Attractiveness of Jordan for International Investors

Foreign Direct Investment (FDI) is a long-term investment made by a company or individual in one country into a company or asset in another country. This investment aims to control and manage the investment in the host country.

FDI stimulates economic growth by creating new businesses, jobs, and industries. It also increases exports, boosts tax revenue, and improves technology transfer.

The Global Opportunity Index assesses the attractiveness of 145 economies for international investors based on five categories: Business Perception, Economic Basics, Financial Services, Institutional Framework, and Standards & International Politics.

The "Business Perception" category evaluates the ease of doing business in a country, considering constraints faced by businesses and the resolution of disputes.

The "Economic Basics" category assesses a country's macroeconomic outlook, workforce talent, and potential for future innovation and development.

The "Financial Services" category assesses the availability and accessibility of financial services in a country, including the depth and breadth of financial institutions.

The "Institutional Framework" category measures the quality and effectiveness of a country's institutions, such as government, legal system, and regulatory bodies, in supporting or hindering business activity.

The "Standards & International Politics" category measures how integrated a country is into the global community and its commitment to international standards.

Jordan ranked 79th out of 145 economies in the 2021 Global Opportunity Index. Within Arab countries, it ranked 7th.

Jordan's ranking in "Business Perception" is particularly concerning, at 103 out of 145 economies. This suggests that businesses face significant challenges in operating effectively within Jordan.

Jordan's ranking in "Business Perception" is relatively low, suggesting challenges in specific areas such as labor regulations, tax rates, starting a business, and enforcing contracts.

Improving the "Business Perception" category involves addressing issues such as high cost of starting a business, restrictive labor regulations, complex tax systems, lengthy contract enforcement processes, and difficulties in resolving insolvency.

Jordan's ranking in "Economic Basics" is also relatively low, indicating challenges in areas like MSME density, government debt, total factor productivity, unemployment rate, and female participation rate.

Improving the "Economic Basics" category requires focusing on boosting MSME density, reducing government debt, increasing total factor productivity, lowering the unemployment rate, and improving female participation in the workforce.

Micro, Small, and Medium Enterprises (MSMEs) are small businesses that play a crucial role in economic growth by providing employment opportunities and contributing to innovation.

Total factor productivity (TFP) measures how efficiently a country uses its input resources, such as labor, capital, and technology, to produce goods and services.

The unemployment rate is the percentage of the labor force that is unemployed and actively seeking work.

Female participation rate measures the percentage of women in the workforce compared to the total working-age population.

The UAE ranks highest among Arab countries in the Global Opportunity Index, followed by Qatar, Bahrain, and Oman.

Sweden holds the top spot in the Global Opportunity Index overall, indicating its strong position as an attractive investment destination.

The Global Opportunity Index helps international investors make informed decisions by providing a comprehensive assessment of each country's attractiveness.

Jordan needs to improve its "Business Perception" and "Economic Basics" to attract more FDI and climb the ranks in the Global Opportunity Index.

By improving its overall attractiveness, Jordan can make itself a more competitive investment destination, attracting more FDI and stimulating economic growth.

The Global Opportunity Index serves as a benchmark for countries to evaluate their strengths and weaknesses and identify areas for improvement to attract more FDI and promote economic growth.