AMMAN — Jordan’s
Economic Modernization Vision envisages ways to simplify customs, taxes and shipping regulations for trade
and retail business, according to the Jordan News Agency, Petra.
اضافة اعلان
The vision was
launched by
His Majesty King Abdullah on June 6, is set to be implemented in
three phases over 10 years. It focuses on the trade sector as a top national
priority, in light of its “high” contribution to the GDP, which last year hit
7.9 percent with a value of JD2.4 billion, according to official estimates.
Last year’s
estimates showed that the trade sector employs 265,000 workers, making up 16.6
percent of the Kingdom’s workforce. Its exports in 2021, however, amounted to
JD300 million, representing 3.3 percent of the Kingdom’s total exports.
Petra said the
proposed regulations was prompted by the trade sector’s lack of e-trade
legislation, since it relies to a “large” extent on imports, and suffers from
“ineffective” customs, shipping, and taxes laws, in addition to difficulties in
obtaining funding and unfair competition.
The vision,
which was the outcome of panel discussions for three months, drew attention to
the direct economic impact that will be reflected on the trade sector after its
implementation. Its contribution to the GDP will increase from JD2.4 billion to
JD3.8 billion in 2033, Petra said.
The number of
the sector’s workers are expected to reach nearly 400,000, while exports will
increase to JD1.5 billion in 2033.
The vision also
suggested developing consumer protection legislation, modernizing the port of
Aqaba and its warehousing infrastructure, providing support for trade funding,
expanding trade partnerships, free trade agreements, and creating a database of
traded goods and services.
Al-Ghad News
said the Economic Modernization Vision envisions a campaign to spread awareness
about the financial culture, and lending to micro, small and medium
enterprises.
It said the
vision suggested creating a pre-approved list of donors and lenders to small
finance companies, developing the regulatory framework for financial leasing
companies, and legislation and regulations, which could meet the needs of the
fast growing financial technology sector.
The vision is
also keen on developing the capital market, speeding up the digital
transformation, establishing a local reinsurance company and restructuring the
insurance sector, developing a roadmap for the financial sector’s development
and detailed strategies for sub-sectors.
It also
addressed the strategic capabilities, market priorities and financial services,
especially the continuing to develop the sector since it is the basis that
enhances the economic growth and improves access to finance.
It pointed to
the sectors’ potentials and priorities, which fall under the market and
financial services sector, such as banking through continuous development.
The financial
leasing sector must also be developed to become a comprehensive source in
micro-enterprises, small and medium establishments, according to the vision.
Likewise, the
sector also prioritizes advancing the microfinance to encourage social and
economic growth, and to work on developing capital markets to contribute to
investment and financing, so that Jordan becomes a leading regional center and
investment destination for financial technologies.
The vision
forecast that the direct economic impact that will be reflected on the market
and financial services sector during the implementation of the vision, will see
GDP jump from 2.3 percent in 2021 to 4.6 percent in 2033.
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