Market Brief on ICT Sector in Jordan

Prepared By:

 

Abu-Ghazaleh & Co. Consulting

Member of Talal Abu-Ghazaleh & Co. International

 

February 2005

 

Amman - Jordan

 

The ICT sector is constantly under the spotlight in Jordan as one of the country's main priorities. Although technology is a key pillar of economic growth, the quality of public institutions are crucial for their role in ensuring the protection of property rights, the objective resolution of contract and other legal disputes, efficiency of government spending in public services, and transparently at all the government.

 

The leadership role of His Majesty King Abdullah II and the work of the government's ministers, along with public/ private sector initiatives such as REACH strategy, are identified as highly successful components of Jordan's ICT industry development. Jordan has achieved some remarkable achievements in regulatory and legal reform that have measurably improved Jordan's ICT Readiness.

 

Some of these achievements were to build a digital network that allows 100% of the population to have Internet accessibility with good quality for around 500,000 users. E-Government program aims to streamlines procedures and improves both internal operations as well as services to the public.

 

On another level, many Jordanian universities had signed agreements with reputable universities to enforce the latest technology in their curriculums to improve the academic plans that matches the business requirements of local and international markets.

Based on Information Technology Association- Jordan (int@j) statistical data, which has been a focal player in Jordan's ICT evolution, the year 2003 witnessed an increase of 30% in the total revenues of the ICT sector. The investment grew around 17% and also the employment grew by 100% over the last year. 

The government has adapted many laws and regulations which lead to reduce the import barriers such as deducting 2% per income tax on the value of all goods imported in to the Kingdom starting last July. This achievement doesn't merely remove a massive financial burden off the shoulders of ICT companies, but rather enforces the value of strategic dialogue between the public-private partnerships in this sector. A package of incentives and exemptions is also available to encourage investment in the Kingdom, for example: Projects are exempted from income and social services tax by 25%, 50%, and 75% for a ten year period depending on the location and sector of the project. Imported fixed assets are 100% exempted from customs duties and taxes, and imported spare parts for fixed assets are exempted from fees and taxes up to 15% of the total cost of the fixed asset.

 

ICT equipment market witnessed a remarkable growth rate of 52.5% in the year of 2003. This high growth rate indicates the prosperity of the ICT equipments' market and the bright potential expected for the overall industry in Jordan on the other hand. U.S.A. is ranked third in the Jordanian's ICT market with a market share of 11.16% after China and Germany.

 

In order to invite Business leaders and investors from all over the world, there are many tradeshows and events which take place in Jordan every year.