Latest news with #RaadMahmoudAl-Tal
Ammon
4 days ago
- Business
- Ammon
Exports now cover 49 per cent of imports – A step forward, but not enough
Raad Mahmoud Al-Tal The Department of Statistics has released the foreign trade data for the first quarter of 2025, showing a modest improvement in export performance. However, the trade balance remains significantly negative. Total exports rose by 11.6 per cent, reaching JD2.31 billion, while imports increased by 6.6 per cent to JD4.68 billion. As a result, the trade deficit widened by 2.2 per cent to JD2.37 billion compared to the same period in 2024. One of the most important indicators in external trade analysis is the export-to-import coverage ratio, which measures how much of a country's imports are financed by its exports. A ratio of over 100 per cent indicates a surplus, while a lower ratio reflects a trade deficit that must be financed externally. For Jordan, this ratio improved slightly from 47 per cent in Q1 2024 to 49 per cent in Q1 2025. In practical terms, this means exports now cover nearly half of imports. While still far from a balanced trade position, this marks a small but encouraging shift toward greater economic self-reliance. In March alone, the coverage ratio reached 53 per cent, compared to 48 per cent in March 2024. This reflects renewed momentum in key export sectors. National exports grew by 11.7 per cent, rising from JD1.87 billion to JD2.09 billion. While exports of raw phosphate and pharmaceuticals declined, these losses were offset by gains in chemical fertilizers, jewelry, and other products. Additionally, re-exports increased by 10.4 per cent, signalling more activity in trade and logistics. On the import side, the 6.6 per cent rise can be attributed to stronger domestic demand and possibly higher international prices. Notable increases were recorded in industrial machinery (29 per cent), electrical machinery (45.8 per cent), and cereals (34.1 per cent)—indicating continued investment and economic activity. On the other hand, imports of crude oil and its derivatives fell by 6.1 per cent, and vehicle imports dropped by 24.4 per cent, which helped ease the overall import bill. Export composition reflects some level of diversification, with strong performance in garments, fertilisers, potash and jewelry. These sectors are benefiting from stable international demand. However, the decline in phosphate and pharmaceutical exports suggests market or production challenges. Import patterns show a high reliance on capital goods, which could indicate productive investments, but also highlight the economy's continued dependence on external supply chains, a structural vulnerability. Despite better export performance, the overall trade deficit remains large at JD2.37 billion. This highlights Jordan's continued reliance on imports to meet domestic needs. Narrowing this gap will require deeper structural reforms, especially boosting productive sectors and expanding access to international markets. On a positive note, exports increased to several important regions, including Arab countries, North America, India and parts of Europe such as the Netherlands. This reflects some success in market diversification. However, the fact that imports from many of these same regions also grew means that trade with them still tends to be unbalanced. More targeted trade policies are needed to promote local exports and reduce non-essential imports. Improving the export-to-import ratio requires more than just short-term gains. It demands long-term reforms focused on strengthening export-oriented sectors, encouraging domestic investment, and upgrading trade infrastructure. A more competitive business environment, better logistics, and support for high-value-added industries are all essential to boosting Jordan's export capacity. While the current coverage ratio of 49 per cent marks an improvement, it remains insufficient. The medium-term goal should be to lift this ratio above 60 per cent. This is achievable if local production is supported more effectively, the export base is diversified, and dependence on imports is reduced. A more balanced trade account is not only desirable, it is necessary for sustainable economic growth and resilience.
Ammon
7 days ago
- Business
- Ammon
Economic modernization priorities in the industrial sector
Raad Mahmoud Al-Tal The recent Royal visit to three factories in Al-Muwaqqar Industrial City underscored the growing importance Jordan places on the industrial sector as a key engine of economic growth. This focus aligns with the objectives of the Economic Modernization Vision, which serves as a national roadmap for sustainable development and job creation. The visit sent a clear economic message: it represents direct support for existing investments—both local and foreign—and reflects core priorities of the vision. These include stimulating investment, boosting exports, empowering the Jordanian workforce, and increasing value-added production within supply chains. The diversity of the factories visited—ranging from food production to packaging and garment manufacturing—demonstrates the vision's goal to diversify the production base and reduce reliance on traditional sectors. Supporting such manufacturing activities contributes to higher growth rates and the expansion of export markets. Equally important is the sector's capacity to employ Jordanians. These factories currently employ over a thousand Jordanians, with high representation in both administrative and technical roles. This highlights the commitment to human capital development and increasing private-sector employment, especially outside the capital, which helps address imbalances in the labor market. A notable feature of these factories is their strong export orientation. They rely heavily on access to regional and global markets, reinforcing the vision's strategic objective of doubling industrial exports and enhancing the competitiveness of Jordanian products. This export-driven approach is essential for increasing foreign currency earnings, reducing the trade deficit, and supporting broader macroeconomic stability. The visit also reflects a clear policy direction toward promoting industrial decentralization. By encouraging investment in industrial cities beyond Amman—such as Al-Muwaqqar, which benefits from modern infrastructure and attractive incentives—the vision seeks to distribute economic activity more equitably across the country and foster more inclusive growth. Particular attention is being paid to industries that generate high value, whether through food processing, specialized packaging, or manufacturing sports apparel for export. These sectors support the development of industrial value chains, promote integration between small and large enterprises, and encourage innovation and the use of modern technologies—critical components of the vision's competitiveness pillar. The royal visit delivered a strong message of national support for the industrial sector as a key driver of economic transformation. It emphasized the need to continue improving the business environment, streamlining procedures, and expanding investment incentives. It also highlighted the importance of collaboration between the public and private sectors in implementing development projects that generate employment and contribute to social and economic stability. More than a ceremonial tour, the visit was a strategic signal that industry will remain central to Jordan's national policies. Supporting productive enterprises is essential to driving growth and achieving the broader goals of economic transformation.
Ammon
22-05-2025
- Business
- Ammon
Aqaba: A New Investment Hub and Economic Growth Driver
Raad Mahmoud Al-Tal The Jordanian government has made an important move to support investment in Aqaba. It introduced a set of new decisions to turn the city into a key part of the country's economic growth. This fits with Jordan's Economic Modernization Vision (2022–2033) and the city's development plan. The new decisions include a smart mix of support for real estate, tourism, and education. These steps aim to attract investors and retirees from Jordan and other countries, helping them settle in Aqaba for the long term. This is especially important now, as the Jordanian economy is facing slow growth and weak private investment. Aqaba can help restart the economy in areas that bring high value. In real estate, the government is offering more than just tax cuts or help with bringing in cars or furniture. It's also offering long-term residency for those who invest a certain amount. This shows a shift toward attracting serious, long-term investors rather than short-term visitors. Focusing on residential compounds helps organize housing projects and makes Aqaba more competitive in the region. The city currently has 1,100 available housing units, and 1,200 more are planned. These changes are expected to boost the quiet housing market and encourage new real estate projects. The plan also includes launching research and education projects in southern Aqaba. For example, coral farming and marine science labs will be set up. This supports the 'blue economy,' a growing sector that can attract international funding and offer long-term economic benefits. Making the southern coast a center for research and learning will give Aqaba a stronger position as a place of knowledge and innovation. It also helps create new, high-quality jobs in fields like marine engineering, environment, and science. The government also wants to attract wealthy Arab and foreign retirees by offering special benefits for owning property and providing good services. These retirees usually have strong finances and can support the local economy, including health care, services, and retail. In short, these decisions show a clear plan to attract investment using financial and legal tools, without hurting public finances. This is a realistic and smart way to support long-term growth. These incentives come at the right time. Aqaba has many advantages—its location, infrastructure, and special laws. If these plans are supported by good marketing and easy procedures, Aqaba could become a top regional center for investment, living, tourism, and research. This would help Jordan grow its economy, create jobs, and reach its future goals.
Ammon
07-05-2025
- Business
- Ammon
Building a Resilient Jordanian Economy: Progress and Priorities
Raad Mahmoud Al-Tal In a rapidly changing global landscape, building a resilient and sustainable economy has become a national priority for Jordan. The first quarter of 2025 has brought encouraging signs across several key sectors, reflecting a broader effort to put the economy on a stronger and more stable foundation. While the public understandably looks for faster improvements in daily life, such as better jobs and stable prices, economic resilience is a long-term project that requires patience, discipline, and clear direction. The latest government performance report highlights progress in multiple areas -mining, logistics, finance, and technology- that together form the backbone of a future ready economy. These aren't just sectoral achievements; they are part of a bigger picture of economic transformation grounded in local strengths and global trends. In mining, Jordan is taking serious steps to better utilize its natural resources. Early-stage work to extract phosphate in the Risha region and explore gold and copper reserves in Abu Khushaibeh reflects a strategic focus on self-reliance and added value. If managed well, these efforts can bring in new revenues, create local jobs, and reduce external vulnerabilities. The logistics sector is also improving. Infrastructure projects like the Bus Rapid Transit line between Salt and Amman and smart traffic forecasting systems are helping modernize transportation and ease urban congestion. These upgrades support trade, reduce operational costs, and make Jordan a more attractive hub for business. Financial developments are equally important. Total bank deposits reaching JD 47.3 billion suggest growing public trust in the financial system. Meanwhile, the rapid spread of digital payment tools such as "CliQ" shows how quickly the economy is adapting to modern tools. These trends expand access to finance for individuals and small businesses, enabling wider participation in economic growth. Digital transformation is another driver. With over 1,500 digital government services and 1.6 million digital IDs in use, the public sector is becoming more efficient and accessible. In parallel, partnerships with international tech companies are creating new opportunities for digital investment and innovation. These developments suggest a growing ability to respond to shocks, adapt to change, and lay the groundwork for sustainable development. Still, challenges remain—from global economic pressures to local structural issues. That's why reform must be continuous, and progress must be measured not just by numbers, but by its real impact on people's lives. The first quarter of 2025 shows that Jordan is moving in the right direction. What matters now is maintaining the momentum, ensuring effective coordination between government and the private sector, and keeping the focus on inclusive growth. Building a resilient economy is not a short race—it's a long journey that requires staying the course.
Jordan Times
03-05-2025
- Business
- Jordan Times
Key growth drivers of Jordan's economy
The government's Q1 2025 report on the Economic Modernization Vision (2023–2025) shows clear progress in four main areas that support growth: investment, quality of life, making Jordan a global destination, and sustainable resources. These areas have seen real improvements in laws, infrastructure, and easier procedures. This is supported by data and completed projects. The government is now clearly working within the framework of the Economic Modernization Vision, which is Jordan's roadmap for achieving sustainable growth by focusing on key parts of the economy. In 2024, macroeconomic indicators showed stability. The economy grew by 2.5 per cent and inflation stayed low at 2.21 per cent. GDP per person reached 3,228 dinars. The budget deficit after aid remained low at 0.7 per cent of GDP. Foreign currency reserves were $22 billion in March 2025, enough to cover 8.5 months of imports. Foreign direct investment reached 1,122 million dinars. Imports totaled 1,623 million dinars, while exports were 703 million dinars. Attracting investment is a key government goal. More than 5,200 companies have registered on the investment services platform since 2023. This shows that the business environment is improving. The government is working to bring in more foreign investment and improve public services using tools like Salesforce. This helps attract investors in key sectors such as mining, chemicals, and logistics. Industry is also an important growth driver. It fits under the 'high-value industries' part of the modernization plan. In 2024, manufacturing exports reached 6.827 billion dinars. The sector adds strong value to the economy and continues to grow. The government has given financial incentives to 94 industrial companies and launched support programs for small and medium industries. This helps local companies grow and compete globally. Agriculture and food security are also key for Jordan's economy. Despite tough natural conditions, the country maintains strong reserves: 10.4 months of wheat and 8.4 months of barley. This supports stable food security. The sector is improving with projects like the National Seed Bank and planting one million trees. Loans worth 1.3 million dinars were given for land use and farming. Another 6.9 million dinars went to support livestock, helping meet local food needs. Even with regional challenges, the Economic Modernization Vision is Jordan's roadmap for balancing growth and sustainability. The steps taken in investment, industry, and agriculture are moving in the right direction. With strong strategies in place, these efforts are expected to bring steady improvements to Jordan's economy in both the short and long term. Raad Mahmoud Al-Tal is head of Economics Department – University of Jordan, [email protected]
