Resilient Jordan: Economic vision and strategies for sustainable growth

Nidal Malo Al-Ein. shares insights on Jordanian economy with multiple ideas

Nidal Malo Al-Ein
Co-chairman of 100 Jordan Ltd. Co, Nidal Malo Al-Ein. (Handout)
PRESS RELEASE — The global and Jordanian economies, which I believe were more affected in previous years, experienced various economic waves that initially led to the collapse of the global economy. Subsequently, the COVID-19 pandemic escalated bills and accounts, followed by the Russian-Ukrainian war, which had a significant impact. In our region, the Gaza war compounded these challenges. Despite the Jordanian economy being considered modest, it remains strong, solid, and cohesive. اضافة اعلان

Nevertheless, the ongoing economic repercussions necessitate increased collective action. Several ideas can be summarized in the following points:

▪︎ Reconsidering all economic strategies and developing plans so that they become short-term and immediate for implementation and extend over months, years and stages. There must be interconnectedness and diversity of strategies between all economic sectors to develop quick solutions. There should be such as crisis management and an independent economic administration to define and implement priorities and strategies and follow up, monitor and analyze them from civil society organizations and economic figures.

▪︎ Working on regional and regional projects so that we work on local and national projects without waiting for foreign or external investment. We must be the ones who initiate the first step for local investments, whether by establishing public joint-stock companies in which everyone who wants to contribute, even foreign investments or local investors. And external investors can speculate in the Amman Financial Market, whether through subscription or stock trading. The government, with its institutions, can start such companies and make them government participatory projects managed with private sector management mechanisms.

▪︎ Expanding the powers of bodies, especially tourism authorities, so that they have the right to establish public joint-stock or private joint-stock companies for implementing tourism projects and the tourism strategy. These projects can be executed with local funding from Jordanian businessmen, in addition to foreigners. The same applies to the energy authority and public transportation. What these bodies need are regulations and instructions that can be approved by the Council of Ministers.

▪︎ Reviewing the systems and instructions in several institutions to become more open to receiving investors and working with them on the principles of partnership, cooperation, coordination, and operation of national resources, including materials, products, and other economic sectors. This approach aims to foster flexibility in decision-making. The systems and instructions derive from laws and ministerial or government decisions.

 ▪︎ At the regional and global levels, we must work to determine the type of economy that Jordan should have by identifying the sector that needs a regional and global address. This determination will clarify whether we are an industrial, agricultural, or service-oriented country.

▪︎ Here, I focus on making Jordan a hub for the service economy, encompassing sectors like tourism, air freight, artificial intelligence, information technology, human resources, consulting, and training. We aim to identify the sector where we are most distinguished and efficient to focus on and develop further.

▪︎ Focus on local investment and work to increase and develop it, as this will attract further investments. When studying local investment, we find it to be the most stable and continuous. Numerous examples exist of family companies that have endured for generations, with hard currency and liquidity remaining in the market. According to studies, most foreign investments recover their paid-up capital over the years. They then finance activities from profits, coupled with loans from Jordanian banks. Upon analysis, we observe that this surpasses 52 to 73 percent of the initial investment value. This is evident in the volume of liquidity, the amount of cash, its availability, and its circulation. Thus, this percentage serves as an intangible return on the Jordanian street and the citizens, contributing to overall growth.

▪︎ Here, we must focus on development projects to provide a continuous growth indicator. The investment should be local—by local, I mean irrespective of the nationality of the project owners. These projects ought to benefit developing regions, villages, and the desert, thereby achieving growth in opportunities that are often overlooked. They contribute to attracting financial management and new sources of income to these areas. In doing so, we accomplish development and growth programs, address unemployment, and empower women and youth. This aligns with the initiatives undertaken by my company, 100 Jordan Ltd., through a project aimed at developing tourism sites and services.

▪︎ Redistributing spending and expenses should commence with projects that generate revenues and returns for the treasury. This approach aims to reduce the deficit rate, decrease the need for borrowing, increase the domestic product, and transform consumption expenses into investment expenses. Returning to the point of granting powers to agencies and ministries, they can invest and partner with the private sector to implement projects that generate revenues. This shift can also reduce their expenses, turning them into income-generating activities rather than solely incurring costs and disbursing salaries. Consequently, this strategy will create job opportunities across various sectors through recruitment, contracts, or purchasing services.

The discussion is extensive regarding solutions, but first, we need a title for the work. This title aims to encapsulate the achievement of goals and the realization of service development and desired progress in alignment with the vision of economic modernization and its executive program.

May God protect the Kingdom
May God protect His Majesty King Abdullah 

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