JSF report highlights key policies to boost investment in Kingdom

AMMAN — Market size, income levels, stability, growth prospects, demand patterns, and access to regional markets are among the key economic factors influencing investment behaviour in the Kingdom, according to the Jordan Strategy Forum (JSF).

In its policy paper titled “The Economics of Local and Foreign Direct Investment (FDI): Learned Lessons for Jordan,” the JSF emphasised the importance of country policies and the legal framework, including macroeconomic policies, private sector policies, trade and industry standards and investment policies, in enhancing investment opportunities and prospects in the Kingdom.

The forum noted that "an overall investment of about JD41 billion is required to achieve the Economic Modernisation Vision’s goals, with the majority driven by private investments, 72 per cent coming from both domestic and foreign investments, as well as public-private partnerships."

The Investment Ministry's investment promotion strategy for 2023-2026 has been aligned with the outputs of the modernisation vision and aims to achieve an annual economic growth rate of 5.7 per cent. 

Additionally, the strategy targets attracting investments worth JD30.3 billion over the next 10 years.

Speaking with The Jordan Times, economist Waseem Hussein highlighted the importance of having a long-term vision and key performance indicators within defined periods to ensure a successful investment strategy. 

"Attracting foreign investments is crucial, but stimulating local investments is equally essential for substantial economic growth," he said.

Jordanian investor Laith Ali also told The Jordan Times that "an accurate organisational structure is the very first thing that investors look for, as it simplifies the procedures needed for their investment journey." 

He also noted that Jordan has increasingly become a regional hub for various investments over the past few years.