Jordan ICT Sector Profile - 2012

1. JORDAN ICT SECTOR PROFILE
Analysis, Achievements, AspirationsInformation &
Communications Technology
Association - Jordan
This publication has been produced with the assistance of the
European Union & Jordan Enterprise. The contents of this publication
are the sole responsibility of int@j and can in no way be taken to reflect the
views of the European Union & Jordan Enterprise Development Corporation.

2. Jordan ICT Sector Profile, Published by The Information & Communications Technology Association - Jordan (int@j)
Project funded by the European Union in cooperation with Jordan Enterprise Development Corporation.
The European Union is made up of 27 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of
enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms.
The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders.
The contents of this publication are the sole responsibility of the Jordan Information & Communications Technology Association (int@j) and
can in no way be taken to reflect the views of the European Union & Jordan Enterprise Development Corporation.

3. An Ideal Base & Regional Gateway
Capitalizing on its robust and liberal economy, its stability and security, its immense human
capital, and its quality of life, coupled with the ongoing economic development process,
Jordan is well positioned as a regional investment center generally and in specific for ICT.
Decades of sound macroeconomic management and sustained structural reform including
legislative, regulatory, and judicial reforms have positioned Jordan as a magnet for capital
and an attractive platform for business profitability. Prudent fiscal and monetary policies
have enabled healthy and sustained economic growth, reduced external debt, while
inflation has been kept at low levels.
Therefore, Jordan has positioned itself as an ideal base for export-led growth to regional
and international markets. Jordan’s unique trade and framework agreements offer
investors access to a core market of over 320 million consumers and a global market of
over one billion consumers.
«For foreign companies that enter emerging markets, there are valuable connections
to in-country markets and regional trading networks; to a competitive workforce;
to important knowledge about regional cultures and customers. Businesses
find significant trade and investment opportunities especially in economies like
Jordan’s, which are on a path of modernization and growth and which are regional
gateways.»
His Majesty King Abdullah II
Strategic Location, Market Access
Jordan´s strategic location at the convergence of three continents, Asia, Africa and Europe
makes it the ideal position for a regional hub. Jordan´s time zone is only one hour ahead
than the EU time zone and one hour earlier than the Indian time zone.
Jordan is also connected to neighboring countries and global markets through modern
and competitive transportation and communication networks. The Middle East and
North Africa (MENA) countries have a population of over 320 million consumers, which
represents 5% of the world´s population and is growing at 3% per annum.
MENA accounts for almost half of Jordanian exports which give Jordan an ideal position
to serve as a focal point for trade and investment within the MENA region, particularly for
the GCC markets and Africa. Jordan’s location allows companies to easily diversify and
expand into these increasingly affluent markets which altogether have an area of 13.6
million square kilometers (almost equal to the European Union and one half larger than
the USA or China).
Jordan Country Profile
3

4. Stable Environment, Trade Linkages and Agreements
Sound macroeconomic management, prudent fiscal and monetary policies and sustained
structural reforms including legislative, regulatory, and judicial reforms have positioned
Jordan as an ideal base for export-led growth to regional and international markets.
Jordan has an excellent and well-trained police force and military that are responsive
and able to handle any contingency. The Kingdom consistently ranks among the safest
and most corruption-free locations for business in the world and among Arab nations, in
particular.
Jordan is committed to freedom of expression and choice. Measured by the Annual
Freedom House survey, Jordan ranks fourth in the region.
An array of international trade agreements offer a platform for direct foreign investment
and export.
creating a free trade area by 2010.
secretariat general in November 2006.
of origin amongst its member countries.
negotiated by the US with an Arab country, and the fourth with any country in the world
and a complete free trade agreement between the two countries was achieved in 2010.
country, in 2009.
cooperation and boost trade and investments.
of customs duties over a period of 10 years.
Jordan Country Profile

5. Cultural and Linguistic Affinity
Although Jordan is ideally positioned to serve all the Arab nations including the Gulf
countries, the Levant region, the North African countries, and even the Arabic-speaking
population of the European Union and the USA, there is no doubt that Jordan´s closest
geographical and cultural affinities will be found in the nearby states of the Gulf Cooperation
Council (GCC).
The members of the GCC are the Kingdom of Saudi Arabia; United Arab Emirates, Kuwait,
time zone and considerable cultural “kinship” with its affluent neighbors. Macroeconomic
indicators are favorable for Jordanian workers. Educational enrollment per capita surpasses
a number of regional competitors, and with services making up more than 86 percent of
Jordan´s economic output, Jordanians are clearly oriented towards a services economy.
Jordanians are recognized to be more technology savvy, with higher fixed and mobile line
penetration as well as a higher Internet usage penetration per capita than most regional
countries.
Location, Travel and Time Zone
The Hashemite Kingdom of Jordan is located in Western Asia spanning the southern
part of the Syrian Desert down to the Gulf of Aqaba. Jordan shares borders with Syria to
the north, Iraq to the northeast, Saudi Arabia to the east and south, and the Palestinian
territory of the West Bank and Israel to the west. The capital city is Amman. Jordan Time
Zone is GMT +2 (+3 in summer time).
General Infrastructure
Jordan is endowed with excellent infrastructure to serve and move people, goods and
ideas.
Three Airports: Queen Alia International Airport (Amman) which was recently expanded
to serve 9 million passengers, King Hussein International Airport (Aqaba) and Amman
Civil Airport at Marka for mostly domestic and some nearby international routes.
Seaport:
for general cargo, containerized cargo and specialized cargo.
Railroad: There is a new railway master plan to improve and increase the existing 620
km long rail network.
Roads: Jordan has a well developed road network allowing quick access to all its
territory.
Electric Energy:
towards increasing the use of renewable energy sources.
Jordan Country Profile
5

6. Sector Background & Landscape
The Information and Communications Technology (ICT) field represents an opportunity
for Jordan to increase its competitive advantage over other countries in the region;
consequently Jordan has taken very serious steps in order to launch major initiatives
aiming at developing the ICT sector.
In response to a challenge put forward by his Majesty King Abdullah II in 1999, the efforts
were directed at devising a comprehensive framework for Jordan’s ICT sector, which
nurturing a vibrant, export-oriented, and internationally competitive ICT sector, followed
by the National ICT Sector Strategy (2007-2011), and the soon to be launched National
ICT Sectory Strategy (2012-2016). These strategies involved developing a regulatory
framework, providing an enabling infrastructural environment, and offering sector
advancement programs, human resource development, capital and finance.
Governments and non-governmental organizations worldwide have recognized the power
of ICT to improve business, reduce poverty, improve public services and create an industry
in which developing countries can gain a competitive advantage. The ICT sector utilizes
low capital costs, as principal inputs to ICT production are human resources. Therefore,
Jordan is well positioned to build upon its strong foundation of people to cultivate growth
in the ICT sector.
SWOT Analysis of Jordan ICT Sector
Strengths Weaknesses
Leadership support.
to trade and foreign participation, taxation
has become relatively liberal.
Jordan’s ICT sector enjoys a fully
liberalized market.
High number of ICT graduates annually.
High rate of entrepreneurship.
Positive image.
Location.
Product development.
Building specialization.
Legal and regulatory hurdles may affect
market efficiency.
mismatch between outputs of
academia and the industry requirments.
standards.
Opportunities Threats
Major export markets are GCC and USA.
Million for 2010.
Established international trade
agreements to develop business with
other countries.
Products Development.
Building specialization.
Bureaucracy in Government
procurement.
Brain drain, due to difficulty in attracting
and retaining ICT experts in Jordan.
Reference: int@j
The National ICT Sector Strategy
In 2007, the National ICT Strategy (2007-2011) was created as a continuation of the
at taking advantage of new markets, enhancing business maturity, investing in research
and development, capitalizing on regional demand, cultivating foreign investment, and
improving the ICT labor market.
The National ICT Strategy serves two basic goals. First, it identifies the ICT sub-sectors
best-suited for growth given the environment in Jordan. Thus, the strategy poses a
Jordan ICT Sector Snapshot
6

7. challenge to which the private sector in the country must respond. Second, it defines
actions the government must take to do its part to facilitate ICT sector growth. Thus,
the strategy also poses a mandate to which the government must respond to execute its
commitment to the sector.
The strategy defined the targets to be reached by 2011, the key challenges and hurdles,
and the means to achieve the strategic objectives by defining the pillars of strategic
outcomes and clearly stating the responsibilities of all stakeholders.
As a result of implementing this strategy, annual ICT sector revenue increased by an
average of 25% year-on-year over the past few years and generated income representing
approximately14% of the country’s GDP, adding over 15,000 jobs directly tothe economy
and more than 80,000 jobs overall whether direct, indirect or induced.
Jordan’s determination to establish itself as the region’s ICT hub has pushed it to create a
flourishing, supportive business environment, making it an ideal destination for business
and investors. Jordan’s ICT sector enjoys a fully liberalized market whose recent boom has
become an increasingly important economic stability factor for the country.
The private sector is working hand-in-hand with the Jordanian government to develop and
improve the government’s ambitious, large-scale projects in e-government, e-learning and
more recently e-health. Jordan’s unique private-public partnership model can be applied
to local and international markets, providing numerous opportunities for investors. This
model is increasing the credibility of the Jordanian ICT industry among investors and
business partners locally, regionally and internationally.
Summary 2001 - 2011
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
IT Export Revenue $40,000,000 $40,038,000 $69,728,000 $79,410,743 $162,619,518 $191,520,379 $196,907,691 $226,863,277 $209,526,864 $202,275,754
Growth % 233.33% 0.10% 74.16% 13.89% 105% 17.80% 2.81% 15.21% -7.64% -3.46%
% of Total Revenues 23.53% 17.52% 24% 18% 28% 25.00% 22.30% 23.57% 23.41% 27.64%
IT Domestic Revenue $130,000,000 $188,448,000 $226,183,000 $361,103,905 $418,254,125 $578,554,212 $686,063,063 $735,571,817 $685,461,382 $529,571,537
Growth % 170.83% 44.96% 20.02% 59.65% 15.80% 38.33% 18.58% 7.22% -6.81% -22.74%
% of Total Revenues 76.47% 82.48% 76% 82% 72% 75.00% 77.70% 76.43% 76.59% 72.36%
IT Total Revenue $170,000,000 $228,486,000 $295,910,000 $440,514,648 $580,873,643 $770,074,591 $882,970,754 $962,435,094 $894,988,247 $731,847,291
Growth % 183.33% 34.40% 29.51% 48.87% 31.86% 32.57% 14.66% 9.00% -7.01% -18.23%
IT Foreign Direct Invest.
(FDI) Yearly
NA $8,005,500 $11,594,500 $2,900,000 $10,524,761 $13,569,656 $3,070,791 $1,690,141 $16,231,326 $14,944,209
IT FDI Cumuli. $60,000,000 $68,005,500 $79,600,000 $82,500,000 $93,024,761 $106,594,417 $109,665,208 $111,355,349 $127,586,675 $142,530,884
IT & ITES Emp. 6,000 8,000 8,117 8,523 10,032 10,712 11,034 10,294 11,334 9,858
Reference: int@j
Jordan ICT Sector Snapshot
Strategic Drivers
ICT Sector Size Targets
by 2011
• 50% internet usage penetration
• $3B revenue for ICT sector
• 35,000 jobs in ICT sector
Key Challenges for ICT
Diffusion
• Low internet penetration levels
• Minimal level of R&D by global
standards
• Gap between academia and
industry
• Difficulty attracting and
retaining ICT experts in Jordan
Hurdles to ICT Growth
• Government reluctance to
support local industry
• Lack of continuity at ministerial
levels
• Taxation variations
• Insufficient adoption of
international business “best
practices” among ICT
companies
• Insufficient awareness as to the
opportunities which can be
afforded by ICT and poor
understanding of ICT as a tool
Strategic Solutions
Strategic Objectives
Strategic Outcomes• Connectivity
• Regulation and Investment Climate
• Research and Development
• Labor Issues and Education
Actions by Stakeholder
7
2011
$230,528,961
13.97%
31.23%
$507,526,322
-4.16%
68.77%
$738,055,284
0.85%
$1,384,915,065
$143,915,065
11,235

8. Main Export Markets
The country also enjoys on-the-ground presence of international companies such as
Cisco, Microsoft, Oracle, HP, Yahoo!, Intel, Motorolla, LG, and Ericcson.
The following table shows the Export Revenues by country:
IT and ITES Export Revenue by Country
Country Export Revenue %
Saudi Arabia $93,522,745 39.45%
United States of America $22,470,271 9.48%
United Arab Emirates $20,150,454 8.50%
Iraq $14,938,831 6.30%
Qatar $9,698,267 4.09%
Oman $9,346,807 3.94%
Netherlands $7,746,194 3.27%
Palestine $6,210,012 2.62%
United Kingdom $5,851,490 2.47%
Sudan $5,750,702 2.43%
Bahrain $5,463,173 2.30%
Greece $4,441,391 1.87%
Kuwait $4,341,867 1.83%
South Africa $3,512,546 1.48%
Nigeria $2,904,067 1.22%
Algeria $2,502,977 1.06%
Nepal $2,246,632 0.95%
Egypt $2,109,715 0.89%
Lebanon $1,420,345 0.60%
Angola $1,251,488 0.53%
Switzerland $1,100,938 0.46%
Armenia $1,034,785 0.44%
Syria $913,195 0.39%
Yemen $850,286 0.36%
Germany $759,314 0.32%
ainaznaT $698,978 0.29%
Pakistan $636,220 0.27%
Reference: int@j
Jordan ICT Sector Snapshot
8
Saudi Arabia, United States of America, United Arab Emirates, Iraq, Qatar, Oman,
Netherlands, Palestine, United Kingdom, and Sudan are the top ten export market for
Jordan ICT, driven by Jordan’s growth as a global outsourcing center.
Libya $626,582 0.26%
Sri Lanka $616,954 0.26%
$544,628 0.23%
$516,698 0.22%
$2,893,442 1.22%
Botswana
Italy
Other Countries
$237,071,991 100%Total

9. Policy & Regulatory Environment
(1) International Agreements
Jordan has a Free Trade Agreement with the United States, ratified in 2001. Duty free
access to EU markets is enabled through the ratified Jordan-EU Partnership Agreement.
Access is available to more than 10 Arab countries through the Arab Free Trade Agreement.
Jordan also enjoys bilateral agreements and favorable protocols with over 20 countries,
and is a member of the Multilateral Investment Guarantee Agency (MIGA).
(2) Sector Laws
A new Telecom Law is being developed by the Ministry of ICT and industry bodies, which
lays the groundwork for the convergence concept of telecommunications, data and media.
It also forms the basis for regulating the ICT sector in terms of data security and privacy
issues.
(3) Support for ICT Education & Investments
Jordan possesses a very attractive business environment that combines smart and cost
effective talent, world class infrastructure and supportive government policies. Jordan
•
a knowledge hub has positioned it as a leading ICT and outsourcing destination in the
region.
•
beyond the traditional markets, Jordan offers a unique opportunity to tap the growing
MENA market.
•
allow companies the flexibility to invest freely and to employ the best talent.
•
segment (15-25 years) providing a good source of manpower; supported by a modern
education system that ensures graduates have the required language and technical
skills to support ICT-enabled business operations. This has given rise to new niche
specializations in online and mobile content and applications, outsourcing and games
development.
•
rate also means that appreciable hiring can take place with very little, if any, subsequent
wage pressure or attrition risk.
(4) Modern and Progressive Society
Jordan is a regional tourist hub, with stable economic and political support for a progressive
and multi-cultural society, making it an attractive destination for foreign nationals to work
and reside.
Jordan ICT Sector Snapshot
9

10. Ministry of Information &
Communication Technology (MoICT)
www.MoICT.gov.jo
Established in April 2002, the Ministry of Information
and Communications Technology (MoICT) is the governmental entity responsible for
articulating policy in the areas of information technology, telecommunications, and post in
the Hashemite Kingdom of Jordan. In addition to developing, incubating, and supporting
ICT initiatives at a national level, the Ministry’s mandate includes stimulating local and
foreign technology investments as well as promoting awareness and adoption of ICT by all
segments of the population, in an all inclusive approach.
The Ministry, through a dynamic public-private partnership process, works to create,
promote, and drive new ICT opportunities in Jordan, which will facilitate the positioning
of the Kingdom as a regional player in technology adoption and development, a key step
to creating a knowledge-based economy. The Ministry’s work plan reflects its objective
of creating the enabling legal, commercial, and regulatory environment receptive for
technology introduction as a catalyst towards the larger socio-economic development of
Jordan.
e-Government is a national program dedicated to delivering services to people across
society, irrespective of location, economic status, education or ICT ability. With its
commitment to a customer-centric approach, e-Government transforms government and
contributes to the Kingdom‘s economic and social development through the e-Government
Telecommunications Regulatory Commission (TRC)
In 1995, Jordan was the first country in the Arab region to enact a modern telecom law and
to establish an independent telecommunications regulatory body tasked with the creation
of the proper environment for investment in a competitive market, the Telecommunications
telecommunications, information technology and postal sectors. Jordan’s legal and
regulatory framework for the telecommunications sector is continuously evolving to meet
the changing dynamics in the technology, market and business models. Self regulation -
while monitoring the diversity, reach, prices and quality of services - is the ultimate goal
times to reach this ultimate goal.
its mission and the country has seen the positive results of the coherence between the
government policy and the regulatory framework.
National Information Technology Center (NITC)
www.nitc.gov.jo
in providing better services to Jordanian citizens through the provision of relevant and
effective electronic services.
The NITC was established with a vision for excellence, effectively contributing to the
drawing and implementation of information technology strategies for the government
of Jordan. This is to be achieved through the utilization of the latest technologies and
tools needed to implement and manage ICT resources by means of maintaining a central
governmental infrastructure for information technology and shared services; providing
governmental entities with fit-for-purpose IT solutions and relevant consultations; launching
innovative technological solutions in partnership with the private sector on the basis of
mutual benefits; promoting a culture of excellence and innovation through the provision of
a hospitable and incentive-based environment that encourages work ethics and provides
equal opportunities and rewards outstanding players; and supporting local communities
by facilitating access to technology and the Internet.
NITC represents the credible reference for assisting governmental entities to implement
effective IT solutions that can enhance their productivity and improve their services offering.
Main ICT Stakeholders
10

11. Information & Communications
Technology Association - Jordan
(int@j) www.intaj.net
Information & Communications Technology Association - Jordan (int@j) was founded in
the year 2000 as an industry-support association for Jordan’s ICT sector.
Building on the nation’s core asset of highly educated and skilled human resources,
Jordan’s ICT sector is established as a leading regional ICT hub and an internationally
recognized exporter of ICT products and services. int@j’s mission is to advance and
promote the constituents it represents in both, the local and global markets.
The association realizes its mission through positively influencing policy and legislation,
offering capacities building programs, carrying out local and regional marketing activities,
and providing members with value-added services that help them grow and prosper.
extending its support to organizations that largely base their business model on technology
and communications. This strategic expansion came as a natural outcome of the ICT
sector’s success; following an initial period of developing core technologies, entrepreneurs
seized valuable business opportunities that became gradually available, and launched
enterprises that create additional jobs, generate exports, and attract investments.
companies, online and mobile content and applications developers, games publishers
and developers and others are amongst the enterprises that have been integrated within
int@j’s circle of constituents. int@j’s multi-tier membership packages are open to all
organizations with a vested interest in the ICT and ITES sector.
The association’s members today are comprised of software developers, hardware
providers, telecommunications and data services, call centers, help desks, system
integrators, mobile and online content and applications companies, animation and games
companies, and non-ICT & ITES support organizations such as banks, management
consultants and law firms.
This diversified representation in companies and economic sectors attests to int@j’s critical
role as a focal point where ICT/ITES enterprises can congregate with industries that largely
depend on their products and services and vice-versa.
int@j Vision 2011-2013: Being the primary and exclusive private sector representative of ICT
and ITES- enabled services companies in Jordan, thus duly representing the entire sector.
int@j Mission: To provide its members with a platform of products and services that
support their continuous growth, expansion, and prosperity toward a mature sector that
substantially contributes to the national economy and provides quality jobs for Jordanians.
Value Proposition: The true value of int@j as a business association lies in its ability to
its members with a real return for their membership investment.
Main ICT Stakeholders
11

12. Global Competitiveness Index 2010–2011
According to the Global Competitiveness Index for 2010-2011, by the World Economic
Forum, Jordan ranks 65th among 138 economies.
Global Information Technology Report 2010-2011
Among
Networked Readiness Index (NRI):
2011 and has ranked well in previous editions of this report.
Ranking Edition (number of economies) Jordan rank
50
The Global Innovation Index (GII)
The Global Innovation Index (GII) was conceived at INSEAD as a formal model to capture
the response readiness of nations and regions to the challenge and potential of innovation.
According to the global innovation index (GII), Jordan’s rank among 132 countries is 58.
GII Pillars Ranks for Jordan
GII Pillars Ranks for Jordan
Institutions
Human Capacity 31
ICT and Uptake of Infrastructure 60
Market Sophistication 82
Business Sophistication 57
89
76
E-readiness by Economist Intelligence Unit
E-readiness is a measure of the quality of a country’s ICT infrastructure and the ability of its
consumers, businesses and governments to use ICT to their benefit. Economist Intelligence
Country e-readiness ranking
Country e-readiness ranking
United Arab Emirates
Jordan 50
Saudi Arabia 51
Egypt 57
Algeria 67
Global Services Location Index (GSLI) 2011
A.T. Kearney’s Global Services Location Index (GSLI) offers a snapshot for both business
leaders who must choose among a growing number of offshore locations, and the policy
makers who seek to influence their decisions. In the 2011 edition of the index, Jordan holds
a favorable position of 21, among the top 50 countries worldwide for locating outsourcing
activities. Therefore, Jordan is emerging as a hot off-shoring destination.
Certifications
Capability Maturity Model Integration (CMMI) is a process improvement approach whose
goal is to help organizations improve their performance. CMMI can be used to guide
the CMMI accreditation is of a great advantage for both clients and the employees of
Eskadenia, STS, Estarta, Primus and ATS are among the early achievers of CMMI Level 3
in mid-2011.
The Spot certification program aims to equip Jordan-based call centers with world-class
performance metrics and operational standards designed to better position Jordanian
companies for projects in local, regional and international markets. In mid-2011, two call-
centers in Jordan, CrysTelCall and Extensya, obtained Spot Certification.
Rankings by International Organizations
12

13. Sub-sectors Defined Under ICT Sector:
ICT revenues are projected to reach USD 2.3 billion by 2011. The following figures and
Contribution to Jordanian Economy
Manufacturing Tourism ICT Construction Agriculture
0
5
10
10.60%
17.70%
14.30%
3.28%
14.10%
1.23%
4.30%4.50%
2.30%
2.80%
15
20 GDP Contribution
Direct Emloyment
ICT Impact on Jordan Overall Economy
0
2
4
6
8
10
Education
Sector
M
anufacturing
Sector
Health
Sector
Financial
ServicesSector
W
holesale
and
Trade
Sector
Other
Sectors
ICT
Sector
9.5% ICT on Impact Employment is 84,154 Jobs
ICT Impact on GDP is 14.1%
0.1% 0.1% 0.3%
0.7% 0.8%
2.7%
GDP Contribution from ICT in other sectors:4.6%
ICT Industry Analysis
Source: 2009/2010 ICT Economic Impact Assessment - MoICT
Source:Int@j
13

14. Jordan ICT Industry Strengths
Jordan offers all the essential elements needed for a global firm to establish a regional hub
for information technology services. Jordan’s strength lies in its human capital, being one
of the most highly qualified in the region. Jordan is also uniquely positioned for Middle East
Educated & Trained Workforce
Whether you are looking to outsource or locate labor in-country, Jordan’s human capital
will help your money work better for you. Jordan’s training investments in the high-tech,
manufacturing and service sectors add value to the economy, while labor cost remains the
the most competitive in the region. Jordan is emerging as a regional leader in ICT talent,
with 15,000 direct ICT jobs already created by the sector, and with more than 80,000
in total jobs whether direct, indirect, or induced. Additionally, the pool of the ICT-related
labor force is growing annually, with a steady inflow of 5,000 to 6,000 graduates from
universities.
Excellent ICT Infrastructure
Jordan’s telecommunications infrastructure is modern, with a very competitive mobile and
Internet landscape. Jordan has one of the most open telecommunications markets in the
Middle East overseen by an independent regulator.
The fixed-line market was liberalized on 1 January, 2005, with the market open to full
competition. Since 1996, Internet penetration has increased every year. The Networked
ranking in comparison to Arab Countries.
Telephony service in Jordan has steadily improved over the past few years with the
deployment of new digital switching equipment, microwave radio relay transmission and
coaxial and fiber-optic cable networks, along with impressive growth in mobile cellular
usage. There has also been substantial growth in ADSL subscribers, and a proliferation of
wireless technologies such as 3G and WiMax.
Jordan has reliable and redundant international connectivity with the regional and outside
Aqaba, tripling the bandwidth connectivity to the global network. This is the first “terabit”
cable landing in Jordan, and will serve the fast growing demand for broadband connectivity
and offer a much needed alternate communication gateway, providing diversity and
redundancy and decisively supporting Jordan´s positioning as a regional hub for foreign
direct investment.
Development & Free Zones Commision (DZFC)
A Development Zones Law was enacted in 2008 to enhance the economic capacity in
the Kingdom, attracting investments and creating an advanced investment environment
for economic activities. Article 6 of the law creates the Development Zone Commission
(DZFC) as the administrative body to manage the development zones, reporting directly to
the Prime Minister.
The DZFC has the mandate to increase Foreign Direct Investment (FDI) and to establish
a one-stop-shop to administer, supervise and centrally approve all investment related
ICT Industry Analysis

15. Selected Development & Free Industrial Zones
The Development Zones Strategy sets multiple and specialized zones targeted at specific
industries. These zones offer aggressive financial incentives to complement existing
privately-owned free zone parks operating in Jordan, while there are three development
zones in Jordan suitable for establishing ICT operations.
King Hussein Business Park Development Zone (KHBPD)
King Hussein Business Park is destined to become a sustainable and enduring mixed-use
city district that will provide future growth and development for Amman and Jordan. It offers
international standard office environments with high quality residential developments,
and a vast array of dining entertainment and leisure opportunities. Nine core clusters are
education, leisure & entertainment, safety security and compliance, and media and
residential.
Irbid Development Area (IDA)
The 3.2 square kilometer development area, located 20 km east of Irbid city and 80 km
north of Amman, is ideally suited for ICT, Healthcare, Professional Services, Middle &
the IDA will host world-class community services, amenities and housing as an integral
part of the development vision of the site.
King Hussein Bin Talal Development Area (KHBTDA)
Strategically located in Mafraq, at the crossroads of major transportation highways linking
Jordan, Syria, Iraq, and Saudi Arabia, this development zone comprises 21 km2
of land
within its officially designated boundaries. KHBTDA represents an extraordinary opportunity
for world class industrial, commercial and community development. It offers high quality
infrastructure and services to support site industries and to promote environmentally
sustainable economic development, on-site logistics facilities to take advantage of existing
infrastructure, and quality of life-enhancing housing and auxiliary services.
Summary of Benefits to Foreign Investors
visas and family residence visas)
regulations)
other law applicable in Jordan
Under the Development Areas Law
Income Tax 5%
Sales Tax 0%
economic activities
Import Duties 0%
establishing, constructing and equipping an enterprise in the Area
Social Services Tax 0%
Dividends Tax 0%
Exports 0% Exemption of all products and services produced within the Area
Overview of Investment Opportunities by Activity
Jordan is a regional gateway to the Arab World, a region with a common language and
culture. Accordingly, it is no surprise that two thirds of the country’s exports go to Gulf
States. The Arab Middle East is a lucrative and virgin market and Jordan’s reputation is
soaring as a center to serve this market. Today, Jordan also offers access to other regions
through International and Bi-lateral Agreements.
ICT Outsourcing
Jordan enjoys a high level of ICT infrastructure and a large number of ICT graduates
with strong industry focused skills. In fact, Jordan has long been a source of IT talent for
major companies in the Middle East and is widely recognized as possessing the strongest
ICT workforce in the region. Along with lower costs, a western style legal system, strong
development and testing to remote infrastructure management to providing technical
assistance for sophisticated products.
ICT Industry Analysis
15

16. Intellectual Property
Jordan-based companies have built significant intellectual property (IP), specifically in
softwaresolutionsandcontentcreation.Thishasmadelocalfirmssuccessfulinpenetrating
the US, Europe and regional markets. Additionally, Jordan-based ICT entities have already
outsourced work to major industry leaders globally.
Knowledge & Business Process Outsourcing
Knowledge-based services require a qualified labor force with specific expertise, advanced
knowledge, analytical interpretation, and technical skills. Jordan offers the required
levels of manpower and human talent, coupled with the right telecom infrastructure. The
investment climate, political and economic stability ensure that Jordan has emerged as a
Contact & Shared Service Centers
Jordan has a natural affinity to become a strong contact center outsourcing hub, with
its strategic location as a gateway into the MENA region, and owing to a highly service
oriented economy, a competitive cost structure, a young workforce and familiarity with
both Western and regional cultures. With a relatively neutral English and Arabic accent,
Jordan is fast emerging as the most viable contact center destination in the region. Several
outsourcing providers operate out of Jordan, offering services to US, UK and the Middle
East ranging from Customer Support, Pre-Sales and Loyalty management to Technical and
Helpdesk support.
Opportunities by Selected Sectors
Telecommunications: A Liberalized Telecom Sector (liberalized data, mobile and fixed
line subsectors) that has resulted in an excellent infrastructure (WiMAX & 3G services
already licensed) and more than 6 million mobile phone subscribers. The telecom sector
E-Learning: Jordan pioneered the adoption of ICT as a tool in education reform many
years ago. The Jordan Education Initiative (JEI) has become a regional model, and this
has resulted in local firms delivering world-class educational platforms and solutions. The
model can be replicated.
E-Health: Already a regional center for health services, electronic health solutions
hospitals. It is now widely considered to be a model to build on and replicate in other
countries.
Internet, Mobile & Gaming Content: Jordan is the leading Arabic content creation
center in the region, and the growth potential is stunning with only 1% of content on the
web currently in Arabic. The region’s top portals, and biggest success stories, emerged
from Jordan. Today, Jordan is also recognized as the hotbed of Arabic game development.
In mobile applications, local firms are already trailblazers with multiplatform applications.
IT Revenue 2003 - 2011
0
200
400
600
800
1000
2003 2004 2005 2006 2007 2008 2009 2010
In Millions
$295,910,000
$440,514,648
$580,873,643
$770,074,591
$882,970,754
$894,988,247
$962,435,094
$731,847,291
Sector Landscape ( Revenue Analysis)
0
500
1000
1500
2000
2500
IT Export
Revenue
IT Domestic
Revenue
IT Total
Revenue
Telecom
Revenue
ICT Total
Revenue
2011
2000
$12m
$231m
$48m
$508m
$60m
$738m
$500m
$1.26b
$560m
$2b
ICT Industry Analysis
2011
$738,055,284
Source: int@j
Source: int@j
16

17. USAID Jordan Economic
Development Program
Innovative Approaches
Economic Development Program, implemented by Deloitte Consulting LLP, began in 2006
with the goals of enhancing Jordan’s competitiveness in global markets, deepening the
public sector reform process, and increasing the number of jobs available for Jordanians
in the economy. From its inception, the Program’s goals have been consistent with His
Majesty King Abdullah II’s vision for Jordan’s emergence as a knowledge economy.
In doing so, it analyzed more than a dozen clusters to identify those that held the most
potential for growing Jordan’s economy in the near term. Ultimately, this led to the
Entrepreneurship, Information and Communications Technology, Architecture and
potential. Extensive research and collaborative strategy development were conducted in
each of these sectors, and specific actions initiated to achieve planned results. Much of
the Program’s efforts have focused on the implementation of existing sector strategies (i.e.
National Agenda and Jordan 2020 initiatives). Basing the Program’s activities on existing
strategies in sectors that support the knowledge economy has led to significant and lasting
results.
Supporting all of these activities are a series of enabling activities to improve the
general business and investment environment through institutional strengthening and
transformation, workforce development and gender integration, and increased public/
info@sabeq-jordan.org
Daman Development Corporation (DDC)
Daman Development Corporation (DDC) is a holding company that owns
three entities responsible for the establishment, planning and development
of three development areas in Jordan; Mafraq Development Corporation
(MDC), Northern Development Corporation (NDC) and Business Park
Company (BPC) . DDC is owned by Jordan’s Social Security Investment Unit
(SSIU) and act as its investment arm in the development areas.
The new Development Areas Law formalizes MDC, NDC and BPC roles as
the Master Developers of the three development areas, of which two are specialized in the
ICT/ outsourcing sector and are mentioned below.
Jordan Enterprise Development
Corporation (JEDCO)
The Information and Communications Technology (ICT) sector is an area that is seen as an
opportunity in which Jordan can increase its competitive advantage over other countries
in the region, consequently Jordan have taken very serious steps in order to launch its
major ICT initiatives aiming at developing the ICT sector. Jordan Enterprise Development
Corporation was one of the public sector entities that assisted in lending hand for the
and international ICT related exhibitions such as GITEX and CEBIT.
provided funds for 20 companies and 2 associations at an amount of 1,580,901 Euros.
The support was not limited to the financial one but included providing technical services
to help ICT companies elevate their capabilities.
provides data gathering, processing and delivering high-quality, timely and cost-efficient
information needed by SMEs clients to enhance their competitiveness and support their
internationalization efforts, as well as the information needed by foreign companies
interested in linking with Jordanian firms.
E-Commerce National Strategy.
Jordan Investment Board (JIB)
Jordan Investment Board (JIB) was established in 1995 as the
investment promotional agency of Jordan. JIB provides investors with
an array of full-fledged services including comprehensive information
related to investments in the kingdom, business opportunities and pre-
feasibility studies for 150 project concepts in various sectors including
agriculture, education, energy and utilities, health & pharmaceuticals,
information and communication technology, mining and processing, tourism and others.
Additionally, JIB acts as a liaison between foreign investors and the Jordanian public and
private sectors and grants financial exemptions from customs fees and sales tax on all
JIB provides prospects with full service assistance consisting of licensing and registration
services. Through this service, investors can register and license their projects in Jordan
provided, in a continuous effort to enhance Jordan’s investment environment. JIB has five
representative offices in the USA, UAE, Qatar, Kuwait, and China.
Jordan ICT Supporters
17

18. ISIC 4.0 General Overview
guiding principal for what constitutes an ICT enterprise is that “The production (goods
and services) of a candidate industry must primarily be intended to fulfill or enable the
function of information processing and communication by electronic means, including
transmission and display”
High Level ICTES Structure & Economic Activities Based on ISIC 4.0
ICTES Enterprises to Consider
• Corporations and partnerships are the only types of enterprises that will become part of
the ICTES Sector definition.
•
(gray-market) enterprises, co-operatives, and state-sponsored enterprises, will not be
included.
• Exclusion of these entities is due to their lack of contribution to the indicator objectives
of the project, or the difficulty in gathering data about these activities.
•
be included in the definition of the Jordanian ICTES Sector.
Primary Activity
• Companies classified as part of the ICTES Sector in Jordan will be classified only if their
primary activity is within the classification domain.
• Accordinf to UNSTATS “An activity that contributes most to the value added of the unit,
or the activity the value added of which exceeds that of any other activity undertaken
by the unit is called its principal activity. It is not necessary that the principal activity
account for 50 per cent or more of the total value added of a unit.”
•
primary activity that falls within the ICTES Sector will be defined as being within the
Sector.
•
establishment of an enterprise’s primary activity.
Section C - Manufacturing:
•
discs and tapes
•
•
•
and gateways
•
•
•
•
Section G – Wholesale & Retail Trade:
•
•
Section J – Information & Communication:
• 5820 Software publishing
• 6110 Wired telecommunications activities
• 6120 Wireless telecommunications activities
• 6130 Satellite telecommunications activities
•
• 6201 Computer programming activities
• 6202 Computer consultancy and computer facilities management activities
•
• 6311 Data processing, hosting and related activities
• 6312 Web portals
ISIC-based Horizontal Classification of Jordan ICT Sector
Section C:
Manufacturing
Section S:
Other Service
activities
Jordan’s
ICTES
Sector
Section G:
Wholesale and
retail trade
Section J:
Information and
communication
Section N:
Administrative
and support
service
activities
18

19. Section N – Administrative & Support Service Activities:
•
Section S – Other Services Activities:
•
•
•
modems)
The International Standard Industrial Classification of All Economic Activities (ISIC)
consists of a coherent and consistent classification structure of economic activities based
on a set of internationally agreed concepts, definitions, principles and classification rules.
It provides a comprehensive framework within which economic data can be collected and
reported in a format that is designed for purposes of economic analysis, decision-taking
and policy-making. The classification structure represents a standard format to organize
detailed information about the state of an economy according to economic principles and
perceptions.
In practice, the classification is used for providing a continuing flow of information that
is indispensable for the monitoring, analysis and evaluation of the performance of an
economy over time. In addition to its primary application in statistics and subsequent
economic analysis, where information needs to be provided for narrowly defined economic
activities (also referred to as “industries”), ISIC is increasingly used also for administrative
purposes, such as in tax collection, issuing of business licenses etc.
This fourth revision of ISIC enhances the relevance of the classification by better reflecting
the current structure of the world economy, recognizing new industries that have emerged
over the past 20 years and facilitating international comparison through increased
comparability with existing regional classifications.
IT & ITES Sector Statistics 2011
Domestic Export Total
$509,312,919 $746,384,911
$507,526,322
$530,100 $6,966,539
$1,256,497 $106,591 $1,363,089
IT and ITES Sector Employment 11,235
IT Employment
ITES Employment
Telecom Sector Statistics 2011
Total
Fixed Line Subscribers (6.80%)
Mobile Subscribers (120%) 7,483,000
Internet Users (50.50%)
Telecom Employment
$1,673,872,996
424,000
3,137,000
4,600
$237,071,991
$230,528,961 $738,055,284
$6,436,439
10,427
808
ISIC-based Horizontal Classification of Jordan ICT Sector
19

20. Jordan’s ICT companies have served various economic sectors and verticals efficiently for
decades, and have accumulated the knowledge and skills to effectively export complete
ICT solutions and services to neighboring markets and beyond.
Specific verticals which Jordan-based ICT companies serve with distinction and with
Hospitality (Travel and Tourism)
Due to the importance of tourism as an economic sector in Jordan, software developers
and system integrators have successfully catered to the varied and advanced requirements
of this industry for several decades, and therefore gained the experience to serve emerging
touristic locations in the Gulf and worldwide. Jordan is also emerging as a prominent call
center location for tourism services in the Middle East.
Telecommunications
Boasting the region’s most liberalized and competitive telecommunications sector, Jordan’s
ICT vendors have benefited greatly from supplying and serving this industry, starting
relatively early on for the region in the mid-nineties, and have therefore been pioneers in
total ICT solutions in this field. Accordingly, many mobile operator networks implement
technology solutions for all branches across the region, such as billing solutions.
Financial Sector (Insurance & Banking Systems)
Probably the first sector where Jordan ICT companies implemented large-scale systems,
banking and financial institutions have reaped the rewards of driving customized system
integration experience in the country since the 1970s, which has peaked with Jordan’s
software developers creating world-class and unique products and solutions now
implemented worldwide, having already taken the lead in regional solutions such as the
electronic check clearing system.
Education
Jordan is among the most literate nations in the region, therefore Jordan’s academic
institutions are well-served by technology solutions. Additionally, the country’s highly
educated professionals have pioneered the field of e-learning with world-class software
platforms and curricula which are utilized across the Middle East such as e-learning
management solutions and content.
Health
many neighboring countries, the considerable size of Jordan’s health sector has driven
growth in ICT solutions to cater to this dynamic and evolving field. Solutions available today
are best-in-class and are contributing to adding to Jordan’s reputation as also an emerging
medical information and communication center such as e-services solutions.
Public Sector / Government
The public sector remains one of the biggest IT customers in Jordan and continues to play
a role in pushing local companies to provide advanced governmental, military and other
solutions. The successful delivery and maintenance of mission critical, multi-platform and
networked solutions to state entities has ensured that Jordan’s ICT companies are well
positioned to take on similar projects in neighboring markets such as e-services solutions.
Manufacturing
Driven by expansion in Jordan’s economy and government policies to create industrial
zones and promote exports, manufacturing grew and flourished. Today, Jordan is home
to major regional manufacturing groups whose ICT operations for all global branches are
served from Jordan by locally-based ICT companies.
Transportation & Logistics
As a regional cross-roads and trade center, Jordan was a natural ground for the evolution
of leading international logistics companies, based in Jordan, the sophistication and
efficiency of these solutions have now been proven across the world.
Information & Media
The proliferation of the media and entertainment industries in the Middle East, through
local liberalization and the rise of pan-Arab media, has driven the need for both software
and content. These relatively new industries have benefited from the accumulated ICT
knowledge of many decades of serving more complex industries, and the renowned
creativity of Jordanians in Arabic content creation and management.
Cross-Cutting Solutions
Fueled by sector-specific ICT solutions, administrative systems across all sectors evolved as
Jordan ICT companies sought to fully satisfy the needs of their biggest clients; and in doing
so have created industry-leading Arabized solutions for office and industrial automation,
across the Middle East and North Africa.
Vertical Sectors Served by Jordan ICT Companies
20

21. ICT Solutions & Services Offered By Vertical Economic Sectors
Hospitality x x x x x x x x x x x x x x x x x x x x
Telecommunications x x x x x x x x x x x x x x x x x x x x x x x x x
Financial sector x x x x x x x x x x x x x x x x x x x x x x x x x
Education x x x x x x x x x x x x x x x x x x x x x x x
Health x x x x x x x x x x x x x x x x x x x x x x
Public Sector / Gov. x x x x x x x x x x x x x x x x x x x x x x x x x x x
Manufacturing x x x x x x x x x x x x x x x x x x x x x
Transportation & Logistics x x x x x x x x x x x x x x x x x x x x x
Information & Media x x x x x x x x x x x x x
Cross-Cutting Solutions x x x x x x x x x x x x x x x x x x x x x x x x x x x
EnterpriseApplicationIntegration(EAI)
AppliedArts(GraphicDesign,InteriorDesign,AnimationArts)
Archiving&DocumentManagementSolutions
BacklogService
BankingSystems&e-BankingSolutions
Billing&PaymentSystems&e-BillingSolutions
BrokerageSystems
BusinessIntelligenceandDataMining
BusinessProcessManagement
CardTechnologies
CollaborationandPlatformsSolutions
ICTConsultancyServices
Training
ContentManagementSystems&Syndication
Control&MonitoringSystems
DataWarehouseSolutions
e-Learning&e-ContentDevelopment
EnterpriseProjectManagementSolutions(EPM)
e-Services&e-Solutions
FleetManagementSystem
GIS&GPS&Imaging
NetworkingandInfrastructureServices
IPTelephony&IPTV
ITIntegration&Supplies&SupportServices
Licensing
MobileContent&MobileApp.Development
Middleware
PublicSector&GovernmentSystems
Security&MillitarySystems
WebDevelopment&Portals
Vertical Sectors Served by Jordan ICT Companies
21

22. Global & Regional Companies Speak on Jordan ICT
“Enlightened by His Majesty King Abdullah the II’s vision for the sector, paving the way
for Jordan to become a regional hub in Information Technology and Communications,
started with 10 employees covering two domains; Technology Consulting and Sales. Within
This investment was encouraged by Jordan’s strategic geographic location, relatively
low operation costs, political stability within the region, strong laws and regulations, and
international and foreign companies enjoying all rights and privileges of domestic firms. We
also strongly believe in capitalizing and investing in human resources in Jordan for many
reasons; bilingual English-Arabic speakers, and excellent caliber and quality of work which
East and Africa are very pleased with the skills, knowledge and professionalism exhibited
by the team in Jordan; there is no better proof than the expansion we have reached to
date.”
Oracle
“The IT sector in Jordan is witnessing significant growth. Therefore, as a provider of world
class talent and skilled professionals, supported by a state-of-the-art telecom and IT
infrastructure and logistics capabilities, Jordan is well positioned to become a regional
hub for industry services and ‘back and from’ office operations. Cisco has a history of
partnering with countries that are strong proponents of ICT as an enabler in driving social
and economic benefit, have strong leadership from the top and a clear vision of what they
want to achieve.
Jordan has all of these attributes. It is for this reason that Cisco has already partnered
with Jordan on a number of key initiatives including the Jordan Education Initiative,
Madrasiti and the Cisco Networking Academy. Additionally, Jordan is an excellent choice
for e-healthcare initiatives as it has a great reputation in the area of healthcare and a
promising infrastructure with the National Broadband Network.
Cisco has a long history of commitment to good corporate citizenship as we believe it is
not just the right thing to do it is also good for business. In May 2011, we announced
an investment of $10 million to seed a sustainable model of job-creation and economic
development in Jordan. The five-year investment plan represents Cisco’s continued
commitment toward building stronger and healthier global communities through strategic
social investments. The commitment will include a multi-million dollar venture capital
investment, targeted at high-potential small businesses. In the future, Cisco also intends
to engage in a multi-stakeholder collaboration to encourage further inward investment into
the Jordanian economy from local, regional and global organizations.”
Cisco
“Jordan is an important market for Microsoft and we strongly believe that Jordan’s ICT
sector is an increasingly important economic stability factor for the Kingdom. Jordan is
talent and the creativity- therefore it continues to attract foreign investments, while fostering
an ecosystem of innovation and entrepreneurship. Microsoft will continue on our path to
invest, build partnerships and assist the Government in achieving the objectives it has
outlined in its National ICT Strategy.”
Microsoft
“The vision and direction of His Majesty have been key drivers for growth in the economic
power-house that has become the ICT sector. Productivity, competitiveness and market
connectivity will continue to grow in this liberal market place that is being nurtured by
the country’s strategic location, stability, growth-friendly regulations, a strong educational
system, a quality talent pool, and focused capital expenditures. The sector’s most notable
success has been its ability to embrace, nurture and develop a culture of innovation and
entrepreneurship. This new culture gave rise to a large number of successful professionals,
entrepreneurs, developers, product managers and young men and women who are the
foundation of all the success that was witnessed in this vibrant sector.”
Umniah Telecom
“The development of the IT sector in Jordan has been very positive, under the reign of His
Majesty King Abdullah, who has acted as a source of encouragement for many companies
and start-ups to take the bull-by-the-horns and establish themselves as successful
technology developers and e-solutions providers.
Today the Kingdom has a stable and developing ICT labor force and is likely to continue
increasing as more investments pour into the country from international venture capitalists
groups. The IT market in Jordan is booming and dynamic. Many software companies
have mushroomed in the country, providing top IT solutions to the countries of the region,
making it a gateway to the Gulf States and North Africa, in which Jordanian companies
already have a strong presence.”
SSS Process
Testimonials Supporting Jordan ICT
22

23. Information & Communications Technology Association - Jordan (int@j)
Tel + 962-6-581 2013
info@intaj.net
www.intaj.net
Fax + 962-6-581 2016