Amman, Jan. 7 (Petra) – A 3.7% increase in foreign direct investment (FDI) to Jordan in the third quarter of 2024 compared to the same period in 2023 highlights the effectiveness of the government’s economic modernization efforts, according to economic experts.
They attribute this growth to measures aimed at improving the investment climate, streamlining bureaucratic procedures, and enhancing infrastructure.
The government’s proactive approach under the Economic Modernization Vision, which includes 15 initiatives to boost both local and foreign investments, has been central to these improvements. The initiatives aim to create an investment-friendly environment that aligns with global best practices, thereby fostering economic growth and improving living standards.
A significant milestone in this strategy was the signing of a $813 million partnership agreement between the Arab Potash Company and Albemarle Corporation. This joint venture is expected to generate 650 permanent jobs over the next five years, in addition to hundreds of temporary opportunities during its implementation.
Data from the Central Bank of Jordan revealed that FDI inflows reached approximately $458 million in the third quarter of 2024, maintaining a steady contribution of 3.2% to the GDP. Despite regional instability, Jordan’s economy remains attractive to foreign investors, with FDI flows totaling $1.3 billion in the first three quarters of 2024, surpassing previous years’ totals.
Arab nations, particularly the Gulf Cooperation Council countries, were the largest contributors, accounting for 49.1% of the total FDI, while European Union countries contributed 11.5%. Investment was predominantly directed towards the finance and insurance sectors (15.7%), followed by manufacturing (7.7%), information and communications (7.5%), and mining (7.3%).
Ziad Homsi, former Chairman of the Amman Chamber of Industry, emphasized the importance of transparency and accountability in sustaining investor confidence. He highlighted the role of detailed executive programs and independent monitoring in ensuring the successful implementation of the Economic Modernization Vision.
Asem Samara, head of the Jordanian Investors Association, noted the significant contribution of Arab investments, suggesting that this trend incentivizes the government to further enhance investment incentives in industrial and development zones.
Iyad Abu Haltam, Chairman of the Eastern Amman Industrial Investors Association, stressed the need for a collaborative plan between the public and private sectors to accelerate investment attraction, leveraging Jordan’s strategic location and trade agreements.
Abu Haltam also highlighted the importance of promoting regional investment advantages, focusing on resources, industries, and competencies unique to each governorate, to foster vertical integration in sectors such as mining.
//Petra// AO
07/01/2025 13:14:09
