JORDAN

RB: Growing unemployment and any proposed austerity measures affecting subsidies, wages, and benefits will continue to drive antigovernment protests over the coming 12 months. These protests are, however, unlikely to destabilise the monarchy. Having survived the initial wave of Arab Spring unrest by relying on its traditional political formula, the government is confident that it can maintain stability without making major compromises on political or institutional reforms.

Jordan’s pro-Western and pro-Gulf state stance will remain the cornerstone of its foreign policy for security and, increasingly, economic reasons. Jordan’s central strategic position in the region should ensure continued logistical, financial, and military support from the US, despite divergences with Israeli policy in the region. The business environment should benefit from structural measures currently being implemented, despite the frequent protests. Attracting investment, decreasing reliance on fuel and food imports, and cutting unemployment remain the government’s main policy aims.

JM: Jordan’s economy heavily relies on its export sector, which is mainly composed of industrial commodities that require low-cost energy inputs. Despite being situated in the Middle Eastern oil patch, its primary exports in 2022 were fertilisers valued at $2.3 billion, followed by clothing, cement, inorganic chemicals, and pharmaceuticals. On the other hand, Jordan primarily imports oil and gas, as well as gold, cars, and trucks. In 2022, the country imported $908.8 million worth of gold from Switzerland, $875.7 million from UAE, and $446.1 million from Indonesia. While Germany and the US used to be the main suppliers of Jordan’s automotive needs, China emerged as the leading supplier in 2022.

Jordan’s export market grew to $12.4 billion from $9.4 billion in 2022, with the US, India, Saudi Arabia, Jordan, and Iraq being the primary markets. Meanwhile, imports rose from $21.6 billion to $27.3 billion, with China, Saudi Arabia, UAE, the US, and India as the main sources.