Jordan ICT Sector

Jordan is a developing country with highly educated human resources; it is improving in some fields where there is a fast development in education, computerization, e-government, in addition to a rapid spread of knowledge centers in remote areas, and the establishment of a legal environment sustaining this progress.

The Information and Communications Technology (ICT) field is an area that is seen as an opportunity in which Jordan can increase its competitive advantage over other countries in the region, consequently Jordan have taken very serious steps in order to launch its major ICT initiatives aiming at developing the ICT sector.

Accordingly, in response to a challenge put forward by his Majesty King Abdullah II in 1999, the efforts were directed at devising a comprehensive framework for Jordan's ICT sector, which resulted in the REACH initiative. REACH (1999–2004) is Jordan's national blueprint for nurturing a vibrant, export-oriented, and internationally competitive ICT sector. The strategy involved developing a regulatory framework, providing an enabling infrastructural environment, and offering advancement programs, Human Resource development and capital and finance. In 2007, the National ICT Strategy (2007-2011) was created which comes as a continuation of the REACH initiative and encompasses a number of revised policies and directions that are aimed at taking advantage of new markets, enhancing business maturity, investing in research & development, capitalizing on regional demand, cultivating foreign investment, and improving the ICT labor market.

The Strategy defines three high-level strategic objectives to be achieved by 2011, which involve increasing internet penetration in the Kingdom from the current 11% to 50%, raising the number of workers in the ICT industry from 16,000 to 35,000, and increasing the ICT sector's revenue to reach a value of $3 billion. The Strategy also focuses on eliminating regulatory challenges to business and advocating the interest of ICT companies to ensure continued sector growth.

The cumulative effect of these policies has positioned Jordan as one of the region's most open economies to trade and foreign participation, and taxation has become relatively liberal. The government has shown further support for the ICT industry by easing investment requirements, enhancing ICT education, and passing legislation to protect intellectual property rights. As a result, annual sector growth has risen to an estimated 50% over the past few years, its generated income representing approximately 12% of the country's GDP. Jordan's determination to establish itself as the region's ICT hub has pushed it to create a flourishing, supportive business environment, making it an ideal destination for investors.

Jordan’s ICT sector enjoys a fully liberalized market whose recent boom has become an increasingly important economic stability factor for the country. In general, Jordan’s economic growth has been positively steady due to some insightful initiatives undertaken by the government and the private sector. Jordan is in the middle of a reform process in its education scheme, the general direction being a more ICT-friendly and technology aware population, in order to be able to put its strong human capital into good use for the future. Peer pressure from neighboring countries through competition for FDI have had a positive impact in the governmental resolution for propelling the ICT sector and Jordan is in the position to have a clear and detailed ICT strategy that outlines the main actions that need to be undertaken, until 2011 in order to achieve e-competitiveness.

 
2003
2004
2005
2006
2007
Export Revenue (USD)
69,728,000
79,410,743
162,619,518
191,520,379
196,907,691
Growth %
74.16%
13.89%
105%
17.80%
2.81%
% of Total Revenues
24%
18%
28%
25.00%
22.30%
Domestic Revenue (USD)
226,183,000
361,103,905
418,254,125
578,554,212
686,063,063
Growth %
20.02%
59.65%
15.80%
38.33%
18.58%
% of Total Revenues
76%
82%
72%
75.00%
77.70%
Total Revenue (USD)
295,910,000
440,514,648
580,873,643
770,074,591
882,970,754
Growth %
29.51%
48.87%
31.86%
32.57%
14.66%
FDI Yearly
11,594,500
2,900,000
10,524,761
13,569,656
3,070,791
FDI (Cumulative) (USD)
79,600,000
82,500,000
93,024,761
106,594,417
109,665,208
Employment
8,117
8,523
10,032
10,712
11,034
Growth %
1.46%
5.00%
17.70%
6.78%
3.00%
              View related figures
              View latest industry statistics

 

©2010 Developed by dot.jo. All rights reserved