King Abdullah II: Jordan is safe for investment despite Middle East tensions
Despite the political turmoil going on in the Middle East, King Abdullah II of
Jordan is confident that
Jordan is a safe destination for investment.
"We have a history over many decades of Jordan
always being stable throughout the region, whatever the crises are," he said in an interview with CNBC, adding that wherever there have been
problems in the area, Jordan doesn't use that as an excuse not to move
forward.
"Whether it's economic reform or political reform, I keep telling our people that it's business as usual and we shouldn't shy away."
Supported by lower energy prices and
looser monetary policy, Jordan's economy grew 3.1 percent in 2014, up
from 2.8 percent in the previous year. The government expects 4 percent over the next two or
three years with the reserves in the central banks at the highest level they have ever been.
This summer, King Abdullah expects Iraq, which is an important export market for Jordan, to reopen the route between Baghdad and Amman, a
move that will restore a key trade link between the two neighbors.
According to the World Bank, Iraq represents 20 percent of total Jordanian exports.
Jordan's overland trade with its neighbor Iraq shrank over the past year due to the security challenges in Iraq's
Anbar province, which links the two countries, as militants of the Islamic State of Iraq and the
Levant (ISIS) have seized large parts of the territory and extorted
large transit fees for vehicles passing through, according to the Financial Times.
While the economy is moderately growing, it is being challenged
amid a high rate of unemployment - at 12.9 percent - and a flow of
Syrian refugees which has resulted in
higher state spending putting a strain on resources. As CNBC reports, there are over 608,000 Syrian refugees registered in Jordan with an estimated 85 percent residing outside of refugee camps.
"Because of the lack of gas that we get from Egypt, we have had to move quickly. This has always been a secret of Jordan, being able to adapt to all the challenges that we have had. That's why you are seeing a major investment into alternative energy," the king said.
As Jordan imports about 95 percent of its energy needs, disruptions in the gas flow from Egypt have been a major problem for the kingdom.
Despite this, Jordan may be more attractive for investment than Dubai, which is considered more stable, due to the valuable human capital Jordan possesses.
Jordan is home to thriving ICT and medical tourism sectors, he said, setting it apart from its neighbors.
"Many countries in the region are supported by the Jordanian talent. That's the capital that we have, and I think that's what sets us apart from other countries," the king said.
