Overview
The Information Communications and Technology (ICT) sector in Jordan is one of the fastest growing sectors in Jordan’s economy, with total annual revenue exceeding USD 3.3 billion. Digital transformation is a top priority, with a move towards e-government services. Additionally, technological innovation is also an area of focus as the country is taking measures to position itself as a regional digital hub. Jordan is considered to have a high rate of entrepreneurship initiatives compared to other countries in the region and enjoys the availability of affordable technical talent, geopolitical stability, good infrastructure, a liberalized telecom sector, proximity to key regional markets, and government support. There are more than 1,000 active companies in the sector that directly employ about 25,000 employees. With Jordan’s population representing 3 percent of the MENA region, it constitutes 27 percent of the region’s tech entrepreneurs. The Kingdom now ranks 49th on the Global Entrepreneurship Index (GEI) and has more than 25 business incubators, accelerators, and creative centers. It is estimated that 98 percent of ICT companies in Jordan are small and medium sized enterprises (SMEs).
Jordan is taking positive steps in the field of cybersecurity, ranking 71st out of 193 participating countries in the Global Cybersecurity Index (GCI). 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. Jordan’s telecom operators seek to introduce 5G services by 2024.
Leading Sub-Sectors
- Verticals: HealthTech, FinTech and EdTech
- IT infrastructure
- Cybersecurity
- Software
- Online & mobile solutions and services
- Gaming
- Business Process Outsourcing
Opportunities
Some of the top areas of opportunity in the Jordanian ICT sector for U.S. companies include:
- Access to Regional and International Markets: Jordanian ICT companies, including SMEs, face almost no cultural or language barriers entering neighboring Arab markets. Jordan has a strong strategic geographic location in the center of the Middle East and has good relations with countries in the region. This indicates good opportunities to leverage Jordan as a platform to access regional markets.
- IT Infrastructure Projects: Jordan’s ICT infrastructure provides a robust backbone for the sector. High-speed internet access is widely available, and the country’s internet penetration rate stood at 88.2 percent as of 2021. The government has been proactive in strengthening its IT infrastructure, launching initiatives like Digital Jordan 2025, which is focused on upgrading the country’s telecommunications networks and expanding broadband coverage.
- 5G Rollout: As part of the ongoing commercial launch of 5G in Jordan which is expected to by 2024, telecommunication companies are currently investing in the infrastructure.
- Arabization of the Online Content: Many Jordanian companies conduct “Arabization” of software and solutions. Arabization not only involves translating internationally successful products into the Arabic language, but also adapting content to the Arab context for consumers all over the world. About 75 percent of Arabic Internet content is generated by Jordan’s ICT sector and 40 percent of the top visited Arabic websites in the Middle East are Jordanian. Hence, the market not only offers an opportunity for U.S. software providers to develop and leverage existing sales channels to regional markets, but a competitive proposition for investment in content applications and e-learning.
- Digital payments and financial services: Jordan was the first country in the region to launch an interoperable mobile payments system, JoMoPay, providing an early platform for fintech and increased financial inclusion. Service providers have started moving away from traditional payment services to new digital services, such as e-wallets. E-wallets increased from less than 350 thousand in 2019 to over 1 million in 2020.
- E-Government: e-government services will play an important role in Jordan’s mid-term development strategy. Jordan’s e-government initiatives are outlined in several policy documents, including the Public Sector Modernization Roadmap 2022-2025, which highlights e-government service delivery as a critical pillar for the Kingdom’s ongoing digital transformation. Planned improvements to the Kingdom’s business environment entail launching new online business licensing and other services that could present opportunities for U.S. firms.
- Cybersecurity in Jordan: Jordan is a new market to cybersecurity; the current trend is showing great interest in this field. This offers a field for U.S. companies in Jordan to partner with Jordanians to expand their market share.
Trade Shows: Jordan hosts a number of high-profile tech events, conferences, and workshops, which bring together entrepreneurs, investors, and industry professionals from across the globe. These include the MENA ICT Forum, DoT Cyber Summit, Amman Startup Week, and TechWadi, FinConJo, the World Cybersecurity Summit, among many others.
Resources
- Jordan Ministry of Digital Economy and Entrepreneurship
- Jordan Telecommunication Regulatory Commission
- Jordan National Cybersecurity Center
- Jordan Information and Communication Technology Association
- Intaj – The Information and Communications Technology Association of Jordan
- Invest Jordan
- Organization for Economic Co-operation and Development (OECD)
For additional information, please contact U.S Commercial Service - Jordan at office.amman@trade.gov