Latest news with #EconomicModernizationVision
Ammon
a day ago
- Business
- Ammon
Jordan between two deficits and ambition: When will self-reliance be achieved?
In a small and open economy like Jordan's, self-reliance is no longer a distant national aspiration—it has become an urgent strategic necessity for ensuring stability and safeguarding economic sovereignty. Yet, the latest financial indicators highlight the magnitude of the challenge ahead. By March 2025, public debt had reached 35 billion dinars, equivalent to 91.5% of GDP, excluding the debts of the Social Security Investment Fund. The fiscal deficit, meanwhile, stood at 2.26 billion dinars, or 7.6% of GDP. Together, these figures reveal a persistent and structural gap between what the economy produces and what it spends. Although domestic revenues rose by 7% thanks to recent tax reforms, Jordan still relies on foreign grants and aid amounting to roughly 900 million dinars annually. Dependence on external funding to cover current expenditures leaves the economy vulnerable to shifts in regional politics and the volatility of donor commitments. A more sustainable approach could include debt-for-development swaps—redirecting debt obligations toward financing productive national projects. This method, successfully implemented in other countries, can both reduce debt levels and stimulate economic activity. The trade deficit tells a similar story of structural imbalance. In 2024, it reached 9.68 billion dinars, reflecting more than just a statistical gap—it is evidence of limited domestic production capacity. Imports totaled almost 17 billion dinars, while exports amounted to 9.43 billion dinars. This gap underscores the urgent need for effective import substitution policies—expanding domestic production of goods that currently come from abroad. Such strategies would help narrow the deficit, strengthen economic resilience, and reduce exposure to external shocks. Against this backdrop, the Economic Modernization Vision stands out as a comprehensive framework for addressing these challenges. It outlines clear targets for boosting exports, expanding industrial capacity, and diversifying production. However, the Vision's success will depend on translating its goals into concrete initiatives directly tied to reducing both fiscal and trade deficits, and on accelerating investment in productive sectors rather than focusing predominantly on infrastructure or traditional services. The energy sector illustrates both progress and untapped potential. Renewable sources now contribute 27% of electricity generation, yet the annual energy import bill still exceeds 4 billion dinars. Morocco's experience—rapidly cutting its import dependence through large-scale solar and wind projects—demonstrates what is achievable with strong political will, targeted investment, and streamlined regulation. Jordan's Vision rightly seeks to follow a similar path, but faster execution will be essential. Mining offers another pathway to greater self-reliance. A significant share of Jordan's phosphate and potash exports is still sold in raw form, limiting revenue potential. Companies like Arab Potash and Jordan Phosphate Mines have begun investing in downstream industries to increase value-added, yet these efforts must be scaled up. Morocco and Chile provide valuable examples of how deeper processing can double export revenues, create high-quality jobs, and expand industrial capacity. Agriculture and the food industries remain underexploited opportunities. Rwanda's success in increasing agricultural productivity by over 40% within a decade—through modern technology, farmer training, and efficient supply chains—shows what targeted reforms can achieve. Adopting similar strategies in Jordan could help close the food gap, reduce agricultural imports, and strengthen rural economies. If Jordan can align its policies, investments, and private-sector partnerships under a clear and measurable action program, the path toward self-reliance could be achieved within seven to ten years. This requires turning the Economic Modernization Vision from a policy document into a results-driven daily work plan—prioritizing domestic production, systematically reducing both deficits, and building strategic economic resilience. Only through such commitment can Jordan protect its decision-making autonomy, shield itself from external shocks, and secure sustainable, inclusive growth.
Ammon
3 days ago
- Business
- Ammon
Capital spending in Jordan: Can it drive the Economic Modernization Vision?
Raad Mahmoud Al-Tal Capital spending plays a pivotal role in fostering economic growth and realizing national development strategies. In Jordan, however, recent analysis by the Jordan Economic Forum reveals a widening gap between the ambitions of the Economic Modernization Vision and the reality of how capital expenditures are planned and allocated. This disconnect raises critical concerns about the government's ability to steer the economy toward a productive and sustainable path. According to the policy paper, Jordan's capital expenditures have remained largely stagnant over recent years, fluctuating between JD 1.1 billion and JD 1.5 billion. While spending peaked in 2022 at JD 1.512 billion, it declined to JD 1.468 billion in the 2025 draft budget. This inconsistent trend highlights the absence of a medium- or long-term public investment strategy, undermining the stability and continuity required for effective development planning. Without a strong institutional framework to guide investment and evaluate outcomes, major projects risk delay or inefficiency. When viewed in a global context, Jordan's capital spending is modest. Over the past decade, capital expenditure as a share of GDP has ranged between 2.7 per cent and 4.6 per cent—significantly below the 5 per cent to 7 per cent range typical for developing countries. This underinvestment limits the state's ability to stimulate growth, create jobs, and reduce regional disparities. Instead, the economy remains dependent on current expenditures and consumption-led growth—an approach that falls short of the modernization vision's aspirations. The structure of Jordan's capital spending also reveals significant imbalances. A large share of funds is directed toward economic affairs, infrastructure, and general public services. Meanwhile, some essential sectors such as environmental sustainability and social protection receive less than 2.5 per cent of total capital expenditures in the 2025 budget. These sectors are key to inclusive and resilient development, and their marginalization signals a continuation of outdated spending priorities. This misalignment is particularly evident in the lack of funding for projects related to innovation, entrepreneurship, and sustainable resources—core elements of the modernization agenda. Approximately 19.2 per cent of capital expenditures are allocated to sectors that are not directly connected to the vision's strategic priorities. Geographic distribution of spending presents another major challenge. Around 90 per cent of capital expenditures are allocated to central government projects, leaving just 9.2 per cent for governorates. Such centralization exacerbates regional disparities, limits local development opportunities, and reduces the responsiveness of public investment to community needs. To address these challenges, the policy paper offers a series of important recommendations. These include developing a medium-term strategic framework for capital spending, gradually increasing capital expenditure to 6 per cent of GDP by 2030, and realigning spending priorities with the modernization vision. It also proposes the creation of an independent investment fund for strategic projects, expanding the role of the private sector and international financing in development, and increasing the governorates' share of capital spending to at least 25 per cent. If implemented effectively, these reforms could enhance the efficiency, equity, and impact of public investment—providing the Economic Modernization Vision with the financial tools it needs to succeed. However, achieving this will require more than technical adjustments. It calls for a strong institutional commitment to rethinking how public funds are allocated, and ensuring that investment decisions are guided by long-term national priorities rather than short-term constraints. Ultimately, the issue is not simply the amount of capital spending, but how it is allocated, implemented, and monitored. Without structural reform in the management of public investment and stronger partnerships with the private sector, the gap between ambition and reality will persist. Without such reforms, the promise of modernization risks remaining unfulfilled.
Jordan News
4 days ago
- Business
- Jordan News
Jordan signs legal status agreement to host Global Green Growth Institute (GGGI) office - Jordan News
Minister of Planning and International Cooperation Zeina Toukan on Wednesday signed a legal status agreement of the Global Green Growth Institute (GGGI), on behalf of the Jordanian government, with the institute's Jordan Country Representative Christophe Assicot. اضافة اعلان The signing allows for hosting an official office of the Institute in the Kingdom, providing sustainable technical and institutional support to the government and relevant national authorities, the ministry said in a statement. It contributes to developing policies and plans that align with environmental and economic priorities and enhances Jordan's ability to access green finance through the preparation of qualified and well-studied projects, it added. The agreement is particularly important in preparing and implementing the National Green Growth Plan and related sectoral action plans, at a time the transition to a green economy is a development priority and strategic necessity within Jordan's modernization path, it said. Hosting the GGGI office is expected to contribute to attracting green investments to vital sectors, such as sustainable transport, renewable energy, and climate-smart agriculture, thus enhancing economic growth in line with the Economic Modernization Vision, the statement pointed out. The agreement also supports coordination efforts between government agencies and building the capacity of national cadres through training and knowledge transfer, in addition to contributing to the implementation of international commitments, most notably the Paris Climate Agreement, it said. Jordan joined the institute in 2014, and cooperation between the two parties has witnessed remarkable development, including drawing up the National Green Growth Plan and Action Plans for the period 2021–2025, including projects for electric public transportation, electric vehicle charging infrastructure, and facilitating access to climate finance. The GGGI is an intergovernmental organization established in 2010 and transformed into an international treaty-based organization in 2012 during the Rio+20 Earth Summit. Headquartered in Seoul, South Korea, the Institute has more than 50 member countries until 2024. It works to assist developing countries and emerging economies in transitioning to a green growth model that balances economic development, environmental sustainability through providing technical support, designing and implementing green projects, mobilizing investments, and building institutional capacity.
Roya News
4 days ago
- Business
- Roya News
Jordan's Prime Minister Hassan holds farewell meetings ahead of major cabinet reshuffle
In a step preceding the official announcement of a new government lineup, Jordanian Prime Minister Dr. Jafar Hassan held individual farewell meetings on Wednesday morning with ministers affected by the first cabinet reshuffle of his administration. According to a government source who spoke to Roya, Hassan thanked the outgoing ministers for their service and stressed the importance of a smooth handover to ensure continuity in ongoing projects and reform plans. The reshuffle, described as wide-ranging, impacts roughly one-third of the ministerial team and half of the 'modernization team,' marking the first major shake-up since Hassan's government was formed on September 18 of last year. The changes are seen as an effort to inject fresh energy and new competencies into the cabinet, particularly as the government prepares to launch the second phase of the executive program for Jordan's Economic Modernization Vision (EMV). 'The main goal of this reshuffle is to bring in new capabilities to the ministerial team that build on past achievements and match the pace required for implementing modernization projects,' the source said. The new ministers are expected to be sworn in before His Majesty King Abdullah II later on Wednesday. Following the oath, the newly restructured cabinet will convene for its first session. According to officials, the reshuffle focuses heavily on the economic team, with half of its members expected to be replaced in an effort to accelerate economic reforms, attract investment, and enhance the legislative environment for business.
Jordan News
4 days ago
- Business
- Jordan News
"Innovation Village" Launched to Showcase National Talent, Advance Knowledge Economy - Jordan News
"Innovation Village" A major national initiative aimed at advancing entrepreneurship, innovation, and economic modernization was launched on Tuesday with the inauguration of the "Jordanian Innovation Village" Conference and Exhibition, held at the Jordan International Exhibition Center in Amman. اضافة اعلان The event was officially opened by Samira Al-Zoubi, Secretary-General of the Ministry of Digital Economy and Entrepreneurship, who emphasized the government's ongoing commitment to empowering youth-led innovation, expanding access to funding opportunities, and strengthening the ecosystem for entrepreneurial development. Organized by the Academia-Industry Integration Platform (JAIP), in collaboration with the Association of Retired Military Engineers and the Jordanian Association for Scientific Research, Entrepreneurship, and Creativity, and supported by Al-Rawae International for Exhibitions and Conferences, the two-day event runs in parallel with the 18th International Jordan Build Exhibition, which focuses on construction technology, engineering industries, and energy. Designed as a national platform, the Innovation Village seeks to bridge the gap between academia, entrepreneurship, and industry. Its objectives include marketing high-potential startup projects, fostering synergy between innovation and production sectors, and enhancing cooperation between public and private institutions. The initiative also aligns with the broader Economic Modernization Vision, which positions innovation and entrepreneurship as foundational pillars of Jordan's future economy. Mohammad Al-Rifa'i, President of the Association of Retired Military Engineers, described the initiative as a reflection of Jordan's strategic pivot toward a knowledge-based economy, driven by creativity and scientific advancement. Rida Khawaldeh, President of the Jordanian Association for Scientific Research, Entrepreneurship, and Creativity, noted that the event is part of a national response to His Majesty King Abdullah II's vision of an innovation-led economy, and supports Crown Prince Hussein's directive to empower youth and establish Jordan as a regional center for entrepreneurship. He added that the Innovation Village represents more than an exhibition space it serves as a national platform for connecting innovators, entrepreneurs, and institutional partners. Of 120 submitted startup projects, 20 standout ventures were selected based on rigorous criteria that measured innovation, feasibility, sustainability, and alignment with modernization priorities. The exhibition also includes four dedicated innovation showcases hosted by the University of Jordan's Center for Innovation and Entrepreneurship, the Center of Excellence for Creative Projects at Jordan University of Science and Technology, the Innovation and Development Center at the Public Security Directorate, and the Jordan Design and Development Bureau (JODDB). Khawaldeh further highlighted the association's work since its founding in 1999 to institutionalize a culture of scientific research across Jordanian society. Speaking at the event, Khaled Khreisat, Chair of the Conference and Founder of the organizing platform, praised the initiative as a replicable model for national entrepreneurship promotion. He pointed to Jordan's strong international performance in early-stage entrepreneurship, ranking second globally in the latest Global Entrepreneurship Monitor report, alongside a noticeable rise in participation among women and youth aged 18–34 in launching startups. During the opening ceremony, Minister of Digital Economy and Entrepreneurship Sami Samirat toured the exhibition and engaged with the selected entrepreneurial teams, highlighting the government's interest in scalable, innovation-driven ventures that align with Jordan's long-term development objectives. The conference and exhibition are open to the public free of charge for two days, offering a space for knowledge-sharing, networking, and showcasing Jordan's emerging generation of innovators and startup founders. (Petra)
