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Country watch: Jordan
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Date:
05.01.2004
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Categories: country
information, competition, Jordan |
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Table of Contents
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General Information
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IT sector ::
Important Links
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General Information
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Location:
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Jordan is located in the heart of the Middle East,
Northwest of Saudi Arabia, south of Syria, Southwest
of Iraq, and east of Israel and the Occupied West
Bank. Jordan has access to the Red Sea via the port
city of Aqaba, located at the northern end of the
Gulf of Aqaba.
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Population:
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5.16
million
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Area:
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Total:
89,213 sq. km (34, 445 sq. miles) Land: 88,884 sq.
km (34, 318 sq. miles)
Water:
329 sq. km (127 sq. miles)
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Capital:
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Amman (1.9 million / 38% of total population)
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Currency:
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Jordanian
Dinar, The rate of exchange is 1 JD = 1.42 US $.
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Languages:
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Arabic is the official language, but English is widely
spoken
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Time:
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GMT + 2 (in winter, +3 in summer), or 7 hours ahead
of US Eastern Standard Time. Summer time is from April
through September.
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Climate and geography:
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Jordan has a combination of Mediterranean and arid
desert climates, with Mediterranean climates prevailing
in the north and west of the country, while the majority
of the country is desert. Generally, the country has
warm, dry summers and mild, wet winters, with annual
average temperatures ranging from 12 to 25 C (54 to
77 F) and summertime highs reaching the 40s (105-115
F) in the desert regions. Rainfall averages vary from
50mm (1.97 inches) annually in the desert to as much
as 800 mm (31.5 inches) in the northern hills, some
of which falls as snow.
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Government:
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The Hashemite Kingdom of Jordan is a constitutional
monarchy with representative government. The reigning
monarch,
His Majesty King Abdullah II, is the Head of State,
the Chief Executive and the Commander-in-Chief of
the Armed forces. The king exercises his executive
authority through the Prime Minister and the Council
of Ministers, or Cabinet. The cabinet is responsible
before the elected House of Deputies which, along
with the House of Notables (Senate), constitutes the
legislative branch of the government. The judicial
branch is an independent branch of the government.
Since 1989, all elements of the Jordanian political
spectrum have embarked together on a road to greater
democracy, liberalization and consensus building.
These reforms, which were guided by the late King
Hussein, have placed Jordan on an irreversible road
to democratization. The result has been greater empowerment
and involvement of everyday citizens in Jordan's civic
life, contributing to increased stability and institutionalization
which will benefit the country far into the future.
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Economy:
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Since
His Majesty King Abdullah II assumed the throne in
1999, Jordan has embarked on some broad economic reforms
in a long-term effort to improve living standards.
The Jordanian government has worked closely with the
IMF, practiced careful monetary policy, and made significant
progress with privatization. The government also has
liberalized the trade regime sufficiently in order
to guarantee Jordan's membership in the Word Trade
Organization (2000), an association agreement with
the European Union (2000), and a
Free Trade Agreement with the United States (2000).
Jordan has also signed a
Bilateral Investment Treaty with the United States.
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Labor force:
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1.26
million
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GDP:
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purchasing
power parity - $22.8 billion (2002 est.)
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GDP growth:
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3.5%
(2002 est.)
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Main exports:
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: Phosphates,
potash, fertilizers, chemicals & pharmaceuticals
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Main imports:
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Crude
oil, wheat, sugar, meat, machinery, transport equipment
& spare parts
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The IT sector in Jordan
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The Information Technology Association – Jordan (int@j)
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Mission
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The
mission of int@j (the Information Technology Association
of Jordan), a voluntary non-profit, private organization
is to effectively represent, promote, and advance
the Jordanian software and IT services industry in
the global market.
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Objectives
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The new IT Association is the focal point for all
Jordanian IT industry-related activities. The Association
is open to all value added IT related, software development
and support enterprises. It proposes to fulfill its
mission through the following objectives:
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Advocate industry issues - represent
IT industry interests and lobby with government
and international groups; propose national
initiatives and conduct public relations
efforts.
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Promote industry investment opportunities
in Jordan - promote Venture Capital (VC)
and Initial Public Offerings (IPOs); form
relationships with local export-oriented
groups; represent the industry at conferences
and trade shows; set up databases and publicize
membership through websites, newsletters,
hyperlinks, promotional materials and advertising.
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Provide industry research and market
information- conduct market studies; disseminate
local, regional and international opportunities;
provide market trends.
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Effect standardization, certification
and quality control in the IT industry -promote
certification bodies and their value addition;
enforce an IT industry code of ethics; standardize
employment contracts and benefit packages.
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Support human resource development
- work with educational institutions to focus
on critical skills; strengthen ties with
local universities and collaborate with overseas
universities; and initiate industry programs
to benefit university students.
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Advance industry intellectual property
rights - certify IPR compliance; update members
in IPR law changes; and work towards local
IPR regulations conducive to IT industry
growth.
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Form international IT industry alliances
- actively seek alliances with global players;
develop and attract venture capital funds;
and disseminate success stories.
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Manage industry stakeholder relations
and resolve industry conflicts - build and
reinforce bridges among association Members;
and between association Members and government,
media, universities, NGOs and donors.
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Why Jordan?
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The
Hashemite Kingdom of Jordan is an Arab country uniquely
situated at the crossroads of the three continents:
Asia, Africa and Europe. Connecting East to West,
Jordan has been a key trading post in the Middle East
for centuries. Nowadays, it blends a rich culture
and heritage along with being the fastest growing
and most modern amongst all countries of the region.
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The
Jordan ICT Forum. On the right His
Majesty King Abdullah II. Source:
INTAJ |
Under the leadership and
guidance of His Majesty King Abdullah II,
Jordan is well on the way to becoming the hub
of information technology in the region. It
has adopted the overall goals of developing an
intellectually competitive ICT industry, one
that attracts both foreign and local
investments, generates high value jobs and
produces substantial levels of export.What Jordan lacks in natural resources, it
makes up for in its strong leadership,
internal stability, educated technical human
resources, open-minded and enthusiastic
private sector and an overall good
infrastructure, all of which give Jordan a
more competitive edge.
Today, Jordan is
positioned among the more attractive
investment sites in the Middle East.
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According to a study by the Stanford
Research Institute, 'Jordan's overall score in the
commercial policy matrix is 77%, the highest in the
Region, which represents an attractive and "Business
Friendly" policy environment.
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REACH Initiative
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REACH
is a national strategy for Jordan to develop a vibrant,
export-oriented ICT services sector; paving the way
for Jordan to become a regional leader and internationally
recognized exporter of ICT products and services.
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This
comprehensive framework embraces actions in:
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Regulatory Framework
Enabling Environment (Infrastructure)
Advancement Programs
Capital & Finance
Human Resource Development
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for
the purpose of developing an internationally competitive
ICT industry in Jordan, one that can successfully
attract foreign and local investments, generate high
value jobs and produce substantial levels of exports.
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The
strategy is to be led by the private sector, in partnership
with the Government, for the ultimate purpose of positioning
Jordan favorably within the knowledge-based economy
of the future. It focuses on the software and ICT
services sector in particular since this sector comprises
one of the most dynamic and fastest-growing parts
of the ICT industry due to:
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Low start-up capital requirements
Jordan’s favorable position in the regional market
Human resource intensity
Not affected by distance or transportation constrains
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REACH
initiative has the following objectives:
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Increase ICT Exports
Create ICT related jobs
Attract Foreign Direct Investment
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The
benefits of accelerated growth in the ICT sector will
not be limited to economic gains. The social benefits
will include an empowered population, improved public
services, and better education for all Jordanians.
Strategic benefits include greater efficiency of government,
creation of a knowledge-based economy, enhanced economic
competitiveness, and less dependence on traditional
markets.
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ICT Industry Statistics
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In
2002, private sector ICT firms employed around 8,000
persons in Jordan, 4,690 (58.6%) of which held technical
positions. On average, a single ICT company in Jordan
employed 34 employees (3 in managerial positions,
5 in administrative, 6 in marketing and 20 in technical
positions (with 50% of the companies employing 13
persons or less for technical positions).
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The
total revenues generated from ICT services, software
and hardware in 2002 amounted to approximately $228.5
million in 2002. Total domestic revenue was an estimated
$188.5 million, while export revenue for ICT companies
reached about $40 million in 2002. Only 7.5% of companies
exporting their ICT services in 2002 did not offer
services in the domestic market. 35% of companies
offering their services in the domestic market did
not export to outside markets.
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Domestic Sales
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22% of Jordan’s ICT companies were involved in hardware
sales and generated nearly 30% of the domestic revenue
in 2002. Another 35% of the companies offered complete
software development services but generated only 11%
of the domestic revenue. Very few companies offered
ICT consulting services or specialized in system design
and analysis exclusively. Internet-based services
and Internet service provision generated only 7% of
the domestic revenue.
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Export
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Nearly
40% of the ICT companies exported full software application
development services and generated nearly one-third
of the export revenues in 2002. ICT Strategy Development
came in second, generating nearly 11% of Jordan’s
ICT export revenue. Outsourcing/Distinct code writing
was the most commonly reported ICT service offered
in Jordan, and 12.6% of companies exported this service.
Exports of ICT services, software and hardware in
the Education Sector represented around 28% of total
exported value in 2002.
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42%
of Jordanian companies surveyed exported to the United
Arab Emirates, with revenue from sales to the UAE
34% of total export revenue. Saudi Arabia comes in
as the second biggest export market for Jordan in
terms of revenue. Nearly 39% of companies exported
to Saudi-Arabia, and their exports generated more
than $9.2 million, representing around 23% of the
total exported value in 2002. Exports to Arab countries
constituted nearly 85% of the total export revenue
of ICT services, while exports to the USA comprised
only 8% of the total revenue in 2002.
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Jordan ICT Strengths
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Jordan is on the road to becoming an ICT success story.
By acting on the strategy outlined in the REACH Initiative,
and most importantly by implementing the detailed
action plan in a committed and comprehensive fashion,
Jordan’s leaders – both in the private and public
sectors – will play instrumental roles in strengthening
the country and creating a limitless world of opportunities
for generations to come.
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Jordan's
principal advantages with respect to the ICT industry
include:
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Highly educated and skilled workforce
Strong private-public partnership and government support
Modern Legislative Environment
Adequate infrastructure
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Important
Links
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Information
Technology Association – Jordan (int@j)
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The
REACH Initiative
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Jordan
ICT Forum
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Ministry
of Information and Communications Technology
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Ministry
of Industry and Trade
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Ministry
of Planning
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Ministry
of Education
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Jordan
Investment Board
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Telecommunications
Regulatory Commission (TRC)
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Jordan
United States Free Trade Agreement
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EJADA |
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