Jordan…A Safe Haven for Investment
Jordan…A Safe Haven for Investment
The coronavirus pandemic’s economic impact on the global stage cannot be underestimated. For the first time in recent history, the entire world endured a forced global shutdown, hindering supply lines, international trade, and travel.
Several countries struggled to cope with the impact, such as the US, which saw unemployment rates reach insurmountable numbers. Italy, France, and Spain were hard hit, leading to recessions in the economy, while touristic destinations such as Turkey, Thailand, and the Maldives saw their income for tourists vanish completely.
Jordan Proves Proactive
Jordan, although comparatively boasting fewer resources than its western counterparts, proved to be quite proactive; as it put into measures martial laws that hindered the spread of COVID-19 at the first glance of danger.
In mid-March, Jordan announced a full lockdown, with only a handful of coronavirus patients in the country. This quickly subdued the curve of Coronavirus, and in the next few months, Jordan rarely saw daily numbers of infected rise above a dozen.
This full lockdown, however, did not last in its early form, to make way for economic sustenance. In April the Jordanian government eased restrictions and opened certain sectors that could operate under certain safety conditions.
In May, the Jordanian government decided to return to full operations, with a plethora of safety guidelines published to the public.
Crisis Response to Economic Factors
The economy, as the case in many other countries, was at risk of a recession. The Jordanian government swiftly acted to ensure that this was not the case. A colossal 150 million JOD was dedicated to aid the private sector deal with the limitations of resources, be it human or capital, and maintain their operations without the need to resort to downsizing or bankruptcy.
The Jordan Enterprise Development Corporation (JEDCO) quickly launched two programs to ease the strain of Coronavirus’s impact carrying a value of 68 million to assist SMEs.
As farming consisted of a crucial part of Jordan’s food supply and export, the Jordanian government was also quick to address the matter; providing 10 million JOD in loans to farmers with zero interest and a five-year grace period.
Another loan option was released for SME’s with 500 million in funds available with the guarantee of the Jordan Loan Guarantee Corporation, which was then afforded to large scale corporations.
One of the most critical sectors, the banking industry, saw an influx of liquidity in the value of 550 million JOD through reducing the compulsory reserve ratio from 7% to 5%, giving banks more room to maneuver and aid in the economic relief effort.
Jordan Market Opens; Coronavirus Curve Controlled
Once the Jordanian government re-opened the entirety of functions in the country, as well as opened its borders to residents and citizens coming in from abroad, it was a matter of time until more coronavirus cases popped up.
While that proved to be the case, the Jordanian government maintained a low coronavirus case tally through strict safety measures and timely tracking of any found cases. August and September saw an increase in cases, yet they remain the lowest numbers in the MENA region.
As neighboring countries, especially in the GCC, continue to record a higher daily number of cases while maintaining stricter lockdown regulations; Jordan continues to flourish economically and medically with fewer cases coupled with a full functioning economy.
Jordan Emerges As A Safe Investment Destination
A small country that has proved its resilience and wit to the world, Jordan’s economy may emerge stronger and more dynamic after the pandemic, offering global investors a strong option to consider for safe yet profitable investments.
As other regions such as the US and the Euro Area are expected to see a decrease of 8% and 10.2% in their GDP respectively, and thriving gulf countries such as Saudi Arabia and the UAE are set to drop 6.8% and 6% respectively; investors should be wary of their next investment destinations.
Jordan in comparison is expected to see a mere drop of 3.5%, nearly half of that of its Saudi counterpart. Another key difference in the availability of a functional workforce and abundance of open supply lines, making Jordan a suitable destination for new businesses in the most uncertain of times.
As the government continues to support economic growth while maintaining barely existing lockdown restrictions, Jordan seeks to grow in a time when the rest of the world is trying to survive.