Last week I, along with several other people, wrote about
the new cybercrime bill currently under review. Defenders of the cybercrime law
focused on defamation and hate speech and its critics focused on limiting
freedom of speech. One aspect which has not been covered in detail is the
economic consequences of the cybercrime law - specifically on the tech
environment. Over a decade ago Jordan was identified as an emerging tech hub.
Several pieces gave
predictions of the future of Jordan’s IT sector and how it
will emerge as a regional tech hub. Zooming years later to this summer, we
should evaluate what we are risking.
اضافة اعلان
Three things you should knowJordan's ICT sector has been growing since a number of
government initiatives are supporting its development. The Information and
Communications Technology Association of Jordan
(int@j) advocates for tech
sector policies. Jordan’s Ministry of Digital Economy works on strategies to
enhance digital infrastructure and e-government services. The
Queen Rania Center for Entrepreneurship (
QRCE) supports startups with mentorship and
funding opportunities. The Jordan Investment Commission (JIC) attracts foreign
investment to the ICT industry. All these efforts, especially those supporting
human capital development, position Jordan as a hub for technology and
innovation in the region, driving economic growth and digital transformation.
To an extent, the investment has paid off. Out of all tech
entrepreneurs in the Middle East
27 percent are Jordanian. Abu Dhabi and the
Jordanian Ministry of Digital Economy and Entrepreneurship launched a
$100 million tech fund. As of September 2021, Jordan's Information Technology (IT)
sector made up around
12 percent of the country's GDP (for comparison, tourism
was 14 percent that year). The government's focus on e-government initiatives
and increasing internet and mobile penetration rates have further supported the
sector's development. Also, the ICT infrastructure of Jordan is one of the most
reliable in the region. Jordan has widely available, stable internet
connectivity, with a stable and reliable energy sector. This focus of
government support, growing human capital, and infrastructure make Jordan an
ideal environment as a regional ICT hub.
How the law affects the tech ecosystem
The law's provisions could deter startups and entrepreneurs
from pursuing innovative ideas due to the fear of unintentional violations.
This could also discourage venture capitalists from investing in early-stage
tech companies.
This lack of predictability hinders the growth of a dynamic, competitive private sector.
Additionally, defamation and false news can lead to content
censorship, leading to hefty penalties and resulting in an environment of
self-censorship heavy-handed content moderation of information and online
discussions.
The new cybercrime law can also affect e-commerce and
fundraising would add complexity and bureaucratic hurdles for businesses,
potentially deterring both local and foreign participation in online trade.
How it will affect Jordan’s investment potential overall
While the updated law is still under review, so far there
has not been discussion of
balancing cybersecurity objectives with an
investor-friendly environment.
Policymakers should consider the law's consequences and create an
enabling environment for technology-driven growth in the country.
The new cybercrime law could have significant implications
for tech investment in the country. For example, the provisions related to
unauthorized access, data manipulation, and content regulation could lead to
investor risk aversion, funding constraints for startups, an uncertain legal
landscape, and potential impact on venture capital. Of these, the uncertain
legal environment is the most harmful. The lack of clear definitions in the law
has been brought up by media advocates looking at freedom of speech, but
investors are looking for predictability and stability. Vague definitions could
scare away cautious investors looking to avoid potential legal liabilities and
uncertainties.
Unpredictability in Jordan’s ICT market existed before this
law’s update. Consider this
OECD report which stated, “This lack of
predictability hinders the growth of a dynamic, competitive private sector.”
Global examples have shown that countries with stringent cybercrime laws often
experience reduced foreign investment and venture capital funding for tech
projects. We’ve seen this happen in Russia with the introduction of the
"
Yarovaya Law" in 2016 and
China's Cybersecurity Law which was
enacted in 2017.
My take
Despite the action plan outlined in
REACH2025, progress has
been frustratingly slow since the 2016 MENA ICT forum concluded. One glaring
issue stands out: the absence of a well-defined Cyber strategy. For us to guarantee that more companies want
to be in Jordan, we need to have clear policies and clear legal definitions to
provide predictability in the market - otherwise we limit our investment (and
don’t forget domestic entrepreneurship!).
Ambiguity does not attract investment. Countries with
substantial IT markets, comparable to Jordan's aspirations, also have cybercrime
laws. But these are meticulously crafted legal frameworks complete with
explicit definitions, transparent processes, and well-defined appeal
mechanisms. These predictable (the key word) structures instill confidence in
investors and provide them with the reassurance they need to participate
actively in the digital economy.
What if a private company offers
white hat hacking services?
What if a security analyst, is unsure if legally they can use a VPN to access
certain sites for research? Without clear legal guidelines, professionals are
left to speculate, unsure of whether their actions could potentially lead to
legal repercussions. Researchers face similar hurdles, as access to essential
information becomes restricted due to unclear regulations. So, if this isn’t
clear in the law, then we just have to wait until the courts decide on a
case-by-case basis what is allowed and not allowed?
The key to attracting more companies to invest in Jordan
lies in offering clear and coherent policies and legal definitions that ensure
predictability within the market. In their absence, potential investors are
understandably apprehensive about placing their resources in a climate of
ambiguity. In the digital realm, uncertainty breeds hesitation, and hesitation
stifles investment.
In Jordan we have strong infrastructure and a growing pool
of skilled human capital. The immense potential has already yielded
impressive success stories, demonstrating a real capacity for growth and innovation. Our
neighbors (Syria, Lebanon, Iraq, Palestine) do not have our stability and we
can attract their talent here. All this presents a golden opportunity for
Jordan to position itself as a regional leader in the digital economy, provided
it can effectively harness its resources.
These cybercrimes are real and require action from the
state. Blackmail, fraud, cyberbullying, online harassment, and child
exploitation are on the rise globally, and Jordan is no exception. Addressing
these challenges head-on is essential for fostering a safe and secure digital
environment. However, we must also be careful not to worsen the situation with
overarching and vague concepts that may offer law enforcement and courts
excessive discretion but create unpredictability for potential investors.
Big corporations have shown interest in Jordan - such as
Amazon, Webhelp, and Microsoft among others. In
Aqaba, particularly with the
Google subsea cable, we have a chance in putting Jordan’s name in emerging tech
hubs in the region. But for us to be able to do that we must create an
environment that attracts talent and capital.
Jordan's journey towards becoming a digital economy
powerhouse requires immediate action on clear and comprehensive cyber policies.
This law has murky sections which are open to interpretation. ‘Open to
interpretation’ also equals risk for investors. It needs clarity and
definitions. We are already at risk of
losing the edge we have in the tech
scene because of other market forces (taxation, regulation, global trends,
regional competition). With a transparent legal framework that ensures
predictability, Jordan can leverage its resources and establish itself as a
leading player, and we can start by taking a step back to revise this current
law.
This article was originally published on the SubStack Full Spectrum Jordan.
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