AMMAN — As remittances from Jordanians working abroad continued to grow, economic experts have called for greater efforts to channel these inflows toward investment and productive projects rather than allowing them to remain largely focused on consumer spending with limited economic impact.
Experts stressed the need to develop tools that can facilitate investment through expatriate remittances, particularly by encouraging Jordanians abroad to participate in major economic projects and public-private partnerships.
Economists told Al Ghad that remittances represent an important resource for the national economy by providing foreign-currency liquidity and supporting sectors including trade, construction and real estate. They noted that rising remittances are accompanied by stronger spending and economic activity.
Remittances sent to Jordan during the first seven months of this year rose 14.1% compared with the same period last year, reaching $2.966 billion, according to Central Bank of Jordan data. An estimated 925,000 Jordanians live abroad, including around 725,000 in the Gulf states.
The United Arab Emirates accounted for the largest share of incoming remittances at 20.9%, followed by the United States at 19.3%, Saudi Arabia at 17.7%, Qatar at 10.5%, and Kuwait at 5.5%. Other countries accounted for 26.1% of total remittances.
Economic expert Munir Diyyah said the increase in remittances from Jordanians abroad is an important indicator of economic stability and confidence in the national economy among expatriate Jordanians.
He said the increase has come alongside several economic indicators that have strengthened confidence in the economy, including foreign reserves exceeding $28 billion, economic growth remaining around 2.5%, increased exports and tourism revenues, as well as monetary stability and the stability of the Jordanian dinar’s exchange rate.
Diyyah noted that foreign reserves cover more than nine months of Jordan’s imports, while bank deposits have exceeded JD50 billion. He said these indicators collectively reflect the strength of the banking sector and monetary and financial stability in the Kingdom.
He added that higher remittances increase foreign-currency inflows, support foreign reserves, raise the incomes of beneficiary households and boost spending and consumption, contributing to economic activity across various sectors.
Part of these inflows is also directed toward investment, whether in real estate, bank deposits or other economic sectors, strengthening the role of expatriates in the national economy beyond simply providing financial transfers.
Diyyah stressed the importance of building on this positive trend by encouraging Jordanians abroad to participate in major investment projects and public-private partnerships, describing them as an important part of the national private sector. He called for continued efforts to present available investment opportunities to expatriates and provide the necessary incentives and facilities.
“The relationship with Jordanians abroad should not be limited to transferring money. It should evolve into a more sustainable investment and economic relationship,” Diyyah said, calling for conferences and meetings to be held with expatriates in their countries of residence to introduce available investment opportunities and projects in Jordan.
He said Jordanian expatriates possess capital and expertise that could contribute to increasing investment, establishing new economic projects and creating jobs, particularly in priority sectors such as energy, transport, water and industry, while taking advantage of incentives and opportunities available in industrial and development zones.
Economic expert Zayan Zawaneh said remittances have historically been one of Jordan’s sources of capital inflows and a major source of foreign currency for the local market. Part of these inflows accumulates within the Central Bank’s foreign-currency reserves, helping support the stability of the Jordanian dinar’s exchange rate.
Zawaneh said Jordan is similar in this regard to several countries that rely on workers’ remittances as an important source of foreign currency, including Egypt, Lebanon and India. He stressed the need to view these inflows not only as a source of monetary stability but also as an opportunity to strengthen investment.
He called for developing mechanisms to make greater use of expatriate remittances by directing part of them toward productive investments, including public-private partnerships to finance and implement major projects such as the National Water Carrier project. He also suggested considering government bonds specifically aimed at individuals, allowing part of domestic savings and expatriate remittances to be directed toward financing national priority projects.
Economic expert Mufleh Aql said growing remittances from Jordanians abroad play an important role in stimulating domestic consumption and boosting activity in local markets, particularly in the construction and commercial sectors.
Aql noted that annual remittances amount to nearly JD5 billion, equivalent to around 4% to 6% of annual gross domestic product, underscoring their importance to the national economy and its various sectors.
He said remittances, alongside exports, are among Jordan’s most important sources of income and foreign currency, meaning that growth in either contributes to stronger domestic economic activity.
Aql added that Jordan has the capacity to export skilled workers to Gulf countries and other parts of the world, supported by relatively high education levels among Jordanians, which contributes to the growth of expatriate remittances.
Economic expert Hossam Ayesh, meanwhile, called for maximizing the economic impact of remittances rather than relying primarily on them to finance consumption and household needs. He said a larger share should be directed toward productive investments and projects capable of generating sustainable returns for the national economy.
Ayesh stressed the need to develop more effective mechanisms for channeling remittances into investment by providing expatriates with clear investment opportunities and projects and establishing partnerships between them and Jordanian investors. This, he said, would help transform part of these inflows into productive economic projects capable of generating sustainable returns rather than limiting their impact to consumption or bank savings.
He added that continued remittance inflows provide the national economy with an additional source of foreign currency, particularly as Jordan seeks to maintain adequate reserve levels, while also supporting spending and stimulating domestic economic activity.
Source: Al Ghad
