Experts discuss Jordanian economy ahead of award ceremony

AMMAN — Seeking to support entrepreneurship and encourage dialogue between experts across the Kingdom, Ernst & Young (EY) Jordan on Monday held its Entrepreneur Of The Year Forum in Amman for the third consecutive year. 

“The Path to Economic Prosperity” was the theme of this year’s edition, which welcomed prominent local investors and experts from the public and private sectors to shed light on the key challenges facing the national economy and investment scene.

Elaborating on the theme of this year’s edition, Managing Partner at EY Jordan Bishr Baker recalled that the topics of the previous editions were “innovation realised” and “digital disruption”, stressing that “neither digitalisation nor innovation can really be achieved without a proper economic environment — which was how this year’s theme came along”.  

“Since 2008, the world has been suffering from an economic recession that greatly impacted Jordan due to external factors, and that is why we are gathering experts here today to engage with one another and tackle the most pressing obstacles within the Jordanian economy,” Baker continued. 

Delivering his keynote speech to the forum’s attendees, founder of Nasser Saidi and Associates, Nasser Saidi, noted that “the Arab region as a whole was not performing as positively as other emerging economies in economic growth”. 

“The region is now welcoming new technological changes and a shift in the attitudes towards energy, which will result in the demand for oil to decline and the regional source of wealth to slowly disappear,” the economist warned.

Commenting on the current global economic situation, Saidi added that the world was now experiencing an economic shift to the East, pointing out that, while in the 1990s the Group of Seven countries held half of the world’s gross domestic product, the figure stands at only a 30 per cent today, and in favour of the economies of east Asia. 

“This is exactly why we need to readjust the Jordanian economy,” the expert continued, noting that “while it was positive to reach solid agreements with European and American economies in the past, it is time for the Kingdom to join the new world market”.

Minister of State and Deputy Prime Minister Rajai Muasher added that “since 2012, the government has attempted to decrease the governmental expenditure and budget deficit by focusing on fiscal reforms”.

The minister said that “while the solution has worked in the short term, it is necessary to apply structural reforms and rearrange the principles of the country’s economy to attract foreign investors”.

World Bank lead economist Christos Kostopoulos cited declining foreign direct investments as an issue that needed to be addressed. He suggested that policymakers could boost the economic growth of the Kingdom by fostering the development of services ready-to-be-exported, such as those in the tourism sector. 

The forum took place one day ahead of the announcement of the winners of this year’s Entrepreneur of the Year award, which celebrates those who are “building and leading successful, growing and dynamic businesses, recognising them through regional, national and global awards programmes”, according to organisers. 

Created over three decades ago, the competition encompasses more than 145 cities from 60 countries worldwide.