained low at 1.3%, and government debt increased further to 93.3% of GDP, reflecting continued fiscal challenges despite economic recovery. In 2022, GDP increased to 111.51 billion US dollars (PPP), with a per capita GDP of 9,880 US dollars, and nominal GDP of 48.72 billion US dollars. Economic growth moderated to 2.4%, inflation rose to 4.2%, and government debt remained high at 93.0% of GDP, indicating persistent fiscal vulnerabilities. The 2023 data indicated GDP at 118.54 billion US dollars (PPP), with a per capita GDP of 10,456 US dollars, and nominal GDP of 50.89 billion US dollars. Growth was 2.6%, inflation declined to 2.1%, and government debt slightly decreased to 92.8%, suggesting cautious fiscal consolidation amid steady economic expansion. Projections for 2024 anticipate GDP reaching 124.28 billion US dollars (PPP), with a per capita GDP of 10,917 US dollars, and nominal GDP of 53.31 billion US dollars. Growth is expected to continue at 2.4%, inflation is projected to remain stable at 2.1%, and government debt is forecast to decline slightly to 91.7%, reflecting ongoing efforts to stabilize the economy and manage public finances prudently.

Despite notable increases in agricultural production over the years, the sector’s overall contribution to Jordan’s economy experienced a steady decline, reflecting broader structural changes within the national economic landscape. By 2004, agriculture accounted for a mere 2.4 percent of the country’s gross domestic product (GDP), underscoring its diminishing relative importance compared to other sectors such as services and industry. This decline can be attributed to a combination of factors, including limited arable land, water scarcity, and the growing prominence of non-agricultural economic activities. Nevertheless, the agricultural sector continued to play a vital role in rural livelihoods and food security, even as its share of GDP contracted. In terms of employment, agriculture remained a significant source of income for a segment of the Jordanian workforce, though its share had also decreased over time. In 2002, approximately 4 percent of Jordan’s labor force was engaged in agricultural activities, highlighting a shift toward urbanization and diversification of employment opportunities in other sectors. This relatively small proportion of the workforce involved in agriculture reflected both the mechanization of certain farming practices and the challenges posed by environmental constraints, which limited the expansion of agricultural employment. Despite these challenges, many rural communities continued to depend on farming as a primary means of subsistence and economic activity. Within the agricultural sector, the most profitable segment was the production of fruits and vegetables, which included key crops such as tomatoes, cucumbers, citrus fruits, and bananas. These crops were predominantly cultivated in the Jordan Valley, a region known for its favorable microclimate and access to water resources from the Jordan River and associated irrigation infrastructure. The Jordan Valley’s fertile soils and relatively warmer temperatures allowed for the successful cultivation of a variety of horticultural products, which not only supplied domestic markets but also contributed to export revenues. The emphasis on high-value fruit and vegetable production reflected a strategic adaptation to the country’s limited water resources, as these crops generally yielded higher economic returns per unit of water used compared to traditional cereal crops. Conversely, other crop productions, particularly cereal cultivation, exhibited significant volatility due to the inconsistent and often insufficient rainfall patterns characteristic of Jordan’s semi-arid climate. Cereals such as wheat and barley were heavily dependent on seasonal precipitation, making their yields highly variable from year to year. This unpredictability posed challenges for farmers, who faced fluctuating production levels and income instability. Efforts to mitigate these risks included the adoption of drought-resistant crop varieties, improved water management techniques, and the expansion of irrigated agriculture where feasible. However, the inherent climatic variability continued to limit the reliability and scale of cereal production, reinforcing the sector’s vulnerability to environmental factors. The fishing industry in Jordan was comparatively minimal when viewed against the broader economic context, reflecting the country’s limited coastline along the Gulf of Aqaba and the scarcity of marine resources. The industry was characterized by a roughly equal division between live capture fishing and aquaculture activities. Live capture fishing involved traditional methods targeting species native to the Red Sea, while aquaculture focused on the controlled breeding and harvesting of fish in artificial environments, such as ponds and tanks. Despite these efforts, the fishing sector remained a minor contributor to the national economy, constrained by geographic and ecological limitations as well as competition from imported seafood products. In 2002, the total live weight catch from fishing activities amounted to just over 1,000 metric tons, a relatively modest figure that underscored the limited scale of the industry. This catch volume reflected both the natural constraints on fish stocks in Jordanian waters and the relatively small size of the domestic market for fish products. The government and private sector had made some attempts to develop aquaculture as a means to supplement wild catches and enhance food security, but the industry’s growth was tempered by challenges such as water scarcity, high production costs, and limited technical expertise. The forestry industry in Jordan was negligible in terms of its economic impact, largely due to the country’s arid climate and sparse forest cover. In 2002, approximately 240,000 cubic meters of roundwood were harvested, with the vast majority of this wood being used for fuelwood purposes rather than commercial timber production. The limited forest resources were primarily found in small pockets of woodland and shrubland, which were often subject to degradation from overharvesting and land conversion. Consequently, forestry activities were largely subsistence-oriented, providing rural populations with essential energy resources but contributing minimally to industrial or export sectors. Efforts to promote reforestation and sustainable forest management faced significant obstacles related to water availability and competing land uses, further constraining the development of a substantial forestry industry in Jordan.

Since gaining independence, Jordan’s agricultural sector has undergone substantial growth, reflecting its increasing importance within the national economy. The added value of agricultural production reached JD1.691 billion, marking a notable 9% growth rate that underscores the sector’s expanding contribution to Jordan’s gross domestic product. This growth has been driven by significant advancements in both crop and livestock production, as well as improvements in agricultural infrastructure and financial support mechanisms. The sector’s evolution has not only bolstered domestic food supplies but also enhanced Jordan’s position in international agricultural markets. One of the most striking developments within the agricultural sector has been the dramatic increase in vegetable production, which rose by an impressive 91%. This surge in output has been instrumental in meeting the rising demand for fresh vegetables both within Jordan and in export markets. The expansion in vegetable cultivation reflects improvements in irrigation techniques, the adoption of modern farming practices, and increased investment in greenhouse technologies. These factors have collectively enabled farmers to produce higher yields and a wider variety of vegetables, thereby strengthening food security and contributing to the diversification of agricultural products available in the marketplace. Fruit tree production has experienced even more remarkable growth, increasing by 141%. This substantial rise has played a critical role in diversifying Jordan’s agricultural exports, as fruit crops such as olives, citrus fruits, and stone fruits have become increasingly important components of the country’s export portfolio. The expansion of fruit tree cultivation has been supported by government initiatives aimed at promoting sustainable agriculture and enhancing the quality and competitiveness of Jordanian produce. As a result, fruit exports have contributed significantly to foreign exchange earnings and have helped to establish Jordan as a reputable supplier of high-quality fruit products in global markets. The international reach of Jordanian agricultural products has expanded considerably, with exports now extending to 112 countries worldwide. This wide market presence demonstrates the sector’s successful integration into global trade networks and highlights the growing demand for Jordanian produce across diverse regions. The diversification of export destinations has reduced the sector’s vulnerability to market fluctuations in any single country and has opened new opportunities for trade partnerships and investment. Jordan’s ability to penetrate such a broad array of markets reflects improvements in product quality, compliance with international standards, and the development of effective export infrastructure. Corresponding with the expansion in production and market reach, agricultural exports have surged by a remarkable 441%, reaching a total value of JD1.5 billion. This dramatic increase in trade activity underscores the sector’s vital role in generating foreign exchange and supporting economic growth. The surge in exports can be attributed to a combination of factors, including enhanced production capacity, improved post-harvest handling, and the establishment of trade agreements that facilitate access to international markets. The growth in export value also reflects the increasing competitiveness of Jordanian agricultural products, which have gained recognition for their quality and safety standards. Livestock production has similarly experienced significant growth, with the number of animals rising by 54% to approximately 3.8 million. This expansion in livestock numbers has been driven by increased demand for meat, dairy, and other animal products both domestically and in export markets. The growth of the livestock sector has been supported by advancements in animal husbandry practices, veterinary services, and feed production, which have collectively improved animal health and productivity. The increase in livestock population has also contributed to rural livelihoods by providing income-generating opportunities for farmers and pastoralists. The value of animal products has increased by 279%, reaching JD1.305 billion, reflecting the substantial growth in revenue generated from livestock-related activities. This rise in value encompasses a range of products, including meat, milk, eggs, and wool, all of which have benefited from improved production techniques and market access. The expansion of animal product value underscores the sector’s contribution to food security and nutrition, as well as its role in diversifying the agricultural economy. Enhanced processing and marketing of animal products have further added value, enabling producers to capture higher prices and access more lucrative markets. Employment within the agricultural sector has expanded by 38%, now encompassing approximately 261,000 workers. This increase in agricultural employment has been crucial for rural economic stability, providing livelihoods for a significant portion of the population, particularly in less urbanized areas. The growth in agricultural jobs reflects both the sector’s overall expansion and targeted efforts to promote labor-intensive farming practices. By generating employment opportunities, the agricultural sector has helped to alleviate poverty, reduce rural-urban migration, and support community development. Financial support for the agricultural sector has been strengthened through the expansion of the Agricultural Credit Corporation’s capital, which increased by 213% to reach JD100 million. This substantial capital increase has enhanced the Corporation’s capacity to provide loans and financial services tailored to the needs of farmers and agribusinesses. The availability of credit has been instrumental in enabling investments in modern farming equipment, irrigation systems, and inputs such as seeds and fertilizers. By facilitating access to finance, the Agricultural Credit Corporation has played a pivotal role in driving agricultural development and modernization. Annually, the Agricultural Credit Corporation provides JD55 million in loans to approximately 11,000 farmers, supporting a wide range of agricultural activities. These loans have enabled farmers to expand production, adopt new technologies, and improve farm management practices. The financial assistance offered by the Corporation has also contributed to enhancing productivity and competitiveness within the sector. By targeting a substantial number of farmers, the loan program has fostered inclusive growth and helped to ensure that the benefits of agricultural development are widely shared. Collectively, these recent developments highlight the agricultural sector’s critical role in improving food security, fostering economic integration, and generating employment opportunities in rural areas. The sector’s expansion has contributed to greater self-sufficiency in food production, reducing reliance on imports and enhancing resilience to external shocks. Furthermore, the integration of Jordanian agricultural products into global markets has strengthened economic ties and opened avenues for trade diversification. The creation of employment opportunities has supported rural communities, promoting social stability and contributing to broader economic development objectives. Through sustained growth and targeted support, Jordan’s agricultural sector continues to be a cornerstone of the national economy and a driver of sustainable development.

Potash and phosphates have historically constituted cornerstone commodities within Jordan’s mining sector, significantly contributing to the nation’s export revenues and overall economic framework. These minerals have underpinned Jordan’s position as a key supplier in global agricultural and industrial markets, reflecting the country’s rich geological endowment and strategic exploitation of mineral resources. The prominence of potash and phosphate exports is evident in their substantial share of Jordan’s trade earnings, where they consistently rank among the top export products, underscoring their vital role in sustaining the country’s foreign exchange inflows. In 2003, Jordan’s potash industry demonstrated considerable output, with production reaching approximately 2 million tons of potash salt. This volume translated into export revenues of around US$192 million, positioning potash as the second most lucrative export commodity for the country during that year. The high value of potash exports not only reflected robust international demand but also highlighted the efficiency and scale of Jordan’s extraction and processing operations. Potash, primarily used as a potassium-rich fertilizer component, found extensive markets in agriculture worldwide, thereby driving Jordan’s export performance and reinforcing its economic importance. The subsequent years saw a slight fluctuation in potash production volumes. In 2004, potash output was recorded at 1.9 million tons, indicating a marginal decrease from the previous year. This trend continued into 2005, with production further declining to approximately 1.8 million tons. Despite this reduction, potash remained a significant contributor to Jordan’s export portfolio. The modest downturn in production could be attributed to various factors, including market dynamics, operational adjustments, or resource management strategies aimed at sustaining long-term extraction viability. Nonetheless, the potash sector maintained its status as a key pillar of the mining industry and export economy. Parallel to potash, phosphate rock extraction constituted another major segment of Jordan’s mineral exports. In 2004, the country produced about 6.75 million tons of phosphate rock, generating export earnings estimated at US$135 million. This output ranked phosphate as the fourth most important export product for Jordan, reflecting its substantial role in the national economy. Phosphates are essential raw materials for the manufacture of fertilizers, animal feed supplements, and various industrial chemicals, making Jordan’s phosphate reserves strategically valuable. The scale of production and export revenues underscored the sector’s contribution to economic diversification and industrial development. By 2005, Jordan had ascended to the position of the world’s third largest producer of raw phosphates, with a production volume totaling approximately 6.4 million tons. This global ranking highlighted the country’s competitive edge in phosphate mining and its capacity to meet significant portions of international demand. Jordan’s phosphate industry benefited from extensive deposits located primarily in the central and southern regions, where mining operations were supported by infrastructural investments and technological advancements. The country’s status as a leading phosphate producer reinforced its influence in global commodity markets and provided a foundation for downstream industrial activities, including fertilizer production and chemical manufacturing. Beyond the dominant potash and phosphate sectors, Jordan’s mining industry encompasses the extraction of various other mineral resources, albeit in smaller quantities. These include unrefined salt, which is harvested primarily from the Dead Sea region, copper ore, gypsum, manganese ore, and several mineral precursors integral to ceramics production. The latter group comprises materials such as glass sand, clays, and feldspar, which serve as essential inputs for the manufacturing of glassware, pottery, and other ceramic products. Although these minerals represent a lesser proportion of the country’s total mineral output and export revenue, they contribute to the diversification of Jordan’s mining sector and support domestic industries. The extraction of unrefined salt from the Dead Sea has long been a traditional activity, capitalizing on the unique geochemical characteristics of the hypersaline lake. This salt is used both domestically and exported for various industrial and consumer applications. Copper ore mining, while limited in scale compared to potash and phosphates, holds potential for future development, given the presence of copper deposits in certain geological formations within the country. Gypsum and manganese ore are similarly mined to meet both local industrial needs and export demands, with gypsum playing a critical role in construction and manufacturing sectors. Mineral precursors such as glass sand, clays, and feldspar are integral to Jordan’s ceramics industry, which benefits from the availability of these raw materials. Glass sand, characterized by its high silica content, is essential for glass production, while clays and feldspar are fundamental components in the formulation of ceramic bodies and glazes. The mining and processing of these minerals support Jordan’s manufacturing capabilities and contribute to the broader industrial landscape, complementing the country’s focus on its primary mineral exports. Collectively, Jordan’s mining and mineral sectors have demonstrated a pattern of sustained production and export activity, with potash and phosphates at the forefront. The country’s mineral wealth has been harnessed through a combination of geological advantage, investment in extraction technologies, and integration into global commodity markets. This multifaceted mining portfolio not only generates significant export revenues but also underpins various domestic industries, thereby playing a crucial role in Jordan’s economic development and trade balance.

The industrial sector in Jordan, encompassing mining, manufacturing, construction, and power generation, constituted a significant component of the nation’s economy, contributing approximately 26 percent to the gross domestic product (GDP) in 2004. Within this sector, manufacturing represented the largest share, accounting for 16.2 percent of GDP, followed by construction at 4.6 percent, and mining at 3.1 percent. This distribution highlights the diversified nature of Jordan’s industrial base, with manufacturing emerging as the dominant force driving industrial output. By 2002, over 21 percent of Jordan’s labor force was employed within the industrial sector, reflecting its role as a major source of employment and economic activity. The sector’s workforce engagement underscored the importance of industrial activities in providing livelihoods and supporting the broader economy. Jordan’s industrial production was characterized by a range of key products, including potash, phosphates, pharmaceuticals, cement, clothing, and fertilizers. Potash and phosphates, in particular, were critical natural resources exploited extensively for fertilizer production, positioning Jordan as a notable player in the global fertilizer market. The pharmaceutical industry developed into a significant export sector, producing a variety of medicinal products that contributed to foreign exchange earnings. Cement and clothing manufacturing also formed essential components of the industrial landscape, supporting domestic construction needs and export markets respectively. Fertilizer production, leveraging the country’s mineral reserves, remained a cornerstone of industrial output, with its products serving both domestic agricultural demands and international markets. Within the industrial sector, the construction segment was regarded as the most promising area for growth during the early 2000s. This optimism was driven largely by increased demand for housing and office spaces, fueled by the influx of foreign enterprises seeking strategic access to the Iraqi market. Jordan’s geographic proximity to Iraq made it an attractive base for companies aiming to capitalize on reconstruction and development opportunities in the region. Consequently, construction activities expanded to accommodate this demand, stimulating investment in residential and commercial infrastructure. This surge in construction not only supported economic growth but also contributed to employment generation and urban development. The manufacturing sector experienced notable expansion in the mid-2000s, with its contribution to GDP rising to nearly 20 percent by 2005. This growth was largely attributed to the ratification of the United States–Jordan Free Trade Agreement (FTA) by the U.S. Senate in 2001. The FTA provided Jordanian manufacturers with preferential access to the U.S. market, eliminating tariffs and other trade barriers on qualifying goods. This agreement incentivized the establishment of approximately 13 qualifying industrial zones across Jordan, designed to attract foreign investment and stimulate export-oriented production. These zones specialized primarily in light industrial goods, with a particular emphasis on ready-made garments, which became a major export category under the FTA framework. By 2004, the industrial zones created under the auspices of the U.S.–Jordan FTA had generated exports valued at nearly US$1.1 billion, according to official Jordanian government figures. This substantial export volume underscored the effectiveness of the industrial zones in leveraging trade liberalization to boost manufacturing output and foreign exchange earnings. The zones provided a competitive environment with duty-free access to the U.S. market, enabling Jordanian producers to expand their international reach while benefiting from streamlined customs procedures and infrastructure support. The success of these zones contributed to the broader economic strategy of positioning Jordan as a regional manufacturing hub. Jordan’s free trade agreement with the United States was historically significant as the first such agreement between the U.S. and an Arab country. This pioneering accord elevated the United States to one of Jordan’s most important trading partners. The agreement included provisions for barrier-free export access in nearly all sectors by 2010, further deepening economic integration and trade flows between the two countries. The FTA not only facilitated increased exports but also encouraged foreign direct investment, technology transfer, and the adoption of international standards in Jordan’s industrial sector. This bilateral trade relationship became a cornerstone of Jordan’s economic policy and export strategy. In addition to its agreement with the United States, Jordan pursued a network of trade agreements with other Middle Eastern and North African countries to enhance regional economic cooperation. Among these was the Agadir Agreement, a free trade pact involving Jordan, Egypt, Morocco, and Tunisia, which aimed to promote trade liberalization and economic integration among its members. The Agadir Agreement was viewed as a stepping stone toward a future free trade agreement with the European Union (EU), reflecting Jordan’s strategic intent to diversify its trade partnerships and access larger markets. These regional trade arrangements complemented Jordan’s bilateral agreements, creating a multifaceted trade framework to support industrial growth and export diversification. More recently, Jordan expanded its trade relations by signing a free trade agreement with Canada, further broadening its access to international markets. This agreement opened new avenues for Jordanian exports, particularly in sectors where the country held competitive advantages, such as pharmaceuticals and textiles. The Canadian FTA reinforced Jordan’s commitment to trade liberalization and economic openness, positioning the country to benefit from global value chains and foreign investment flows. Collectively, these trade agreements underscored Jordan’s strategic approach to integrating its industrial sector into the global economy. Jordan’s numerous industrial zones played a pivotal role in fostering new industrial developments by offering a range of incentives designed to attract investment. These zones provided tax incentives, including exemptions or reductions in corporate taxes, alongside low utility costs that enhanced the cost competitiveness of industrial operations. Improved infrastructure within the zones, such as reliable power supply, water access, transportation links, and telecommunications, created an enabling environment for manufacturing and export activities. The combination of fiscal incentives and infrastructural support made these zones attractive locations for both domestic and foreign investors seeking to establish or expand industrial enterprises. A key factor supporting Jordan’s industrial growth was the relatively high skill level of its workforce. The country invested in education and vocational training, resulting in a labor pool capable of meeting the demands of value-added sectors such as pharmaceuticals and advanced manufacturing. This skilled workforce promoted investment by reducing operational risks and enhancing productivity, thereby contributing to economic growth. The availability of qualified personnel also facilitated technology transfer and innovation within the industrial sector, enabling Jordan to compete effectively in specialized markets. Despite its industrial achievements, Jordan faced significant challenges stemming from its limited natural resource base. The country’s scarcity of fossil fuels and other raw materials necessitated reliance on imports, exposing the industrial sector to price volatility and supply disruptions. Additionally, shortages in water and power supply posed constraints on consistent industrial development, as these resources were critical inputs for manufacturing processes. These infrastructural and resource limitations required careful management and investment to ensure sustainable industrial expansion. Nonetheless, Jordan’s strategic utilization of its abundant potash and phosphate reserves helped mitigate some resource constraints by supporting a robust fertilizer industry. Jordan’s reserves of potash and phosphates were among the country’s most valuable natural resources, extensively exploited for fertilizer production. These mineral industries were significant contributors to export revenues, with combined exports expected to reach a value of approximately US$1 billion by 2008. The fertilizer sector not only supported domestic agricultural productivity but also generated substantial foreign currency earnings, reinforcing Jordan’s economic stability. The exploitation of these mineral resources was facilitated by established mining operations and processing facilities, which maintained Jordan’s position as a leading producer in the region. Pharmaceuticals emerged as a key industry within Jordan’s manufacturing landscape, with exports reaching approximately US$435 million in 2006. The sector demonstrated sustained growth, with export values totaling around US$260 million in the first half of 2008 alone. Jordanian pharmaceutical companies benefited from a combination of skilled labor, adherence to international quality standards, and strategic trade agreements that facilitated market access. The industry’s export performance underscored its role as a vital source of foreign exchange and industrial diversification. Similarly, the textile industry was a major contributor to the industrial economy, with exports valued at US$1.19 billion in 2007. Textiles, particularly ready-made garments produced in industrial zones, leveraged Jordan’s trade agreements to access global markets, supporting employment and industrial output. The industrial sector’s dependence on imported raw materials presented ongoing vulnerabilities, as fluctuations in global commodity prices and supply chain disruptions could adversely affect production costs and competitiveness. Water and power shortages further complicated industrial operations, occasionally leading to production delays and increased operational expenses. These challenges necessitated government and private sector efforts to improve resource management, infrastructure development, and diversification of supply sources. Despite these obstacles, Jordan’s open economy, characterized by liberal trade policies and investment-friendly regulations, alongside its established fertilizer and pharmaceutical industries, was expected to continue generating significant foreign currency earnings and sustaining economic growth. To bolster industrial development and export capacity, Jordan established numerous industrial zones and special economic zones (SEZs) strategically located to maximize logistical advantages. Among these, the Mafraq SEZ focused on industry and logistics, aiming to transform into a regional logistics hub. Its development capitalized on multimodal transportation links, including air, road, and rail connections to neighboring countries, Europe, and the Persian Gulf. This strategic positioning sought to facilitate efficient trade flows and attract investment in logistics and manufacturing sectors. The Ma’an SEZ, by contrast, was primarily industrial in orientation, targeting domestic demand and aiming to reduce Jordan’s reliance on imports by fostering local production capabilities. Both zones represented integral components of Jordan’s industrial policy to enhance competitiveness and economic resilience. Jordan’s ongoing construction of a national rail system was anticipated to significantly enhance trade prospects by improving connectivity within the country and with regional neighbors. The rail infrastructure was expected to facilitate the movement of goods and raw materials, reduce transportation costs, and support the growth of industrial zones and SEZs. Jordan’s strategic geographic location, situated at the crossroads of the Levant and the broader Middle East, combined with its natural resource endowments, positioned the country to emerge as a key trade hub. These developments aimed to integrate Jordan more deeply into regional and global supply chains, reinforcing its role as a gateway for commerce and industrial activity in the region.

Telecommunications in Jordan represents a substantial segment of the national economy, constituting a billion-dollar industry with its core markets spanning fixed-line, mobile, and data services. These sectors collectively generated approximately JD836.5 million, equivalent to around $1.18 billion, on an annual basis. This revenue stream accounted for about 13.5% of Jordan’s gross domestic product (GDP), underscoring the critical role that telecommunications plays in the country’s economic framework. The significant contribution of this industry reflects both the demand for communication services domestically and the strategic emphasis placed on developing telecommunications infrastructure and services. The information technology (IT) sector in Jordan has emerged as the most developed and competitive within the Middle East region, a status largely attributed to the liberalization policies enacted in 2001. Prior to this liberalization, the telecommunications market was dominated by state-controlled entities, limiting competition and innovation. The 2001 reforms opened the market to private investment and competition, fostering rapid growth and modernization. This shift catalyzed the expansion of IT services and infrastructure, positioning Jordan as a regional leader in technology and telecommunications. Within the mobile telecommunications market, competition intensified with the presence of three major operators dominating the landscape. Zain, owned by MTC Kuwait, held the largest market share at 39%, followed closely by Orange, owned by France Telecom, with 36%. Umniah, which was 96% owned by Bahrain’s Batelco, accounted for the remaining 25% of the market. This tripartite division of market share highlighted a competitive environment where no single operator held an overwhelming majority, thereby encouraging innovation and competitive pricing strategies. By the end of 2007, market dynamics had shifted toward greater parity among the three operators. Zain’s market share had decreased from 47% in 2006 to 39%, while Orange and Umniah experienced subscriber growth, reflecting increased competition and consumer choice. This trend indicated a maturing market where competitive forces were balancing market shares and driving operators to improve services and pricing to attract and retain customers. The heightened competition within Jordan’s telecom sector translated into more favorable pricing for consumers. As operators vied for market share, they introduced more competitive tariffs and service packages, making mobile and data services more affordable and accessible. This competitive pricing not only benefited individual consumers but also stimulated broader adoption of telecommunications technologies across various segments of society. Mobile phone penetration in Jordan reached approximately 80%, a figure that underscored the widespread adoption of mobile technology throughout the country. This high penetration rate reflected both the affordability of mobile services and the importance of mobile connectivity in daily life, business, and government functions. The extensive mobile network coverage facilitated communication across urban and rural areas alike, contributing to social and economic inclusion. Since the year 2000, Jordan had embarked on ambitious national strategies aimed at developing its information and communications technology (ICT) sector. These initiatives were initially driven by private sector efforts under the guidance and support of the Jordanian monarchy, which recognized the potential of ICT as a catalyst for economic growth and modernization. The strategic focus included fostering innovation, enhancing infrastructure, and building human capital to position Jordan as a regional ICT hub. The establishment of the Information Technology Association in Jordan, known as int@j, was a pivotal development in facilitating private sector involvement in preparing the country for the digital economy. Founded to serve as a bridge between the private sector and government, int@j concentrated on promoting automation and modernization efforts. It worked closely with the Ministry of Information Technology (MOICT) to align industry initiatives with national development goals, ensuring that Jordan’s ICT sector remained competitive and responsive to global technological trends. The latest ICT strategy, extending through to 2011, set forth specific national objectives designed to sustain sector growth and deepen societal penetration of technology. These goals encompassed expanding the ICT market, increasing internet usage, and enhancing the quality and reach of ICT services across various sectors. The strategy reflected a comprehensive approach to integrating ICT into the broader economic and social fabric of Jordan. Indirectly, the ICT sector contributed over 14% to Jordan’s GDP, a figure that included not only direct revenues from ICT companies but also foreign investment inflows and domestic revenues generated through ICT-related activities. This substantial contribution highlighted the sector’s importance beyond telecommunications alone, encompassing software development, IT services, and digital innovation as integral components of the economy. Employment within the ICT sector experienced significant growth, reaching approximately 60,000 indirect jobs by 2008. This expansion was supported by government initiatives aimed at addressing employment challenges and educational gaps through targeted ICT training programs and the creation of job opportunities. These efforts sought to equip the workforce with the necessary skills to meet the demands of a rapidly evolving technology sector, thereby enhancing employability and supporting economic diversification. Policy objectives set for the subsequent three years focused on nearly doubling the size of the ICT sector to $3 billion and increasing internet user penetration to 50%. These ambitious targets underscored the government’s commitment to leveraging ICT as a driver of economic growth and social development. Achieving these goals required continued investment in infrastructure, human capital development, and regulatory reforms to foster innovation and attract further investment. Key figures played instrumental roles in shaping Jordan’s ICT landscape. Karim Kawar, the founder and first chairman of int@j, was central to establishing the organization and advancing national ICT strategic objectives. His leadership was complemented by other influential figures such as Marwan Juma, Jordan’s Minister of ICT, who provided governmental oversight and policy direction; Doha Abdelkhaleq, responsible for labor and education initiatives; Humam Mufti, who focused on advocacy efforts; and Nashat Masri, who managed capital and finance aspects. Together, this group formed a collaborative leadership team dedicated to advancing Jordan’s ICT ambitions. Jordan’s robust ICT infrastructure and strategic positioning have made it an attractive location for startups specializing in web development, mobile applications, online services, and IT business investments. The country’s competitive advantages include a skilled workforce, supportive government policies, and a growing domestic market, all of which contribute to a vibrant startup ecosystem. This environment has fostered innovation and entrepreneurship, further strengthening Jordan’s reputation as a regional ICT hub. The Jordanian IT industry experienced a significant boost following the Gulf War of 1991, driven largely by a substantial influx of Gulf expatriates, particularly from Kuwait. The arrival of hundreds of thousands of expatriates brought increased demand for IT services and expertise, as well as capital and business connections that facilitated sector growth. This demographic shift contributed positively to the development of Jordan’s IT sector, accelerating its expansion and integration into the global technology landscape.

Energy has represented one of the most significant challenges to Jordan’s sustained economic growth, largely due to the nation’s limited domestic energy resources and the volatility of global oil prices. The fluctuations in oil prices, particularly the dramatic surge that saw crude oil prices peak at over $145 per barrel, underscored the vulnerability of Jordan’s energy sector and prompted the government to formulate an ambitious development plan aimed at enhancing energy security and sustainability. Recognizing the critical need to reduce reliance on imported energy, which accounted for approximately 96% of the country’s total energy consumption, the Jordanian government devised a comprehensive strategy involving a $14 billion investment program. This program was designed to diversify energy sources, improve infrastructure, and foster the growth of alternative energy sectors. Central to Jordan’s energy strategy was a strong emphasis on renewable energy and nuclear power. The government set a target for renewable energy sources to supply 10% of the nation’s energy demand by 2020, reflecting a commitment to harnessing solar, wind, and other sustainable resources available within the country. Looking further ahead, the plan projected that nuclear energy would come to provide up to 60% of Jordan’s energy needs by 2035, a goal that illustrated the government’s long-term vision for a diversified and more self-reliant energy portfolio. This strategic shift was also motivated by the recognition that traditional subsidies on fuel and electricity, which had been in place for decades, were economically regressive and unsustainable. In 2007, the government announced plans to scale back subsidies across several sectors, including energy, aiming to create a more market-oriented environment and reduce fiscal burdens. To stimulate competition and attract foreign investment, Jordan began opening its energy sector to international participation by offering all new energy projects through competitive international tenders. This approach not only sought to bring in capital and expertise but also intended to enhance efficiency and innovation within the sector. Unlike many of its neighbors in the Middle East, Jordan does not possess significant domestic petroleum reserves, compelling the country to rely heavily on imports to satisfy its energy requirements. As of 2002, the nation’s proved oil reserves were minimal, totaling only 445,000 barrels (approximately 70,700 cubic meters). Domestic oil production was negligible; in 2004, Jordan produced merely 40 barrels per day (6.4 cubic meters per day), while its consumption was estimated at 103,000 barrels per day (16,400 cubic meters per day), underscoring the vast gap between production and demand. In 2004, U.S. government data indicated that Jordan imported roughly 100,000 barrels of oil per day (16,000 cubic meters per day) to meet its consumption needs. Historically, Jordan had relied significantly on crude oil imports from Iraq, which were delivered via overland truck routes and sold at highly discounted prices under the regime of Saddam Hussein. However, the 2003 invasion of Iraq disrupted this critical supply route, compelling Jordan to seek alternative sources and logistics for its oil imports. By late 2003, Jordan had established a new supply chain that involved transporting oil via tanker through the Port of Aqaba, a strategic Red Sea port. Saudi Arabia emerged as the primary supplier of imported crude oil, with Kuwait and the United Arab Emirates serving as secondary sources. While these supplies from Saudi Arabia and the UAE were subsidized to some extent, the discounts were not as substantial as those previously enjoyed from Iraqi crude oil, resulting in higher overall import costs for Jordan. In response to the escalating costs and supply uncertainties associated with imported oil, Jordan intensified efforts to exploit its substantial oil shale resources. The country possesses an estimated 40 billion tons of oil shale deposits, with approximately 4 billion tons considered recoverable through current technologies. These reserves are significant on a global scale, ranking Jordan as the holder of the fourth largest oil shale reserves worldwide. The potential yield from these resources is estimated at around 28 billion barrels (4.5 cubic kilometers) of oil, which could enable production levels of approximately 100,000 barrels per day (16,000 cubic meters per day), effectively matching the country’s current oil consumption. Several international energy companies, including Royal Dutch Shell, Petrobras, and Eesti Energia, have engaged in negotiations with the Jordanian government to develop and exploit these oil shale deposits, reflecting growing interest in diversifying Jordan’s energy base. Natural gas has increasingly become an important component of Jordan’s domestic energy mix, particularly for electricity generation. Although the country’s natural gas reserves were modest, estimated at about 6 billion cubic meters in 2002, more recent assessments suggest that these reserves may be higher. In 2003, Jordan produced and consumed approximately 390 million cubic meters of natural gas, primarily sourced from the Risha gas field located in the eastern desert region. Despite this domestic production, Jordan relied heavily on imports to meet its natural gas demand. Until the early 2010s, the majority of imported natural gas arrived via the Arab Gas Pipeline, which transported about 1 billion cubic meters annually from Egypt. This pipeline extended from the Al Arish terminal in Egypt through the Port of Aqaba and onward to northern Jordan, forming a critical supply link. However, in 2013, gas imports from Egypt were abruptly halted due to a combination of insurgent attacks on the pipeline infrastructure in the Sinai Peninsula and domestic natural gas shortages within Egypt itself. This disruption forced Jordan to rapidly develop alternative supply mechanisms to ensure energy security. In response, the government constructed a liquefied natural gas (LNG) import terminal at the Port of Aqaba, enabling the country to receive natural gas shipments by sea and regasify them for domestic use. Further diversification of natural gas sources occurred in 2017 with the completion of a low-capacity pipeline from Israel, which supplied natural gas to the Arab Potash factories near the Dead Sea. Building on this development, a larger capacity pipeline from Israel was under construction in northern Jordan as of 2018, with expectations to commence operations by 2020. This pipeline was projected to supply approximately 3 billion cubic meters (BCM) of natural gas annually, sufficient to cover the majority of Jordan’s natural gas requirements. Electricity generation in Jordan is predominantly controlled by the National Electric Power Company (NEPCO), a state-owned enterprise responsible for producing about 94% of the country’s electricity. Since the mid-2000s, the government has pursued privatization initiatives aimed at increasing the role of independent power producers to enhance efficiency and capacity. One notable example is a 450-megawatt power plant near Amman operated by a Belgian firm, reflecting the growing involvement of foreign private entities in the sector. The country’s major power generation facilities include the Az Zarqa power plant, with a capacity of 400 megawatts, and the Al Aqaba power plant, which has a capacity of 650 megawatts. These plants serve as primary electricity providers, supporting the country’s growing energy needs. In 2003, Jordan’s electricity consumption was nearly 8 billion kilowatt-hours (kWh), while production stood at approximately 7.5 billion kWh, indicating a slight shortfall that was addressed through imports or other means. By 2004, electricity production had increased to 8.7 billion kWh, reflecting efforts to expand capacity in line with rising demand. Electricity consumption in Jordan has been projected to grow at an annual rate of about 5%, necessitating continued investment in generation capacity and infrastructure to meet future needs. Access to electricity is widespread, with approximately 99% of the Jordanian population connected to the national grid, underscoring the country’s progress in electrification and energy access.

The transportation sector in Jordan has historically played a significant role in the nation’s economy, contributing approximately 10% to the country’s Gross Domestic Product (GDP). This substantial contribution reflects the sector’s importance not only as a facilitator of domestic mobility but also as a critical component of Jordan’s broader service and industry-oriented economic framework. In 2007, the combined transportation and communications sectors accounted for a total of $2.14 billion, underscoring their collective weight within the national economy. This figure illustrates the scale of economic activity generated by the movement of goods, passengers, and information, highlighting the interdependence of these sectors in supporting Jordan’s development goals. Recognizing the pivotal role of transportation in economic growth and regional integration, the Jordanian government undertook a strategic initiative in 2008 to formulate a new national transport strategy. This comprehensive plan aimed at improving the existing infrastructure, modernizing transport services, and further privatizing the sector to enhance efficiency and competitiveness. The strategy was designed to address both current challenges and future demands by fostering public-private partnerships, encouraging investment in infrastructure upgrades, and promoting regulatory reforms to create a more dynamic and sustainable transport environment. Such measures were intended to position Jordan as a regional transport hub capable of supporting increased trade flows and passenger movements. Despite the challenges posed by regional instability, particularly the ongoing security crisis in neighboring Iraq, the prospects for Jordan’s transport sector remained positive. The conflict in Iraq, with no immediate resolution in sight, had paradoxically reinforced Jordan’s role as a critical transit corridor. Jordan continued to serve as a major transit hub for goods and people destined for Iraq, capitalizing on its geographic location and relatively stable internal security situation. This transit function not only generated revenue through logistics and customs operations but also strengthened Jordan’s strategic importance in regional trade networks, enabling it to maintain and potentially expand its transport sector activities despite broader geopolitical uncertainties. Tourism, another vital component of Jordan’s economy, was also expected to contribute to the growth of the transport sector. The number of tourists visiting Jordan was projected to increase steadily, driven by the country’s rich cultural heritage, historical sites, and natural attractions such as Petra, the Dead Sea, and Wadi Rum. This anticipated growth in tourism necessitated enhancements in transport infrastructure and services to accommodate rising passenger volumes and improve accessibility to key destinations. Consequently, the transport sector was poised to benefit from increased demand for both domestic travel and international connectivity, further reinforcing its economic significance. Several key developments were planned to modernize and expand Jordan’s transport infrastructure in alignment with the national transport strategy. Among the most significant projects was the relocation of Aqaba’s main port, a move intended to increase capacity, improve operational efficiency, and support the expansion of maritime trade. The port of Aqaba, Jordan’s only seaport, serves as a critical gateway for imports and exports, and its modernization was expected to enhance Jordan’s competitiveness in regional shipping and logistics. Alongside this, the development of a national railway system was envisaged to provide an integrated, efficient, and environmentally friendly mode of transport for both freight and passengers. The railway project aimed to connect key urban centers and industrial zones, facilitating smoother cargo movement and reducing reliance on road transport. Additionally, the construction of a new terminal at Queen Alia International Airport (QAIA) was planned to accommodate increasing passenger traffic, improve service quality, and support Jordan’s aspirations to become a regional aviation hub. These infrastructure investments were designed to create a more resilient and diversified transport network capable of supporting sustained economic growth. However, the transport sector faced challenges related to external economic factors, particularly volatility in fuel prices. Fluctuating fuel costs were almost certain to negatively impact operational expenses across the sector, potentially hindering the average annual growth rate of around 6% that the industry had been experiencing. Since fuel constitutes a major component of transport operating costs, sudden increases in prices could lead to higher transportation fees, reduced profitability for service providers, and possible constraints on expansion plans. This vulnerability underscored the need for strategic planning and risk mitigation measures to sustain growth amid global energy market uncertainties. Despite these risks, the volatility in fuel prices also created incentives for the Jordanian government and private sector investors to explore and promote alternative transportation modes. Increased fuel costs encouraged investments in public buses and improved train services, which offered more fuel-efficient and cost-effective options for moving people and goods. Enhancing public transportation infrastructure not only helped to reduce dependence on private vehicles and fossil fuels but also contributed to environmental sustainability and urban congestion alleviation. The push towards diversified transport modalities aligned with broader economic and environmental objectives, fostering a more balanced and resilient transport sector capable of adapting to fluctuating global energy dynamics. Together, these factors illustrate the complex interplay of economic, geopolitical, and environmental considerations shaping the evolution of Jordan’s transport sector. The government’s strategic initiatives, infrastructure development plans, and response to external pressures have collectively aimed to strengthen the sector’s contribution to the national economy while positioning Jordan as a vital regional transport hub.

Despite the continued influence of the Jordanian state over the media landscape, the country’s media sector underwent significant privatization and liberalization efforts in recent years. Historically dominated by state-owned entities, particularly Jordan TV (JTV), the sector began to open up to private ownership and operation, reflecting broader economic reforms aimed at fostering a more competitive and diverse media environment. These reforms were intended to reduce government monopolization and encourage private sector participation, although the state retained considerable regulatory and operational influence. The gradual shift towards privatization was marked by attempts to introduce private broadcasters and diversify media ownership, signaling a move towards liberalization despite persistent state involvement. According to research conducted by the international market research firm Ipsos, advertising expenditure in Jordan reached approximately $280 million based on official rack rates across various media outlets. This figure underscored the growing importance of advertising as a key economic driver within the media sector and reflected increased investment by both domestic and international companies seeking to capitalize on Jordan’s expanding consumer market. The allocation of advertising funds revealed a pronounced preference for traditional print media, with newspapers receiving the lion’s share of the advertising budget. Specifically, 80% of the total advertising expenditure was directed towards newspapers, highlighting the enduring significance of print media in Jordan’s advertising ecosystem, while the remaining 20% was distributed among television, radio, and magazines. This distribution pattern illustrated both the entrenched role of newspapers in reaching audiences and the emerging but still developing presence of broadcast and magazine media in the advertising landscape. One of the most notable events in the Jordanian media sector in 2007 was the cancellation of the launch of ATV, which had been slated to become Jordan’s first private broadcaster. The cancellation effectively maintained Jordan TV (JTV), a state-owned entity, as the country’s sole television broadcaster. This decision was significant because it underscored the state’s continued control over broadcast media despite ongoing liberalization efforts. The failure to introduce a private television channel delayed the diversification of broadcast media ownership and limited the expansion of private sector influence in this segment. The cancellation of ATV’s launch was widely seen as a setback for media pluralism and a reinforcement of the state’s dominant position in the broadcast domain. In parallel with developments in traditional media, Jordan experienced a remarkable increase in the number of blogs, websites, and news portals in recent years. This proliferation of digital media platforms contributed to a diversification of news sources, offering audiences new avenues for information and opinion beyond conventional newspapers and television. The rise of online media reflected broader global trends towards digitalization and the democratization of content creation, enabling a wider range of voices to participate in public discourse. This diversification was viewed positively by many observers, who anticipated that it would enhance advertising revenues by attracting new audiences and advertisers interested in digital channels. Moreover, the expansion of online media was expected to foster private sector initiatives within the media landscape, encouraging innovation and entrepreneurship in content production and distribution. The advertising industry in Jordan recorded a growth rate of 30% in 2007, marking another outstanding year following nearly a decade of consistent double-digit growth. This robust expansion was indicative of the sector’s increasing maturity and the rising confidence of advertisers in Jordan’s media market. The sustained growth reflected both an expanding consumer base and the increasing sophistication of advertising strategies employed by companies across various sectors. However, following this period of rapid expansion, most publicity specialists anticipated a slowdown in growth during 2008. This expectation was based on market dynamics and the recognition that such high growth rates were unlikely to be sustained indefinitely. Supporting this outlook, unlike in 2007, no major advertising campaigns were planned for the first half of 2008, signaling a potential market stabilization or slowdown. The absence of large-scale campaigns suggested that advertisers were adopting a more cautious approach, possibly in response to economic uncertainties or market saturation. This shift indicated a transition from a phase of rapid expansion to one of consolidation, where the focus would likely turn to optimizing advertising effectiveness and exploring new media channels rather than pursuing aggressive volume growth. Historically, Jordanian advertising expenditure had lagged behind regional averages, reflecting the country’s smaller market size and relatively limited economic scale compared to neighboring countries. However, the sector had been catching up in terms of per capita expenditure, demonstrating a gradual alignment with broader regional trends. This catch-up process was facilitated by economic growth, increased consumer spending, and the liberalization of the media sector, which collectively contributed to a more vibrant advertising market. As the advertising sector matured, a gradual decrease in growth rates was considered normal, reflecting the natural progression of a market moving from rapid expansion to a more stable and sustainable growth trajectory. Between 2000 and 2007, total advertising expenditure in Jordan increased substantially, rising from $77 million to $280 million. This represented a remarkable 260% increase over the seven-year period, underscoring the dynamic growth of the advertising industry and its expanding role within the Jordanian economy. The dramatic rise in expenditure was driven by multiple factors, including increased media diversification, economic development, and greater investment by key industry sectors seeking to strengthen their market presence. In 2007, the telecommunications sector emerged as the largest advertising spender in Jordan, accounting for approximately 20% of the total market. This dominance reflected the sector’s rapid growth and the competitive nature of telecommunications companies vying for market share through aggressive advertising campaigns. The banking and finance sector followed as the second-largest spender, contributing 12% of total advertising expenditure. This was indicative of the sector’s efforts to promote financial products and services amid increasing consumer demand and financial sector liberalization. The services industry accounted for 11% of advertising spending, highlighting the importance of service-oriented businesses in the Jordanian economy. Real estate companies allocated 8% of the advertising budget, reflecting the sector’s expansion and the need to attract buyers and investors. The automotive sector, representing 5% of total advertising expenditure, also played a significant role, promoting a range of vehicles to a growing consumer base. Looking ahead, particularly in the context of potential economic downturns, it became increasingly important for the advertising sector in Jordan to develop vocational training programs. Such initiatives were seen as essential for enhancing the skills and professionalism of advertising practitioners, thereby improving the overall quality and effectiveness of advertising campaigns. Additionally, leveraging emerging media markets, including digital and social media platforms, was identified as a critical strategy for sustaining growth and adapting to changing consumer behaviors. These efforts aimed to ensure that the advertising sector could continue to evolve and contribute meaningfully to Jordan’s media economy despite economic challenges.

In 2004, the services sector accounted for more than 70% of Jordan’s gross domestic product (GDP), underscoring its dominant role in the national economy. This sector not only contributed a significant share to the GDP but also served as the primary source of employment within the country. By 2002, nearly 75% of Jordan’s labor force was engaged in various service-related activities, reflecting the sector’s expansive reach across multiple industries including banking, construction, real estate, insurance, and other commercial services. The prominence of services in Jordan’s economy illustrated a structural shift away from traditional sectors such as agriculture and manufacturing, aligning with broader regional trends towards service-oriented economic development. The banking system in Jordan was composed of a diverse array of financial institutions, including 25 commercial banks, three Islamic banks, and nine foreign banks. Collectively, these banks held total assets amounting to approximately 57 billion Jordanian dinars (JOD), equivalent to around 69.6 billion euros. This robust banking infrastructure provided a foundation for financial intermediation and economic growth. Between 2010 and 2020, the banking sector experienced steady expansion, with total assets growing at an average annual rate of 5%. This growth was chiefly driven by a 7% average annual increase in lending activities, highlighting the sector’s role in facilitating credit availability to various economic actors. The Jordanian banking sector was widely regarded as advanced both regionally and internationally, benefiting from stringent regulatory frameworks, prudent management, and a stable macroeconomic environment. In 2007, the banking sector demonstrated strong financial performance, with the total profits of the 15 listed banks rising by 14.89% to reach JD 640 million, approximately USD 909 million. This profitability was supported by a favorable economic environment, as Jordan experienced an overall economic growth rate of 6% during the same year. The expansion of net credit was particularly notable, increasing by 20.57% to JD 17.9 billion (USD 25.4 billion) by the end of 2007. This surge in credit was concentrated in key sectors such as trade, construction, and industry, which saw the most significant improvements in banking activity. Despite these positive trends, many banks faced challenges stemming from the sharp correction in the Amman Stock Market in 2006. In response, banks strategically refocused on core banking activities in 2007, emphasizing lending and deposit mobilization over speculative investments. Net interest and commission income in the banking sector increased by 16.65% in 2007, reaching JD 1.32 billion (USD 1.87 billion). This growth reflected enhanced operational efficiency and a broader customer base. The recovery of the stock market in 2007 also contributed to a reduction in total portfolio income losses, alleviating some of the financial pressures experienced in the prior year. Although Jordan’s banking sector was relatively small by global standards, it attracted considerable interest from regional investors, particularly those from Lebanon and the Gulf Cooperation Council (GCC) countries. This interest was underpinned by new regulations introduced by the Central Bank of Jordan (CBJ) and the country’s political stability, both of which fostered a favorable investment climate. The implementation of conservative banking policies enabled Jordan to avoid the worst impacts of the 2008 global financial crisis, with Jordanian banks among the few worldwide to report profits in 2009. The banking sector’s profitability was temporarily affected by the COVID-19 pandemic in 2020, as economic disruptions led to cautious lending and increased provisions for potential loan losses. Nevertheless, the sector demonstrated resilience, recovering to pre-pandemic profitability levels by 2021. Throughout the pandemic, the non-performing loan (NPL) ratio in Jordan’s banking sector remained stable at approximately 5.5%, indicating effective risk management and regulatory oversight. A 2021 survey revealed that the pandemic had a limited impact on the supply of credit, with about two-thirds of banks reporting either constant or increased loan availability. Notably, around 50% of banks indicated an increase in loan supply to small and medium-sized enterprises (SMEs), while 25% reported a similar increase for corporate clients. The pandemic also accelerated the digitization of banking operations; 90% of banks anticipated that COVID-19 would influence the digitization of internal processes, 81% expected impacts on daily operations, and 90% foresaw improvements in online banking services, reflecting a broader shift towards digital financial services. The construction sector contributed an estimated JD 477.5 million (USD 678.05 million) to Jordan’s economy in 2007, representing approximately 4.25% of GDP. This sector was characterized by significant urban development initiatives, particularly in the capital city of Amman. The Greater Amman Municipality (GAM) completed its master plan for the city, projecting an expansion of the metropolitan area from 700 square kilometers to 1,700 square kilometers by 2025. This growth was expected to be accompanied by a transition from predominantly horizontal urban development to vertical growth, facilitated by the emergence of high-rise building clusters. Beyond Amman, several major developments were underway, including rapid residential expansion in Zarqa, the transformation of Aqaba into a commercial and tourist hub, and the construction of high-end hotels and resorts along the Dead Sea. These projects underscored the government’s commitment to diversifying the economy and enhancing infrastructure. Infrastructure development also included key projects such as a new airport terminal, the Amman ring road, and a planned light rail system connecting Amman and Zarqa. Despite a relative slowdown compared to previous years, Jordan’s construction and real estate markets continued to grow in 2007, with total trading valued at JD 5.6 billion (USD 8 billion), up from JD 5.2 billion (USD 7.4 billion) in 2006. Although the rapid growth phases witnessed in 2004 (75%) and 2005 (48%) had moderated, demand for real estate remained robust. This sustained demand was driven by population growth and Jordan’s strategic location in the Middle East, which made it an attractive destination for foreign investment, second-home buyers, and Jordanians living abroad. Several class-A office developments were under construction, yet a supply-demand gap was anticipated to persist for several years. In contrast, the retail market faced potential saturation in the short term, prompting developers to explore opportunities in other cities for new supermarkets and shopping malls. Jordan’s insurance market comprised 29 companies serving a population of approximately 5.7 million people. Despite regulatory efforts aimed at encouraging mergers and acquisitions to consolidate the market, the insurance sector was considered saturated. Market share based on premiums was distributed across various lines of insurance: motor insurance accounted for 42.4%, medical insurance 18.6%, fire and property damage 17%, life insurance 9.8%, marine and transport 7.9%, and other types of insurance 4.3%. The insurance sector contributed 2.52% to Jordan’s GDP in 2006, marking a slight increase from 2.43% in 2005. Ambitious plans aimed to raise this contribution to 7% in the short term and 10% in the long term, reflecting the sector’s significant potential for growth. However, the market remained underdeveloped due to several factors, including regional price increases, low consumer awareness and understanding of insurance products, cultural and religious considerations, and rising living costs. The International Monetary Fund (IMF) forecasted an inflation rate of 9% for Jordan in 2008, while wages remained largely unchanged, resulting in diminished disposable income for consumers. This economic context influenced consumer behavior, as insurance products—apart from mandatory motor coverage—were generally perceived as luxury items. Many Jordanians prioritized other expenditures over insurance, limiting market penetration. Future changes in the insurance market were expected to be limited unless regulatory and legal frameworks were enhanced. Industry stakeholders advocated for greater coordination among regulators and improvements in the legal system to strengthen insurance laws, which would facilitate market development and consumer protection.

The tourism sector in Jordan has long been recognized as operating below its full potential, despite the country’s abundant historical heritage, which includes a wealth of ancient ruins, a favorable Mediterranean climate, and diverse geographical features ranging from desert landscapes to mountainous regions. Jordan’s rich cultural and archaeological sites, such as the ancient city of Petra, the Roman ruins of Jerash, and the biblical landscapes of the Dead Sea and Mount Nebo, provide a strong foundation for a thriving tourism industry. However, the sector has faced persistent challenges, primarily stemming from regional political instability, which has adversely impacted tourism growth by deterring potential visitors and creating an unpredictable environment for investment and development. In 2004, Jordan welcomed over 5 million visitors, generating approximately US$1.3 billion in tourism earnings, a significant contribution to the national economy. This figure represented a notable milestone, reflecting the country’s appeal as a tourist destination despite the geopolitical challenges in the Middle East. The following year, tourism earnings in Jordan increased to US$1.4 billion, indicating a positive growth trend within the sector. This growth was attributed to increased marketing efforts, improved infrastructure, and Jordan’s reputation as a relatively stable and safe country compared to many of its neighbors. The majority of tourists visiting Jordan originate from other countries within the Middle East, a factor viewed by industry analysts and policymakers as a positive indicator for future growth. Jordan’s relative political stability, openness, and safety have made it an attractive destination for regional travelers, particularly those from the Gulf Cooperation Council (GCC) states and neighboring Arab countries. This regional tourism base has provided resilience to the sector, even when global tourism trends have fluctuated due to external shocks or economic downturns. Tourism constitutes a significant component of Jordan’s economy, directly employing around 30,000 Jordanians as of the mid-2000s. The sector’s importance is underscored by its contribution of approximately 10% to the country’s Gross Domestic Product (GDP), highlighting tourism as a vital source of foreign exchange earnings, employment, and economic diversification. The government has recognized the sector’s potential and has implemented various strategies to maximize its economic impact. Despite a decline in the number of Arab and Gulf tourists in certain years, the tourism sector in Jordan demonstrated steady growth in 2007. During the first eleven months of that year, tourism revenues increased by 13%, reaching nearly US$2.11 billion, up from US$1.86 billion in the same period of 2006. This growth was driven by a combination of factors, including enhanced marketing campaigns, improved service quality, and the development of new tourist attractions and infrastructure projects. The tourism sector in Jordan is overseen by the National Tourism Strategy (NTS), which was established by the Jordanian government in 2004. The NTS was designed as a comprehensive framework to guide the development of the industry through 2010, with ambitious targets aimed at doubling tourism revenues and significantly increasing tourism-related employment. The strategy emphasized sustainable development, diversification of tourism products, and the enhancement of Jordan’s international image as a premier travel destination. By 2007, the NTS had successfully achieved its goal of doubling tourism revenues, a testament to the effective implementation of strategic initiatives and favorable market conditions. However, increasing employment in the sector to over 90,000 jobs proved more challenging. Employment figures grew from 23,544 in 2004 to 35,484 in 2007, representing significant progress but still less than half of the targeted 91,719 jobs. This discrepancy highlighted structural issues within the sector, including the need for greater skills development, improved labor market conditions, and enhanced support for small and medium-sized enterprises in tourism-related industries. The NTS sought to reposition Jordan as a boutique destination, targeting high-end tourists who seek unique and authentic experiences. To achieve this, the strategy identified seven niche markets that could be developed to attract diverse visitor segments. These included cultural heritage tourism, with a focus on archaeology and historical sites; religious tourism, capitalizing on Jordan’s biblical landmarks; ecotourism, promoting the country’s natural landscapes and biodiversity; health and wellness tourism, leveraging the therapeutic properties of the Dead Sea and other natural resources; adventure tourism, offering activities such as hiking, diving, and desert exploration; meetings, incentives, conventions, and exhibitions (MICE), aimed at business travelers; and cruises, capitalizing on Jordan’s access to the Red Sea via the port city of Aqaba. In support of these initiatives, the Jordan Tourism Board (JTB) significantly increased its marketing budget, rising from JD6 million (approximately US$8.52 million) to JD11.5 million (approximately US$16.3 million) within a single year. This increase facilitated expanded promotional campaigns targeting key source markets, participation in international tourism fairs, and the development of digital marketing platforms to enhance Jordan’s visibility on the global stage. The tourism industry in Jordan experienced steady growth over recent years, underpinned by ongoing major projects aimed at further development and diversification. These projects included the enhancement of infrastructure such as airports, roads, and hospitality facilities, as well as the creation of new tourist attractions and the preservation of cultural heritage sites. Despite these positive trends, the sector required continued improvements in infrastructure and marketing to sustain growth, particularly in light of increasing competition from neighboring countries and evolving traveler preferences. The outbreak of the COVID-19 pandemic in 2020 had a profound impact on Jordan’s economy, causing a 1.6% decline in real GDP. Tourism was identified as a primary transmission route of the economic crisis, given its reliance on international travel and cross-border movement. The pandemic led to widespread travel restrictions, border closures, and a sharp decline in tourist arrivals, severely affecting the sector’s revenues and employment levels. Prior to the pandemic, tourism accounted for about 40% of Jordan’s export receipts and contributed between 10% and 15% of its GDP, underscoring its critical role in the national economy. Jordan hosted approximately 3.8 million international tourists annually, reflecting its status as a popular destination in the region. However, in 2020, the sector’s contribution to GDP decreased dramatically to 3%, illustrating the severe impact of the pandemic on tourism-related economic activity. The recovery of Jordan’s tourism sector from the COVID-19 pandemic is expected to be slow and gradual, influenced by factors such as the pace of global vaccination efforts, the reopening of international borders, and the restoration of traveler confidence. The government and industry stakeholders have emphasized the need for adaptive strategies, including enhanced health and safety protocols, digital innovation, and diversification of tourism products, to support the sector’s resilience and long-term sustainability in a post-pandemic world.

Since 1995, Jordan’s economic growth has been notably subdued, with the real Gross Domestic Product (GDP) increasing at an average annual rate of approximately 1.5%. This modest pace of expansion reflected a range of structural challenges within the economy, including limited natural resources, regional instability, and a relatively small domestic market. The slow growth contrasted with the more rapid economic development observed in some neighboring countries during the same period, underscoring the constraints faced by Jordan in achieving higher levels of economic dynamism. Despite various reform efforts and external assistance, the economy struggled to generate sufficient momentum to significantly accelerate growth beyond this modest average. Throughout this period, the official unemployment rate in Jordan remained persistently high, hovering around 14%. This figure, however, was widely regarded as an underestimate of the true extent of joblessness, with unofficial estimates suggesting that the actual unemployment rate could be approximately double the official statistic. The high unemployment levels were particularly pronounced among young people and women, reflecting structural mismatches in the labor market and limited opportunities for formal employment. The persistence of elevated unemployment posed significant social and economic challenges, contributing to pressures on public finances and social welfare systems, as well as fueling public dissatisfaction and demands for reform. Compounding these labor market difficulties, Jordan’s fiscal situation was characterized by a persistently high budget deficit and escalating public debt levels. Over the years, the government budget deficit continued to widen, driven by a combination of rising public expenditures, including subsidies and social spending, and constrained revenue collection. This fiscal imbalance necessitated increased borrowing, both domestically and externally, leading to a growing public debt burden. The accumulation of debt raised concerns about the sustainability of public finances and limited the government’s fiscal space to implement counter-cyclical policies or invest in critical infrastructure and development projects. The fiscal challenges underscored the need for comprehensive reforms aimed at enhancing revenue generation and rationalizing expenditures. Despite these fiscal pressures, inflation in Jordan remained relatively low throughout the period, a development largely attributed to a stable monetary policy framework. Central to this stability was the country’s continued peg of its currency, the Jordanian dinar, to the United States Dollar. This fixed exchange rate regime helped anchor inflation expectations and provided a measure of monetary discipline, shielding the economy from large fluctuations in prices. The low inflation environment contributed to preserving purchasing power and economic stability, even as external shocks and regional uncertainties tested the resilience of the economy. The monetary authorities maintained a cautious approach, balancing the need to support growth with the imperative of preserving price stability. One of the more positive aspects of Jordan’s external trade during this period was the robust growth in exports of manufactured goods, which expanded at an average annual rate of about 9%. This growth was driven by a diversification of the industrial base, including the development of sectors such as textiles, pharmaceuticals, and chemical products. The expansion of manufacturing exports represented a strategic shift away from traditional reliance on raw materials and agricultural products, reflecting efforts to integrate more deeply into global value chains. The growth in manufactured exports contributed to foreign exchange earnings and job creation, although the sector still faced challenges related to competitiveness, scale, and access to markets. Jordan demonstrated notable monetary stability even amid significant regional tensions and domestic political transitions. In 1998, the country faced heightened regional instability linked to conflicts and diplomatic strains in the Middle East, yet the monetary authorities successfully maintained stability in the financial sector. This resilience was further tested in 1999 during the illness and subsequent death of King Hussein, a pivotal moment in Jordan’s modern history. Despite the potential for political uncertainty to disrupt economic confidence, the government and central bank managed to uphold monetary stability, ensuring continuity in financial markets and preserving investor confidence. These episodes highlighted the strength of Jordan’s monetary institutions and the effectiveness of its policy frameworks in managing shocks. The peace treaty signed between Jordan and Israel in 1994 had initially raised expectations that bilateral relations would lead to significant boosts in trade and tourism. However, these hopes were largely unmet as security-related restrictions imposed in the West Bank and Gaza Strip severely hindered trade flows between Jordan and these Palestinian territories. The imposition of checkpoints, border controls, and other security measures constrained the movement of goods and people, leading to a substantial decline in exports to these areas. The anticipated economic benefits from enhanced cooperation and integration with Israel and the Palestinian territories were thus limited, reflecting the complex interplay between political considerations and economic opportunities in the region. Following the ascension of King Abdullah II to the throne in 1999, Jordan undertook concerted efforts to improve diplomatic relations with key Arab states, including those in the Persian Gulf as well as Syria. These diplomatic initiatives aimed to strengthen political ties and open avenues for economic cooperation, investment, and trade. While the improved relations helped to ease some regional tensions and fostered greater dialogue, the tangible economic benefits from these efforts remained limited. Trade volumes and investment flows from these countries did not increase significantly, and Jordan continued to face structural challenges that constrained the translation of diplomatic goodwill into substantial economic gains. The experience underscored the complexities of leveraging diplomatic relations for economic development in a region marked by geopolitical sensitivities. In response to these challenges and in pursuit of sustainable economic growth, Jordan’s recent economic strategies have emphasized integration into the global trading system. A key component of this approach has been the pursuit of membership in the World Trade Organization (WTO), which would enhance Jordan’s access to international markets and provide a framework for trade liberalization and dispute resolution. Alongside WTO accession efforts, Jordan has sought to establish a Free Trade Agreement (FTA) with the United States, aiming to promote export-led growth by reducing tariffs and non-tariff barriers, attracting foreign investment, and encouraging the development of competitive industries. These initiatives reflect a strategic commitment to deepen economic openness, diversify export markets, and stimulate private sector development as pathways to overcoming the constraints that have historically limited Jordan’s economic performance.

In 2005, the stock market capitalization of listed companies in Jordan reached a valuation of $37.639 billion, reflecting the growing significance of the country’s capital markets within the regional economy. This figure, as reported by the World Bank, underscored the expanding role of the Amman Stock Exchange (ASE) as a platform for equity financing and investment opportunities. The substantial market capitalization indicated increased investor confidence and the successful listing of a diverse range of companies across various sectors, including banking, industrial, and services. This growth was facilitated by ongoing economic reforms aimed at improving the regulatory framework, enhancing transparency, and attracting both domestic and foreign investment. The valuation also highlighted Jordan’s efforts to develop its financial infrastructure, which contributed to broader economic diversification and integration into global financial markets. As a result, the stock market capitalization in 2005 served as a key indicator of the country’s progress in fostering a dynamic investment environment conducive to sustainable economic growth.

The 2015 Middle East and North Africa Salary Survey was conducted by Bayt.com, a leading online employment platform in the region that specializes in providing comprehensive labor market insights and salary benchmarks. This survey aimed to capture the perceptions and experiences of employees across various countries in the Middle East and North Africa, focusing on salary trends, compensation satisfaction, and economic conditions affecting wage growth. By gathering data from thousands of respondents representing diverse industries and professional levels, the survey provided a detailed snapshot of employee sentiment regarding salary adjustments during the preceding year. According to the findings of the 2015 survey, nearly half of the respondents from the Gulf Cooperation Council (GCC) countries expressed satisfaction with the salary raises they had received in 2014. Specifically, 49% of these respondents indicated that the increases in their compensation met or exceeded their expectations. The GCC, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, has historically been characterized by relatively higher wage levels compared to other parts of the Middle East, largely due to its oil wealth and investment in economic diversification. The reported satisfaction rate reflected a moderate level of optimism among workers in these countries, suggesting that salary increments were aligned with inflation rates and cost of living adjustments to some extent. However, the fact that just under half of the respondents expressed satisfaction also implied that a significant portion of employees remained dissatisfied or neutral about their wage growth, highlighting ongoing challenges in wage distribution and economic pressures within the region. In contrast, the Levant region, which includes countries such as Jordan, Lebanon, Syria, and Palestine, exhibited a lower level of satisfaction with salary raises in 2014. Only 42% of respondents from this area reported being content with the increases they received during that year. This lower satisfaction rate can be attributed to several factors, including the economic instability and political uncertainties that have affected the Levantine countries over the past decade. For instance, ongoing conflicts, refugee influxes, and slower economic growth rates have constrained the ability of employers to offer substantial wage increases. Additionally, the Levant’s labor markets tend to be more fragmented and less influenced by the oil-driven economies that characterize the GCC, resulting in comparatively lower average salaries and more limited upward mobility for many workers. The survey’s findings underscored the disparities in economic conditions and labor market dynamics between the GCC and Levant regions, reflecting broader regional inequalities in income and employment opportunities. The Bayt.com survey also highlighted the broader context of salary trends in the Middle East and North Africa during the mid-2010s, a period marked by fluctuating oil prices and varying degrees of economic reform. While some countries within the GCC continued to benefit from relatively stable revenues that allowed for incremental wage growth, others faced pressures to contain public spending and implement austerity measures, which in turn affected private sector compensation. The Levant region, grappling with more pronounced economic challenges, experienced slower wage growth and greater dissatisfaction among employees. These dynamics were further influenced by demographic factors, such as a young and rapidly expanding workforce, which increased competition for jobs and put downward pressure on salaries in certain sectors. Overall, the 2015 Middle East and North Africa Salary Survey by Bayt.com provided valuable insights into employee perceptions of salary raises across the region, revealing a nuanced picture of satisfaction levels that varied significantly between the GCC and Levant. The higher satisfaction rate in the GCC reflected relatively stronger economic conditions and wage growth, while the lower rate in the Levant highlighted the ongoing difficulties faced by workers in less economically robust environments. These findings contributed to a deeper understanding of the complex interplay between regional economic factors, labor market conditions, and employee compensation in the Middle East and North Africa during that period.

The city of Aqaba, located at the southernmost tip of Jordan, has a population of approximately 100,000 people, with projections indicating that this number is expected to double within the next decade. This anticipated population growth reflects the city’s expanding economic opportunities and its increasing importance as a regional hub. Aqaba’s demographic trends are closely tied to its strategic geographic position and the economic developments spearheaded by the Aqaba Special Economic Zone (ASEZ), which have collectively contributed to urban growth and infrastructural expansion. Aqaba benefits from several strategic natural advantages, primarily due to its unique location on the shores of the Red Sea, nestled between the borders of Saudi Arabia to the south and Israel to the west. This positioning places Aqaba at a critical crossroads for regional trade and geopolitical interaction. Its proximity to the Suez Canal, one of the world’s most significant maritime chokepoints, further enhances its logistical appeal by providing direct and efficient access to major trade centers throughout the Middle East and Africa. This advantageous location has allowed Aqaba to serve as a vital gateway for Jordan’s import and export activities, facilitating the movement of goods to and from global markets. As Jordan’s only deep-water port town, Aqaba occupies most of the country’s limited 27 kilometers (17 miles) of coastline along the Red Sea. This exclusive access to deep-water maritime facilities distinguishes Aqaba as a critical node in Jordan’s economic infrastructure, enabling the handling of large cargo ships that cannot dock at shallower ports. The port’s capacity to accommodate significant maritime traffic has been instrumental in supporting Jordan’s trade and industrial sectors, making Aqaba an indispensable asset in the nation’s economic landscape. The establishment of the Aqaba Special Economic Zone in 2001 marked a pivotal moment in the region’s development trajectory. The ASEZ was created as a catalyst for economic growth, designed to attract foreign investment and stimulate diverse commercial activities. Covering an expansive area of 375 square kilometers, the zone was strategically delineated to encompass industrial, tourism, and commercial sectors, thereby fostering a multifaceted economic environment. The ASEZ’s regulatory framework includes a suite of incentives aimed at enhancing its attractiveness to investors, such as tax and tariff benefits, full repatriation rights for profits, and more flexible operating regulations compared to the rest of Jordan. Among the incentives offered within the ASEZ is a flat 5% tax rate on most economic activities, which represents a significant reduction compared to standard national tax rates. This low tax burden is complemented by the elimination of tariffs on imported goods, allowing companies to bring in raw materials and equipment without incurring additional costs. Furthermore, the zone imposes no currency restrictions, facilitating the free flow of capital and foreign exchange transactions. Corporate land within the ASEZ is also exempt from property taxes, reducing operational expenses for businesses that establish a physical presence in the area. These fiscal and regulatory advantages collectively create a highly competitive environment for both domestic and international enterprises. The ASEZ’s labor policies permit companies operating within its boundaries to employ up to 70% foreign workers. This policy has been somewhat controversial, given Jordan’s historical challenges with unemployment and the government’s broader efforts to prioritize job creation for its citizens. Critics argue that the high quota for foreign labor could potentially limit employment opportunities for Jordanians, while proponents contend that the policy is necessary to attract specialized skills and meet the demands of a rapidly expanding economy. This labor framework reflects the zone’s balancing act between fostering economic growth through foreign investment and addressing domestic social concerns. Jordan’s national investment profile has experienced steady growth over the years, but the ASEZ has notably surpassed initial expectations, exceeding its investment targets by 33%. This outperformance underscores the zone’s effectiveness as a model for economic development and its appeal to investors seeking opportunities in the region. By 2006, the ASEZ had attracted approximately $8 billion in investment, surpassing the original goal of $6 billion that had been projected for 2020 by a substantial margin of about $2 billion. This early achievement highlighted the zone’s rapid success and positioned it as a flagship initiative within Jordan’s broader economic strategy. Looking ahead, the ASEZ aims to attract an additional $12 billion in investment across a range of sectors, including tourism, finance, and industry. This ambitious target reflects the zone’s ongoing commitment to diversification and sustainable growth. The focus on tourism seeks to leverage Aqaba’s natural beauty and strategic location to develop hospitality and leisure industries, while investments in finance and industry aim to build a robust economic ecosystem capable of supporting long-term development. These sectoral priorities align with Jordan’s national vision of enhancing competitiveness and creating a dynamic economic environment. The success of the Aqaba Special Economic Zone served as the inspiration for the 2008 Development Law, which established a universal framework for special development zones throughout Jordan. This legislation was modeled after the ASEZ experience and sought to replicate its economic initiatives on a nationwide scale. By providing a standardized legal and regulatory foundation for similar zones, the Development Law aimed to promote regional economic development, attract investment, and stimulate job creation across the country. This framework institutionalized the principles of economic liberalization and investor-friendly policies that had proven effective in Aqaba, thereby extending their benefits to other parts of Jordan.