6 days ago
Jordan's economic readiness test
Raad Mahmoud Al-Tal Masarat Forum for Development recently held an important seminar called "Repercussion of the Conflict: The Economic Impacts of the Israeli-Iranian War on Jordan." After the seminar, a paper was released to explain the main points. It talked about the recent fighting between Israel and Iran and how it impacts the whole region, including Jordan. The paper showed that Jordan's economy faces many challenges in important areas like tourism, food security, energy, and air travel. It said Jordan needs to move from just reacting to problems to planning ahead with a strong, long-term strategy to make the economy more stable and able to handle shocks.
In tourism, the war caused immediate but quiet damage. Many tourists canceled their trips during the busiest time of the year. This showed that Jordan lacks a strong plan to market itself as a safe and attractive place to visit, especially compared to its unstable neighbors. Although Jordan is relatively stable, this message has not been shared well with tourists, especially from Western countries that worry a lot about conflicts. Also, Jordan depends too much on a small number of tourist markets and has not worked enough to attract visitors from places like China or Central Asia.
Regarding food security, the paper praised Jordan's private businesses for doing a good job providing essential goods. Since the government stepped back from managing food stocks in the late 1990s, private companies have been flexible in finding new supply routes and avoiding shortages. But the crisis showed problems with how information is shared. Different and unclear messages from officials caused unnecessary worry among people, even though there was enough food. The paper suggested creating one trusted source for real time information to keep people calm during crises.
Air travel is very important for Jordan because the country has few land and sea connections. The paper described Jordan's airspace as a 'strategic space' that keeps the country connected to the world. The recent conflict showed how fragile air travel is in the region but also proved that Jordan's airlines grew even during difficult times. Still, the situation showed that Jordan needs a strong national airline it can depend on when foreign airlines stop flying. This raises questions about how the government should support the aviation sector without causing money problems or creating monopolies.
In energy, the 2011 cut in Egyptian gas was a big turning point for Jordan. It led to important investments like a gas terminal in Aqaba, more use of renewable energy and oil shale, and new partnerships with neighbors for electricity. However, recent threats to close key shipping routes like the Strait of Hormuz and Bab al-Mandeb show that Jordan's energy safety still depends on outside events. The paper recommends speeding up projects like the Aqaba storage facility (to open in 2026), increasing local energy production, and investing more in green hydrogen. The goal is to make energy a strong, strategic part of Jordan's future.
The paper called for urgent national tasks that have been delayed. These include building one unified economic database for all official information and creating incentives to bring parts of production back to Jordan, while still staying open to global trade. The main message is clear: Jordan can no longer manage crises by reacting only after they happen. What Jordan needs now is a smart, forward thinking plan, and a kind of 'economic engineering' that protects the country's independence and helps its economy stay strong and flexible despite ongoing challenges in the region.
