int@j: Tax Incentives Have Contributed to a 10.7% Growth in IT and ITES Revenue for 2018
ICT & ITES Growth rate sits at 4.5% over 2017
$2.2 billion in ICT & ITES revenues in 2018
Int@j: Tax incentives contributed to a 19% rise in domestic IT & ITES revenue growth
60.5% of Jordan’s IT exports to Gulf countries and Iraq
Export revenue growth is down 2.2% due to regional instability
Investment in telecommunications sector down by 9.5%
No significant increase in number of ICT employees compared to 2017
The Information and Communications Technology Association of Jordan-Int@j announced that, according to a recently completed survey of ICT companies operating in the Kingdom, ICT sector revenues reached $ 2.2 billion at the end of 2018, a growth of about 4.5% over 2017.
According to the Int@j survey, revenues consisted of over $1.42 billion for the telecommunications sector (a growth of 1.5%) and $750 million for IT & ITES (a growth of 10.7%), which is primarily attributed to tax incentives approved in 2016.
Int@j’s findings were based on data collected from companies working in the sector and the Telecommunications Regulatory Commission (TRC), which indicated that Jordan will remain as one of the ICT regional leaders.
The survey aims to provide clear and accurate references on ICT sector in Jordan to provide accurate data information that contributes to the development of plans and mechanisms that accelerate growth, development, the adoption of new technologies, research, and capacity-building.
Int@j said that Jordan’s IT & ITES sector is active in infrastructure, the development and sale of IP-based software licenses, IT and telecommunications equipment,installation of telecommunications equipment and the business process outsourcing.
It added that employees in the ICT sector, according to the survey, consists of 17,698 males and females, without any increase significantly from 2017, pointing out the increase in employee productivity amid steady employment rates increased revenue; it hoped that increased sector profitability would be reflected in increased job rates, especially with the sector witnessing an improved gender balance, with a 3% increase in opportunities for females from 2017 (males occupy 67% of jobs, with females another 33%).
IT export revenues reached $262 million in 2018, with the GCC and Iraq accounting for 60.55% of total sector exports. Domestic revenues amounted to $487 million; this means that 65% of total revenue comes from the local economy, and 35% is dependent on foreign markets.
According to the survey, with domestic IT revenues growing by 19% last year, export revenue growth declined by 2.2%, which is attributable to regional instability and a demand on all relevant parties to focus on the sector’s share of export revenues in coming years.