Natural resources are commonly recognized as a nation's prime
asset, boosting countries in international trade. Furthermore, natural
resources and ecosystem services provide the foundation for manufactured
capital, increasing public financing and decreasing inequality by diversifying
the economy. The exploitation of natural resources is frequently seen as the
backbone of economic stability in developing and middle-income nations.
اضافة اعلان
According to the World Bank, Jordan’s industrial sectors
contributed 30 percent of GDP and employed around 268,000 in 2022. Within this
division comes the mineral resources sector, which makes up a significant
portion of Jordan's economy and has been a pillar of the country's economic
growth, contributing around 9 percent of the Kingdom's GDP in 2022.
The Economic Modernization Vision (EMV) has paid significant
attention to industrial sectors, setting a goal to attract some JD11.5 billion in
investments in high-value industries and create some 314,000 jobs by the end of
2033. These goals require strong efforts to anchor the Kingdom's socio-economic
development through forging ties between domestic public and private
stakeholders.
However, natural resources are not the only elements — or the
only resources — that contribute to development. Jordan offers investment
opportunities in all economic sectors, including in human capital, a vital
force driving economic globalization and improving standards of living. The EMV
recognizes that, in the case of Jordan, transforming resource shortage into resource
abundance and realizing the positive effects of globalization are only
achievable through high-quality human capital, in addition to exploiting
available resources and industry.
Transforming resource shortage into resource abundance and realizing the positive effects of globalization are only achievable through high-quality human capital
Thus, cross-industry development initiatives will focus on six
dimensions within the strategy: Human Resources, Technology, Business
Development, Capital and Finance, Contracting and Tendering, and Legislation
and Process Improvement.
Leveraging ICV initiatives
Jordanian industry should urge investors to embrace In-Country
Value (ICV) initiatives to explore which domestic resources to leverage to optimally
accelerate the national economy. Local companies are developing innovative
entrepreneurial concepts that add value to the national economy of Jordan. Soon,
every customer will likely begin looking for made-in-Jordan goods and services.
Beyond this, SMEs are considered the backbone of any nation, and
ICV initiatives will help to develop Jordan's SME sector, increase its
contribution to the gross domestic product, create an attractive business
environment for local and foreign industrial investments, and stimulate
innovation and the adoption of advanced technology. This will allow the
utilization of local resources such as local suppliers, local community
contractors (LCC), and local subcontractors wherever practically possible, while
benchmarking them to global standards.
Initiatives range from the development of raw materials,
assembly, and manufacturing to fabrication, maintenance, and repair, with
emphasis placed first and foremost on supporting the development of SMEs,
followed by the creation of joint ventures.
National priorities
The Kingdom needs to develop an advanced set of laws and
regulations that align with national investment directives, including
well-established legislative structures that encourage foreign investment to
create new international economic partnerships, significant investments in
critical industries, and policies to promote Jordanian entrepreneurship and
labor force participation.
Furthermore, Jordan should prioritize digital transformation and
launch innovative policies to attract new investments, especially in artificial
intelligence, the internet of things, financial technology, e-commerce, and
information and communications technology. This transformation will present
many unique investment opportunities for investors.
ICV: The regional and global reality
The ICV programs within the Middle East region will
significantly impact any sizable entity's investment, procurement, talent
development, and structuring policy. International and regional businesses will
need to define cohesive strategies to remain sustainably competitive. The
implementation of these strategies takes time.
Local companies are developing innovative entrepreneurial concepts that add value to the national economy of Jordan. Soon, every customer will likely begin looking for made-in-Jordan goods and services.
Countries worldwide are redoubling their efforts to promote
public and private investment in sustainable development. It is critical that
investment promotion strategies focus on attracting sustainable investment that
can contribute to economic growth by enhancing productive capacities, adding
value locally, and establishing linkages with domestic firms. Investments
should bring genuinely equitable, resilient, and inclusive development for all.
Hamzeh S. Al-Alayani is a board member of a Jordanian public-sector government investments
management company and a regular regional energy and industrial commentator. Alayani
holds an MBA from the University of Aberdeen, UK, and a BSc in Mechanical
Engineering.
Read more Opinion and Analysis
Jordan News
.jpg)
.jpg)
