Overview
Jordan’s digital economy has grown rapidly in recent years, accelerated by COVID-19, and driven by a young, tech-savvy population, high internet penetration, and government policies. The ICT/digital economy accounts for 3 percent of GDP and is projected to grow from 0.9 billion JD ($1.27 billion) to 3.9 billion JD ($5.46 billion) by 2033. The Government of Jordan has prioritized the country’s digital transformation in policy directives and strategic initiatives. Efforts to accelerate the digital economy are outlined in the Kingdom’s Economic Modernization Vision (2023-2025) and National Digital Transformation Strategy & Implementation Plan (2021-2025), which together include focus on digital infrastructure enhancements, digital skills development, the regulatory landscape, and e-government services. In 2019, Jordan further underscored the importance of digital transformation by rebranding the former Ministry of Information and Communication Technology (MoICT) as the Ministry of Digital Economy & Entrepreneurship (MoDEE), emphasizing an expanded role beyond traditional ICT functions towards enabling the country’s digital transformation across a full range of sectors, from finance, security, and healthcare to entrepreneurship and agriculture. The government plans to fully digitize Jordan’s public health sector hospitals by end of 2024, and all governmental services by 2027.
Additionally, advancing Jordan’s digital economy is a focal point of bilateral and multilateral economic assistance. In 2020, the World Bank funded a multi-year $200 million National Youth, Technology, and Jobs (YTJ) Project to improve digitally enabled income opportunities and expand government digital services, focusing on digital upskilling, emerging technology development, and job creation in the digital and creative economy. USAID supports numerous activities aimed at adopting digital solutions and technology to improve and streamline government services and strengthen business operation. Recently, it launched a $5.5 million activity to support women and youth through increased technical skills, career coaching, and facilitated introductions to global and regional employers who seek to hire individuals in the fields of data analytics, cybersecurity, and software development, remotely.
Market Challenges
While Jordan has relevant laws with provisions covering areas such as AI, cybersecurity, data privacy, and cross border data flows, some industry stakeholders note regulatory ambiguity can present challenges for certain segments of Jordan’s digital economy.
Jordan’s Personal Data Protection Law (PDPL) became effective in March 2024 (with a 12-month grace period). The law has some similarities to legislation in other countries in the region as well as Europe’s General Data Protection Regulation (GDPR) and contains provisions for data transfers to countries outside of Jordan with adequate protections, pending approvals. While the law has been well received by many as a necessary measure to ensure personal data protections, some industry stakeholders have highlighted the law’s provisions as both ambiguous and potentially burdensome.
Digital Trade Opportunities:
Jordan stands out in the Levant region for its internal stability, advanced infrastructure, and skilled human capital, all of which are conducive to growth and business development in technology-driven sectors. The National Digital Transformation Strategy & Implementation Plan highlights a range of enabling technologies such as 5G, artificial intelligence (AI), cybersecurity, blockchain, open-source solutions, and Internet of Things (IoT). Analysts expect the use of these technologies will continue to grow as government policies and initiatives foster digital transformation across sectors, creating space for U.S. technology providers.
5G
Jordan recently introduced trusted 5G technology to its local market, launching the service in 2023. This development creates opportunities for U.S. companies to enter the Jordanian market with advanced technologies. The 5G rollout can drive growth across sectors, improve performance, reduce costs, and boost productivity.
Cybersecurity
In 2019, the Cybersecurity Law was enacted, providing a blueprint for the country’s cyber-defense capabilities, including the establishment of a National Cybersecurity Council and a National Center for Cybersecurity. A local industry group approximates 36 percent of Jordanian companies prioritize enhancing cybersecurity, reflecting interest in safeguarding technologies that offer protection against electronic attacks. Further, the U.S. private sector is well positioned to leverage momentum resulting from the 2024 U.S.-Jordan Cyber and Digital Dialogue.
Artificial Intelligence
The adoption of AI systems is also on the rise. Some analysts estimate over 60 percent of Jordanian IT companies have started to incorporate AI as part of their products and services; and 42 percent of companies have interest in integrating data analysis tools and technologies into their products.
Internet of Things
. Jordan has also witnessed an increase in companies showing interest in IoT technologies. Almost 20 percent of IT companies are developing products and services based on IoT, responding to growing market demand , particularly with the expansion of 5G networks.
Digital economy-related events
Digital Transformation Jordan
https://digitaltransformationjordan.com
Dot Cyber Summit
https://www.dotcybersummit.jo/
Artificial Intelligence in Defense Technologies & Cybersecurity Exposition and Conference (AIDSTEC)
https://www.aidtsecjordan.com/#/
MENA ICT Forum
https://www.menaictforum2024.com/