Jordanian-Japanese Business Forum explores investment prospects, commends strong ties

AMMAN — The Jordanian-Japanese Business Forum kicked off on Wednesday in Amman, showcasing the “fruitful collaboration” between the Jordanian Strategy Forum (JSF) and the Japan External Trade Organisation (JETRO). 

The event aims to explore investment cooperation prospects and economic opportunities within the Kingdom, focusing on promising sectors outlined in Jordan's Economic Modernisation Vision.

Minister of Energy and Mineral Resources Saleh Al Kharabsheh, Minister of Digital Economy and Entrepeneurship Ahmed Hanandeh, Minister of Planning and International Cooperation Zeina Touqan and Minister of Investment Kholoud Saqqaf attended the inauguration. 

The Japanese delegation included State Minister of Economy, Trade and Industry Shinichi Nakatani, Deputy Executive Director of JETRO Mitsuyo Yaita Senda and Japanese Ambassador to Jordan Okuyama Jiro, alongside several other officials.

Sharif Faris Sharaf, chairman of the administrative board of the JSF, recognised the forum as a significant milestone in the nearly 70-year history of Jordanian-Japanese economic cooperation. 

Nakatani emphasised the importance of Jordan's Economic Modernisation Vision and its associated projects, which aim to create opportunities for foreign investment, foster development and strengthen relations between the two countries. 

He noted that the forum is an ideal platform for exploring investment opportunities in Jordan, increasing Japanese economic engagement and encouraging collaboration across various sectors, particularly in investment and trade.

Jiro praised the elevated level of economic and investment relations between both countries, noting that the Investment Encouragement and Protection Agreement, signed in 2018, has contributed to the increase in the number of Japanese investment companies operating within the Kingdom. 

There are currently 20 Japanese investment companies operational in Jordan in the energy, infrastructure and manufacturing industries.

The diplomat also underscored the geopolitical significance of Jordan and the exceptional nature of bilateral relations, also noting that the investment environment is conducive to foreign investors.

He highlighted that next year will mark the 50th anniversary of establishing embassies in Amman and Tokyo, and the 70th anniversary of diplomatic relations between Jordan and Japan. 

In a presentation titled "Economic Modernisation Vision: New Investment Opportunities", Saqqaf highlighted Jordan's comparative advantages in attracting foreign investments. 

She emphasised the country's free trade agreements with the US, Canada, the EU and Arab countries, making Jordanian products accessible to around 1.5 billion consumers worldwide.

She explained that Jordan is home to 27 per cent of the Fourth Industrial Revolution’s leading Arab companies, further adding that Jordanian ICT companies develop approximately 75 per cent of the total Internet content in the Arab world.

Saqqaf commended Japanese investments in Jordan for their pivotal role in boosting the economy, noting that recent direct Japanese investments in Jordan have amounted to nearly $2 billion, contributing to economic growth and technological advancement.

She emphasised the potential for enhancing economic cooperation in the future, highlighting Jordan's strategic location, skilled workforce and supportive environment for foreign investments.

Director-General of the Japan’s External Trade Organisation (JETRO) Toyokazu Fukuyama shared the results of an annual survey conducted by JETRO to assess the status of Japanese business operations abroad. The survey, which analysed 224 companies including 12 Japanese companies in Jordan, examined profit forecasts, future business prospects, investment environments and promising areas for business ventures.

According to the results of the survey, last year posed challenges for Japanese companies in the region. While some companies anticipated a decrease in profits, 36.4 per cent maintained expectations for profit growth, Fukuyama said, noting that Japanese companies operating in Jordan did not anticipate any losses. 

The survey indicated that Japanese companies in Jordan exhibited improved performance in 2022 compared to 2021, with stable performance expected to continue in 2023.

Japanese companies in Jordan attributed the anticipated improvement to tangible reductions in administrative and energy costs. 

Japanese investments in Jordan reached approximately $2 billion in 2022. The value of Jordanian exports to Japan amounted to $87 million in 2022, accounting for a 170 per cent increase compared to 2021.