FDI down in Jordan
Foreign direct investment (FDI) witnessed a steep drop of 40 percent in the Kingdom of Jordan by the end of 2011, according to statistics from the World Bank. Jordan received only 12.1 percent of net FDI for the MENA region.
The sharp drop in FDI is primarily ascribed to the wave of protests which swept the region. The Arab Spring took a heavy toll, not only on investment, but on other economic activities and tourism as well.
However, the World Bank expects the situation to improve over the mid- and long-term due to the robust economic growth in the region as a whole, as well as an improved investment climate, which will attract international investors to the region.
Other MENA countries represent the lion's share of FDI in Jordan at 69 percent, followed by Europe with 16 percent, South America with eight percent, and Asia with one percent, according to the Bank.
A joint study by the OECD and the World Economic Forum showed that, although the level of FDI in the MENA region is high, this investment does not generate sufficient job opportunities because it targets the oil and gas sector, which requires less manpower than other fields. The study suggested promoting investment in additional fields, such as renewable energy, tourism, and industry, if high unemployment rates are to be reduced. (Source: english.nuqudy.com)