Economic Modernisation Vision
Unleashing potential to build the future

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Economic Modernisation Vision Unleashing potential to build the future

We want a future where we reclaim
our leadership in education, advanceour economy, and bolster our public
sector’s efficiency and capacity; a futurein which our private sector thrives with
opportunities increasing fairly to counter
poverty and unemployment, and curtail
inequality; a future that empowers ouryouths to soar in the skies of innovation.
Abdullah II Ibn Al Hussein
January 30, 2022

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Economic Modernisation Vision Unleashing potential to build the future

Table of Contents
1.Preface................................................................................................................................. 7
2.Executive Summary............................................................................................................ 11
3. Economic Modernisation Vision....................................................................................... 15
3.1 Rationale and Motives.................................................................................................................................. 15
3.2 Methodology Adopted................................................................................................................................ 20
3.3 Vision Characteristics.................................................................................................................................... 22
3.4 Implementation Framework...................................................................................................................... 23
4. The Way Towards the Future............................................................................................. 25
4.1 Vision’s Pillars................................................................................................................................................... 25
4.2 Sustainability................................................................................................................................................... 29
4.3 Strategic Objectives Framework............................................................................................................... 31
5. Economic Growth Pillar .................................................................................................... 33
5.1 Future Economic Growth Strategy........................................................................................................... 33
5.2 Economic Growth Priorities ....................................................................................................................... 34
5.3 Economic Growth Roadmap (2022-2033)............................................................................................. 88
6. Quality of Life Pillar .......................................................................................................... 91
6.1 Quality of Life Strategy................................................................................................................................. 91
6.2 Quality of Life Development Priorities................................................................................................... 92
7. Success Factors.................................................................................................................. 99
8. Vision Implementation Phases......................................................................................... 101
8.1 Implementation Timeline ........................................................................................................................... 103
8.2 Implementation Drivers .............................................................................................................................. 104
8.3 Turning Jordan’s Economic Modernisation Vision into a Reality: The Realisation Model.... 120

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Economic Modernisation Vision Unleashing potential to build the future

1. Preface
His Majesty King Abdullah II, in a letter on January 30, 2022 addressed the
Jordanian people on his 60th birthday, highlighted the aspirations for Jordan’s
future, within a comprehensive national vision that spans across governments
and engages all.
In his letter, His Majesty the King expressed his pride of what Jordanians haveaccomplished; “despite the magnitude of the hardships and challenges, they
continue to prove, time after time, that their will, determination, and awarenessare stronger than the fiercest storm”. Furthermore, His Majesty reiterated that
Jordan’s aspirations have no limit, rooted in HM’s deep belief that “we can build
the bright future we all desire”.
Referring to parameters of the desired future, His Majesty sees “a bright future
where we fortify our security and stability, and move ahead on the path ofdevelopment towards further excellence, achievements, and innovation; afuture where we reclaim our leadership in education, advance our economy,
and bolster our public sector’s efficiency and capacity; a future in which our
private sector thrives, with opportunities increasing fairly to counter poverty
and unemployment, and curtail inequality; a future that empowers our youths
to soar in the skies of innovation”.
His Majesty also highlighted that “we want a future of excellence and creativity,that is open to change and development, accepts new ideas, and embraces
diversity while building on our shared values, so that we remain a symbol oftolerance and altruism. These are the values enshrined by Jordan and that makeour country a model of progress, openness, moderation, and authenticity”.
To this end, His Majesty instructed to identify and implement the necessary
steps to attract foreign investments while boosting domestic ones. His Majesty
directed to “set a clear roadmap tied to a timeframe to overcome obstacles toprivate sector growth and address issues plaguing institutional work at theadministrative level”.

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“Pessimism does not build futures. Despair does not provide solutions. And
we will not move a step forward unless our ambition is relentless”. His Majesty
believes that only through strong will, consensus and ambition will Jordan beable to achieve the future we aspire to. His Majesty assured that “citizens are
key partners in expediting positive change and benefiting from it. We must all
stand in unity against those who seek to maintain the status quo to protect
their personal interests, or out of fear of stepping out of their comfort zones andputting in the needed efforts and sacrifices for the benefit of all”.
Furthermore, His Majesty stated “I do not see a place for us but at the forefrontof change, according to a comprehensive national vision, with clarity of purposeand methodology; unhindered by hesitation, improvisation, or narrow interests;
moving forward in implementation, supported by administrative and economic
reforms”.
Accordingly, His Majesty instructed the Royal Hashemite Court to “startorganising a national workshop that brings together economic experts, incooperation with the government, to devise a comprehensive vision and aroadmap for the coming years that guarantees unleashing Jordan’s potential
to achieve sustainable, comprehensive growth that doubles job opportunities,
expands the middle class, and improves living conditions to ensure a better
quality of life for citizens”.

8Economic Modernisation Vision Unleashing potential to build the future

Achieving this vision requires “intensive efforts to reinforce our points ofstrength and address points of weakness in planning and implementation. We
must step up performance in various sectors and provide all Jordanians withthe opportunities and services befitting them”. Therefore, His Majesty called foran execution mechanism that “ensures close follow-up on the implementationof this vision across all sectors, and to ensure the necessary steps are taken to
overcome obstacles”. This mechanism will be in place to “guarantee continuous
progress by governments and officials, without the redrafting of plans andstrategies as one government replaces another”.
In closing, His Majesty reassured his people that this vision will proceed under
his close follow-up in a manner that ensures that its plans and programmes
form the “reference point for all government designation letters, with eachgovernment building on the achievements of its predecessor, and achievements
continue, bearing fruit as comprehensive reforms, efficient services, economic
and administrative development, and job opportunities”.

910Economic Modernisation Vision Unleashing potential to build the future

2. Executive Summary
Jordan’s Economic Modernisation Vision centers on the slogan of “A Better
Future”, and is based on two strategic pillars: (i) accelerated growth throughunleashing Jordan’s full economic potential; (ii) improved quality of life for all
citizens, while sustainability is a cornerstone of this future vision.
Through the first pillar, Jordan can achieve leaps in economic growth and create
job opportunities in the next decade, with the continuous growth of citizens’ percapita income. Through the second pillar, it can realise significant improvementin the quality of life for Jordanians, standing at the forefront of countries in theregion in this regard.
The vision reflects the collective, tireless and constructive efforts and discussions
that took place over several months among different stakeholders. More than 500
experts came together from the private and public sectors, Parliament, academia,
civil society, media, development partners and civil society, and participated ina national dialogue; “National Economic Workshop”. All stakeholders contributed
to set a point of departure, identified Jordan’s strengths and competitive
advantages, diagnosed the status quo including challenges impeding growthand development and lessons learnt from previous visions and plans; thus
contributing to the new vision.
The discussions were formed whereby sectoral roadmaps were developed witha specific achievement timeline, KPIs and relevant implementation stakeholders.
Simultaneously, a similar effort took place to identify linkages across these
sectors and their overall impact on GDP and economic opportunities creation.
Accordingly, the vision will be implemented through eight economic growth
drivers, covering 35 main sectors and sub-sectors and more than 360 initiatives.
Initiatives cards were developed, including objectives, Implementation timeline,
key performance indicators and responsible implementation stakeholders.

11Figure (1): Growth Drivers to implement

the Economic Modernisation Vision
Education | (ECD) | K-12 | Higher Education | TVET
| Data | R&D & Innovation | Entrepreneurship &Startups

FDI | Domestic Investments | PPP Projects |Mega Projects
InvestJordanGreen Economy | Green
Economic Sectors | Green
LivingSmart Jordan

Green Jordan
GrowthDrivers

Urban development | Quality of Life

Destination
JordanVibrant
JordanEnergy | Water

FutureServices

Sustainable
Resources

High Value
Industries

ICT Services | Creative Industries| Healthcare | Financial Services |Trade | Mobility

Culture & Nature Tourism |Medical & Wellness Tourism |Faith Tourism | Film Production
Locations

Mining | Chemical Products | Pharmaceuticals |Engineered Products | Textile Products | Agriculture andFood Security | Food Products | Logistics

Moreover, a roadmap was prepared for quick actions that can be executed during
the remaining period of 2022. Subsequent actions post 2022 were categorised
into short-term, medium-term and long-term for the government to develop
detailed action plans for execution.

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Figure (2): Strategic Objectives of Economic Growth Drivers
Objectives
Develop Jordan into a regional industrial hub through high growthexports with high quality and value productsHigh Value Industries

Future Services

Achieve excellence in services sectors to enhance national
development and increase exports of services on regional and global
levelsPosition Jordan as a prime tourism and film production destination

Destination Jordan

Smart Jordan

Sustainable Resources

Invest Jordan

Green Jordan

Vibrant Jordan

Develop and prepare local talents to meet the needs of future skills,
required resources and institutions to accelerate economic growth andenhance quality of life
Optimise the use of natural resources to ensure sustainability, unleash
inclusive sectoral growth and enhance quality of life
Stimulate domestic and foreign investments through an attractive andefficient investment and doing business ecosystem
Support sustainable practices as a pillar of Jordan’s future economic
growth and enhance quality of life
Improve quality of life for Jordanians through developing andadopting higher life standards that revolve around the citizen and theenvironment

The Economic Modernisation Vision seeks to:
1. Ensure transparency in providing information related to national goals
and priorities.
2. Determine comparative and competitive advantages that Jordan cancapitalise on to stimulate growth and create economic opportunities.
3. Unify efforts of ministries and public institutions to support the achievementof the national strategic goals within a clear roadmap.
4. Direct national planning towards strategic thinking to ensure the deliveryof national goals in a better and sustainable manner than being achieved
through tactical actions.

135. Enhance decision-making and policy development to make it data-driven
and evidence-based to minimise changes and populist decisions to ensure
more strategic decisions.
6. Strengthen the capacity for accountability and follow-up, and enable
necessary interventions to improve the implementation process andperformance measurement.
7. Propose a roadmap for political parties to interact with when developing
their programmes or suggest alternatives that are in line with the visionpriorities.
8. Enrich the cooperation agenda with Jordan’s development partners to
direct support towards the priorities set by the vision.
As the main challenge lies in implementation, particular focus was placed on
developing a mechanism responsible for rigorous follow-up on vision execution
across all sectors, and enable taking the required steps to ensure continuityof implementation and overcoming any obstacles thereof. This necessitates
strengthening the roles of the Prime Ministry Delivery Unit (PMDU) and delivery
units in ministries and public institutions, as well as support extended by the
Ministry of Planning and International Cooperation to line ministries throughthe coordination of strategic planning, while the Royal Hashemite Court will
monitor progress in accordance with the tasks assigned to the government in
Letters of Designation.

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Economic Modernisation Vision Unleashing potential to build the future

3. Economic Modernisation Vision
3.1 Rationale and Motives
Jordan has maintained its resilience and in spite of the multiple exogenous
shocks, the country has faced for over a decade. These include the global financial
crisis and its implications, the Arab Spring, the rise of terrorism in the region,
the Syrian crisis and the overwhelming refugee influx, COVID-19 pandemic, andmost recently the impacts of the Russia-Ukraine crisis, particularly the disruptionof supply chains and increased inflationary pressures.
According to a set of global indices 2019-2021 (Figure 3), Jordan’s performance
ranges between average and above average in some of them, which is atestament to the country’s successes and a strong foundation for which newachievements can be built upon.
Jordan’s particular strengths lie in the following indices: Environmental
Performance Index, Corruption Perception Index and Global Entrepreneurship
Index. Jordan performs average on Global Competitiveness Index, Economic
Complexity Index, Competitive Industrial Performance Index, Legatum Index,
Social Progress Index, and Global Talent Competitiveness Index. Areas of
improvement include Global Innovation Index, Human Development Index,
E-government Development Index, Global Gender Gap Index, and Women,
Business and the Law in addition to improving limitations on the ability to
attract foreign direct investments.

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Figure (3): Jordan’s Ranking amongst Global Indicators (2019-2021)
Jordan's Ranking
Indicators
Q1

Q2

Q3

Q4

Q5

RankingGlobal Competitiveness Index 201970/141

Economic Complexity Index 2020

63/127Competitive Industrial Performance Index 2020

76/152Ease of Doing Business 2020

75/190Global Innovation Index 2021

81/132

Human Development Index 2020

102/189

Environmental Performance Index 2020

48/180Social Progress Index 2021

83/168

Corruption Perception Index 2021

58/180

Political Stability Index 2020

137/213Legatum Prosperity Index 2021

81/167

Global Talent Competitiveness Index, 2021

63/134Global Entrepreneurship Index, 201963/137

Global Gender Gap Index, 2021

131/156

Women, Business & Law Index, 2022

177/190

E-Government Development Index, 2020

117/193

FDI Restrictiveness Index, 2020

76/87

Above

Average

Below

Source: World Economic Forum; Harvard Edu; UNIDO; Doing Business; UNDP; Yale EPI; Social Progress;
Transparency International; World Bank; OECD; GEDI; INSEAD

Taking a closer look at the 2019 Global Competitiveness Index / GCI (Figure 4),
published by the World Economic Forum, Jordan is in the middle of the index
with an overall rank of 70 out of 141 countries. Jordan’s performance ranks inthe centre quintile for the majority of the index’s pillars. Key strengths are in
institutions, health, and financial system, while areas of improvement include
macroeconomic stability and business dynamism.

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Economic Modernisation Vision Unleashing potential to build the future

Figure (4): Jordan’s Ranking amongst Global Indicators (2019-2021)
Jordan's Ranking
Indicators
Q1

Q2

Q3

Q4

Q5

Ranking

Overall Rank

70

Institutions

46

Infrastructure74

ICT adoption

82

Macro-economic stability

111

Health45

Skills58

Product market

61

Labour market

84

Financial system

33

Market size

80

Business dynamism

88

Innovation capability

64

Above

Average

Below

Source: World Economic Forum – Global Competitiveness Report 2019

The modest performance of the Jordanian economy, as a result of impacts ofregional global circumstances and the population growth (including refugees),
has led to high unemployment rates, especially among the youth and females,in addition to poor performance in a number of global indices.
Today, the major challenge facing the Jordanian economy is the absorptionof more than one million young Jordanians in the job market over the next
decade. This vision aims to expand key sectors by identifying employment andeconomic growth drivers, which focus on unlocking the full economic potential
to enable the economy to provide such opportunities.

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Figure (5): Economic Growth,
Population Growth & Unemployment Rates in Jordan (2000-2021)
Rising unemployment rate

Increasing population growth

Sluggish economic growth

Unemployment rate (%)

Population (in millions)

GDP growth (%)

4.0% p.a.

The situation was aggravated by weak domestic demand, declines in foreign
and local investments, lack of focus on strategic sectors as national growth
drivers, deteriorating productivity and operational competitiveness, in addition
to weaknesses in innovation and rising costs, especially energy.
While Jordan has adopted a number of strategies and plans in the past, yet they
did not capitalise on Jordan’s full economic potential, which calls for:1. The need for the implemented plans to be more effective, with priorities
set in areas of high growth potential. This includes the adoption of a visionthat becomes a reference for all sectoral strategies and related action plans.
2. Comprehensiveness of sectoral strategies and related action plans as wellas creating a balance among short, medium and long-term goals.
3. Effective implementation by accelerating the pace of work in the public
sector; putting in place key performance indicators (qualitative andquantitative) and evaluation mechanisms; identifying risks and adopting
escalation procedures in the event of underperformance.
4. Availability of data and the need for comprehensive and regularly updated
data as a point of reference to facilitate evidence-based decision andpolicy-making; thus allowing the implementation process to be properly
monitored and evaluated.

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Economic Modernisation Vision Unleashing potential to build the future

5. Strong institutional performance and improved coordination. Strategies
and plans must be aligned with the goals of the vision, which requires
proper empowerment of secretaries-generals and senior officials, as wellas sustainable mechanisms in case of job succession.
6. Enthusiasm to support change, strengthen confidence in the set goals andprogrammes, in addition to adopting proper change management systems
that includes training, motivation and open communication channels.
The current situation necessitates building a new vision that will bring the
economy to a sustainable and accelerated growth trajectory in order todouble job opportunities over the next decade, ensure better quality of life for
Jordanians, unleash Jordan’s full economic potentials, promote self-reliance,and capitalise on the Kingdom’s strengths. These include providing youth withquality education and ability to innovate, solid business infrastructure, strategic
location, a promising start-up scene, strong relations with development
partners, resilient economy in light of regional and global dynamics, and solid
political environment.
On the transformational side, newly emerging technologies in the areas ofenhanced connectivity, artificial intelligence, or smart technologies such as the
fourth industrial revolution will be playing a pivotal role, in addition to newly
emerging products and markets in the region or beyond.
Change requires investing in opportunities to create sustainable value, andthrough the Economic Modernisation Vision and its related Roadmap, Jordan
will be able to capture its full potential to serve the potential and upcoming
development and investment projects.
As a nation, we need to capitalise on future change. This not only requires
putting in place the needed economic plans and policies, but also a fundamental
transformation in the mindset as we seek to adapt to these changes throughflexibility and pragmatism.

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3.2 Methodology Adopted
Jordan's Economic Modernisation Vision and its related roadmap emerged
through a collaborative, data-driven and market-driven approach that resulted
in tangible, ambitious, and practical solutions and recommendations.
The baseline for the adopted methodology was set by assessing Jordan'sachievements and challenges, analysing Jordan’s competitive position against
other countries in the region and beyond, as well as reviewing national
development strategies of other peer countries. These inputs provided a factualand outward looking foundation to explore relevant development options andstrategic priorities for Jordan. The analyses were strongly driven by a multi-monthand multi-disciplinary engagement process involving various experts. Strongemphasis was placed on understanding the sectors of Jordan's economy andtheir potential as well as new development opportunities resulting from current
global trends and market shifts. In parallel, economic modeling supported thedevelopment of growth scenarios for Jordan, and the assessment of a wide
range of options.
The result is an ambitious and actionable roadmap for the next ten years
that will serve as a reference point for the development of executive sectoral
programmes and plans. This roadmap, through setting future priorities andgoals, aims to ensure consistency of efforts and continuity of implementation ina dynamic changing environment.

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Economic Modernisation Vision Unleashing potential to build the future

Figure (6): Vision Preparation Approach

Highly inclusive and externally driven

Benchmarks

Baseline

Competitive
Proposition

PrivateSectorYouth

Civil Society
and Media

Parliament

Public Sector

500+
participants

Donor
Community

Experts andAcademia
Chambers ofTrade andIndustry

Outputs

Economic Modernisation Vision& Roadmap-Strategic ambitions and objectives-Strategic priorities-Strategic roadmap

Implementation Drivers

Implementation Governance-Specific initiatives-Tangible objectives-Actionable plans-Results-driven priorities-Dedicated Vision Delivery Unit
-Monitoring & evaluation mechanisms

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3.3 Vision Characteristics
The Economic Modernisation Vision and its related Roadmap is fundamentallydifferent from past exercises with regards to the preparation approach adopted
and the desired outcomes produced. Nonetheless, it was developed by building
on successes of previous outcomes and experiences. The preparation of
the vision is characterised by five features to ensure its success and effective
implementation:
1. Inclusiveness and participation: Over 500 experts from different economic
sectors in an interactive platform.
2. Growth stimulation: The work was centered around finding new ways
to fully unleash Jordan's growth and development potential, and thecreation of attractive job opportunities with the continuous quest for theadvancement of quality of life.
3. Find effective solutions and avoid unimplementable theories: Importanceon finding effective solutions, taking into account the synergies among
sectors, while making decisions based on data and facts.
4. Accountability: The implementation governance design is built to manage
the achievement of actual results, with clear accountability mechanisms in
the event of non-implementation or failure to reach the desired results—
considering flexibility, while claiming the need for some changes.
5. Learn from past experiences: This work differs from the previous visions
and plans that have not achieved their full potential, by benefiting fromlessons learnt to be a starting point for adopting best practices to ensure
success in the future.

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Economic Modernisation Vision Unleashing potential to build the future

Figure (7): Vision Characteristics

Inclusion & Participation

Growth Stimulation

Accountability

Find Effective Solutions

Learn from Past Experiences

3.4 Implementation Framework
The purpose of the Vision is to set long-term national targets for Jordan, define
the strategic development priorities, and outline a fundamental implementation
roadmap. The project leads to the formulation of the vision with a fact-based“point of departure” assessment of the sector. This is followed by identified
avenues for development and key issues to be addressed, articulating a desirable
and feasible target state of the sector (sector vision and high-level strategy),
outlining future contributions to economic growth and opportunity creation,and flagging key investment priorities to bring the full potential of the sector
to life.
In the spirit of a national vision, the exercise did not rely on detailed analyses atsectoral levels, but made extensive use of inputs provided by the participants aspart of the national dialogue sessions, expert guidance, industry research, andbenchmarking with peer countries. Therefore, the vision is a collective national
effort that defines the roadmap and proposes key priorities for each sector aswell as national programmes to ensure alignment and delivery.

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Figure (8): Vision’s Executive Framework

EconomicModernisation
Vision10+ year horizon
Set long-term national targets
Define strategic development priorities
Outline fundamental
implementation agenda

Detailed government
action plans for specificsectors and fields

5+ years

Plans and
programmes

3+ years

Government
actions andactivities

1+ yearStrategic
roadmaps(targets &inputs)

Implementation
drivers andinitiatives

The Vision offers a set of strategic objectives and clarifies the roles and dutiesof the government, including ministries and other institutions. This includes
the preparation of detailed sectoral plans or the updating of existing ones, anddeveloping action plans for each sector and timeframes for each, including
setting benchmarks and performance indicators. The Vision also takes into
account alignment with execution limitations, such as available financial
resources and technical capabilities.

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Economic Modernisation Vision Unleashing potential to build the future

4. The Way Towards the Future
4.1 Vision’s Pillars
The Economic Modernisation Vision and its Roadmap is based on two strategicpillars: a pillar focused on accelerating sustainable and inclusive growth byunleashing Jordan’s full economic potential, while the second is centered onsociety, targeting the improvement of quality of life of all Jordanians to secure abetter future for all. The two pillars are underpinned by sustainability.

Figure (9): Vision’s Two Main Pillars

Better Future

Quality of life pillar:
High Standards of Living
and Happiness for All
Advancing attractivenessof our communities

Economic growth pillar:
New Income
Opportunities for All
Unleashing ourfull economic
potential

Sustainability in All We Do

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These two pillars address the two key challenges facing Jordan and the
Jordanian people; sustainable income opportunities and improving the qualityof life. These were derived from a comprehensive national survey conductedby research experts and a sample of 2500 Jordanians (females and males)
during the Vision development efforts, and through engagement with a wide
variety of stakeholders that represent all societal segments in Jordan across all
governorates.

Figure (10): Vision’s Strategic Goals

Double the percentage of Jordanians
satisfied with their quality of life toreach 80%

80+
%

1+
mil.

Accomodate 1+ million young
females and males in labor market

Have one Jordanian city ranked
among the top 100 cities in the world

Top
100

+3%
p.a.

Increase income per capita by on
average 3% per year

Top
30%

Improve Jordan’s ranking in Global
Competitiveness Index to top 30
percentile

Improve Jordan’s ranking in theLegatum Prosperity Index to top 30
percentile

Top
30%

Improve Jordan’s ranking in the
Global Sustainability CompetitivenessIndex to top 40 percentile

Quality ofLife Pillar

Top
40%

Economic
Growth Pillar

Top
20%

Sustainability

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Improve Jordan’s ranking in the
Global Environmental Performance
Index to top 20 percentile

Economic Modernisation Vision Unleashing potential to build the future

Through the economic pillar, Jordan is expected to create leaps in economic
growth to accomodate 1 million young females and males in labor market overnext decade. A precursor for achieving these goals is substantially enhancing
Jordan's international competitiveness across all underlying drivers, from thequality of Jordan's hard and soft infrastructure, to legal environment, to ease of
doing business, and to Jordan's ability to create world-leading innovative skills.
Through the “Quality of Life” pillar, all generations can enjoy a good lifestyle to
make Jordan one of the best countries in the region in terms of quality life andprosperity.
The two pillars and their goals are also closely interrelated. Creating soundeconomic growth will provide the foundation to fund the required infrastructure
for the quality of life pillar, and the targeted increase in income will allow citizens
to spend on the lifestyle options that they choose to have. Better income andthe creation of future jobs will allow people to make purchases and investments,
which will improve citizens’ satisfaction with their lives, and in turn contribute toeconomic growth. In addition, inclusive green growth will create a cleaner andmore sustainable living environment for all citizens while triggering innovative
growth opportunities in green products and services. Further, a domestic
market with strong growth momentum from consumer spending will reinforce
the export-driven growth strategy. Given the close connections between thetwo pillars, it will be of critical importance to maximise the synergies between
them.

4.1.1 Unleashing Jordan’s Full Economic Potential
Accelerating Jordan's economic growth will be paramount to creating thenecessary jobs sufficient to meet the requirements of the future job market, andreducing the unemployment rate. Creating 1+ million new job opportunities
will require building on Jordan’s existing strengths, as well as identifying andcreating new strengths in different areas to capture future opportunities.
Realising such a leap will require activating Jordan's economic growth engine,as the domestic market alone will not provide the necessary thrust. Leadershipand innovation in exports will require the attraction of additional foreign anddomestic direct investment with international investors leveraging Jordan's
strategic location and FTAs as a hub to fuel their global growth and market
outreach.

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To become an attractive location, Jordan will need to make significant
improvements in the underlying enablers in areas such as ease of doing business,
infrastructure, competitive input costs, the availability of specific skills and highlevels of productivity, or the ability to innovate in areas of future growth such as
manufacturing, mining, tourism and creative industries.
While job creation is at the top of the agenda, improving the purchasing power
for all Jordanians is another imperative strategic goal within the economic pillar.
A jump in job creation in conjunction with meaningful and continuous income
level improvements will form the centerpiece of economic growth, and will leadto tangible results that can be experienced in the daily life of all Jordanians.
The economic growth pillar will pursue three Vision goals:
1. Create 1+ million new income opportunities for Jordanians by 2033
2. Increase the real income per capita by 3% per year on average
3. Improve Jordan’s ranking in the WEF Global Competitiveness Index to top
30th percentile

4.1.2 Enhancing the Quality of Life for all Jordanians
Every citizen is affected by the quality of life every day, and it directly influences
the citizen’s contentment and productivity. Ensuring that Jordan has a worldclass standard of living is vital for the country's long-term development.
The Vision will help boost the foundations of livability, such as high quality andaffordable housing, robust infrastructure, high quality education and healthcare,in addition to a clean and sustainable environment. Moreover, the Vision will
target the development of enhanced offerings to make life truly enjoyablethrough attractive recreational offerings, culture and sports, shopping, andtravel options. The strategic roadmap will integrate all quality of life elements
in a cohesive manner.

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Economic Modernisation Vision Unleashing potential to build the future

The quality of life pillar will pursue three vision goals:
1. Double the percentage of Jordanians who are satisfied with their quality oflife to reach 80%
2. Classify one Jordanian city ranked among the top 100 cities in the world
3. Improve Jordan’s ranking in the Legatum Prosperity Index to top 30th
percentile
These three strategic goals will ensure Jordan has a highly focused quality of life
agenda, which highlights citizens and their satisfaction as the focus of attention.
It is also worth noting that raising the quality of life can attract talents andcapabilities that are conducive to economic growth.

4.2 Sustainability
Through the Vision and its Roadmap, Jordan will continue its efforts to tackle
needs related climate change (including delivering on the Paris Agreement),
food security and water, and availability of clean energy. Since sustainability
is a core pillar of this Vision, Jordan will continue its efforts to achieve theSustainable Development Goals, compatibility with global approach towards agreen economy, and attract investments into sustainable projects which would
also facilitate greater access to green financing.
Sustainability is expected to help promote creating new phase of economic
growth by fueling investments (both domestic and international) in greener
projects (technologies, infrastructure and products), sparking entrepreneurial
and innovative solutions, enhancing the export competitiveness of our nation
and ultimately, creating high quality and sustainable jobs for the future. Jordan
aims to be a low-carbon, resource efficient and socially inclusive nation that serves
as a regional hub for green entrepreneurship and innovation. Sustainability will
be a key element in Kingdom’s economic future, in particular:29

1. Expanding on renewable energy, including new sources of energy (such ashydrogen) and continuosly promoting improved energy efficiency
2. Developing sustainable transport systems and establishment of a networkof electric charging stations
3. Increasing ecotourism and environmentally friendly activities
4. Adopting modern agricultural techniques that adapt to climate change,
including integrating best and enviromentally friendly practices
5. Promoting improved water efficiency, water quality, and identifying new
water resources
6. Improving waste management, recycling and reuse
Sustainability in the way citizens aspire to live is important. It will help ensurethat the environment citizens live in is clean and well protected, future cities
are greener and more livable, and ultimately, the way they move, consume
and live does not have a negative impact on Jordan and the world. Having awell-preserved, protected and fresh environment is fundamental for a thriving
natural ecosystem, biodiversity and habitats in Jordan that will reduce emissions
and increase the percentage of protected areas. Adopting sustainable practices
and investing in innovative solutions will foster sustainable agriculture practices
across Jordan to provide high quality, nutritious and fresh food to Jordanians,
while at the same time protecting one of our most precious resources, water,of which ~50% is currently consumed by the agriculture sector. Developing
greener urban centers includes the electrification of the transportation network,
well-integrated communities, increasing green spaces, exposure to nature andproviding opportunities for a more active lifestyle.
A sustainable Jordan will be a strong contributor to a better world for the
future, which is well aligned with the United Nations Sustainable Development
Goals, in particular the following goals: no poverty, zero hunger, good healthand wellbeing, quality education, gender equality, clean water and sanitation,affordable and clean energy, economic growth, industry, innovation andinfrastructure, reduced inequalities, sustainable cities and communities,
responsible consumptions and production, life below water, life on land,and climate action. Green growth of the Jordanian economy will be basedon resource efficiency, circularity, climate responsiveness, nature protection,
human well-being and social inclusion.

30

Economic Modernisation Vision Unleashing potential to build the future

The sustainability theme will pursue two Vision goals:
1. Improve Jordan’s ranking in the Global Environmental Performance Index
to top 20th percentile
2. Improve Jordan’s ranking in the Global Sustainability CompetitivenessIndex to top 40th percentile

4.3 Strategic Objectives Framework
The Vision goals define bold long-term "destinations" for Jordan in the areasof job creation and income improvement, quality of life, and sustainability.
They prescribe the future outcomes for the strategic roadmap that contains the
specific strategic steps recommended to achieve these outcomes.
To keep Jordan on course towards realising these long-term goals, 8 overarchingstrategic objectives were defined, which are based on 72 goals, and focused ontangible actions and measurable steps.
Taking the economic growth pillar as an example, a suite of 34 goals will be used
to guide the realisation• The strategic objective of "job creation" will be guided through 5 goals,
targeting a disproportionate reduction in unemployment rate, expat
employment, informal employment as well as an increase in female andprivate sector employment.
• The strategic objective of "income growth" will be guided through 7 goals,
targeting a disproportionate increase in GDP, economic diversity, role of"future" sectors, exports, FDI, domestic private investments, and rural area
growth.
• The strategic objective of augmented "international economic
competitiveness" will be guided through 9 goals, targeting quantum
leaps in ease of doing business, market compatible skill supply, R&D andinnovation, entrepreneurship, infrastructure quality, FDI attractiveness,
corruption perception, IP protection, and electricity prices.
Similarly, 21 goals will guide the implementation of the quality of life pillar, and17 goals will guide the realisation of long-term sustainability objectives.

31

Figure (11): Key International Indicators
to Track in Implementing the Vision

WEF Global Competitiveness
Index

Legatum Prosperity
Index

Environmental Performance
Index

Economic Freedom
Index
Economic Complexity
Index

Economic
growthGlobal Food Security
Index

Logistics Performance
Index

Human Development Index

FDI Restrictiveness
Index

Social ProgressIndex

4th quartile

Target 2033

32

Quality oflife

Global Knowledge
Index

Global Innovation
Index

Most recent (2019/20)

Global Quality of LifeIndex

3rd quartile
2nd quartile
1st quartile

Economic Modernisation Vision Unleashing potential to build the future

5. Economic Growth Pillar
5.1 Future Economic Growth Strategy
One of the two strategic pillars of the Economic Modernisation Vision isunleashing the full economic potential of Jordan over the coming decade,and focusing on emerging and high growth potential sectors, which will leadto increased economic opportunities for citizens. This is outlined by three key
economic strategic goals of the Vision, which are creating income-generating
opportunities for citizens, enhancing the real capita per income, and improving
Jordan’s ranking in the WEF Global Competitiveness Index.
To unleash the full potential of Jordan’s economy, the economic growth pillar
is built on 8 guiding principles, which are Focus, Competitiveness, Alignment,
Investments, Exports, Linkages, Innovation and Inclusiveness.

Figure (12): Economic Growth Pillar Guidelines
Focus

Competitiveness

Alignment

Strategic growth engines at thecenter of our roadmap

Utilizing our national
advantages regionally anddomestically

Full match between skills
demand and supply

Investments

Exports

Linkages

Investment roadmap tostimulate growthInternational markets driving
growthLeveraging synergies acrosssectors, strength throughnetwork and value chains

Innovation

InclusivenessTech-enabled economy andentrepreneurship

Economic growth linked toquality of life33

5.2 Economic Growth Priorities
The economic growth priorities of the Economic Modernisation Vision are
based on five growth drivers, owing to the interdependence among them.
These include High-Value Industries, Future Services, Destination Jordan, Smart
Jordan and Sustainable Resources.
These five drivers are comprised of priority growth, development and successsectors and sub-sectors that create an enabling environment for future successand development, as well as others that enable growth in Jordan’s exports andmarkets.

Figure (13): Priority Economic Sectors
High Value Industries
Agriculture & Food Security
MiningFood products
Chemical products
Pharmaceuticals
Textile products
Engineered products
Logistics

34

Destination Jordan

Future Services

Culture & nature/ adventure
tourism
Medical & wellness tourism
Faith tourism
Film production tourism

ICT services
Creative industries
Financial services
Healthcare
TradeTransport

Smart Jordan
Education
ECD
K-12
Higher Education
TVET
Data
R&D and Innovation
Entrepreneurship

Sustainable Resources
EnergyWater

Economic Modernisation Vision Unleashing potential to build the future

35

High-Value Industries
1. Agriculture and Food Security
The agriculture sector is a key source of livelihood, especially in rural areas for
Jordan. Arable land suffers from a lack of availability of water. The agriculture
sector is highly water intensive, consuming more than 50% of Jordan’s water, afigure that leads to the possibility of making use of wastewater for this purpose.
Further, the sector is significantly fragmented leading to small-scale landholding,creating an unorganised sector with limited productivity of crops.
While Jordan is positioned next to high food demand markets, the low
productivity and high cost of utilities affect its competitiveness to serve theregion.
Food security in Jordan is given priority as the year 2021 witnessed the launch of
the National Food Security Strategy (2021-2030). Similarly, in early 2022, Jordan
launched its new National Plan for Sustainable Agriculture (2022-2025).

36

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Agriculture and Food Security
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 1.5 bn
4.9% of total GDP

76.0 k
5.5% of total
employment

JD 19.5 k
3% above avg.

JD 0.8 bn
6.0% of totalexports

2 Strategic State of Sector• The agriculture sector represents a key source of living, especially in rural areas.
• The arable land suffers from water scarcity and lack of sufficient resources.
• Highly water-intensive sector, consuming >50% of Jordan’s water (including
wastewater use).
• Fragmented land plots and small-scale landholding resulted in an unorganizedagri sector with limited crops productivity.
• Although Jordan is located near markets witnessing high food demand, the low
productivity and high costs have negatively impacted its competitiveness tomeet market demands.
• Poor legal framework to ensure and strengthen food security agenda in Jordan.

economic impact of
5 Directsector for Jordan (base case)GDP+6.0% p.a. | + JD1.5 bn

2.97

1.5
1.48
2021e

2033

3 Strategic Potential and Priorities for Jordan• Turn Jordan into a regional hub of high-quality agricultural produce while domestically ensuring sustainable food security to meet current and future needs.
• Modernise agriculture production: Leverage the latest AgTech and smart
solutions to revamp agricultural production techniques and to enable Jordan to
become a regional agri-food export hub.
• Develop agricultural food value chain: Enhance agri-food value- added byupgrading supply chain infrastructure, food manufacturing opportunities, andimproving agricultural marketing of exports.
• Food security sustainability: Reduce food and agricultural loss and waste
through digitization to ensure food security sustainability throughout Jordan.

4 Proposed Initiatives• Establish a specialized food security governing body.
• Establish a national food security research center.
• Build a food data intelligence system.
• Reform agriculture and livestock regulations and policies.
• Establish the Integrated Agro-Industrial Food Park.
• Revamp supply/cold chain and infrastructure.
• Revisit agri financing and insurance programmes.
• Enhance agriculture marketing and promotion.
• Establish a system of cooperative societies and agricultural unions.
• Encourage Modernisation and innovation of the agricultural sector, and expand
the use of modern technologies.
• Launch a centralized resource preservation initiative.
• Provide Agri education and vocational training for farmers’ upskilling.
• Establish a food investment acceleration fund in Jordan.
• Support investment projects, AgTech, and R&D in FoodTech.
• Enhance food incubators and accelerators under MoA.
• Enhance the strategic stocks of grains, especially wheat and barley, and increasing the planted areas intended for these crops.

Employment+5.5% p.a. | +68.0 k FTE

76.0

144.0

2021e

2033

GDP/employee+0.5% p.a. | + JD1.2 k

19.5

20.7

2021e

2033

Exports+6.0% p.a. | + JD0.8 bn

0.8
2021e

1.6
2033

37

2. Mining
Jordan has a wide portfolio of mineral resources with distinct strengths in
phosphate and potash (ranking 7th and 12th, respectively, in global reserves)and bromine. Additionally, Jordan has a wide range of industrial rocks such as
silica and Basalt and strategic minerals such as lithium, copper, gold, rare earth
elements, and huge reserves of oil shale.
The mining sector is expected to witness massive developments during thenext decade in light of the increasing demand for industrial and agricultural
products related to the use of modern technology.
To capitalise on the potential of the sector, the sector needs a new mining strategy
or a national mining programme and availability of data and information, andgeological surveys and studies related to exploration. Sector also requires
increasing its competitiveness through provision of updated data, reduce
exploration costs and any overlap with environmental policies to preserve
nature and touristic sites.

38

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Mining
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 0.7 bn
2.2% of total

9.3 k
0.6% of total

JD 72.6 k283% above avg.

JD 1.0 bn
10.4% of totalexports

2 Strategic State of Sector• Jordan has distinct strengths in phosphates and potash fields (#7 and #12 inglobal reserves respectively).
• High potential and abundant reserves of metallic and non-metallic minerals
and construction materials.
• No national strategy or programme for the mining sector.
• Limited available information/data on mining opportunities in Jordan (lack ofproper geological surveys and lack of data for investors).
• High input costs, reducing competitiveness.
• Current legal framework for the mining sector not aligned with leading practices.
• Mining activities often conflict with nature preservation practices.

3 Strategic Potential and Priorities for Jordan• Leverage Jordan’s strategic location to become a key global player in the mining sector and its relevant industries.
• Phosphates and potash: Enable Jordan to become an effective and global
leader in the phosphates and potash industries (branded high value added
products, plant nutrition for specific crops, derivatives, downstream industries).
• Metallic minerals: Establish a portfolio/investment opportunities pipeline thattargets promising product categories, and enable Jordan to become one of the
primary investment destinations for international investors for this sector.
• Construction minerals: Strengthen domestic industries and capture export
opportunities.
• Expand Phosphat and Postash mining volumes.

4 Proposed Initiatives• Develop National Mining Strategy.
• Establish an independent body for conducting geological surveys and providing data related to surveys in accordance with international standards, andcollect data from past surveys and certify them.
• Align mining laws, regulations and procedures with leading international
standards/practices.
• Revamp fiscal regime and incentives.
• Attract and bolster Foreign Direct Investment (FDI) to the mining sector.
• Establish mid and downstream cluster projects for the mining sector.
• Establish mining sector funding scheme(s).
• Attract specialized talent to the Jordanian mining sector.
• Improve the logistics infrastructure that is relevant to the mining sector.
• Improve the mining sector’s competitiveness through lower costs.
• Enhance mining technologies and techniques, and establish an R&D and innovation center to enter new fields, such as nitrogen fertilizers.
• Improve environmental, social and corporate governance within the sector.
• Launch an initiative for corporate social responsibility for the private sector andlocal communities.

economic impact of
5 Directsector for Jordan (base case)GDP+10.0% p.a. | + JD1.4 bn

0.7

2.1

2021e

2033

Employment+9.5% p.a. | +18.2 k FTE

27.5

9.3
2021e

2033

GDP/employee+0.5% p.a. | + JD4.5 k

72.6

77.1

2021e

2033

Exports+10.5% p.a. | + JD 2.3 bn

1.0

3.4

2021e

2033

39

3. Manufacturing
Manufacturing accounts for 17.4% of GDP and 49% of manufacturing exports,
making it one of the most important sub-sectors.
The manufacturing sector is critical in its potential to provide job opportunities.
It represents 13.6% of the total workforce in Jordan.
However, this sector suffers from a limited local market, high production costs,
especially energy, shortage of skilled workers, weak linkages with researchdevelopment, lack of proper transport and distribution to deliver natural gas toits facilities and weak export support. This makes the sector exposed to unfair
competition and weakens its ability to exploit energy production capacity. It
also cannot fully benefit from existing free trade agreements or attract newinvestments and industries.

40

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Manufacturing
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 5.3 bn
17.4% of total

217.3 k13.6% of total

JD 24.2k
28% above
avg total

JD 4.8 bn
49.0% of totalexports

2 Strategic State of Sector• Manufacturing is Jordan’s largest sector accounting for 17.4% of GDP.
• JD 15.1 bn of Jordan’s manufacturing output is for exports, which is equivalent
to 49.0% of total exports.
• Chemical production (esp. fertilizers), textiles, foods, pharmaceuticals are Jordan’s major product lines.
• Key challenges include The small size of the domestic market limits the growthof industry dictating leveraging the FTAs for growth, which in turn requires
reducing the cost of production (mainly energy), and differentiation of products
R&D and innovation.

economic impact of
5 Directsector for Jordan (base case)GDP+7.0% p.a. | + JD5.8 bn

11.1

5.3
2021e

3 Strategic Potential and Priorities for Jordan• Manufacturing will be a major growth engine of Jordan’s economy by at least
doubling the size of its GDP by 2033 and adding ~260k jobs.
• Growth will be centered around the strategic sub-sectors of chemical production, textiles, foods, pharmaceuticals, and engineered production. These sub-sectors are areas where Jordan can either play out a succinct competitive advantages or build new advantages, a strategy that will provide focus while maintaining
diversity and risk balancing.
• Growth will be led by exports growing from ~35% to ~65% of outputs.
• Attract new non-existing industries.

4 Proposed Initiatives• Support domestic products promotion programmes.
• Attract new investments in the existing manufacturing sub-sector and new
sub-sectors.
• Reduce energy costs through lowering electricity tariff and deliver natural gas
to industrial zones.
• Support SMEs in enhancing productivity and cost optimization.
• Enhance linkage between academia R&D and industry.
• Create manufacturing sector data center/database.
• Launch ‘careers-in-manufacturing’ attractiveness campaign.
• Promote entrepreneurship in manufacturing sector.
• Provide industry with trained workforce with improved attitude and better
specialized and general skills.
• Launch ‘women-in-manufacturing’ careers initiative.
• Improve ease of doing business in regards to relations with public sector entities by streamlining laws, regulations, and processes.
• Promote public private partnerships (PPPs).
• Streamline laws, regulations, and processes.
• Develop detailed plans for the rollout of strategy manufacturing, including
national manufacturing strategy.

2033

Employment+6.8% p.a. | +261.9 k FTE

217.3

479.1

2021e

2033

GDP/employee-0.4% p.a. | - JD 1.0 k

24.2

23.1

2021e

2033

Exports+12.5% p.a. | + JD15.0 bn

4.8

19.8

2021e

2033

41

3A) Manufacturing: Food Products
The food industry represents about 27.6% of the industrial sector’s contribution
to the GDP, accounting for 17.8% of its exports, making it one of the mostimportant sub-sectors within this sector.
Jordan has a well-developed food industry sector with a long history and good
reputation, in which both domestic and imported raw materials are used.
The main challenges faced by the sector are: the high cost of production inputs(particularly energy), shortage of specialised talent, and limited domestic
sourcing of raw materials.

42

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Food Production
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 1.5 bn
27.6% of total
mfg.

37.7 k
17.4% of total
mfg.

JD 38.5 k
59% above avg.
mfg.

JD 0.9 bn
17.8% of total
manufacturing

2 Strategic State of Sector• Food production is one of the largest manufacturing sub-sectors in Jordan ac-

economic impact of
5 Directsector for Jordan (base case)counting for 27.6% of manufacturing GDP and 17.8% of manufacturing exports.

GDP• Long-standing position and reputation in food processing using domestic andimported raw materials.

+6.0% p.a. | + JD1.5 bn• Key challenges include high production cost (namely electricity), lack of specialized talent, and limited availability of raw materials in the domestic market.

3 Strategic Potential and Priorities for Jordan• Develop the food sector by significantly reducing cost of production andenhancing value added activities.
• Expand in domestic markets by replacing imports with local products.

2.9

1.5
2021e

2033

Employment+5.5% p.a. | +33.8 k FTE• Promote improved work environment to attract more Jordanians to work infood processing industry.
• Foster institutional development of food factories including domestic supply

37.7

chains (food processing cluster), and target to grow total exports by 350%.

2021e

4 Proposed Initiatives• Implement Food Security Strategy with regards to food processing industry.

71.5
2033

GDP/employee+6.0% p.a. | + JD2.4 k• Allocate part of local produce to food processing industry (vertical integration).
• Attract new investments in the sector.

• Support enterprises with environmental compliance.

38.5

40.9

• Launch domestic product marketing and promotion campaigns.

2021e

2033

• Expedite elimination of food processing shadow market.

• Enhance sector’s productivity and increase cost competitiveness.
• Establish food exhibition areas.

• Develop specialized skills for the food processing industry.

• Simplify development of food factories, and streamline governmental
processes.
• launch a plan to strengthen and grow the sector.
• Establish a unified control body for the sector.
• Develop detailed plan for the sector.

Exports+14.4% p.a. | + JD3.4 bn

0.9

4.3

2021e

2033

43

3B) Manufacturing: Chemical Products
Chemical products account for 11.7% of Jordan’s manufacturing GDP and
30.4% of manufacturing exports, which makes it the primary manufacturingsub-sector.
Jordan has built a strong position in fertilizers and products/derivatives related
to phosphate, potash, and bromine, feeding off its strong mining base. On theother hand, Jordan has a small position in various industrial and consumer
chemicals such as paints, detergents, hygiene, and personal care products
among others.

44

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Chemical Production
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 617 mn
11.7% of total
mfg.

21 k
13.3% of total
mfg.

JD 29.4 k
21% above avg.
mfg.

JD 1.5 bn
30.4% of total
mfg.

2 Strategic State of Sector• Chemical production accounts for 11.7% of Jordan’s manufacturing GDP
and 30.4% of manufacturing exports, which makes it a main manufacturingsub-sector.
• Jordan has built a strong position in fertilizers and products/derivatives related
to phosphate, potash, and bromine feeding off its strong mining base.
• Additionally, Jordan has a small position in various industrial and consumer
chemicals such as paints, cleaners, and personal care products.

economic impact of
5 Directsector for Jordan (base case)GDP+7.0% p.a. | + JD0.8 bn

1.4

0.6

3 Strategic Potential and Priorities for Jordan• Become a globally-relevant hub for chemical product solutions.

• Offer solutions centered around downstream applications and derivatives ofphosphate and potash in the plant nutrition and industrial domains throughstrong brand names to capture more value by differentiation with price premi-

2021e

2033

Employment+6.5% p.a. | +23.5 k FTE

ums and reduce exposure to global commodity market swings.
• Diversify from plant nutrition to industrial chemical solutions to play a vital rolein supporting Jordan’s Food Security Strategy, and provide jobs across a wide

21.0

range of skill-levels form regional alliances.

2021e

4 Proposed Initiatives• Set up chemicals production manufacturing cluster.

44.5
2033

GDP/employee+0.5% p.a. | + JD1.8 k• Establish an R&D and innovation center focused on the potash and phosphatevalue chain and commercialization opportunities.
• Define a detailed downstream manufacturing strategy for potash and phosphate feedstocks.

29.4

31.2

2021e

2033

• Launch international marketing campaign for Jordanian chemical products.
• Attract international strategic investors.
• Launch specialized education programmes in support of chemical sector skills

Exports+11.4% p.a. | + JD3.9 bn

needs.
• Launch regional cooperation and integration strategy for chemicals products.
• Develop growth strategy and investment roadmap.
• Establish a dedicated body to represent the chemical production industry.

1.5

5.4

2021e

2033

45

3C) Manufacturing: Pharmaceuticals
Pharmaceuticals is a mid-size but high-value manufacturing sub-sector in
Jordan. The sub-sector accounts for 10.2% of the manufacturing GDP and 9% of
manufacturing exports.
The sector has substantial production capacity with over 70 production lines,
with a proven business model that focuses on branded generics, wide variety of
products, and high international standards.
Sector challenges include a small domestic market, rigid domestic pricing, slow
registration processes, and high production costs and taxes.

46

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Pharmaceuticals
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 536 mn
10.2% of total
mfg.

5.4 k
2.5% of total mfg.

JD 99.2 k
309 % above avg.
mfg.

JD 0.2 bn
4.7% of total
mfg.

2 Strategic State of Sector• Pharmaceuticals is a mid-sized but high-value manufacturing sub-sector in
Jordan.
• The sub-sector accounts for 10.2% of the manufacturing GDP and 4.7% of
manufacturing exports.
• Substantial production capacity with over 70 production lines.
• Proven business model with focus on branded generics, wide variety of products, and high international standards.
• Challenged by a small domestic market, rigid domestic pricing, complex approval/registration processes, high production costs and taxes.

economic impact of
5 Directsector for Jordan (base case)GDP+10.0% p.a. | + JD1.1 bn

0.5

1.7

2021e

3 Strategic Potential and Priorities for Jordan• Become a regional hub for pharmaceutical production by embarking into newtechnologies and therapy areas, new drug development and enhanced R&D,
speeding up processes and linkages between key players.
• Expand into new geographical markets enabled by streamlined governmental
legislations, regulations, and processes.
• Play a vital role in supporting Jordan’s drug security ambitions and that ofneighboring countries.
• Leverage pharmaceuticals as a platform to catalyze further knowledge andinnovation-intensive sectors such as engineered production or ICT.

4 Proposed Initiatives

2033

Employment+9.5% p.a. | +10.6 k FTE

16.0

5.4
2021e

2033

GDP/employee+0.5% p.a. | + JD6.1 k• Simplify governmental processes for the registration of new drugs to expedite
the registration in new markets.
• Make IP databases searchable, accessible, and easily available.

99.2

105.3

• Develop regulations for biological drugs/biotechnological drugs and biosimi-

2021e

2033

• Develop R&D to support the launch of new products.
lars.
• Launch a domestic product promotion policy.
• Attract new investments in the sector.

• Enhance the sector’s productivity and improve cost competitiveness.

Exports+20.3% p.a. | + JD1.9 bn• Rollout of upskilling programmes for the pharmaceuticals sector.
• Relax pricing rules and enable price stability.

• Establish pharmaceutical sector-specific unified strategic body.
• Develop a detailed plan for the sector.

0.2

2.1

2021e

2033

47

3D) Manufacturing: Textiles
Textile manufacturing is a major sub-sector in Jordan accounting for 8.1% ofmanufacturing GDP and 27.5% of manufacturing exports, making it a major
manufacturing subsector for Jordan.
Jordan has built strong positions with regard to textiles, especially with buyersof apparel from the U.S market, based on advantageous FTA-based market
access and ‘Made in Jordan’ brand for ethical sourcing.
Key challenges include: ~70% of the workforce are non-Jordanian, activities arebasic with rising costs, and high dependence on imported raw materials.

48

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Textiles
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 426 mn
8.1% of total mfg.

76.0 k
35.0% of total
mfg.

JD 5.6 k
77% below avg.
mfg.

JD 1.3 bn
27.5% of total
mfg.

2 Strategic State of Sector• Textile production is a major sub-sector in Jordan accounting for 8.1% of manu-

economic impact of
5 Directsector for Jordan (base case)facturing GDP and 27.5% of manufacturing exports.

GDP• Jordan has built strong positions especially with buyers of apparel from the U.S
market based on advantageous FTA-based market access and ‘Made in Jordan’+10.0% p.a. | + JD0.9 bnbrand for ethical sourcing.
• Key challenges include ~68% of workforce are non-Jordanian, activities are basicwith rising costs, and high dependence on imported raw materials.

1.3

0.4

2021e

3 Strategic Potential and Priorities for Jordan• Increase value of exports by 3-4x.
• Create over ~149k jobs for Jordanians.
• Strengthen the position of the textiles sector locally and regionally throughfinding sizeable niches in the value chain, increasing overall volume of production, establishing new factories, and expanding existing textiles factories within
the fast fashion market.
• Produce raw materials to speed up supply chain and increase added value.
• Diversify imports of cost competitive raw materials from new sourcing countries, which will expand Jordan’s presence in key export markets.

4 Proposed Initiatives

2033

Employment+9.5% p.a. | +148.7 k FTE

76.0

224.7

2021e

2033

GDP/employee+0.5% p.a. | + JD0.3 k• Develop fabric manufacturing (vertical integration) to fulfill the needs of export
markets in one season.
• Expand vocational training programme and benefit from sector skills council.
• Promote local talent employment in textiles sector and increase Jordanians
managerial positions in the textiles sector.

5.6

5.9

2021e

2033

• Attract new investments in the sector.

• Enhance the sector’s productivity and improve cost competitiveness.

• Increase integration and collaboration between large and small enterprises toexpand the size of small enterprises.

Exports+12.0% p.a. | + JD3.9 bn• Create sub-sector data center/database.

• Develop a unified governance framework for the sector.
• Streamline textiles sector-specific laws and regulations.
• Develop a detailed plan for the sector.

1.3

2021e

5.2
2033

49

3E) Manufacturing: Engineering Industries
Engineering products are a smaller emerging sub-sector in Jordan accounting for5.0% of manufacturing GDP and 14.1% of manufacturing exports. Engineering
products is still a developing sector despite the abundance of engineers fromdifferent backgrounds.
Jordan holds a promising position in many of the engineering industries;
including heating, ventilation, air conditioning, electric products andconstruction materials with an expanded access to regional and international
markets, capitilising on existing FTAs. Moreover, Jordan has an emerging baseof companies functioning as suppliers to assembling firms.

50

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Engineering Industries
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 199 mn
5.0% of total mfg.

10.0 k
4.6% of total mfg.

JD 26.4 k
9% above avg. mfg.

JD 0.2 bn
4.1% of total
mfg.

2 Strategic State of Sector• Engineered production is a small emerging sub-sector in Jordan accounting for

economic impact of
5 Directsector for Jordan (base case)

5.0% of manufacturing GDP and 4.1% of manufacturing exports.

GDP• Jordan has built initial position in areas such heating, ventilation, air conditioning, electrical products, and construction materials.

• Emerging base of companies that function as local component suppliers to+7.0% p.a. | + JD0.3 bn

assemblers.

0.6

0.3
2021e

3 Strategic Potential and Priorities for Jordan• Develop the sector to become an active specialized one in engineered solutions, which can be leveraged to build high skilled workforce.

• Capitalize on Jordan’s unique advantages such as high-skilled Jordanian engi-

2033

Employment+6.5% p.a. | +11.2 k FTE

neers.

• Evolve the branding of “Made-in-Jordan” solutions to enter international markets.

• Focus on product categories with high success potential for Jordan (e.g. build-

21.2

10.0
2021e

2033

ing and construction systems).

• Adopt innovation ideas from abroad and scale up in Jordan.
• Build reference projects in export markets.

GDP/employee+0.5% p.a. | + JD1.6 k

4 Proposed Initiatives• Attract three international champion companies.

• Conduct detailed feasibility assessments on entering fast-growth future productcategories.

26.4

28.0

2021e

2033

• Set up an R&D and innovation center for high-potential engineered productExports

solutions, their value chains, and commercialization opportunities.
• Accelerate roll-out of the fourth Industrial solutions.

+10.3% p.a. | + JD0.4 bn• Strengthen cross-sectoral collaboration between engineered production, industrial design, ICT and supplier industries.
• Launch domestic and international marketing campaigns.

• Develop specialized education programme (engineering academies).
• Develop national plans and roadmaps for investment in the sector.

0.2

0.6

2021e

2033

51

4. Transport, Mobility and Logistics:
The transport and logistics1 sector is a strong contributor to Jordanian
employment and GDP, particularly for the youth and women. This sector plays
a major role in enabling the high value industries driver to leverage Jordan’s
strategic location, more infrastructure and serve a pivotal transport & logistics
role in the region and beyond. Enablers to this sector include the modern ports
and an award winning airport, which constitutes a major pillar for growth in the
sector.
While Jordan has a modern road network, yet there is a strong potential forenhancing transport networks, especially railway networks and linkages
with other countries in the region. There are also opportunities to further
develop storage facilities, ports, and air freight of goods and enhance customs
procedures.

1. Logistics is included under the High-Value Industries driver, while Mobility is included under Future Services.

52

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Transport, Mobility and Logistics
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 1.6 bn
5.4% of total

93.6 k
5.9% of total

JD 17.5 k
8% below avg.

JD 0.4 bn
3.6% of total exports

2 Strategic State of Sector• Strong contributor to Jordanian employment and GDP.
• Privileged geostrategic positioning can enable regional transport and mobility.
• Strategic plans exist but with limited implementation.
• Multi-award-winning Queen Alia Airport.
• Aqaba Port is a significant strategic asset.
• Poor road and rail infrastructure.
• Sector is highly fragmented.
• Lack of adequate government funding and insufficient incentives for private
sector involvement.
• High reliance on private cars due to inadequate public transport causing
congestion.
• Slow clearance process due to high rate of physical inspections.

3 Strategic Potential and Priorities for Jordan• Enhance Jordanian transport infrastructure and streamline legislation to enableefficient movement of people and goods.
• Leverage Jordan’s geographic position to provide viable continental transshipment routes to serve the region.
• Substantially expand Jordan’s capabilities and modernise processes to sustainably and efficiently move goods in and out of the country while empowering
trade and other sectoral activities.

4 Proposed Initiatives• Revamp institutional framework for transport.
• Revise transportation laws and regulations.
• Enhance environmental policies and regulations.
• Strengthen regional transport links.
• Develop sustainable funding and financial support mechanism.
• Develop specialized human capability / capacity.
• Upgrade transport infrastructure and services.
• Move towards use of clean energy in transportation.
• Make use of available technical solutions and smart apps within the sector.
• Develop data and management information system.
• Establish traffic safety policies.
• Launch public private partnerships for transport.
• Develop a master plan for public transport.
• Launch a new strategy that includes all proposed initiatives mentioned above.
• Activate national unified window across all border crossings.

economic impact of
5 Directsector for Jordan (base case)GDP+5.0% p.a. | JD +1.3 bn

2.9

1.6
2021e

2033

Employment+4.5% p.a. | +64.8 k FTE

93.6

158.4

2021e

2033

GDP/employee+0.5% p.a. | JD +1.1 k

17.5

18.5

2021e

2033

Exports+8.0% p.a. | JD +0.5bn

0.4
2021e

0.9
2033

53

54

Economic Modernisation Vision Unleashing potential to build the future55

1. ICT / Digital Economy
Jordan boasts three keystones rendering its ICT sector highly promising in
growth opportunities: sturdy digital infrastructure, qualified and internationallycompetitive human resources and a motivating legislative framework thatprovides tax incentives.
Jordan nurtures a culture of entrepreneurship. 27 of the MENA top 100 techentrepreneurs are Jordanian (WEF), and many of the biggest companies in theregion were founded and owned by Jordanians (such as souq.com, maktoob,
Jawaker), later acquired by large global companies. In addition, the Innovative
Startups & SMEs Fund in Jordan contributed to attracting 11 investment funds
to invest in Jordanian entrepreneurial companies.
Several FTAs and bilateral agreements offer access to 160+ countries, andJordan has incentives in place including favorable tax rates and subsidisedsalaries.
There is a need to review and update some of the current labor legislations
to meet the needs of the future workforce, in addition to the challenge thatarises from the mismatch between supply and demand of digital skills due totechnology advancements outpacing university curricula revisions. To close
this gap, efforts have been done and programmes have been developed with
the necessary funding, including the “Youth, Technology, and Employment”
project.

56

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary ICT/Digital Economy
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 0.9bn
3.0% of total

24.7k
1.6% of total

JD 36.7k
93% above avg.

JD 0.2bn
1.9% of totalexports

2 Strategic State of Sector• Strong digital infrastructure, qualified and globally competitive workforce andnumerous tax incentives.
• Jordan succeeded in establishing and developing the sector with high competitiveness and attracted world-renowned tech companies with significant
growth in recent years.
• 27 of the MENA top 100 tech entrepreneurs are Jordanian (WEF), and many ofthe biggest companies founded in the region are owned by Jordanians, later
acquired by large global companies.
• Several FTAs and bilateral agreements offer access to 160+ countries, and Jordan has incentives in place including favorable tax rates and subsidized salaries.
• Current labor laws need to be updated for ‘workforce of the future’ needs.
• Mismatch between supply and demand of digital skills due to technology
advancements outpacing university curricula revisions.
• Overregulation can impede development in Digital Economy (advanced technologies) and technology-enabled sectors.

3 Strategic Potential and Priorities for Jordan• Enhance Jordan as an attractive investment hub for digital innovation and alaunchpad for ready-to-scale digital solutions.
• Outsourcing: Develop Jordan into a high-value services outsourcing hub, andleverage Jordan’s skill sets, infrastructure, ecosystem and geostrategic location.
• Digital government transformation: Strengthen public-private collaborationto accelerate digital government transformation through a new procurement
process that allows the private sector to compete in providing citizens withservices through open application interfaces.
• Offer a wider space for startups by easing restrictions and introducing cost
reduction incentives in the early years.

economic impact of
5 Directsector for Jordan (base case)GDP+13.0% p.a. | + JD3.0 bn

0.9

3.9

2021e

2033

Employment+12.4% p.a. | +76.3 k FTE

24.7

101.0

2021e

2033

GDP/employee

4 Proposed Initiatives• Launch 5G.
• Establish a virtual free-zone for start-ups.
• Establish a regulatory sandbox for disruptive technologies.
• Accelerate the establishment of a legal framework for new technologies that isagile and responsive to facilitate and ease starting new tech companies / scaleups / potential unicorns.
• Develop a future-ready (employable) workforce.
• Upgrade labor laws to match ‘workforce of the future’ needs.
• Empower a public data agency responsible for data availability, access, anddecision-making support.
• Create a cabinet level department at PMDU Digitizing Unit to drive and oversee
the end-to-end digitized services for citizens and investors.
• Accelerate the pace of government digital transformation by establishing partnerships with the private sector.
• Enhance and sustain incentive packages for large-scale investment and talentdevelopment.
• Roll-out national and international branding and positioning campaign.
• Attract risk capital funding for pre-seed/idea stage and late growth stage
investment.
• Establish R&D / IP creation fund.
• Cascade national vision KPIs across GoJ.

+0.5% p.a. | + JD2.3 k

36.7

38.9

2021e

2033

Exports+30.7% p.a. | + JD4.4 bn

0.2
2021e

4.5
2033

57

2. Creative Industries
Jordan is recognised as a strong regional brand known for entrepreneurshipand creativity with untapped potential and strong base of talented and capable
resources, but suffering from talent drain and certain skill shortage in criticalareas.
The creative industries sector is fragmented and lacks strong awareness,
recognition, and integration by the public and private sector, further coupledwith serving a small local market and limited international market access.

58

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Creative Industries
1 Sector Facts (2021)
GDP

Employment

Global Ranking

Exports

JD 0.6 bn
1.9% of total

10.4k
0.7% of total

Rank: 81

JD 0.1bn
1.1% of totalexports

Global Innovation
Index

2 Strategic State of Sector• A strong regional brand known for entrepreneurship and creativity with untapped potential.
• Strong talent base of capable resources, but suffering from talent drain and skill
shortage in critical areas.
• Fragmented sector that lacks strong awareness, recognition, and integration by
the public and private sector.
• Small local market and limited international market access.
• A few and scattered instances of excellence in e-gaming and film making.
• Appeal of location as a back stage for international film producers.

economic impact of
5 Directsector for Jordan (base case)GDP+8.0% p.a. | + JD0.9 bn

1.4

0.6
2021e

2033

Employment

3 Strategic Potential and Priorities for Jordan• Place creativity at the heart of Jordan’s economy, education and culture.
• Jordan as a hub for game development and e-sports.
• Jordan as a film destination and for skilled creative talent.
• Jordan as a hub for design thinking and creation.
• Jordan as a vibrant creative arts home and destination.
• Jordan as a hub for Arabic content.
• The Creative and Cultural Industry as an enabler to improving government
operations, private sector growth and the quality of life for all Jordanians.
• The Creative and Cultural Industries as a fundamental infrastructure for othersectors in economy.

4 Proposed Initiatives+7.5% p.a. | +14.3 k FTE

24.8

10.4
2021e

2033

GDP/employee+0.5% p.a. | + JD3.3 k

54.1

57.4

2021e

2033

• Establish or enable representative bodies.

• Simplify government processes and integrate design in government.
• Research, harvest, and categorize data.
• Simplify payment, grants and funding.

Exports+24.8% p.a. | + JD1.5 bn• Raise sector awareness locally.

• Grow and retain required talent.

• Establish the physical and services infrastructure and ecosystem.
• Raise the sector’s profile globally.

• Protect and promote sector workers.

0.1

1.6

2021e

2033

59

3. Financial Services and Markets
The financial services sector is backed by a strong and effective regulator aswell as a competent workforce. Overall, the sector has resilient, sound, and wellcapitalised banking segment with a stable funding base and high potential forfast digitisation of financial services with a rapidly emerging FinTech segment.
Jordan has also improved financial inclusion from 33.1% in 2017 to 50.0% in
2020, with potential for more holistic inclusion for citizens and businesses/SMEs(saving, payment, borrowing, investing, and insurance).
However, there is a high dependence on bank financing caused by limited
financing alternatives, such as concessional financing, project and mega project
financing and others, which hinders the growth potential of these segments.
Jordan should continue developing the financial services sector as an enabling
backbone for national economic growth and improving citizen’s access tofinance. Additionally, the sector features a relatively high cost of capital, afragmented insurance sector, with the potential to improve the capital base.

60

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Financial Services and Markets
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 2.3 bn
7.6% of total

26.0 k
1.6% of total

JD 88.6k
367% above avg.

JD 0.1 bn
0.9% of totalexports

2 Strategic State of Sector• The sector is backed by a strong and effective regulator and a competentworkforce.
• Resilient, sound and well-capitalized banking segment with a stable fundingbase• High potential for fast digitization of financial services with a rapidly emerging
FinTech segment.
• High dependence on bank financing caused by limited financing alternative
options, hindering the growth potential of other segments.
• Modest capital market segments with need for rejuvenations to further catalyze
investment and economic growth.
• Fragmented insurance sector with potential to improve capital base.

3 Strategic Potential and Priorities for Jordan• Continue developing the sector as an enabling backbone for national economic growth and improving citizens’ access to finance.
• Banking: Further grow Jordan’s resilient banking sector to enable development.
• Insurance: Become a robust and sustainable sector protecting citizens and theeconomy.
• Leasing: Grow into an inclusive financial provider for MSME growth.
• Microfinance: Develop into a modern, dynamic segment catalyzing socioeconomic growth.
• Capital Markets: Develop the capital market to support investment and finance.
• FinTech: Develop Jordan into a leading regional Fintech hub and investment
destination.

economic impact of
5 Directsector for Jordan (base case)GDP+6.0% p.a. | + JD2.3 bn

4.6

2.3
2021e

2033

Employment+5.5% p.a. | +23.3 k FTE

49.3

26.0
2021e

2033

GDP/employee+0.5% p.a. | + JD5.5 k

4 Proposed Initiatives• Update Financial Inclusion Strategy.
• Launch campaigns to increase financial literacy.
• Roll-out MSME lending initiatives.
• Develop a pre-approved list for microfinance funding loans/grants.
• Develop leasing regulatory framework.
• Develop agile and responsive Fintech regulations.
• Develop a deep and liquid capital market (bonds and equities).
• Expedite the sector’s digital transformation.
• Establish local re-insurance company.
• Restructure insurance sector.
• Develop Financial Sector Development Roadmap.
• Develop detailed sub-sector strategies.

88.6

94.1

2021e

2033

Exports+10.7% p.a. | + JD0.2 bn

0.1

0.3

2021e

2033

61

4. Healthcare
Jordan has a reputable healthcare sector with strong record of accomplishment
in health tourism across the region due to its skilled human capital and modern
hospitals.
The healthcare sector has a robust infrastructure (3.2% of GDP), particularly inprimary, secondary, and tertiary care facilities across public & private sectors.
While the institutional framework to separate the roles of the regulator andservice provider is in place, the sector faces issues related to governance andaccountability, in addition to an unsustainable financing system that lacks clear
service packages and multiple funding sources.
Additional challenges include disparity in quality of care between the public
and private sectors, human resources skills and competence not in tandemwith sector growth needs, digital transformation still limited to electronic
medical records and focus is generally on treatment rather than prevention andwellbeing.

62Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Healthcare
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 1.0 bn
3.2% of total

74.8 k
4.7% of total

JD 13.0k
31% below avg.

JD 0.2 bn
1.8% of totalexports

2 Strategic State of Sector• Regionally reputable sector with strong achievements in medical tourism due to sector’s
potential and quality of medical expertise.
• Robust sector infrastructure (3.2% of GDP), particularly in primary, secondary, and tertiarycare facilities across public and private sectors.
• While institutional framework is in place, sector faces issues in activating governance andaccountability.
• Unsustainable financing system without clear service packages or multiple funding sources.
• Discrepancy between public and private sector in terms of quality of offered services.
• Human resources skills and competence not in tandem with sector growth and needs.
• Digital transformation is still limited to electronic medical records.
• Focus is generally on treatment rather than prevention and wellbeing.

3 Strategic Potential and Priorities for Jordan• Improve the health of the population through a strategic integrated, efficient, patient-centric, innovative and best-in-class system embedding a Health in All Policy approach.
• Focus on a public health and prevention approach to improve the overall health conditionsof the population, adopt healthy lifestyle concepts in urban design and communities, impact quality of life and sector expenses.
• Control of expenditures incurred by the sector• Ensure a strong and well-knit continuum of care by strengthening the role of primary healthcare as a main entry point for equitable access to health services within an integrated digitally-enabled system.
• Promote medical tourism and become a top destination for affordable, high-quality medical
services and wellbeing experiences.
• Reform and uplift the accountability and governance framework of the sector to ensure efficient and effective collaboration, improved quality, patient safety and healthcare outcomesmatching international standards.
• Establish a financially sound and sustainable healthcare sector ensuring collaboration withthe private sector and streamlining funds.
• Streamline funds to expand equitable healthcare coverage.
• Accelerate the sector’s digital transformation and innovation to best-in-class standards todrive preventive and quality healthcare.
• Develop best-in-class fit-for-purpose skilled and competent healthcare workforce startingfrom upgrading the education system and following onto continuous professional development, performance management and leadership.
• Accelerate expansion of universal healthcare coverage, and ensure sustainability of hospitals
and healthcare facilities.
• Improve cost, quality of services, and waiting times through outsourcing hospital functions
such as radiology.

4 Proposed Initiatives• Define and adopt national healthcare quality measurement, data monitoring and benchmarks.
• Launch a framework for sector’s governance reform and financing schemes.
• Deploy and achieve Universal Health Coverage and health security specifically streamlining
coverage funds.
• Improve primary care family health model.
• Develop best-in-class fit-for-purpose competent health workforce and set actionable andimplementable goals.
• Design and deploy health/medical tourism development program.
• Launch healthcare system financing programme addressing efficiency and effectivenessscenarios.
• Launch digital transformation of the healthcare system, beyond electronic medical records,
including setting up a national Health Information System and improving access throughtechnology.
• Launch integrated health manufacturing scheme and support local manufacturing.
• Develop sub-segment plans, cascaded from national sector strategy and developed alongside concerned line ministries, to focus on the development of key sector components.

economic impact of
5 Directsector for Jordan (base case)GDP+7.0% p.a. | + JD1.2 bn

2.2

1.0
2021e

2033

Employment+6.5% p.a. | +83.9 k FTE

74.8

158.6

2021e

2033

GDP/employee+0.5% p.a. | + JD0.8 k

13.0

13.8

2021e

2033

Exports+10.1% p.a. | + JD0.4 bn

0.2

0.6

2021e

2033

63

5. Retail, Trade and CommerceThis sector is a national priority industry given its significant contribution to
GDP and employment.
SMEs contribute significantly to this sector, which has untapped potential toModernise traditional retail. The sector currently lags behind compared to
global standards vis-à-vis digital readiness and strong software skills, which arecatalysts for e-commerce development.
Further, the sector lacks e-commerce legislations, is highly import dependent,
and has an ineffective framework for customs, shipping, and tax for trade/
re-exports. The sector also suffers from limited access to finance and unfair
competition.

64

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Retail, Trade and Commerce
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 2.4 bn
7.9% of total

265.2 k16.6% of total
jobs

JD 9.0 k
52% below avg.

JD 0.3 bn
3.3% of totalexports

2 Strategic State of Sector• Retail, trade and commerce is a national priority industry given its contribution
to GDP and employment.
• Industry structure and SME profile provide job creation opportunities.
• Untapped potential to modernise traditional retail; currently lagging global
standards.
• High levels of digital readiness with strong software skills as catalysts for e-commerce development.
• Lack of e-commerce legislation.
• Aqaba port is a strategic asset to leverage for regional trade (not fully utilized).
• High dependence on imports of goods.
• Inefficient legislative framework from customs to tax for trade/re-exports.

3 Strategic Potential and Priorities for Jordan• Become a regional trade hub with presence in both, traditional and digitalchannels of trade and retail, enabling favorable conditions to attract international players and investors.
• Trade and re-export: Regaining and penetrating markets of key trade partners
and neighboring countries to lower operating costs.
• Traditional wholesale and retail: Modernise activities through innovations andexceptional customer experience stimulating demand to the full capacity.
• E-commerce: Become one of the fastest growing e-commerce and online retailhubs serving the MENA market, especially fostering SME involvement throughtech adoption and incentives.
• Level the field towards fair competition (e.g. e-commerce, advertising, andother areas)

economic impact of
5 Directsector for Jordan (base case)GDP+4.0% p.a. | + JD1.4 bn

3.8

2.4
2021e

2033

Employment+3.5% p.a. | +134.7 k FTE

265.2

399.9

2021e

2033

GDP/employee+0.5% p.a. | + JD0.6 k

4 Proposed Initiatives• Develop consumer protection rights.
• Streamline customs, taxation and shipping regulations for trade and retail.
• Upgrade port and warehousing infrastructure.
• Develop access to finance for the sector.
• Expand trade partnerships and FTAs.
• Establish database for tradable goods and services.
• Automate government procedures and processes.
• Define SME incentives and rebate programmes.
• Modernise distribution centers and last-mile logistics.
• Upgrade digital infrastructure for e-commerce.
• Launch customer service training centers.
• Enhance e-commerce enabling environment.

9.0

9.6

2021e

2033

Exports+13.9% p.a. | + JD1.2 bn

0.3

1.5

2021e

2033

65

66

Economic Modernisation Vision Unleashing potential to build the future

67

Tourism
Tourism is one of Jordan’s key economic sectors. Jordan is well endowed withunique historical, religious, natural and heritage sites such as Petra, Dead
Sea, Wadi Rum, the Baptism site, Machaerus, other religious and Roman sites,in addition to several diving locations, rich adventure tourism, and favorable
climate for all-year tourism.
Jordan has built momentum and is well positioned in the fast-growing medical
tourism market, in addition to being a primary destination for specialty tourists
seeking distinct experiences in heritage, nature, and wellness.
While there is a robust tourism infrastructure, which enables safe and easy
navigation, Jordan has a modest flow of investments, disadvantaging thecountry compared to the region, noting that the tourism sector has been largely
affected by the COVID-19 implications and requires considerable support toregain its momentum.

68Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Tourism
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 0.9 bn
2.9% of total

50.6 k
3.2% of total

JD 17.5 k
8% below avg total

JD 1.5 bn
15.2% of totalexports

2 Strategic State of Sector• One of Jordan’s top economic sectors.
• Well endowed with unique sites such as Petra, Dead Sea, Wadi Rum, religious
and Roman sites, diving locations, etc.
• Favorable climate for year-round tourism.
• Promising medical tourism potential in the fast growing medical tourism
market.
• Well positioned for specialty tourists seeking distinct experiences in heritage,nature, and wellness.
• Robust tourism infrastructure, safe and easy to navigate around.
• Relatively modest investments flow and rising competition from other countries.
• Underdeveloped sites and services indicate good potential for growth once
developed.

3 Strategic Potential and Priorities for Jordan• Grow Jordan into a top destination for quality-focused holiday-makers seeking
world-class heritage and nature, adventure, faith and medical and wellness
experiences.
• Continue the development of tourism product offerings and enhance theircompetitiveness.
• Develop touristic sites infrastructure.
• Improve touristic transport services.
• Develop educational and training curricula for the tourism sector, and pave theway for the private sector to manage training centers of the Vocational Training
Corporation.
• Medical tourism: Pushing Jordan to become one of the favored destinations
for medical tourism experiences, medical services and quality health care ataffordable prices.
• Religious tourism: Developing capabilities to make Jordan one of the preferred
destinations for religious tourism.
• Specialized tourism: Jordan to become a major destination for specialized
tourism, such as conference tourism, events, and exhibitions.

4 Proposed Initiatives• Develop, manage and maintain touristic sites and facilities.
• Develop tourism-related products of all kinds.
• Activate the tourism investment initiative.
• Facilitate travel to and movement within Jordan.
• Launch efficiency improvement initiatives to reduce cost and improve competitiveness.
• Establish a programme to hone skills in the tourism sector.
• Launch the digital touristic initiative.
• Update the sector’s data to enable decision-making.
• Continue tourism marketing, linking Jordan with a broader network of tourists,and developing the commercial identity.
• Setting world-class standards and rules for the tourism sector.
• Improving laws related to the tourism sector.
• Simplify government procedures.
• Launch the “Secure, Safe and Clean Environment - Jordan Initiative”.

economic impact of
5 Directsector for Jordan (base case)GDP+10.0% p.a. | + JD1.9 bn

0.9

2.8

2021e

2033

Employment+9.5% p.a. | +99.0 k FTE

50.6

149.6

2021e

2033

GDP/employee+0.5% p.a. | + JD1.1 k

17.5

18.6

2021e

2033

Exports+13.6% p.a. | + JD5.4 bn

1.5

6.9

2021e

2033

69

70

Economic Modernisation Vision Unleashing potential to build the future71

1. Education
Education is a critical player in supplying skilled labor and capable citizens toother growth sectors. Jordan has a good reputation at the regional level in thisfield, along with significant progress with regard to access to basic education
and achieving parity between genders.
However, the sector has lost some of its momentum as graduates are facing
difficulties in joining the labor market due to deficiency of required skills, inaddition to the significant difference in the level of education provided byvarious institutions in the past years.
Sector challenges include traditional pedagogy, weak institutional capacity,and falling learning achievements. Despite said challenges, there are evident
and continuous efforts seeking to develop and upgrade curricula, improveexamination policies and testing methodologies and create appropriate
educational programmes.

72

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Education
1 Sector Facts (2021)
GDP

Employment

Enrollment

Outcomes

JD 2.2 bn
7.2% of total

176.5k
11.1% of total

Basic: 97.9%
Secondary: 77.5%
HE: 34%

GKI*: 103/154
Youth unemployment: 46%

2 Strategic State of Sector• A good regional reputation with significant advancement in the accessibility ofbasic education and gender equality.
• Facing the challenges of outdated curriculum/programmes, traditional
pedagogical methods, weak institutional capacity, poor governance, and low
learning outcomes.
• Higher Education “HE” and Technical and Vocational Education and Training“TVET” lack practical, industry oriented education.

3 Strategic Potential and Priorities for Jordan• Develop knowledgeable, skillful citizens capable of achieving their dreams andaspirations.
• Early Childhood Care and Education: An integrated, equitable, just, andchild-centered system.

economic impact of
5 Directsector for Jordan (base case)GDP+4.0% p.a. | + JD1.3 bn

2021e

lifelong learners who believe in human values and cherish national identity.
technology-enabled system

2033

Employment+3.5% p.a. | +89.7 K FTE• Basic and Secondary Education: Develop critical thinking, problem-solving, and• Higher Education: An inclusive, equitable, and high-quality research-driven and

3.5

2.2

176.5

266.2

2021e

2033

• TVET: Develop a well-trained, highly-skilled, and diverse workforce.

4 Proposed Initiatives• Modernise the National Human Resource Development “HRD” Strategy.
• Launch a national education finance program.
• Develop curricula and teaching methods.
• Develop and implement educator training programmes.
• Establish research centers of excellence.
• Launch a programme for the development of infrastructure in the education
sector.
• Enhance partnerships with the private sector.
• Roll-out a comprehensive education database.
• Launch a unified digital learning platform.
• Integrate and unify governing bodies of the education system.
• Establish a single entity specialized in Human Resource Development “HRD”.
• Launch a specialized body for private and public education system accreditation.
• Activate the sub-sectors’ action plans.

GDP/employee+0.5% p.a. | + JD0.8 K

12.3

13.0

2021e

2033

Exports
Not an export oriented sector* Global Knowledge Index731A) Education: ECCD
Jordan has a relatively large early childhood population that is also expected to
grow in the near future.
ECCD represents a crucial stage of the developmental journey (~85% of brain
development). However, the services offered by this sector are not widely
available, highly fragmented, insufficient, and vary in quality and sometimes
are not commensurate with the household income. Additionally, it is essential
to enhance the sector’s data/information, employ and train the workforce,enhance governance and licensing, raise awareness, unify references, improve
communication, and develop SEN programmes.

74

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Education | ECCD*
1 Sector Facts (2021)
Age groupStudents

Nurseries

Enrollment

Under 6 years

Total number ofenrolled students
are unavailable+400
Highly fragmented
centers

KG1&2
GER**: 41.1%

2 Strategic State of Sector• Large early childhood population that is also expected to grow in the near
future.
• Essential phase of developmental journey (85% of brain development).
• Current services are highly fragmented in governance, insufficient and varied inquality.
• A need for data improvement, workforce recruitment and training, unified referencing, governance, licensing, specialized programmes for Special Educational
Needs “SEN”, communication, and awareness.

economic impact of
5 Directsector for Jordan (base case)
Outcomes
Enrollment KG1 & KG2

41%
2021e

100%
2033

3 Strategic Potential and Priorities for Jordan• Vision: By 2033, all children in Jordan to have an integrated, equitable, just andchild-centered system for the development of healthcare and early childhood
education within the framework of effective governance to enable them to unleash their potential, be able to adapt, and to be positive, happy and productive
citizens.
• Priorities: Holistic, integrated ECCD programmes directed towards better parenting skills, more awareness and providing equal and equitable access to care, an
inclusive and protective environment and infrastructure. Further, the provisionof a skilled workforce for special needs and their early identification.

4 Proposed Initiatives• Develop appropriate curricula and programmes for early childhood learning.
• Establish a unified ECCD council.

• Reduce the burden of licensing and operation of ECCD service providers.
• Launch a streamlined database for ECCD.

• Make the ECCD sector accessible to all children in Jordan.

• Launch healthcare provision to all children below the age of six years and preKG enrollment.

• Expand the establishment of cost effective ECCD programmes.

• Launch an initiative to establish nurseries and kindergartens in the workplace.
• Incentivize non-government service providers to encourage investment andservices in ECCD.

• Mobilise families to better support learning and early childhood development
at home.

* Early Childhood Care and Development.
** General Enrollment Rate.

751B) Education: Basic and Secondary Education
Jordan made significant strides in access and equity at the basic and secondary
education level. However, the basic and secondary education system faces
challenges including enrolment & dropout rates, inclusive education, traditional
curricula & pedagogy, inadequate governance, teacher recruitment & training,technology, and student evaluation.

76

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Education | Basic and Secondary
1 Sector Facts (2021)
Age groupStudents

Schools

Enrollment

Basic: 6-15 years
Secondary:16-17
years

Public schools:
1.5M+
Private schools:
0.5M+

Public schools: 4K
Private schools:
3.5K

Basic GER*: 97.9%
Secondary GER*:
77.5%

2 Strategic State of Sector• Significant growth was achieved in the accessibility and equity of basic andsecondary education.
• The system faces challenges of enrollment and dropout rates, inclusive education, traditional curricula and methodology, adequate governance, teacher
recruitment and training, technology, assessment and job market needsalignment.

3 Strategic Potential and Priorities for Jordan• Vision: By 2033, graduate knowledgeable and skillful citizens capable of critical

economic impact of
5 Directsector for Jordan (base case)
Outcomes
Enrollment Basic

98%

100%

2021e

2033

Enrollment Secondary

thinking, problem-solving, and lifelong learning, who believe in human values

and national pride and are able to achieve their dreams and aspirations throughutilizing an educational system that is technology-enabled, competitive, resilient and student-centered, in a safe learning environment, which is depend-

78%

100%

2021e

2033

ent on contemporary curricula, qualified well-trained teachers, and efficientleadership.
• Priorities: Experiential learning, holistic development etc.

4 Proposed Initiatives• Structure and mandate pre-service training and licensing programmes.
• Develop and adopt a competency-based selection, recruitment, and accountable system using contract-based employment for all education staff.
• Establish continuous professional development programme for all educators.
• Select, prepare and empower school leaders.
• Revamp curricula and assessment approach.
• Revamp TVET in school systems.
• Reform the Tawjihi assessment and examination system.
• Decentralize administrative and financial management.
• Transparent school quality assessment (QA) and accreditation system.
• Enable evidence-based decision making.
• Convert public schools to a mixed gender system.
• Launch building new educational schools.
* General Enrollment Rate.

771C) Education: Higher Education
Approximately 68,000 graduates complete their college education, while theeconomy creates a lower amount of jobs to that is insufficient absorb thesegraduates (across skill levels), which leads to a state of increasing unemployment.
The higher education system suffers from outdated programmes, lack of focus
on competencies, rote learning methods, weak use of technology, insufficientbudget & financing, poor quality management, inequity & quality in admission,
deteriorated facilities, insufficient R&D, and a mismatch between university
skills and labor market demands.

78

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Higher Education
1 Sector Facts (2021)
Age groupStudents

Institutions

Enrollment

18+ years

332K+ (including
35K+ foreign
students)

Total institutions:
731

GER*: 34%

2 Strategic State of Sector• Jordan graduates 68k students per year, while the economy produces onlyaround 30k jobs annually.

• Issues of outdated programmes, lack of focus on competencies, rote learning
methods, lack of used technology, insufficient budget and financing, quality
assurance and equity in admission, poor facilities and lack of R&D.

economic impact of
5 Directsector for Jordan (base case)
Outcomes
Enrollment HE

34%

3 Strategic Potential and Priorities for Jordan

2021e

60%
2033

• Vision: An accessible and equitable, research-driven and technology enabledhigher education system that is reputable, competitive, flexible, agile, inclusive,and capable of providing the Jordanian and international community withcompetent graduates.

• Priorities: Quality programmes, high quality infrastructure, diverse course offerings, industry linkages, employment etc.

4 Proposed Initiatives• Reform faculty and staff recruitment, scholarships, continuing professional
development, promotion, and entrepreneurship laws and regulations.
• Launch industry strategic collaboration and labor market assessment for higher
education.
• Launch micro-credentialling and multiple educational pathways.
• Strengthen higher education R&D and launch solid tech commercialization
programme and link them to the needs of different sectors, such as industry.
• Establish academic, financial, and institutional autonomy of higher education
institutions.
• Launch higher education admissions and tuition fees reform while creating new
resources and revenues to ensure financial sustainability.
• Empower and strengthen the Accreditation and Quality Assurance System ofhigher education.
• Reform Higher Education governance and accountability by strengthening
legal and institutional structures* General Enrollment Rate.

791D) Education: TVET
Jordan has been making changes in the TVET governance and qualifications toboost the sector and address the high youth unemployment rate of 46%.
The key challenges for TVET include low enrolment rate, lack of a unified
vision, weak linkages with industry, negative social perception, theoretical andoutdated curricula, insufficient budget, weak governance/management, limited
number of qualified trainers, and poor infrastructure.

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Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Education | TVET*
1 Sector Facts (2021)
Age groupStudents

Entities

Enrollment

16 years onwards

35K+ students
across TVET
system43 community
colleges
6 university colleges
39 vocational
centers

Data not captured
at tertiary level~10% of 11th
grade students
opt for2 Strategic State of Sector• Currently, Jordan is amending TVET governance and qualifications to boost thissub-sector.

• Faces a high youth unemployment rate of 46%.

• Challenges of low enrollment rate, lack of a unified vision, industry linkages, lowpublic perception, theoretical and outdated curricula, insufficient budget, weak
governance and qualified trainers, poor infrastructure etc.

3 Strategic Potential and Priorities for Jordan

economic impact of
5 Directsector for Jordan (base case)
Outcomes
Enrollment TVET

10%

50%

2021e

2033

• Vision: A flexible, high-quality, competitive, agile, and innovative technology-driven system that is capable of providing Jordan and the international community with an inspiring, attractive, well-trained, highly-skilled, entrepreneurial,and diversified workforce, supported by good business practices and the proper
policy environment.
• Priorities: Strong labor market partnerships, improved programmes, internshipand apprenticeship opportunities, employment opportunities, public private
partnerships, enhanced financing tools for institutions and students etc.

4 Proposed Initiatives• Educators’ training and professional development.
• Launch TVET* post-9th grade.
• Launch micro-credentialing and multiple educational pathways.
• Launch technical programmes across Higher Education.
• Improve overall enrollment rate.
• Develop Labor Market Information System.
• Establish new specialties in TVET* education.
• Develop a national framework for Recognition of Prior Learning “RPL” .
• Develop Framework for Work-based Learning.
• Promote TVET* Digitalization.
• Develop a national framework for career guidance.
• Activate The Technical and Vocational Skills Development Commission “TVDSC”
role and Vocational Training Corporation” VTC” governance.
• Unify governing bodies for referencing.
• Implementation of National Qualifications Framework “NQF”.
• Streamline data for TVET*.
* Technical and Vocational Education and Training

81

82

Economic Modernisation Vision Unleashing potential to build the future83

1. Energy
The energy sector in Jordan is currently largely dependent on imports of naturalgas, with fast-growing renewable energy adoption contributing to 26% of local
electricity generation.
The challenges in the energy sector include the lagging regulatory frameworkthat hinders growth, a single-buyer model, distorted tariff structure hindering
the competitiveness of the economy, high dependence of the treasury on fueltaxation hindering Jordan’s competitiveness, mismatch between generationand demand of electricity, the foreseen entry of expensive capacity from shale
generation, legacy debt that resulted from the disruption of Egyptian natural
gas supply, and the slow progress vis-à-vis the expansion of Jordan Petroleum
Refining Company.

84

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Energy
1 Sector Facts (2021)
GDP

Employment

GDP/employee

Exports

JD 0.4bn
1.3% of total

9.5k
0.6% of total

JD 42.6k
125% above avg.

~80 MW capacity toPalestine

2 Strategic State of Sector• Distorted tariff structure hindering the economy’s competitiveness.
• High dependence on energy imports.
• Fast growing renewable energy adoption, comprising 26% of local electricity
generation.
• Energy demand growth from population increase in the past decade despite
Covid.
• Favorable geostrategic position offering energy interconnectivity opportunities.
• Centralized electricity market with one transmission system operator.
• Lagging regulatory framework that hinders growth/development.

3 Strategic Potential and Priorities for Jordan• Work towards achieving a reliable, sustainable, stable (electricity sector) andstrongly connected energy sector to enable growth through diversification,
localization, innovation and agility.
• Electricity: Move towards a more efficient (greener and lower cost) power sector
through renewable sources, and enhance current cross-subsidy tariff structure.
• Hydrocarbon: Verify and explore untapped reserves and downstream industry
opportunities while shifting toward clean energy (green hydrogen, biofuel).
• Incentivize efficient energy consumption across Jordan.
• Upgrade to smart power grids with high connectivity to efficiently serve Jordan’s needs and ramp up exports to region.
• Enhance legal framework to enable sector growth.
• Establish a gas network to supply industrial clusters with their needs.

4 Proposed Initiatives• Develop an energy transition roadmap (shift to renewable and alternative options, optimize power plants, and enhance interconnectivity with the region).
• Devise new energy regulations and policies that are fit for the future, anddesign incentives for cost reduction.
• Bolster Public Private Partnerships (PPPs), investment promotion and project
development (funding / financing for energy projects).
• Launch exploration and develop feasibility studies for reserves (oil and gas,
shale gas), which will also contribute to building a developed investment
ecosystem (PPPs).
• Adopt technologies and solutions for reduced emissions, decarbonization andenergy efficiency.
• Enhance inter-sector coordination (between the relevant sectors) and demand
management/planning, and move from net-metering to net-billing.
• Evaluate and implement energy cost reduction measures (reduce losses, energy
transition incentives, and refinance NEPCO legacy debt with concessional
financing).
• Restructure the tariff to incentivize the promising productive sectors.
• Upgrade energy infrastructure (smart power grid and meters, storage technologies, time of use tariff, capacity building, pipelines for transport and distribution).
• Enact legislation that enables the use of hydrogen and attracts investments inthis field.

economic impact of
5 Directsector for Jordan (base case)GDP+4.5% p.a. | + JD0.3 bn

0.7

0.4
2021e

2033

Employment+4.0% p.a. | +5.7 k FTE

15.2

9.5
2021e

2033

GDP/employee+0.5% p.a. | + JD2.6 k

42.6

45.3

2021e

2033

Exports
Limited energy exports toPalestine (~80 MW capacity)with expansion plans to serve
broader regional markets (Syria,
Iraq, etc.)852. Water
Jordan’s water resources are considered one of the most vulnerable globally,
with an annual average of precipitation around 95 mm, while underground &surface water constitute 85% of available sources.
The agriculture sector consumes 50.17% of the available water resources, while
45.8% is consumed for residential purposes. The increasing demand for water
due to demographic shifts and population growth has led to a steep decline in
freshwater availability.
Further, Jordan has Non-Revenue Water of approximately 47%, which requires
stringent efficiency measures and enhanced demand management.

86

Economic Modernisation Vision Unleashing potential to build the future

Executive Summary Water
1 Sector Facts (2021)
GDP

Employment

GDP/employee

NRW*
Percentage

JD 0.2bn
0.5% of total

6.8k
0.4% of total

JD 22.3k
17% above avg.

47%

2 Strategic State of Sector• Jordan’s water resources are considered among the most vulnerable globally.
• Jordan receives an average of 95 mm of scanty rainfall; Underground andsurface water constitute 85% of available sources.
• Majority of the water is consumed for agriculture (50.17%) and residential(45.8%) purposes.
• Increasing demand of water due to demographic shifts and population growth
has led to a steep decline in fresh water availability.
• Jordan’s NRW* percentage stands at 47%.
• Need to improve demand management and adopt strict efficiency measures.
• Fresh water availability impacted by climate change leading to stressed aquifres.

3 Strategic Potential and Priorities for Jordan• Achieve water security for Jordan in a financially sustainable manner to improve
the overall quality of life.
• Create innovative channels for enhanced water production.
• Enable sustainable water use through demand management.
• Reduce inefficiencies throughout the system and prioritize municipal water use.
• Overall solve for the water scarcity issue by finding new sources, reducing water
losses, attracting investments and enabling thoughtful and optimal use ofwater.

economic impact of
5 Directsector for Jordan (base case)GDP+3.5% p.a. | + JD0.08 bn

0.23

0.15
2021e

2033

Employment+3.0% p.a. | +2.9 k FTE

9.7

6.8
2021e

2033

GDP/employee

4 Proposed Initiatives• Reduce NRW* by 2% annually.
• Launch national desalination projects.
• Provide opportunities for private sector investments.
• Improve efficiency of energy use in the water sector, increase the use ofrenewable energy sources, and implement water dam pumped energy storage
projects.
• Improve water efficiency and financial self-sustainability.
• Upgrade water supply/demand management monitoring and control.
• Launch water conservation awareness program.
• Establish climate resilience and sustainable water use.
• Utilize technological solutions for water sustainability program• Launch National Innovation Center.
• Proper implementation and enforcement of water laws and regulations.
• Establish Nexus Council (Water, Agriculture, Energy and Environment).

+0.5% p.a. | + JD1.4 k

22.3

23.7

2021e

2033

Exports
Not Applicable* Non-Revenue Water

87

5.3 Economic Growth Roadmap (2022-2033)
The roadmap (2022-2033) will focus on the contribution of various sectors in
GDP and employment growth, including the required investment to realise thegrowth from the private and public sectors.
As for GDP, the ambition is to increase real GDP from JD 30.2 billion to JD 58.1
billion, which represents an increase of JD 27.9 billion and a growth of 5.6%
per annum. The key drivers for growth include Future Services (adding JD 10.2
billion), High-Value Industries (adding JD 7.6 billion), and Destination Jordan(adding JD 1.9 billion).
For employment, the ambition is to increase employment opportunities for
Jordanians from 1.6 million jobs to 2.6 million jobs by 2033, which reflects a
4.2% growth per year. The majority of this growth will be generated from threedrivers: High-Value Industries (314k jobs), Future Services (397k jobs) and
Destination Jordan (99k jobs).
An overall investment of about JD 41 billion is required to achieve the Vision’s
goals, with the majority driven by the private investments (72%) coming fromboth domestic and foreign investments and public private partnerships.

Figure (14): Vision Funding Sources
Reducing government capital investment, increasing foreign investment andcovering the remaining financing required from the local private sector

Government
financing88

73%

JD 30.3 bn

PPP investments

Purpose: Increasing
local financing throughopportunities and raisingpublic trust

Total

0.9 bn2.1%
JD

From total future GDP

27%

Local financing
Investors andprivate sector
Foreign investment
Investors and donor
community

From total future GDP

JD 11.1 bn

2

3

2.5 bn
5.7%
JD

government
investment

1

Purpose: Increase foreign
investment in the new strategy toattract more FDI

Purpose: Reduce demand forgovernment financing and restrict
it to need basis only

JD 41.4 bn

Average of JD 3.5 bn
annually 2022 - 2033

Economic Modernisation Vision Unleashing potential to build the future

Figure (15): Primary Growth Drivers’ Contribution

Drivers' Objectives(1 million opportunities)

Sectors' Objectives(1 million opportunities)

Chemical productsHigh Value Industries

314

24
11

Pharmaceuticals
Food products

34
11
18

Engineered products
MiningAgriculture & Food Security
ICT

Future Services

397

76
14

Creative Industries
Financial Services

23

Trade

135
Logistics

65

Healthcare

Destination
JordanOther

9Sustainable
Resources

90

Smart
Jordan

99

84

124

Textileproducts

149

68

More than 1 million opportunities

Raising Jordan's ranking in the Global Competitiveness Index
issued by WEF to be in the 30th percentile

Increasing real per capita income
by 3%

Vision Objectives

to GDP and Job Creation (2022-2023)

Tourism

99

Education

90

3

Energy

6

Water

22
34
68

Public administration
Other products
Other sectors

89Figure (16): Required Capital Financing

GDP

JD

JD

bn

JD

bn

bn

Required capital financing(2022-2033)

JD

bn

millionopportunities
millionopportunities

millionopportunities

Incomeopportunities

Figure (17): GDP Growth Rates at Constant Prices

Decade of high growth

Decade of low growth

2000 - 20081

2010 - 20192

1. Based on 1994 prices (excluding financial crisis period)
2. Based on 2016 prices (excluding COVID-19 impact in 2020)
3. Real estate sector was not included in the period 2021-2033, but it contributed 11% to GDP

90

Vision 2021-2033

Economic Modernisation Vision Unleashing potential to build the future

6. Quality of Life Pillar
6.1 Quality of Life Strategy
The second pillar of this Vision focuses on the quality of life and improving theliving standards for all citizens.
As part of the formulation of Jordan Vision, a national survey of 2,500 Jordanian
citizens was conducted to measure citizen’s current satisfaction with their overall
quality of life and with specific sub-elements. The survey indicated a satisfaction
rate of around 40%, and the primary guiding objective of the quality of life pillar
is to at least double the rate of citizen satisfaction to 80% by 2033.
Improving the quality of life for Jordanians begins with creating jobs and higher
income opportunities across governorates, supplemented by developing
an ecosystem that supports the creation of higher standards of living, more
inclusive lifestyle options and experiences, and active citizen participation in
the community.
To advance the attractiveness of Jordan’s communities and create high standardsof living and happiness, the quality of life pillar is built on the following eight
guiding principles; competitive advantage, happiness, satisfaction, livability,
lifestyle, vibrant communities, future cities, and smart cities.

91

Figure (18): Foundations of the “Quality of Life” Pillar

Competitive Advantage

Happiness

Satisfaction

Enables Jordan to become
one of the best places to live
and work

Represents a main indicatorfor quality of life

For all citizens across Jordan

Livability

Lifestyle

Laying down the foundations
for citizens to enjoy highstandards of living

Offering various options &opportunities for everyone

Vibrant Communities

Future Cities

Smart Cities

To live in and be a part ofInspiring future generations

Connected and sustainable cities

6.2 Quality of Life Development Priorities
The Vision breaks down the quality of life pillar into two primary components: (1)Livability, which includes the foundational elements required to leading decent andsatisfactory lives, and (2) Lifestyle, which includes the supplementary lifestyle options
required by citizens to live more enjoyable and comfortable lives.
The Vision aspires to improve the quality of life for all Jordanians by enhancing bothcomponents, which will make Jordan’s cities vibrant and will offer a high quality of life
for its communities.
Both livability and lifestyle are critical to improving the overall quality of life for
Jordanians, and must be enhanced in parallel to achieve true citizen satisfaction. The
Vision has further identified 16 elements under both of these aspects, listed below.

92

Economic Modernisation Vision Unleashing potential to build the future

Figure (19): “Quality of Life” Framework

Cultural options
Sports options

Culture, sports, &entertainment

Domestic tourism options

Lifestyle

Shopping options

Options linked to acomfortable life

Retail and Hospitality

Standard of living options
Public facilities and services
Housing
Infrastructure (Energy, Water, ICT, Transport)
Education

Standard of living
Basic standards of living to enjoy good and safe
living conditions

Healthcare
Mental wellbeing
Urban design
Clean and sustainable environment - Climate
Personal safety and security
Rule of law

Income (Job) and economic wellbeing are prerequisites to improving the quality of life

Under the concept of livability, 10 elements were identified as requirements toachieve satisfactory lives for all Jordanians, which are vital for citizens according
to the aforementioned national survey; namely infrastructure, good healthcare,personal safety & security, and good education.

Figure (20): “Standard of Living” Main Components

Public Facilities& Services

Environment &ClimateUrban Design

Infrastructure

Rule of Law

Mental Wellbeing

Healthcare

Education

Housing

Personal Safety& Security

93Under the concept of lifestyle, six elements were identified as requirements toachieve enjoyable living for all Jordanians

Figure (21): “Lifestyle” Main Components

Domestic Travel
Options

Sports Options

Shopping
Options

Entertainment
Options

Cultural Options

Indulgence
Options

Lifestyle elements become more relevant once basic livability needs are secureand income levels are improved, with the higher purchasing power allowing
citizens to partake in more recreational lifestyle offerings such as domestic
travel, cultural festivals and activities, in addition to more shopping options.
The Vision aims to transition Jordan in order to offer a better standard of living
for all by focusing on solidifying the livability elements and moving beyond toprovide attractive and meaningful lifestyle options and turning Jordan into a
top-ranked destination to live and work.

94

Economic Modernisation Vision Unleashing potential to build the future

Figure (22): “Quality of Life” Components’ Track (2022-2033)

Providing citizens with more lifestyle optionsin their respective cities• Focus on creating world-classenvironments and experiences• Lifestyle that boosts Jordan’s competitive
advantages.

Lifestyle‫ةايحلا طمن‬‫ةلصتملا تارايخلا‬‫ةحيرم ةايحب‬Lifestyle
Ensuring high standards of living
across all cities in Jordan• Provide high-quality standards
under safe and inclusive conditions• Foundations of a low stress life.

Standard of Living

Jordan Today‫ةشيعملا ىوتسم‬Standard of Living‫ةايحب عتمتلا لجأ نم ةشيعملل ةيساسألا ريياعملا‬‫ةميركو ةنمآ‬Jordan 2033

The broadness of the definition of quality of life and the diversity of its elements
naturally leads to a high level of overlap with the economic growth pillar,
highlighting the interconnectedness between economic growth and improved
quality of life for Jordanians. This is also indicated in the by the findings of theaforementioned national survey, a number of fundamental elements wereidentified as most pressing in terms of important of overall quality of life,
which include healthcare, education, water, electricity, and roads (transport
infrastructure). All of these ‘livability’ elements are separately addressed in theirrespective economic sectors as development priorities that would not only
support economic growth, but also the enhancement of citizens’ overall qualityof life.
Therefore, the quality of life pillar, to an extent, is impacted by each Vision
implementation driver. The different components are then tied together under
the Vibrant Jordan driver, which will ensure that national development effort
will be felt tangibly across communities, governorates, and regions.

95

Figure (23): Interlinkages Between

Growth Drivers & “Quality of Life” Pillar- Agriculture and food security- Spill-over of industrial activity on community
development across governorates- Health services (access, affordability, equality)- ICT infrastructure (reliable connectivity)- Culture, sports & entertainment options- Mobility (including public transport)- Trade & e-commerce (retail options)- Education (from early childhood to adulthood)
MSMEs, entrepreneurship, and start-ups(acceleration of provision of services)- Data (for informed citizen-centric decision
making)- Water (continuous supply, clean, and affordable)- Energy (renewable, sustainable, and affordable)- Domestic tourism (accessibility, variety, andaffordability)- Spill-over effect from the tourism and film
industries on community development- Clean and sustainable environment- Sustainable living standards- Green spaces, biodiversity and natural habitats- Develop infrastructure and mega projects- Accelerate implementation through private andforeign investment

Urban Development and Design - Focused on thenotions of quality of life

The Economic Modernisation Vision will aim to achieve a high quality of life for
Jordanians by focusing on a transition towards a lively, smart, and vibrant Jordan
through adoption of future cities concepts customised to specific Jordanianneeds. Urban development and citizen-centric design principles will be a key
driver to provide the thrust needed to improve the fundamental livability andlifestyle aspects of Jordan’s cities and communities and advance the towards
meeting future citizen requirements and achieving higher quality of life.

96Economic Modernisation Vision Unleashing potential to build the future

Figure (24): Nexus of “Quality of Life”& Urban Development to reach “Future Cities”

Holistic
Inclusive
Lifestyle

Future city

Inspiration
LeisureLivable city

Economy, Civil, Environmental
Steadiness Efficiency

Standard of living
Accessibility& Connectivity

Community
Infrastructure

Urban development
Building
infrastructure

Basic living requirements

Urban development

Improving quality of life

Satisfaction

Incorporating quality of life into urban development of local communities willserve as a pivotal component for overall future development across Jordan.
Quality of life:
1. Fosters a healthy population and productive workforce, able to contributeto the achievement of the Vision development goals
2. Makes local communities attractive for businesses and investments
3. Achieves sustainable development goals via improving citizens wellbeing,social inclusion, transport, safety and security, and environmental
sustainability
4. Provides measures that portray a clear roadmap for social progress alongwith spill-over effects that create economic opportunities
5. Enhances the decision making process of governments developing policies
for Jordan to become more competitive on regional and global levels

97Jordan has made urban development a key priority. For example, the Greater
Amman Municipality (GAM) has implemented major improvements in delivering
services (including e-services) and improving the required infrastructure.
However, in international quality of life rankings, Jordan is positioned anywherefrom the middle to the lower end of the spectrum indicating significant room
for improvement.
Major strengths in Jordan include: effective delivery of basic needs such as
personal safety and security, traffic safety, water supply; sanitation; and goodquality of general education.
On the other hand, major challenges include lack of access to public spaces(green/walkable), lack of modern public transport network, growing concerns
about food and water security/affordability, poor levels of institutional trust,
public participation, and rule of law.
Developmental plans will therefore need to cater to 12 core quality of life
building blocks to truly make our cities vibrant, prosperous, and enjoyable toboth live and work in, with easy access to all services.
Accordingly, future cities and communities will be developed based on citizencentric concepts focused on convenience, connectivity, easy access to affordable
quality services, active lifestyles that promote well-being, and sustainability for
Jordan’s future generations.
Urban development is a key driver to fundamentally improve the livability of
Jordan’s cities and advance them towards meeting future citizen requirements.
Urban development can help Jordanians achieve their desire to have a worryfree “livability” foundation and improve access to better “lifestyle” options
as the kingdom evolves. Among the highest priorities of the Quality of Life
pillar is the integration of “future city” concepts into urban development plans
while addressing institutional and regulatory enhancements. This will serveas an enabler of Jordan’s future economic growth strategy by creating livablecommunities with satisfied, motivated, and productive citizens.

98Economic Modernisation Vision Unleashing potential to build the future

7. Success Factors
Realising Jordan’s Vision full potential necessitates the mobilisation of multiple
enablers spanning the economic and the quality-of-life agendas. At the forefront
is stimulating private sector investments to invigorate growth-prioritised sectors
and scale up existing sectors such as high value industries and future services.
Attracting private investments, through a clearly defined investment map andreal public private partnerships, is a stepping-stone into realising this Vision.
Equally important is the availability of essential skills and talents to meet theneeds of the future growth plans, and the demands of the fourth industrial
revolution and market needs; ranging from technical and vocational skills
to high-end specialised future-oriented skill sets in the priority segments. A
dedicated implementation driver was identified for this purpose.
Innovation will be a vital driver to realise Jordan’s potential and Vision goals.
The innovation engine will boost efficiency and productivity through better
solutions leading to new products and enhanced operational models will play amajor role in boosting Jordan’s value creation and resilience to external market
shocks.
Entrepreneurship through the establishment of new businesses or scaling andgrowing existing businesses will play an essential role to unleash considerable
growth potential. New businesses are particularly apt in detecting new trends
and service emerging market niches, and simultaneously supplying medium
and large businesses. This will create value chains that enhance Jordan’scompetitiveness and resilience. New business formation will range frommicro and home-based businesses via traditional small businesses in services
and manufacturing to startups in the technology and creative industries. This
will promote a larger middle class and reduce income inequalities. Moreover,Jordan’s climate will become more competitive, which in turn, will benefit
consumers with variety and price benefits. Many of these small businesses will
eventually grow into medium and large operations with significant job creationand economic contributions, including exports.

99

Lastly, Jordan will need to coordinate with its development partners to mobilise
their technical and financial resources towards sectors and priorities that
contribute to inclusive growth, job creation especially for youth and women,
and achieve comprehensive and sustainable development in the future.

100

Economic Modernisation Vision Unleashing potential to build the future

8. Vision Implementation Phases
The implementation roadmap was developed through an inclusive, multidisciplinary approach, taking into consideration the necessary steps on the short,medium and long-term towards achieving the desired results, and ultimately
fulfilling the strategic objectives of the Vision. The proposed roadmap ensures
the successful linkages among sectors and the proposed actions to maximise
synergies while avoiding redundancy.
The roadmap consists of eight economic drivers, each comprising a cluster ofsectors and concerted actions identified at the National Economic Workshop
geared at promoting specific strategic growth clusters mobilising the enablers
required to realise the growth potential, job creation and/or achieve significant
improvements in the quality of life for Jordan’s citizens.

Figure (25): Growth Drivers to implement

the Economic Modernisation Vision
Education | (ECD) | K-12 | Higher Education | TVET
| Data | R&D & Innovation | Entrepreneurship &Startups

FDI | Domestic Investments | PPP Projects |Mega Projects
InvestJordanGreen Economy | Green
Economic Sectors | Green
LivingSmart Jordan

Green Jordan
GrowthDrivers

Urban development | Quality of Life

Destination
JordanVibrant
JordanEnergy | Water

FutureServices

Sustainable
Resources

High Value
Industries

ICT Services | Creative Industries| Healthcare | Financial Services |Trade | Mobility

Culture & Nature Tourism |Medical & Wellness Tourism |Faith Tourism | Film Production
Locations

Mining | Chemical Products | Pharmaceuticals |Engineered Products | Textile Products | Agriculture andFood Security | Food Products | Logistics

101

While the High-Value Industrials Driver, Future Services Driver, and Destination
Jordan Driver are primarily focused on generating quantum leaps in export-led
growth, the Sustainable Resources Driver, Smart Jordan Driver, Invest Jordan
Driver, Green Jordan Driver, and Vibrant Jordan Driver are centered aroundenabling accelerated future economic growth and substantial advances in thequality of life while also creating new income opportunities in various sectors
such as education, utilities, and urban development.
The drivers were defined by combining logically connected sectors into cohesive
groupings for the purposes of organising concerted actions. The groupings
were based on three factors:
1. Linkages among sectors: logical linkages of a sector with other sectors
to form value chains or growth clusters, e.g. mining with downstream
chemical products manufacturing or agriculture with food processing,thus promoting the realisation of synergies across the driver.
2. Roles of sectors: drivers of economic growth against enablers of economic
growth.
3. Common sectors’ characteristics: shared attributes among sectors; forexample, a common focus on knowledge and innovation as a source ofcompetitive advantage.
Each implementation driver is detailed through a dedicated guidebook
comprising a suite of specific implementation initiatives with proposed action
points and implementing entities, in addition to clear objectives and metrics
to track achievements. The implementation initiatives cover the period up to
and including 2025, quick wins and a set of swift, fast-track actions that areearmarked to kick-start and produce initial tangible results in 2022.
While the roadmap provides a sound and lasting set of instructions, it should
be adaptable and continuously reviewed to apply corrective action where
necessary as circumstances evolve. By the year 2025, a thorough review of theroadmap is essential to realign and update as changes to Jordan’s journey occur.

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Economic Modernisation Vision Unleashing potential to build the future

8.1 Implementation Timeline
The implementation is scheduled to be implemented in 3 phases. Prior to theend of each phase, the roadmap will be reviewed to assess progress, and theneed to reprioritise actions in collaboration with private sector partners.
Implementation Phase I (2022-2025): This is the most critical phase of theimplementation with a strong and scalable foundation for Jordan’s future
journey. 93% of the of the 344 initiatives will be implemented within this phase,including quick win initiatives to be fast-tracked during remaining period of2022, as identified by the sectoral economic workshops. At the end of thisperiod in 2025, a thorough review of the roadmap should occur to take into
consideration the changing environment its implications so that the long-termtargets, priorities and implementation agenda can be refined to best meet
Jordan’s long-term ambitions.
Implementation Phase II (2026-2029): The second phase will build on progressachieved in the first phase. The focus of this phase will be on fully leveraging
and further extending the achievements of phase one. This phase will also
take into consideration most recent developments that will have created newopportunities to capitalise on, but also new challenges to confront.
Implementation Phase III (2030-2033): This represents the last phase of
the Vision journey. In this phase, the focus will be on preparing to meet theneeds of subsequent decade by setting new long-term directions, creating new
foundations, and catalysing the necessary changes ahead of time. The related
plan will be developed in 2029.

103Figure (26): Vision Implementation Timeline

Horizon 3
2030-2033

Jordan’s economy and quality of life

Horizon 2
2026-2029
Horizon 1
2022-2025-

Economic Policy
enhancements
Leveraging andenhancing existing
resources and skills
New markets

Quick wins
2022-

2025/26

New resources
New products
New skills

2029/30-

Bridging strategic gaps-

Preparing for future growthstages2033

8.2 Implementation Drivers
The implementation roadmap includes comprehensive and various actionable
initiatives, which have been identified throughout the sectoral economic
workshops, with a particular focus on the period 2022-2025.
At the heart of the roadmap are eight drivers that will lead the implementation.
Each driver is broken down into specific sectors to action the implementation.
In total, there are 35 sectors and sub-sectors and over 300 initiatives. Eachinitiative is mapped into an initiative card containing the initiative objectives,
stakeholders subdivided into initiative owners and participants, a timeline
with specific start and end points, initiative metrics to track the progress anddelivery, and a detailed checklist of deliverables to be addressed through theimplementation process— including an emphasis on unleashing women andyouth’s potential across all domains.

104Economic Modernisation Vision Unleashing potential to build the future

Figure (27): Vision Roadmap Structure
1
Implementation
Roadmap8
Implementation
Drivers

35
Sectors andSub-sectors

300+
Implementation
Initiatives
Initiative name

Initiative objectives

Responsible execution
stakeholders

Initiative timeline

Initiative metrics

Initiative elements

The following section depicts the drivers, sectors and some initiatives in details.

105

Figure (28): Distribution of Initiatives according to Growth Drivers &Economic Sectors
8 Implementation
Drivers366
initiatives

Sectors

104

Mining | Chemical Products | Pharmaceuticals| Engineered Products | Textile Products |Agriculture and Food Security| Food Products | Logistics

85

Future Services

ICT services | Creative industries (E-gaming)| Creative & design | (Film) | Healthcare |Financial services | Trade | Mobility

Destination Jordan

25

Culture & Nature Tourism | Medical & Wellness
Tourism | Faith Tourism | Film Production
Locations

885

Education | (ECD) | K12- | Higher Education| TVET | Data | R&D & Innovation |Entrepreneurship & Startups

Sustainable
Resources

2

18

Energy | Water

InvestJordan1

16

FDI | Domestic Investments | PPP Projects |Mega Projects

Green Jordan

3

20Green Economy | Green Economic Sectors |Green Living

Vibrant
Jordan2

13

Urban Development | Quality of LifeHigh Value Industries

35 sectors

98Smart Jordan

1062

Economic Modernisation Vision Unleashing potential to build the future‫الصنـــاعـــــات عاليـــــــة القيمــــة‬High-Value Industries DriverThe ‘High-Value Industries Driver’ contains 9 sectors and 104 initiatives. Thisdriver steers the implementation of future strategies to advance Jordan's
industrial economy, turns Jordan into a major industrial hub for the region andtransforms the Kingdom into an export center for products within Jordan's
strategic focus. Particular focus is placed on building integrated value chains,driving productivity and innovation, and realising synergies across Jordan's
industrial portfolio by seamlessly connecting sectors in terms of supply,
knowledge and market flows.
• Manufacturing| General: 15 initiatives, including developing a
manufacturing sector strategy to enhance the sector’s competitiveness andstimulate exports, launching ‘women-in-manufacturing’ careers initiativeand promoting entrepreneurship within the sector (SME stimulus/value
chains).
• Manufacturing| Food products: 15 initiatives, including implementing
domestic food security improvements, launching a local and international
food products marketing & promotion campaign, and launching foodsector industrial crops specialisation (backward integration).
• Manufacturing| Pharmaceuticals: 11 initiatives, including developinga detailed pharmaceutical sector exports strategy & roadmap, turning
biological/bio-technological drugs & biosimilar into marketable products,
and setting up a pharmaceutical sector-specific R&D advancement
initiative.

107• Manufacturing| Textile products: 10 initiatives, including developing atextiles sector investments initiative, horizontal expansion to enhancevalue add within the sector, and increase sales throughout the season,
expanding the textiles vocational skills training program, and promoting
local talent employment in the sector.
• Manufacturing| Chemical products: 9 initiatives, including developinga national chemical sector growth strategy and investment roadmap,
defining a detailed downstream manufacturing strategy for potash &phosphate feedstock (value-added products / derivatives business) toboost food security (e.g. nitrogen fertilizers), and setting up a chemicals
products manufacturing complex, in addition to upgrading infrastructure.
• Manufacturing| Engineering industries products: 9 initiatives, including
designing detailed feasibility assessments on how to enter fast-growth
future product categories (systems solutions/hardware for mobility,
AgTech, security etc.), setting up R&D and innovation center for highpotential engineered products solutions, their value chains andcommercialisation opportunities, and accelerating the rollout of the fourthindustrial revolution’s solutions across Jordan.
• Mining: 14 initiatives, including revising sector’s laws and regulations
according to best practices, establishing an entity responsible for geologicalsurveying to provide exploration companies with available data, launchingan FDI outreach campaign, establishing mid/downstream cluster projects,
introducing a talent mining initiative, and designing a mining strategy tounleash potential within the sector.
• Agriculture: 15 initiatives, including establishing a dedicated Food
Security governing body, setting up an Integrated Agro-Industrial Food
Park, launching a Jordan Food Investment Acceleration Fund, enhancing
Jordan’s grain storage (particularly wheat and barley), and leveraging theKingdom’s geographic location to become a regional food security hub .
• Logistics: 6 initiatives, including strengthening regional transport links,
building the north-south railway network, the Kingdoms northern partwith its southern part through the national rail network, upgrading
port facilities and roads network, renewing/modernising trucking
fleet, revamping the transport institutional framework, and developing
specialised human capacity.

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Economic Modernisation Vision Unleashing potential to build the future

Future Services DriverThe ‘Future Services Driver’ comprises eight sectors with 85 initiatives. The driver
supports the realisation of Jordan’s ambitions to develop a sizeable, high-value
and export-oriented service economy with strong presence across a distinct
portfolio of knowledge intensive offerings.
• ICT services: 13 initiatives, including establishing a regulatory sandbox
for disruptive technologies and virtual free zone for start-ups, developing
a future-ready highly skilled workforce, and creating a cabinet level
department at PMDU Digitising Unit to drive and oversee the end-to-end
digitised services for citizens and investors, and rolling-out of 5G services.
• Creative industries | General: 9 initiatives including establishing a
representative body or council for creative & cultural industries to streamline
relevant government processes related to the sector, integrating designand design thinking in government and governmental touchpoints,
establishing the required physical and services infrastructure and ecosystem needed for the sector’s development.
• Creative industries | E-gaming: 9 initiatives, including investing in a gaming
venue equipped with technologies capable of hosting large-scale events,
hosting local E-sports events, and attracting foreign teams and foreign
Jordan-based E-gaming investments by leveraging infrastructure capacityand proximity to E-sports servers.

109• Creative & cultural industries | Design: 13 initiatives, including establishinga Jordan Design Council (public and private sector ) to advise on inclusionof design and innovation in public endeavors that affect lives of citizens,
tourism, education and the internal and external branding/promotion of
Jordan, developing a “Designed in Jordan” campaign for local, regionaland global promotion of Jordanian talents in design excellence acrossarchitecture, product design , crafts, brands, graphics, digital experiencesand events, in addition to revising the status of the National Center of
Innovation.
• Healthcare: 10 initiatives, including launching health governance reform
framework, deploying family health at PHC level with management& leadership improvement programme for health institutions (acrosscontinuum of care), and launching digital transformation of the healthcare
system.
• Financial services: 13 initiatives, including continuing efforts to expand
financial inclusion across all segments, deepening Jordan’s capital markets,
stimulating Amman Stock Exchange, launching digital transformation
initiative, and restructuring the insurance sector.
• Trade: 12 initiatives, including re-examining customs, taxation andshipping regulations, boosting e-commerce-friendly environment, andupgrading port and warehousing infrastructure.
• Transport and Mobility: 6 initiatives, including upgrading transport
infrastructure and services, developing a comprehensive master planfor public transport across Jordan, completing the second phase of BRT
project, improving the efficacy of road management through technology
deployment, upgrading safety level of public roads, enhancing
environmental policies and regulations for people’s mobility (EVs, lower
GHG emissions, etc.), and rehabilitating roads’ infrastructure throughintroducing tolling.

110Economic Modernisation Vision Unleashing potential to build the future

Destination Jordan DriverThe ‘Destination Jordan Driver’ contains 2 sectors with 25 initiatives. The driversteers the implementation of Jordan as a prime destination for international
niche tourists, especially for culture and nature tourism, medical and wellness
tourism, faith tourism, MICE tourism, as well as film producers seeking uniquelocations by developing a customised, world-class sector ecosystem.
• Tourism: 16 initiatives, including developing marketable experiences withfocus on travelers seeking world-class culture, nature, adventure, faith,
medical and wellness experiences through leveraging Jordan’s unique,world-class assets including such unique areas as the Dead Sea and Petra.
• Film production locations: 9 initiatives, including establishing new upto-date studios and backlots, enabling an international Film university
to establish a campus in Jordan, and investing in world-class globallypromoted local productions.

111

Smart Jordan DriverThe ‘Smart Jordan Driver’ includes seven sectors with 65 initiatives. The drivertargets the implementation of necessary steps to develop a foundation of
future-ready talent base, resources, systems, and institutions to upgrade qualityof life for citizens.
• Education | General: 13 initiatives, including developing one umbrella
entity for human resource development for the education sector, reforming
curriculum & pedagogy across the education ladder, as well as reviewing,
implementing, & mandating educator training program.
• Education | Early Childhood Care & Development (ECCD): 10 initiatives,
including developing appropriate curriculum and programmes for earlychildhood learning, establishing a unified ECCD council to be responsible fordeveloping and monitoring a cross-ministerial ECCD plan and developing
ECCD programmes, standards and content, in addition to expanding theestablishment of cost efficient ECCD programmes including infrastructure
for KGs and nurseries.
• Education | Basic & Secondary Education: 12 initiatives, including
developing and adopting a competency-based selection, recruitment andaccountability system using contract-based employment for all education
staff, structuring and mandating pre-service training and licensing
programmes, and establishing continuous professional development
programme for all educators (teachers, principals, supervisors...)112

Economic Modernisation Vision Unleashing potential to build the future• Education | Higher Education: 9 initiatives, including reforming faculty& staff recruitment mechanism, scholarships, continuing professional
development, promotion, developing entrepreneurship bylaws &regulations, launching industry linkages and labor market assessment forhigher education (matching exercise), launching micro-credentialing forhigher education and introducing multiple educational pathways.
• Education | Technical and Vocational Education and Training (TVET): 17
initiatives, including integration of TVET within singular governing agency,
establishing programmes for TVET educators training and professional
development, and developing National Framework for Work-based
Learning.
• R&D & Innovation: 9 initiatives, including empowering/reforming/
restructuring the Higher Council for Science & Technology and expand
mission, developing innovation centers to support public and private
sector, building a crucial mass of focused researchers, and launching
branding campaign for Jordan as an R&D & Innovation hub• MSMEs, Entrepreneurship & Startups: 8 initiatives, including establishing/empowering a national development authority (Rise Up Jordan),developing microbusiness incubator & aggregator network, developing
and launch “Start-up Factory” programme and establishing funds tosupport entrepreneurs across Jordan.
• Data: 7 initiatives, including developing a detailed National Data Strategy
cascaded from MoDEE’s Digital Transformation Strategy, activating
regulatory framework for data collection, exchange, and establishinga National Information System to empower citizens, businesses, andgovernments in making evidence-based decisions.

113

Sustainable Resources DriverThe ‘Sustainable Resources Driver’ contains two sectors with 18 initiatives. The
driver steers the implementation of efforts to optimise the use and enhance thesustainability of Jordan’s natural resources in the areas of energy and water as aprecursor to unleashing Jordan’s economic growth and quality of life potential.
• Energy: 8 initiatives, including developing an actionable energy transition
roadmap (renewables, hydrocarbons, hydrogen, etc.), enhancing energy
infrastructure (smart power grid, storage handling, transit pipelines, etc.)
and promoting energy cost reduction mechanisms (reform tariff structure,
renegotiate PPAs, time of use, etc.)• Water: 10 initiatives, including enhancing water supply and demand
management monitoring/control, promoting climate resilient &sustainable water use practices, , launching water desalination projects toenhance water security for Jordanians, and implementing the new NonRevenue Water strategy to reduce losses in the system.

114

Economic Modernisation Vision Unleashing potential to build the future

Invest Jordan Driver
Providing financing will enable the economy to achieve more growth, which
will lead to an uptick in the national GDP to reach to JD 58.1 billion by 2033,
an increase in income and job opportunities to accommodate more than one
million young men and women within the next decade.
The largest share of the required fixed capital lies within five main sectors:
industry, healthcare, Transport & Logistics, ICT services, and the water sector,
totaling to about JD 20.7 billion over the next ten years.
Figure (29): Required Net Growthfor Fixed Capital by Sector (2022-2033)
Water
EnergyIndustries

JD 41.4bn
required net
growth for fixed
capital between(2022-2033)

JD 32.3 bn
78%

JD 9.1 bn
22%

Education

JD 32.3 Billion
required net growth for
fixed capital for priority
sectors between(2022-2033)

Tourism
Other
sectors

Strategic priority sectors
MiningAgriculture

Healthcare
ICT

Average of JD3.5 bn per year during 2033-2022

High Value Industries

Creative industries
Transport and Logistics
Financial Services
Trade
Average of JD 2.7bn per year during 2033-2022

Future Services

Destination Jordan

Smart Jordan

Sustainable Resources115

Figure (30) shows the average annual growth rate for each sector according to
National Economic Workshop’s agreed-upon outcomes, experts’ projections,and leading practices in this field.
Figure (30): Targeted Sectoral Growth Rates*
ICT
Tourism
Textiles industry
Pharmaceuticals
MiningCreative industries
Chemical industries
Engineered products
Healthcare
Food manufacturing and processing industries
Agriculture and food security
Financial services
Transport and logistics
EnergyOther industries
Trade
Eductation
Water
Other sectors
Public administration
1- Includes cement industry and major minerals and refining and other products* Target growth figures were decreased by 30%, with an aim to create 1 million income
opportunities throughout the next decade.

116

Economic Modernisation Vision Unleashing potential to build the future

Figure (31): Expected Investments in JD billion (2022-2033)

Future Services

High Value Industries

Sustainable
Resources

Sustainable
Resources

Smart Jordan

Healthcare

Chemicalindustries

Tourism

ICT

Water

TextilesMiningFood manufacturing
and processing

Agriculture and food security

EnergyTransport & logistics

Industries

Creativeindustries

Education
Financialservices

Trade
Engineered products

The ‘Invest Jordan Driver’ comprises 15 initiatives targeting FDIs, domestic
investment, and boosting the business environment. The driver steers theimplementation of efforts to catalyse domestic and foreign investments tofeed Jordan’s economic growth engine , and work towards a world-class bestpractice investment ecosystem.
• Investment activation: 15 initiatives for FDI and domestic investment,
including developing a National Investment Strategy along with sectorand domain-specific investment plans, developing a holistic national
library of viable investment opportunities that includes mega projects andpotential PPPs, developing investor relationship management systems,
launching a permanent initiative to enhance Jordan’s international
competitiveness and rankings as a more attractive investment destination,
as well as launching an impact-driven investment incentive programme(monetary and non-monetary) with a clear evaluation and assessment
framework.

117

Green Jordan DriverThe ‘Green Jordan Driver’ consists of three sectors with 20 initiatives. The driversteers the implementation of efforts to promote sustainable practices andclimate change actions as an integral part of enabling Jordan’s growth whilesetting boundaries that will protect Jordan’s environment and resources for
future generations.
• Green Economy: 7 initiatives, including aligning institutional structures& capabilities with future green economy requirements, linking Jordan’s
green investment opportunities to the national investment priorities, andlaunching Jordan “Green Jobs” initiative.
• Green Sectors Growth: 7 initiatives, including turning Jordan into a leading
country in the region in renewable energy and energy efficiency, launchinga national sustainable transport system, and implementing circular
economy practices in industrial activities with a focus on eco-industrial
parks.
• Green Urban Development: 6 initiatives, including creating & deploying
Jordan-specific green urban concepts, integrating green elements into
land-use planning, and launching ‘net-zero buildings’ initiative.

118

Economic Modernisation Vision Unleashing potential to build the future

Vibrant Jordan DriverThe ‘Vibrant Jordan Driver’ contains two sectors with 13 initiatives. The driversteers the implementation of holistic, citizen-centric, and environment-focused
efforts to enhance substantially the quality of life for all Jordanians with a focus
on ensuring that basic livability standards are well met as the base of truly livable
cities and communities while creating new lifestyle options.
• Urban Development: 7 initiatives, including developing "future city"
concepts customised for Jordan and enhancing urban planning governancethrough the development of legislative systems and alignment with future
cities’ besides deploying an Urban-Think Tank and data observatory.
• Quality of Life: 6 initiatives, including developing smart mobility systems,
launching open and green spaces initiatives, and implementing green
building standards.
To achieve the maximum benefits of all elements, the road map implementation
has to capture the linkages between sectors and initiatives, maximisingsynergies and mining for joint efforts while avoiding overlaps and conflicts.
Hence, rigorous coordination should combine all efforts across the entire
portfolio and not particularly the single efforts, as this is crucial to realising thisextra potential.

1198.3 Turning Jordan’s Economic Modernisation Vision into a Reality:
The Realisation Model
8.3.1 Key Success Factors
Analysis of previous strategies and plans, as well as the study of international
benchmarks highlighted key lessons used to develop a list of critical successfactors needed to ensure the successful implementation of the Vision.
1.

A Unified Vision: One of the most critical success factors is having aunified vision that streamlines efforts of various entities and successive
governments towards the achievement of the identified goals.

2.

Strong Governance: Strong governance, ownership and accountability
are essential to clearly define all the stakeholders involved in theimplementation process, their roles and responsibilities, and how theirrespective mandates fit within the wider implementation process andensure tangible results.

3.

Human Resources: Dedicated human resources are required within thevarious entities responsible for implementation, follow up and delivery of
the vision.

4.

Institutionalising Processes: Planning, execution, change management
and risk assessments, monitoring, evaluation, and reporting are examples
of some of the key processes that must be developed and followed acrossthe entire eco-system of delivery.

5.

Data Sources: Unified data sources that are consistent, transparent,
accurate and timely are critical to evaluate progress and ensure propermonitoring and reporting.

6.

Change Management and Communication: Active and bi-directionalchange management, communication plan, and execution support
to ensure that the messages are being delivered, buy-in is in place andfeedback is being received.

7.

Results-Focused: Constant evaluation of the outcomes to ensure that thedesired deliverables have been achieved.

8.

Access to Technical Expertise: Ability to benefit from technical expertiseand local and foreign talents to implement the Vision execution plans.

120

Economic Modernisation Vision Unleashing potential to build the future

9.

Access to Funding: Ability to access the required funding, including
domestic and foreign direct investments to support the Vision delivery
through the proper governance, processes and channels.

10. Agility: Ability to promptly and effectively make and take decisions, andadapt to urgent changes and developments through a transparent andsystemised process.

8.3.2 Monitoring and Evaluation
1.

The Prime Ministry Delivery Unit will have the overall responsibility forthe delivery of the Vision initiatives, associated KPIs and ensure continuous
coordination between ministries and public institutions.

2.

Ministeries’ Delivery Units, located at ministeries and public institutions,will be responsible for Vision implementation and continued coordination
with line ministries.

3.

The Ministry of Planning and International Cooperation will be
responsible for coordinating and preparing Vision execution plans incoordination with line ministries.

4.

The Royal Hashemite Court (RHC) will be responsible for monitoring
progress on Vision implementation and results.

121

122

Economic Modernisation Vision Unleashing potential to build the future

We aspire to a Jordan characterised by excellence andcreativity, open to change and development, receptive to
new ideas, incubating for diversity, embedded in our sharedvalues to remain a symbol of tolerance and altruism. These
are the values rooted in Jordan, which makes it an exemplary
for progress, openness, moderation, and authenticity.
Turning the Economic Modernisation Vision into reality
requires intensifying our efforts to reinforce our strengths
and address our weaknesses throughout the planningand implementation process. Henceforth, we must boost
performance in various sectors, and provide opportunities
and decent services to all citizens. Effective steps should betaken to increase our exports, attract foreign investments,and support domestic investments. Detailed processes
should also be delineated, in conjunction with a specified
timeframe, to address obstacles facing the growth of ourprivate sector, and tackle the systematic and inherent issues
at the administrative level of our institutions.
The choices and decisions we make today will shape thelives of future generations to come. Let us work together,with confidence, faith and consensus, to provide a decent
livelihood in our country, for the present and the future.

123

Economic Modernisation Vision
Unleashing potential to build the future

For additional information on the
Economic Modernisation Vision, please visit

124

www.jordanvision.jo