Jordan's Attractiveness to Investors 2021
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Questions and Answers

What does FDI stand for?

Foreign Direct Investment

According to the UNCTAD’s 2021 World Investment Report, by what percentage did FDI flows fall in 2020?

35%

What is the name of the index that assesses the attractiveness of 145 economies to international investors?

Global Opportunity Index

The Global Opportunity Index uses five categories and 96 variables to assess the attractiveness of economies to international investors.

<p>True</p> Signup and view all the answers

Which of the following measures the depth and breadth of a country's access to financial services?

<p>Financial Services</p> Signup and view all the answers

What country tops the world on the global opportunity index?

<p>Sweden</p> Signup and view all the answers

Which Arab economy is ranked last on the global opportunity index?

<p>Yemen</p> Signup and view all the answers

Which Arab country ranks highest on the Global Opportunity Index?

<p>The United Arab Emirates (UAE)</p> Signup and view all the answers

What is Jordan's overall rank on the Global Opportunity Index?

<p>79th out of 145 economies</p> Signup and view all the answers

What is Jordan's ranking on the Global Opportunity Index among Arab economies?

<p>7th</p> Signup and view all the answers

Which category in the Global Opportunity Index does Jordan rank highest in?

<p>Institutional Framework</p> Signup and view all the answers

According to the report, what are some key variables that need special attention to improve Jordan's overall standing on the Global Opportunity Index?

<p>Cost to start a business, percentage of firms identifying labor regulations as a major constraint, percentage of firms identifying tax rates as a major constraint, time required to start a business, enforcing contracts, resolving insolvency cost, resolving insolvency recovery rate, time required to enforce a contract and time to resolve insolvency.</p> Signup and view all the answers

The report recommends that Jordan should focus on improving its economic basics to attract more FDI inflows.

<p>True</p> Signup and view all the answers

What are some of the key economic basics variables that need special attention?

<p>Micro, Small &amp; Medium Enterprises (MSME) density, central government debt, total factor productivity, unemployment rate and female participation rate.</p> Signup and view all the answers

The report concludes that if Jordan can improve its business perception and economic basics, it will attract more FDI inflows, which in turn benefit the national economy.

<p>True</p> Signup and view all the answers

Study Notes

Jordan Strategy Forum Policy Brief

  • This document analyzes Jordan's attractiveness to international investors in 2021.
  • It uses the Global Opportunity Index (GOI) published by the Milken Institute.
  • The GOI assesses 145 economies based on 96 variables across five categories.

Background

  • FDI (Foreign Direct Investment) is a significant driver of economic growth and development.
  • FDI stimulates growth, exports, employment, human resource development, corporate tax revenue, and technology transfer.
  • 2020 saw a 35% fall in FDI globally, but it is predicted to recover and increase by 10-15% in 2021, 25% below the 2019 level.

Global Opportunity Index: Jordan's Ranking

  • Sweden tops the 2021 GOI globally and Yemen is last of the Arab economies.
  • Jordan ranks 79th out of 145 economies on the GOI, 7th in the Arab economies.

Category-Specific Rankings

  • Business Perception: Jordan ranks 103rd out of 145 (10th among Arab countries).
  • Economic Fundamentals: Jordan ranks 114th out of 145 (10th among Arab countries).
  • Financial Services: Jordan ranks 62nd out of 145 (7th among Arab countries).
  • Institutional Framework: Jordan ranks 48th out of 145 (4th among Arab countries).
  • International Standards and Policy: Jordan ranks 70th out of 145 (7th among Arab countries).
  • Jordan's ranking in "business perception" needs improvement.
  • Progress is observed in the "institutional framework" category.
  • Economic basics category needs attention.

Variables for Improvement

  • Business Perception: Focus on business start-up costs, labor regulations, tax rates, contract enforcement, and insolvency processes.
  • Economic Basics: Areas for improvement include micro, small, and medium enterprises (MSMEs), government debt, productivity, unemployment, and female participation rates.

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Description

This quiz assesses Jordan's position as an investment destination based on the Global Opportunity Index for 2021. Analyze the factors affecting Foreign Direct Investment (FDI) and how Jordan ranks compared to other countries. Explore the implications of global economic conditions on Jordan's attractiveness to international investors.

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