Invest in ICT in Jordan

Jordan’s growing and competitive ICT landscape

offers attractive investment opportunities

2005

“We have followed a path that will allow the technological

revolution to harness our available talent into productive
sectors that can fuel and sustain economic growth.”
His Majesty King Abdullah II
ICT in Jordan at a glance 1

Why Jordan? 2

Modern and liberal economy 5

Building ICT professionals for the future 8

Jordan’s talented, highly skilled workforce 11

Modern and reliable telecom infrastructure 12

Investment and business opportunities 15

About Jordan 20

Contact Information 23

ICT in Jordan at a glance
Jordan’s ICT industry is thriving
and has become a major contributor
to Jordan’s economy, boasting one
of the more developed and advanced
ICT sectors in the developing coun-
tries. Jordan’s network readiness
has been improving, ranking 44 out
of 104 countries in 2004. 1
Revenues for both telecommunica-
tions and IT have steadily increased
over the past five years. Telecom
gross revenues (fixed and mobile
services) more than doubled be-
tween 1999 and 2004, increasing
from US$400 million in 1999 to
US$940 million in 2004. IT gross
revenues reached US$440 million
in 2004, up from US$170 million in
2001. The sector, as a whole, regis-
tered by far the most rapid growth
of any sector in FDI with more than
US$1.5 billion since 2000.
The industry enjoys strong support
from the government and His Majesty
King Abdullah II, progressive regula-
tory and policy reform, and is under-
going an ambitious privatization plan.
It is growing locally, respected region-
ally and fueled by a committed and tal-
ented pool of ICT professionals.
1 World Economic Forum, “Global Information Technology Report” 2004 – 2005. The Network
Readiness Index (NRI) is the degree of preparation of a nation or community to participate in and
benefit from ICT developments.
2 International Data Corporation (IDC), 2005. IDC is a leading international technology market
research and consulting firm.
ICT in Jordan at a glance
Jordan’s telecom sector is rapidly
evolving into the most dynamic
and competitive market in the
Arab world . The telecom sector
has reached
2
full liberalization at
the end of 2004 with the ending of
the fixed line monopoly. The fixed
PSTN and International Long
Distance (ILD) services were lib-
eralized and new operators are en-
tering into the market.The open,
transparent and competitive en-
vironment has led to heightened
investor interest in the country’s
telecom sector
Telecommunications deregulation,
which began in 2000, has created
a competitive ICT environment,
offering advanced services to con-
sumers with increasingly competi-
tive rates. The use of telecommuni-
cations has continually increased
with expanded availability. Today,
93 percent of Jordanians have ac-
cess to telecommunication tools
through fixed or mobile lines.
Jordan’s dynamic and growing
ICT environment presents attrac-
tive opportunities for investors
and ICT businesses.
1
 Why Jordan?

Why Jordan?

Jordan’s ICT industry has attracted attention from both international and re-
gional IT forces such as Microsoft, Intel, Cisco Systems, France Telecom, Mo-
bile Telecommunications Company (MTC) - Vodafone Kuwait, and Bahrain
Telecommunications Company. Jordan is well on its way to becoming an ICT
hub in the region, having created a climate for success for local companies and
foreign investors by offering:

Modern and liberal economy—Jordan boasts a free market ori-

entation, liberalized trade policies, an ambitious privatization pro-
gram, and investor- friendly policies and regulations.

Committed government and leadership of His Majesty King

Abdullah II—The government of Jordan under the leadership of
HM King Abdullah II, is working in partnership with the private
sector, have established a long-term plan to build a vibrant ICT
industry and transform Jordan into a regional ICT hub. The gov-
ernment continues to fulfill its commitment to protect intellectual
property rights, deregulate telecommunications and reform inves-
tor tax laws.

Growing ICT market and proximity to other large and growing

regional markets—Jordanian ICT companies have already estab-
lished a solid regional presence and export base. Jordan is the ide-
al gateway to MENA countries: a region that has more than 350
million consumers with a purchasing power that exceeds US$500
billion.

Strong regulatory reform and independent ICT regulator—Re-

form in Jordan’s ICT sector is active and on-going. Jordan was
the first county in the Arab world to have a fully liberalized tele-
communication market and has modernized 75 percent of its ICT-
related laws, improving the business environment for local firms
and investors. Jordan also led the region by establishing the first
independent telecommunications regulatory body to create a fair,
transparent, and competitive investment environment.
 Modern, reliable infrastructure—Jordan enjoys a sophisticated
communications infrastructure, recognized as well-developed in
the MENA region. Building on this already developed network,
the government is building a nationwide broadband network to
connect all public schools, universities and colleges.

Committed, technically skilled and growing competitive-wage

workforce—ICT professionals in Jordan are respected for their
reputation of reliability, commitment, and entrepreneurship. Re-
sources from the Jordanian government and private sector, and
international IT forces, are helping augment an already-qualified
workforce with e-learning programs and other innovative curri-
cula.

France Telecom makes major investment in Jordan

In January 2000, 40% of Jordan Tele-
com Company was sold to a consortium
of investors including France Telecom
(88%) and the Arab Bank (12%), with
full management control to France
Telecom, creating a successful venture
and solidifying France Telecom’s com-
mitment to Jordan.
Thierry Breton, Chairman and CEO
of France Telecom, addressing Jor-
dan Telecom Group in December 2004
said: “His Majesty’s vision for a techno-
logically empowered Jordanian econo-
my is a vision we at France Telecom
share...France Telecom is here with
you and here to stay”.

MTC Vodafone spreads presence into Jordan

In 2003, Mobile Telecommunications Company (MTC) - Vodafone Kuwait
acquired a majority equity interest in Fastlink (Jordan’s largest mobile com-
munications company). This purchase is considered the largest single acquisi-
tion in the Middle East and transformed MTC to one of the leading regional
cellular players in the Middle East with an installed base in excess of 1.5 million
subscribers at that time.

“Jordan’s operating environment and Fastlink’s solid market position and

high-quality management team were the driving forces behind our substantial
investment”.
Dr. Saad Al-Barrak, Director General of MTC.
Consortium wins with
telecommunications
investment
In 2000, Bahrain Telecommunica-
tions Company, partially owned by
the U.K’s Cable & Wireless, entered
into a partnership agreement with
NETS (Jordan’s first e-mail provid-
er) and Firstnet (Jordan’s first data
communications provider) to cre-
ate Batelco Jordan. The three-part-
ner merger has led Batelco Jordan
to successfully penetrate Jordan’s
Internet and global data communi-
cations market and emerge as a na-
tional industry leader.
In 2005, Batelco Jordan was granted
an individual license to provide fixed
services including international gate-
ways.
Microsoft strengthens
regional presence
Cisco Systems develops
e-learning programs with
a Jordanian IT firm
Cisco Systems and Rubicon, a Jor-
danian company in e-education and
animation, are co-leading the devel-
opment of the “Mathematics Online
e-Curricula” for the government of
Jordan. Rubicon and Cisco Systems
are also major players in the Jordan
Education Initiative, a nationwide
initiative reforming education in the
country.
“No country in the world has done
what Jordan did in such a short peri-
od of time... Jordan is improving by
using technology to implement strat-
egies and to achieve dreams.” John
Chambers, CEO of Cisco Systems
Other international IT companies,
including Microsoft and Intel are
also working alongside Jordanian
ICT companies to cultivate a techni-
cally skilled workforce.

In 2002, Microsoft invested in Es-

tarta Solutions, a Jordanian soft-
ware development company. By
investing in Estarta Solutions, Mi-
crosoft strengthened its presence
and business development capabili-
ties in the region.

“Microsoft is here for the long term

and this investment reiterates our
continued involvement with the IT
marketplace in the Middle East re-
gion.”
Emre Berkin, Vice President, Mi-
crosoft Europe, Middle East, and
Africa
Modern and liberal economy

Jordan is fostering the continued development of a liberal, free market econ-

omy and strengthening its macroeconomic growth and stability through its
comprehensive economic reforms and restructuring programs.

Jordan has achieved front-runner status with high FDI potential and perfor-
mance.3 The country’s GDP growth rate reached 7.6 percent in 2004, compared
with an average growth rate of 4 percent between 2001 and 2003. Domestic
exports rose by 39.3 percent in 2004 over 2003. Politically and economically,
Jordan has a low country risk with a rating of 71 out of 100. 4

Demonstrating its commitment to becoming a “connected” nation, Jordan was

ranked among the top ten countries in the world in ICT spending as a percent-
age of GDP in 2003. 5

ICT Spending as a Percentage of GDP 2003

Zimbabwe Jamaica Singapore New Panama Colombia Jordan United Pakistan Hong Kong
Zealand States China

Note: The data on information and communications technology expenditures

cover the world’s 70 largest buyers of such technology among countries and
regions.
Source: World Bank Indicators, 2005

3 World Investment Report, 2004. The report covers 140 countries.

4 Composite Country Risk Rating published by Political Risk Services (PRS) Group in 2003 that includes political (50%),
economic and financial risk (50%). The index takes values between 0 and 100, with higher values indicating lower risk.
5 World Bank Indicators, 2005
 Trade liberalization and legal reform
Jordan has shown steadfast commitment to liberalizing its trade policies to
improve its competitive position globally. In 2000, Jordan joined the World
Trade Organization (WTO) and signed a free trade agreement with the Unit-
ed States. A similar agreement, the EU-Jordanian Association Agreement,
was signed in 2002. WTO accession and compliance with other free trade
agreements require strict adherence to intellectual property laws that are at-
tractive to investors who demand patent protection. In addition, 75 percent of
the laws affecting the ICT sector have been modernized, improving the busi-
ness environment for local firms and investors.

Privatization in the telecoms sector

Privatization and deregulation has resulted in substantial private sector invest-
ments in Jordan’s telecommunications infrastructure, which increased from
US$43 million between 1990 and 1995 to nearly US$970 million from 1996
to 2003.

As part of the privatization program the government sold 40 percent of the

Jordan Telecom Company in 2000 to a consortium of investors led by France
Telecom. The postal sector is next to be privatized and the government has a
forward-moving privatization agenda for other state-owned entities. The gov-
ernment is in the process of divesting its remaining 41.5% ownership in Jordan
Telecom.

Investor-friendly policies and regulations

Jordan’s Investment Promotion Law provides attractive incentives to domes-
tic and international investors and treats local and foreign investors equally.
Foreign investors also enjoy full ownership in many sectors, including telecom-
munications. Jordan also allows unrestricted transfer of capital and profits in
all sectors.

The Jordan Investment Board created an “investment one-stop shop,” facili-

tating the registering of an investment project and encouraging investment
into Jordan. Special incentives are available in the Red Sea port city of Aqaba
where the Aqaba Special Economic Zone (ASEZ) offers a range of investment
benefits, including freedom from custom duties, and substantial exemptions on
income and retail tax.

6
Overall economic strengths
According to a survey of 102 countries conducted by the World Economic
Forum, the main strengths of the Jordanian economy include: the quality of
the educational system (ranked 27); the availability of scientists and engineers
(ranked 12, outranking Singapore); infrastructure quality (ranked 23, outrank-
ing Israel); judicial independence (ranked 23); efficiency of legal framework
(ranked 29); protection of minority shareholder interest (ranked 19); and intel-
lectual property protection (ranked 22). 6

6 Global Competitiveness Report 2003-2004.

7
 Building ICT professionals for the future

Building ICT professionals for the future

The Jordanian government and the private sector, working with international
IT initiatives, are investing considerable resources in primary and secondary
education programs, elevating the ICT know-how of Jordanian graduates.
Jordan has a young population, 70 percent is under the age of 30 (about 3.8
million), and these programs are creating an impressive pool of bilingual, savvy
ICT graduates. In 2004 4,500 students graduated from Jordanian ICT pro-
grams.
Jordan is a leader among Arab countries in educational spending as a percent-
age of GDP and in computer to student ratios. Jordan’s eight public universi-
ties, 12 private universities, and 21 community colleges, which attract students
from around the Arab world, house more than 120,000 students. The IT stu-
dent population totals 8,000 at the university level and 5,300 at the college level.
Jordan has a higher proportion of university graduates in technological fields
than any other country in the region. Jordan ranked 14th out of 110 countries
for the number of engineers and scientists according to the Global Competitive-
ness Report 2004-2005 (WEF).

Discipline Number of Graduates

ICT Graduates in Jordan - 0 2 0 0

MIS 245
Network Management 145
Software Engineering 178
Applied Computer Science 16
Information Systems 677
Computer Science 2341
Information Technology 221
Technology of Computer and Control 84
Communication Engineering 45
Electronic and Communication Engineering 109
Computer Engineering 298
Electronic Engineering 110
Total 4467
Note: Figures include both university and college level graduates.
Source: Information Technology Association – Jordan (Int@j),2004

8
Major ICT players such as Sun Microsystems, Cisco Systems, Microsoft and
Intel, have invested in certification programs, in-college laboratories and “e-
labs” in universities to help build this highly skilled workforce. Jordan’s pri-
vate sector is taking part by partnering with these firms and establishing busi-
ness incubators to foster creativity and enhance technical skills.

Sun Microsystems Builds Center of Excellence and

Jordan’s IT Professionals
In 2005, Sun Microsystems opened the Sun Center of Excellence in Jordan,
the first center of its kind in the region. The move was a joint agreement be-
tween Sun and two of the Kingdom’s leading educational institutions.

The Sun Center of Excellence provides training to keep IT students abreast

of the latest technologies. In addition, students undertake research projects to
enhance their research skills and build their abilities in problem solving, team
work and project-based learning.

“Sun’s outlay of thousands of dollars for every one of our student is a huge
investment that will significantly enhance the quality of the Middle East’s IT
sector,” said Dr. Mohammed Sabbarini, president of Yarmouk University.
“These applications will allow our students to gain invaluable knowledge into
how to properly design applications to the most rigorous of standards.”

Incubator Readies Jordan’s IT Graduates for Real Life

In 2004, ESKADENIA Software Solutions, a Jordanian software development
company, established an incubator at the University of Yarmouk.
New graduates work on “real-life” projects and receive training to enhance their
technical competencies to prepare them for future employment in ICT. The in-
cubator is also connecting faculty members and students with the ESKADENIA
team to conduct research in the development, management and operation of
telecom and IT products and services.
“The project is a step forward to establish an entrepreneurial center to better
serve regional ICT market needs,” said Ra’ed Bilbessi, Chairman of the Informa-
tion Technology Association – Jordan (Int@j). “Our graduates will have better
understanding of workplace interactions and will gain practical skills that will
make them ready for the ICT job market and for spinning off small businesses.”

9
 A leader in educational reform
Jordan is a regional leader when it comes to placing education at the heart of
reform and development programs. The most ambitious of which is the Jordan
Education Initiative (JEI) which started at the World Economic Forum (WEF)
in 2003. The JEI aims at accelerating Jordan’s educational reform through a
public-private partnership that drives innovation and builds industry capacity.

Since its inception the JEI has facilitated the development of five e-curricula,
trained teachers on new pedagogic, and introduced various models of in-class-
room technologies to support new educational paradigms; while building a glob-
ally competitive online education industry.

The JEI is being piloted in 100 Discovery Schools impacting more than 50,000
students and 2,300 teachers to be rolled out to the 3,200 public schools. The
lessons and experiences of the JEI are of wide relevance to Jordan, the region,
and the rest of the globe. As of 2005, the JEI model is being replicated in other
parts of the world.

To date no less than 17 global corporations, 17 Jordanian entities, and 11 gov-

ernmental and non-governmental organizations are working together to achieve
the JEI objectives in partnership with the Government of Jordan. Multination-
als such as Cisco Systems, Dell, Hewlett Packard, IBM, Siemens and Intel have
joined local companies, the Jordanian government, the WEF, and non-govern-
mental organizations to achieve the JEI objectives.

Intel Brings IT to Jordanian Students

Intel Corporation has made significant investments in Jordan over the last sev-
eral years as a result of Jordan’s strong commitment to ICT.

In 2003, Intel established its first “Teach to the Future” program in the Middle
East in Jordan. More than 15,000 teachers in Jordan have been trained, receiv-
ing extensive instruction and resources to help them integrate technology in the
classroom.

Intel also established the Intel Computer Clubhouse in Jordan. At the club-
house, underprivileged youth have access to high-tech equipment and mentors
to develop skills that encourage self-confidence and foster creativity.

“The effect of this educational revolution will be sensed in the classroom as the
whole life of students and teachers alike will be changed..... Jordan is the first
Arab country we worked with and the results were astounding,” said Martina
Roth, program director, Intel Europe, Middle East and Africa.

10
 Jordan’s talented, highly skilled workforce

Jordan’s talented, highly skilled workforce

With a young, well-educated population, Jordan’s workforce and ICT gradu-
ates are highly motivated with a growing interest in continuous professional and
personal growth. Literacy rates are nearly 90 percent and almost 20 percent of
Jordanians obtain higher education. Each year, Jordan’s universities produce
more than 4,000 high caliber, bilingual (Arabic and English), ICT graduates.

Jordan’s ICT labor force is technically skilled and highly competitive in terms
of salaries and wages. The below table illustrates the areas of ICT specialties
and the corresponding salaries in the Jordanian job market.

Specialty Monthly base salary (US$)

IT Labor Costs (average base pay)

Systems Architect; Systems Analyst 1160

Database Administrator 910

Software Quality Assurance 775

Systems Administrator; Internet
Programmer; Database Designer,
Technical Writer; Web Site Designer; 620
Software Quality Controller; Application
Programmer; Telecommunication Engineer
Multimedia Specialist; Network Engineer; 480
Web Site Developer
Technical Support; H/W Technician;
350
Network Technician

Source: Information Technology Association – Jordan (int@j), 2004

The labor regulatory framework is very flexible which supports night shifts and
overtime, therefore work schedules can be adapted as required. Maximum work-
ing hours are eight per day and 48 per week. Overtime is payable at 125 percent
of base pay (150 percent for holidays). Annual paid leave is 14 days, or 21 if a
worker has been with the same employer for five or more years.

11
 Modern and reliable telecom infrastructure

Modern and reliable telecom infrastructure

Jordan was the first country in the Arab world to have a fully liberalized tele-
communications market. Deregulation, government commitment, and private
sector investment has helped build a dynamic, sophisticated communication
infrastructure and helped GDP in the sector rise from 4 percent in 1998 to 6
percent in 2004, with an average growth rate of 12 per cent.

In 1995, Jordan was the first country in the Arab world to enact a modern tele-
com law and to establish an independent telecommunications regulatory body,
the Telecommunications Regulatory Commission (TRC), promoting fairness,
transparency, competition and investment. Jordan’s legal and regulatory frame-
work for telecommunications and mobile services is continuously updated to
meet the dynamic technological changes such as convergence, 3G and all types
of wireless communications.

As a first step towards telecommunications deregulation, the incumbent fixed-

line operator, Jordan Telecom Company (JTC), was commercialized in 1997,
and in 2000, a 40 percent share of the company was sold to France Telecom and
a consortium of investors. The fixed line monopoly ended by December 2004,
bringing new opportunities to investors and telecommunications companies.
Jordan’s mobile line market was opened up for competition in late 2000.

The TRC is transitioning to an integrated licensing regime that will incorporate

old and new licenses under a single licensing structure by 2006, establishing a
level playing field for existing and potential investors.

Telecom deregulation is fostering a multi-provider environment that means

more choices to consumers at more competitive prices. It is also creating op-
portunities for local companies to innovate and investment opportunities for
investors.

Fixed Line Network

Jordan Telecom’s network is amongst the most developed telecommunications
networks in the Middle East. International connectivity is mainly through fiber
optic cables to neighboring countries. Second to fiber optic cables are digital
radio links and earth stations (two Intelsat and one Arabsat), followed by a sub-
marine cable Fiber Links Around the Globe (FLAG) with a landing station in
Aqaba. In May 2005 the TRC awarded Batelco Jordan with the second fixed
line license and it will offer a full range of voice and data services.

12
Mobile Network
In the wireless market, four operators compete to provide infrastructure and
services that have driven prices down and increased wireless penetration rates
to more than 30 percent by mid 2005. Jordan’s cellular market is the fastest
growing communications segment in the country: the number of subscribers
grew from 389,000 in 2000 to approximately 2 million by mid 2005. In 2001
mobile penetration overtook fixed line penetration.

Fastlink (GSM 900), MobileCom (GSM 900), XPress (iDEN operator), and
Umniah (GSM 1800) serve Jordan’s mobile market. Fastlink is the largest and
most dominant player. Ninety nine percent of the population is covered by mo-
bile service.

Note: Levant countries are Jordan, Lebanon, Palestine and Syria.

Source: Arab Advisors Group, Total Country Connectivity report 2004.

Internet Service Providers

In 2005, eight ISPs offer Internet services in the Jordanian market. These
ISPs offer dial-up Internet, leased lines and ADSL services, ISDN, frame re-
lay, IPVPN services, Internet roaming services and subscription – free Internet
(premium numbers). ADSL service with a speed up to two Mbps covered 95
percent of populated areas in 2005. 7

IPVPN services is particularly beneficial to businesses as it allows local compa-

nies to connect with all their offices and locations in Jordan for voice and data
as if they were in one office, using internal extensions. Furthermore, IPVN al-
lows International companies to connect to over 220 locations around the world
in the same way which slashes the costs of international access.

7 Jordan Telecom Company, 2005

13
 National Broadband Learning and Research Network
The National Broadband Learning and Research Network will connect ap-
proximately 1.5 million students and teaching staff in Jordan through a mod-
ern communications infrastructure between all of Jordan’s public universities,
public schools and knowledge stations and others. This network will compli-
ment the Kingdom’s strategy to modernize its education system through the
introduction of ICT as an integral part of the learning process of the Jordanian
student.

In 2004, the first component of this network was finalized, connecting eight
public universities enabling high speed connectivity of 1 gigabit per second.
Work continues in the capital city of Amman and throughout the rest of the
Kingdom to complete the network by 2007. Available electricity grid is also be-
ing utilized as a backbone for connectivity for economical efficiency.

14
 Investment and business opportunities

Investment and business opportunities

Jordan is an attractive location for companies and investors in the areas of out-
sourcing, IT solutions development, in addition to privatization program in the
telecoms and postal sector. In addition, one of the most recent opportunities is
the privatization of the postal sector of Jordan and the divestment of the gov-
ernment of Jordan of its shares in Jordan Telecom.

Outsourcing
Jordan’s considerable experience in
outsourcing, ICT competencies, lower
costs and skilled workforce offers a
unique investment opportunity. The
country has a high number of English-
speaking university graduates in IT,
engineering, medical services, account-
ing, finance and other related fields and
wages are considerably lower of those in
the United States and Europe. Jordan
boasts a dependable power infrastruc-
ture, an advanced telecommunications
network and a fully liberalized telecom
market.
Jordan has a competitive advantage
in attracting outsourcing businesses in
several areas including:
Information Technology
Outsourcing (ITO). Jordanian
firms have established an inter-
national reputation for offering
specialized products and services
in e-learning, e-government, e-
banking, and multi-media (con-
tent management, animation,
and web design).
Business Process Outsourcing
(BPO). Jordanian labor has pro-
ficiency in many business areas
including finance, payroll process-
ing, accounting, telemarketing,
document processing, IT support,
and R&D.
Arabization and localization ser-
vices. Jordan’s talented work-
force, bilingual Arabic/English
capabilities, cultural closeness
to the region, strong regional
relationships, and time zone ad-
vantages favorably position it to
provide Arabization and local-
ization services.
Outsourcing Success
Cisco Systems chose Estarta So-
lutions, an international IT solu-
tions company based in Amman,
to establish Cisco’s first regional
Technical Support Organization
(TSO) in the Arab world. The
TSO is staffed with qualified Jor-
danian engineers, trained by Cisco
specialists.
The Estarta Cisco Engineering
Support Center had the highest
level of customer satisfaction when
compared to any other third-party
Cisco Engineering Support Cen-
ter globally, outranking centers
managed by large multi-national
companies in the Philippines and
Australia, according to officials
from Cisco Systems.

15
 Telecommunications
The liberalization of the telecom market (mobile and fixed line) makes
Jordan a unique environment for telecom investment and has already
attracted substantial foreign investment. In particular, the end of the
fixed line monopoly by end of December 2004 provides numerous op-
portunities for investors.

Jordanian government divestment of its 41.5 percent ownership in Jor-

dan Telecom. The government has already sold 40 percent of its share in
Jordan Telecom Company (JTC) to France Telecom, the Arab bank and
other private shareholders. The government in 2005 is in the process of
the sale of 104 million shares or 41.5 percent of its remaining ownership
in Jordan Telecom.
Local, national and international fixed services. The legal and regulatory
environment in Jordan encourages investment in both infrastructure and
services. Investors are offered opportunities in either telecommunication
infrastructure (e.g. international gateways) or providing services includ-
ing Internet, prepaid calling cards, and voice over IP.
Public wireless Internet service provision. The liberalization of the tele-
com market allows companies to enter the market to provide wire-
less Internet access, broadband and other related services. Jordan’s
market penetration and usage levels are low, providing an opportunity
for new investors to offer Internet services through wire and wireless
networks.
International Call Centers Industry. With specially negotiated telecom
prices for call centers as a consequence of market liberalization, a reli-
able network and an educated workforce, Jordan is positioned to attract
investments into the call center industry. In 2005, the government of
Jordan established a dedicated Call Center Initiative to facilitate call
centers industry and align the investment environment with competi-
tors.
Convergence of services. Although the existing legal framework and
regulations supports the convergence of audio, visual and telecoms, the
government of Jordan is reviewing the legal environment in order to
allow the smooth implementation of converged services, presenting a
unique opportunity for investors.
Value-added services. Four mobile operators operate in Jordan and only
minimal content is available for consumers, limiting data revenues for
the operators and offering content developers a significant business op-
portunity.

16
Investment Opportunities in Jordan’s Postal Sector
Postal service is the heart of the traditional communications. Faced with the
emergence of new and effective communication alternatives, it continues to
demonstrate resilience and flexibility. Jordan is strongly positioned to satisfy
current and future user needs, as communication has evolved from personal
correspondence into transactions i.e. statements and payments, and will con-
tinue to evolve into information in the form of Direct Mail, culminating with
fulfillment and, most critically, customer relationship management.

The estimated expenditure on postal services is US$70 million annually, with

an expected 15% Compound Annualized Growth Rate (CAGR) over the next
three years. The growth is expected reach 20% CARG depending on direct
market mail development, which belongs to the advertising industry which has
been growing at remarkable rates, as Jordan is the 4th fastest growing mar-
ket in the world in 2002 in advertising expenditure 8 , reflecting the upward
mobility being achieved by Jordanian consumers. Growth of the parcels and
express market is predicted to be at about 19% CARG over the next reflecting
confidence in the growth of international trade and the positioning that Jordan
is capable of capturing.

Jordan is creating a substantial investment opportunity through the privatiza-

tion of Jordan Post Company (JPC) and by attracting a strategic investor.
JPC has the lead share of the mail market with about 40.8%, and enjoys mo-
nopoly rights over 500 Gms mail. With the largest network in Jordan, JPC is
suited to provide bundled services that include delivery services, tax collection,
logistics, and e-commerce. More opportunities are available as the country’s
e-government services are introduced. This strategic move will drive the devel-
opment of enhanced services, and will increase the scale and scope of the postal
sector not only in Jordan, but in the region and will position the country to
serve neighboring countries.

The postal sector in Jordan is positioned to grow and evolve with the market-
place, and to continue to contribute to the economic development of the King-
dom. The market will be stimulated by the development of the Direct Mail
market, to provide order fulfillment services.

8 World Advertising Trends, 2004. The report covers 75 countries.

17
 IT Solutions Development
In 1999, King Abdullah challenged Jordan’s private sector to prioritize the
development of Jordan’s ICT sector. ICT industry leaders, working with the
public sector, devised a strategy and action plan identified as the REACH Ini-
tiative. REACH is recognized as “the” national strategy for Jordan to develop
a vibrant, export-oriented ICT services sector, paving the way for Jordan
to become a regional leader and internationally recognized exporter of ICT
products and services.

Since the initiative’s development and implementation, the ICT industry has
attracted both foreign and local investment, generated high value jobs and
produced substantial levels of export. IT domestic revenues reached $361 mil-
lion in 2004 up from $130 million in 2001, and export revenues reached $79
million in 2004 up from $40 million in 2001. In 2004 domestic revenues grew
by 60% and export revenues by 14% compared to 2003.

IT Domestic and Export Revenues (2001 – 2004)

Regionally and internationally recognized, the Jordanian software industry

provides IT solutions in web-based applications; Arabization; banking and fi-
nancial solutions; system integration, healthcare and insurance solutions; and
software conversion from third to fourth generation. Clients include banks
and financial service institutions, hospitals, insurance companies, universities,
telecommunications, hotels, and government.

18
Other solutions include e-payment, electronic cheque clearance, auto dealer
management systems, hospital management systems, university management
systems, Arabic search engines, Enterprise Resource Planning (ERP), call
monitoring systems, user interface components, wireless applications, data
warehousing, work flow, and systems integration.

Jordan’s main export markets are Saudi Arabia and the Gulf countries. It also
completes outsourced work for the United States and other markets. Jordan
also has a number of U.S. company representatives including Microsoft, IBM,
Oracle, Dell, Compaq, HP, U.S. Robotics, and Apple.

IT Export Revenue by Country (%) - 2004

The private sector is working hand-in-hand with the Jordanian government

to develop the government’s ambitious, large-scale projects in e-government
and e-learning. Jordan’s unique private-public partnership model can be ap-
plied to regional and global markets, providing numerous opportunities for in-
vestors. This model is increasing the credibility of the Jordanian ICT industry
among investors and business partners locally, regionally and internationally

19
 About Jordan..

About Jordan..

Location

In the heart of the Middle East, bordered by Israel and the Pales-
tinian National Authority to the west, Syria to the north, Iraq to
the east, and Saudi Arabia to the east and south. Jordan has access
to the Red Sea via the port city of Aqaba, located at the northern
end of the Gulf of Aqaba.

Population

5.323 million.
Around 70% of the Jordanian population is below the age of 30 (i.e.
about 3.8 million).
Population growth rate reached 2.5%

20
Area

Total: 89,213 sq. km (34, 445 sq. miles); Land: 88,884 sq. km (34,
318 sq. miles); Water: 329 sq. km (127 sq. miles)

Head of State

His Majesty King Abdullah II

Capital

Amman (approximately 2.1 million, or 38 percent of total popula-

tion)

Currency

Jordanian Dinar (JD)

Exchange Rate
1 JD = 1.42 US$
Jordanian Dinar is pegged to the US dollar.

Languages

Arabic is the official language, but English is widely spoken, par-

ticularly in business and commerce.

Time

GMT + 2 (in winter, +3 in summer), or 7 hours ahead of U.S. Eastern

Standard Time. Summer time is from April through September.

Climate

Summers in Jordan are dry and hot, with rainfall in November to

April. The country generally received snow annually. The Jordan
rift valley has a sub-tropical climate.

21
 Government
Jordan has a constitutional monarchy with legislative power vest-
ed in HM the King and the National Assembly. The country has
parliamentary representation. The National Assembly is divided
into two houses, the Upper House of Parliament (Senate) with 55
seats and the Lower House of Parliament with 110 elected depu-
ties. The Prime Minister is appointed by the King, who may draw
some of his Cabinet members from Parliament.

GDP

GDP at Market Prices US$11.51bn

GDP at Current Prices US$2,163

GDP Growth
Real GDP growth rate in 2004 was more than 7.5 percent, up
considerably from 4 percent in 2003.

Main Exports

Phosphates, potash, fertilizers, chemicals and pharmaceuticals

Main Imports

Crude oil, wheat, sugar, meat, machinery, transport equipment

and spare parts

Source: Ministry of Planning, 2004.

22
Contacts

Ministry of Information and Communications Technology

www.moict.gov.jo
ICT Promotion Department
Tel: (962-6) 5805660
Fax: (962-6) 5861059

Jordan Education Initiative

(located at MOICT)
www.jei.org.jo
Tel: (962-6) 5805630
Fax: (962-6) 5861059

E-Government
(located at MOICT)
www.moict.gov.jo
Tel: (962-6) 5805757
Fax: (962-6) 5861059

Information Technology Association – Jordan (int@j )

www.intaj.net
Tel: (962-6) 5152322
Fax: (962-6) 5152344

REACH Initiative
www.reach.jo

Telecommunications Regulatory Commission

www.trc.gov.jo
Tel: (962-6) 5862020
Fax: (962-6) 5863641

National Information Center

(Contains economic and social statistics,
and links to government agencies)
www.nic.gov.jo
Tel: (962-6) 5337184
Fax: (962-6) 5337168

23
 Jordan Computer Society
www.jcs.org.jo
Tel: (962-6) 5154094
Fax: (962-6) 5154093

Jordan Telecom Company

www.jordantelecom.jo
Tel: (962-6) 4606111
Fax: (962-6) 4659666

Jordan Post Company

www.jordanpost.com.jo
Tel: (962-6) 4293000
Fax: (962-6) 4206348

Jordan Investment Board

www.jordaninvestment.com
Tel: (962-6) 5608400
Fax: (962-6) 5608416

Executive Privatization Commission

www.epc.gov.jo
Tel: (962-6) 5670556
Fax: (962-6) 4626254

Aqaba Special Economic Zone Authority (ASEZA)

www.aqabazone.com
Tel: (962-3) 203 5757/8
Fax: (962-3) 203 0912

24
25