Jordan has been making significant strides to diversify its economy beyond traditional sectors such as agriculture and tourism. The government’s economic policies have encouraged growth in industries including information technology, pharmaceuticals, renewable energy, and textiles. Additionally, this diversification has helped to make Jordan’s economy more resilient and attractive to international companies and UK businesses.
UK companies have identified and capitalized on opportunities in sectors like infrastructure, energy, and healthcare. Total trade in goods and services (exports plus imports) between the UK and Jordan was GBP 1 billion in the four quarters to the end of Q1 2023, an increase of 64.5% or GBP 392 million in current prices from the four quarters to the end of Q1 2022.
The UK has been a notable player in Jordan’s business landscape, leveraging its expertise and forging strong trade ties. The UK government has actively promoted investment in Jordan, providing resources and support to British companies interested in entering the Jordanian market. This strategic alignment with Jordan’s growth areas has led to successful partnerships and collaborations.
- Information Technology (IT) Sector
Jordan’s IT industry has been growing steadily, fuelled by a young, skilled workforce and government incentives. The country’s climate of innovation has earned Jordan the name of “Silicon Wadi” (the Arab world’s Silicon Valley), thus positioning itself as a regional hub for IT services, software development, and outsourcing.
Digital transformation is a top priority, with a move towards e-government services. There are opportunities for UK SMEs to help implement a national broadband network that connects 1,318 public schools, 231 public hospitals and healthcare centres and 169 government entities in Amman, Zarqa, Madaba and Balqa’.
Furthermore, local operators are replacing traditional core networks and substituting them with internet protocol-based ones. Jordan is taking positive steps in the field of cybersecurity. 5G implementation and the revolution in Internet of Things (IoT) services will also require advanced infrastructure. UK SMEs providing tech solutions can find additional opportunities in areas of technological innovation, as the country continues to take measures to position itself as a regional digital hub.
- Pharmaceuticals and Healthcare
The pharmaceutical industry in Jordan (which covers up to 25% of the country’s needs) has witnessed significant growth due to its established infrastructure and skilled workforce. There are 122 hospitals in Jordan, 70 of which are private. The healthcare sector in Jordan is ripe for innovation, especially in areas such as telemedicine, medical technology, and healthcare infrastructure development.
Jordanians are affected by a number of different ailments including asthma, cancer, diabetes, obesity, heart stroke, vascular disease, osteoarthritis, rheumatoid arthritis, and osteoporosis. Opportunities exist for UK SMEs able to provide technologies that helps prevent or treat these conditions, as well as supplying equipment for new and existing medical facilities. Additionally, Jordan is known for its high-quality generic drug manufacturing, making it an appealing destination for pharmaceutical companies.
- Renewable Energy
Jordan has recognized the importance of renewable energy sources in reducing its dependence on fossil fuels. More than 20 percent of the electricity grid in Jordan is powered by solar or wind energy, with a target of 31% by 2030. The country has made significant investments in solar and wind energy projects, creating opportunities for companies in the renewable energy sector. Jordan’s commitment to renewable energy and environmental sustainability opens doors for companies offering green technologies, energy-efficient solutions, and sustainable practices.
- Tourism and Hospitality
While tourism has been a traditional sector in Jordan, the government’s efforts to promote the country’s historical and cultural sites continue to attract visitors. In terms of visitor arrivals, the country recorded 5.1 million tourists in 2022, which was twice the number of arrivals in 2021. The hospitality industry has expanded also to accommodate the growing number of tourists. Merry g
- E-commerce and Digital Services
With the rise of online shopping and digital services, there is potential for growth in the e-commerce sector, including online marketplaces and fintech solutions. At the current rate of growth, 4.5 million eCommerce users are expected to generate over GBP 787 million in revenue by 2025. As internet penetration continues to rise in Jordan, so do opportunities for growth in the e-commerce sector for UK SMEs.
The success of UK trade and investment in Jordan highlights the potential for collaboration between countries with shared values and interests. Looking ahead, Jordan’s business landscape continues to hold promise for UK SMEs and exporters. As the country continues to foster an environment conducive to business growth and invests in technology, renewable energy, and other forward-looking industries, there are several areas where UK SMEs can find opportunities.
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