27% find investment environment in Jordan encouraging

Slew of factors discourage investing in Kingdom

A general view of Amman. (Photo: Jordan Tourism Board)
AMMAN — Results of the ninth Jordan Strategy Forum (JSF) investor confidence survey show that some 27 percent of investors see the investment environment in Jordan encouraging, while 68 percent do not find it encouraging, according to Al-Mamlaka TV.اضافة اعلان

The results also indicated that the difficult circumstances, lack of liquidity and demand on goods and services, and the increase in taxes, prices, and fees, do not encourage investing in Jordan.

The survey covered 613 companies from all sectors and of all sizes. It found that the number of investors who believe that Jordan’s economic situation was better in 2021 than in previous years has increased.

The results also showed that 53 percent of individuals from the trading sector, 50 percent from the agriculture sector, and 48 percent then the industrial sector are optimistic about the future of the economy.

In 2021, investors expanded their work in Jordan by no more than 5 percent, while those who reduced their works in Jordan increased from 41 percent to 54 percent, which indicates immobility in the trade movement, according to the survey.

When asked whether they would be able to cover their financial liabilities in 2022, around 67 percent of the investors surveyed said that they do not think their revenues would cover their liabilities in the upcoming period, according to JSF results, which also show that establishments which have less than 10 employees cannot afford more financial burdens.

In the case of small-size enterprises, 68 percent of investors believe that their revenues will not cover their liabilities for the next three months.

Around 26 percent of investors said that they would delay expenses and payments as a way to cover their liabilities, while 23 percent said they would reduce their commercial activity, and 17 percent that they might shut down their businesses, which is concerning.

Asked about their intention to lay off employees, around 83 percent of investors surveyed said they have no such intention and around 83 percent indicated that they did not need to decrease their employees’ salaries in 2021.

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