ICT Sector

Jordan's ICT landscape provides a case study in what it takes to succeed in the international market place- a combination of sound policy, strong telecom infrastructure and growing talent. Jordan’s main strengths are in its all-digital network, skilled labor force and strong government backing including the personal support of HM King Abdallah II.

Intellectual property laws are in effect and are considered to be the model in terms of structure and compliance across the developing world. Jordan fares well in terms of overall attractiveness as an outsourcing destination. Growth of  the market is due to market oriented regulations, foreign direct investment and incumbent Jordanian entrepreneurs interested in expanding the Internet skill and wage advantage of the labor force.

Jordan was the first country in the Arab world to have a fully liberalized telecommunication market and has modernized 75 percent of its ICT related laws, improving the business environment for local and international investors. Jordan also led the region by establishing the first independent telecommunications regulatory body to create a fair, transparent, and competitive investment environment.

Since 2002, Jordan’s ICT industry has ranked amongst the top 3 for the highest annual FDI achieved. Sector revenues for telecom and IT have more than doubled over the last five years going from 70 million USD in 2003 to more than 770 million USD in 2006. Total exports reached 25% of total revenue in 2006 representing around 18% growth from the previous year. Similar growth rates are forecasted from the coming 5 years.

Competitive Advantages

ICT is a booming Sector

• It is the fastest growing sector in Jordan expanding by 50% per year.
• Jordan produces some ground breaking start-ups that often expand globally.
• ITO and BPO operations are expected to Global 500 and Fortune 100 IT spending – these companies are trend setters for industry worldwide and some have already screened the Jordanian market.
• Small and Medium Sized Companies in the IT market are now increasing their spend on IT services including outsourcing.
• Offshore outsourcing is a global mega trend.
• Banks and financial services considered to be amongst the fastest growing IT sectors due to the demand for 24 hr service.

Steady flow of bi-lingual ICT savvy graduates

• With a growing pool of 19,000 IT related labor force and steadily inflowing 6,000 graduates yearly Jordan is emerging as a regional leader in the ICT sector.
• 19,000 IT-related labor force and a growing pool of 6,000 students in IT degree education.
• More than 270 secondary IT schools in the Kingdom.
• Jordan ranked 14th out of 110 countries for the number of engineers and scientists according to the Global Competitiveness Report 2004- 2005 (WEF).
• Jordan has a higher proportion of university graduates in technological fields than any other country in the region.
• We are taking up exemplary initiatives to bolster talents: we are connecting all of our public universities and hundreds of schools through broadband networks; we also pioneered in innovating in education by creating a Jordanian e-learning platform.

Cost competitive location for manufacturing

• A low cost regional development/sales platform to serve the market, which is set to reach $45 billion mark by 2010.
• Emerging BPO destination for financial services, IT, insurance and the health sector with wages only slightly higher than in India.
• Highly competitive costs with average IT staff salaries only one fifth of Ireland and around 75% lower than in UAE.

Modern and reliable ICT infrastructure

• Fiber-Optic Link Around the Globe (FLAG) network, WAP, GPRS. 
• Strong private-public partnership and government support to advance the infrastructure development. 
• Jordan ranked 47th out of 127 countries in the ICT readiness index (2007-2008). 
• Jordan as amount the highest spender on research and development as a % of GDP (see World Bank Indicator below)

Strong government backing

• ICT sector has direct support from His Majesty King Abdallah 
• Jordan e-Government initiative to jump start e-commerce activities 
• Incentive and service packages available at JIB, Development Zones and the Aqaba Special Economic Zone. 

Attractive Policy and regulatory environment
Key policy objectives include:

• Creating a competitive environment, led by private sector, that contributes to the economic & social development
• Market liberalization to encourage & attract investment, contribute in offering a wider variety of services
• Raising internet penetration rates
• IT sector, beyond its communication elements, is not typically regulated
• Intellectual Property laws are in effect and considered to be the model in terms of structure and compliance across the developing world. 

Supportive structures

• Int@j
• Ministry of Information and Communication Technology
• Telecommunications Regulatory Commission 

GDP contribution (%): 9.7% (2006)

Cumulative Employment: 1,500 ICT related companies employing more than 19,000. The number of employees is increasing by 15% on annual basis

Major Players and Investments: France Telecom, Microsoft (USA), Cisco (USA), Vodafone, Sun Microsystems (USA), Orange, MTC/Zain (Kuwait), Batelco (Bahrain), Intracom (Greece), and more 

Opportunities

Information Technology Outsourcing (ITO) - Jordanian firms have established an international reputation for offering specialized products and services in e-learning, e-government, e-banking, and multi-media (content management, animation, and web design)

Business Process Outsourcing (BPO) - Jordanian labor is proficient in many business areas including finance, payroll processing, accounting, telemarketing, document processing, IT support, and R&D.

Arabization and localization services - Jordan’s talented workforce, bi-lingual Arabic and English capabilities, cultural closeness to the region, strong regional relationships and time zone advantages favorably positions it to provide Arabization and localization services. 

• Target model E-Commerce support to health care sector 
• ERP products – customized for hospitals
• Health insurance services – MOH and insurance service driven
• MENA E-bay
• Customized Search Engines
• New ISP’s
• R&D programming
• Expand set-up of “Captives” (service business that allows investors to control assets, intellectual property and management of core business activities)
• Increased build out of broadband service fiber; bundling of internet and cell phone services
• Incubator programs with private and government backing 
• Formation of certification centers, e.g., CMMi programs and other certificates 
• KADDB led projects – technology commercialization
• Digital TV broadcasting – new standard and products
• Satellite Radio – Increase WorldSpace, XM, Sirius participation in Jordan
• Voice Over IP (VoIP) – Increase number of players for residential and commercial market
• Wireless Local Loop (WLL)

Optimal Location

• Amman and Irbid
• Development zones with ICT vocation: King Hussein Business Park (Amman), Irbid Development Zone, Mafraq
• Development Zone

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