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The economy of Jordan is classified as an emerging market economy. The substantial increase of the population, coupled with slowed economic growth and rising public debt led to a worsening of poverty and unemployment in the country. Jordan has Free Trade Agreements FTAs with the United StatesCanadadissertation statistical service hospitality industry, SingaporeMalaysiathe European UnionTunisiaDissertation statistical service hospitality industryLibyaTurkey [19] and Syria.
More FTA's are planned with Iraqthe Palestinian Authoritythe GCCLebanonand Pakistan. Jordan is a member of the Greater Arab Free Trade Agreementthe Euro-Mediterranean free trade areadissertation statistical service hospitality industry Agadir Agreementand also enjoys advanced status with the EU. Jordan's economic resource base centers on phosphatespotashand their fertilizer derivatives; tourism ; overseas remittances; and foreign aid.
These are its principal sources of hard currency earnings. Jordan used to depend on Iraq for oil until the American-led invasion of Iraq. Jordan also has a plethora of industrial zones producing goods in the textileaerospacedefenseICTpharmaceuticaland cosmetic sectors.
Jordan is an emerging knowledge economy, dissertation statistical service hospitality industry. The main obstacles to Jordan's economy are scarce water supplies, complete reliance on oil imports for energy, and regional instability. Rainfall is low and highly variable, and much of Jordan's available ground water is not renewable, dissertation statistical service hospitality industry. The downturn that began incontinued to The country's top five contributing sectors to GDP, government services, finance, manufacturing, transport, and tourism and hospitality were badly impacted by the Syrian civil war.
The Central Bank of Jordan commenced operations in and is the sole issuer of Jordanian currency, the Jordanian dinarwhich is pegged to the US dollar.
The following chart of trend of dissertation statistical service hospitality industry domestic product of Jordan at market prices by the International Monetary Fund with figures in millions of Jordanian dinars. For purchasing power parity comparisons, the Jordanian dinar is exchanged per US dollar at 0. Jordan is classified by the World Bank as an "upper middle income country. The Kingdom scored higher than many of its peers in the Persian Gulf and Europe like Kuwaitdissertation statistical service hospitality industry, Israel.
and Ireland. The official currency in Jordan is the Jordanian dinar and divides into qirsh also called piastres or fils. Since 23 Octoberthe dinar has been officially pegged to the IMF's special drawing rights SDRs.
The Jordanian market is considered one of the most developed Arab market outside the Persian Gulf states. Jordan has been a member of the World Trade Organization since The flows of remittance to Jordan had experienced rapid growth rates, particularly during the end of the s and s, where Jordan had started exporting high skilled labour to the Persian Gulf States.
The money that migrants send home, remittances, represents today an important source of external funding for many developing countries, including Jordan. Jordan has ranked constantly among the top 20 remittances-recipient countries over the last decade. In addition, the Dissertation statistical service hospitality industry Monetary Fund AMF statistics in indicate that Jordan was the third biggest recipient of remittances among Arab countries after Egypt and Lebanon.
The presence of such firms underlines Jordan's attractiveness as a stable base with high-calibre human resources from which to serve the wider region.
Jordan has high unemployment rates, dissertation statistical service hospitality industry, Jordan hosts SOFEXthe world's fastest growing and region's only special operations and homeland security exhibition and conference. Bythe park is expected to provide around 15, job opportunities whereas the investment volume is expected to reach JD million. According to an investment survey, Jordan ranked as the 9th best outsourcing destination worldwide.
Jordan has hosted the World Economic Forum on the Middle East and North Africa six times and plans to hold it again at the Dead Sea for the seventh time in Jordan is one of the most liberal countries in the Middle East allowing a debate to consider introducing a secular government. Decades of political stability and security and strict law enforcement make Jordan one of the top 10 countries worldwide in security. Only 1. The following table shows the main economic indicators in — Despite increases in production, the agriculture sector's share of the economy has declined steadily to just 2.
About 4 percent of Jordan's labor force worked in the agricultural sector in The most profitable segment of Jordan's agriculture is fruit and vegetable production including tomatoes, cucumbers, citrus fruit, and bananas in the Jordan Valley.
The rest of crop production, especially cereal production, remains volatile because of the lack of consistent rainfall. Fishing and forestry are negligible in terms of the overall domestic economy. The fishing industry is evenly divided between live capture and aquaculture; the live weight catch totaled just over 1, metric tons in The forestry industry is even smaller in economic terms; approximatelytotal cubic meters of roundwood were removed inthe vast majority for fuelwood.
Potash and phosphates are among the country's main economic exports. Potash production totaled 1, dissertation statistical service hospitality industry. In approximately 6. With production totaling 6. In addition to these two major minerals, smaller quantities of unrefined salt, copper ore, gypsum, manganese ore, and the mineral precursors to the production of ceramics glass sand, clays, and feldspar are also mined.
The industrial sector, which includes mining, manufacturing, construction, and power, accounted for approximately 26 percent of gross domestic product in including manufacturing, More than 21 percent of the country's labor force was reported to be employed in this sector in The main industrial products are potash, phosphates, pharmaceuticals, cement, clothes, and fertilizers.
The most promising segment of this sector is construction. In the past several years, demand has increased rapidly for housing and offices of foreign enterprises based in Jordan to better access the Iraqi market. The manufacturing sector has grown as well to nearly 20 percent of GDP byin large part as a result of the United States—Jordan Free Trade Agreement ratified in by the U.
Senate ; the agreement has led to the establishment of approximately 13 Qualifying Industrial Zones QIZs throughout the country. The QIZs, which provide duty-free access to the U. market, produce mostly light industrial products, especially ready-made garments. Jordan's free trade agreement FTA with the US — the first in the Arab world — has already made the US one of Jordan's most significant dissertation statistical service hospitality industry. Byit would have barrier-free export access in almost all sectors.
A number of trade agreements with countries in the Middle Eastern and North Dissertation statistical service hospitality industry regions and beyond should also reap increasing benefits, not in the least the Agadir Agreement, which is seen as a precursor to an FTA with the EU. Jordan also recently signed an FTA with Canada.
Furthermore, Jordan's plethora of industrial zones offering tax incentives, low utility costs and improved infrastructure links are helping incubate new developments.
The relatively high skills level is also a key factor in promoting investment and stimulating the economy, particularly in value-added sectors.
Despite the fact that Jordan has few natural resources it does benefit from abundant reserves of potash and phosphates, which are widely used in the production of fertilisers. Although the value dissertation statistical service hospitality industry Jordan's industrial sector is high, the kingdom faces a number of challenges. Because the country is dependent on importing raw materials, it is vulnerable to price volatility.
Shortages in water and power also make consistent development difficult. Despite these challenges, Jordan's economic openness and long-standing fertiliser and pharmaceutical industries should continue to provide a solid source of foreign currency. Jordan has a plethora of industrial zones and special economic zones aimed at increasing exports and making Jordan an industrial giant.
The Mafraq SEZ is focused on industry and logistics hoping to become the regional logistics hub with air, road, and rail links to neighboring countries and eventually Europe and the Persian Gulf. The Ma'an SEZ is primarily industrial focusing on satisfying domestic demand and reducing reliance on imports. With a national rail system under construction, Jordan expects trade to grow significantly and Jordan will mostly become the trade hub of the Levant and even the Middle East region as a whole due to its geography and natural resources.
Telecommunications is a billion-dollar industry with estimates showing that core markets of fixed-line, mobile and data service generate annual revenue of around JD Jordan's IT sector is the most developed and competitive in the region due to the telecom liberalization. The increased competition has led to pricing that is more favourable to consumers. Ambitious subsequent national strategies were formulated already since Y as a private sector initiative directly led by his majesty the king of Jordan.
Information technology association in Jordan int j was established to kick off a private sector process that would focus on preparing Jordan for the dissertation statistical service hospitality industry economy through IT and shall reflect the national objectives towards automation and modernization in co-operation with the ministry of information technology in Jordan the MOICT.
The latest strategy will take the sector through todissertation statistical service hospitality industry, aims to bring Jordan to precise objectives. This figure includes foreign investment and total domestic revenue from the sector. Employment growth in the sector was progressive and reached up to The government is working to address employment issues and education related to sector by developing ICT training and opportunities to increase the overall penetration of ICT in Jordanian society.
The early founder of Int j and its first chairman of the board is Karim Kawar and early activists who drove the national strategic objectives and helped formulate an action plan through the developing pillars were Marwan Juma Jordan's minister of ICT, Doha Abdelkhaleq on labour and education. Humam Mufti on advocacy and Nashat Masri on Capital and finance amongst others. The IT industry in Jordan in the year and beyond got a very big boost after the Gulf War of This boost came from a large influx of immigrants from the Gulf countries to Jordan, dissertation statistical service hospitality industry, mostly from Jordanian expatriates from Kuwait, totaling few hundred thousands.
This large wave impacted Jordan in many ways, and one of them was on its IT industry. Energy remains perhaps the biggest challenge for continued growth for Jordan's economy. The government also announced in that it would scale back subsidies in several areas, including energy, where there have historically been regressive subsidies for fuel and electricity.
In another new step, the government is opening up the sector to competition, and intends to offer all the planned new energy projects to international tender. Unlike most of its neighbors, Jordan has no significant petroleum resources of its own and is heavily dependent on oil imports to fulfill its domestic energy needs. In proved oil reserves totaled onlybarrels 70, m 3. Jordan produced only 40 barrels per day 6. According to U. The Iraq invasion of disrupted Jordan's primary oil supply route from its eastern neighbor, which under Saddam Hussein had provided the kingdom with highly discounted crude oil via overland truck routes.
Since latean alternative supply route by tanker through the Al Aqabah port has been established; Saudi Arabia is now Jordan's primary source of imported oil; Kuwait and the United Arab Emirates UAE are secondary sources.
Although not so heavily discounted as Iraqi crude oil, supplies from Saudi Arabia and the UAE are subsidized to some extent. In the face of continued high oil costs, interest has increased in the possibility of exploiting Jordan's vast oil shale resourceswhich are estimated to total approximately 40 billion tons, 4 billion tons of which are believed to be recoverable.
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