Jordan Business Profile
Economy: Jordan’s agricultural sector has never recovered from the loss of the West Bank after the 1967 Middle East war, which deprived Jordan of 80 per cent of its fruit-growing area and a proportionate amount of export revenue. Tomatoes, citrus fruit, cucumbers, watermelons, aubergines and wheat are the principal commodities grown in the remaining, mostly desert area. Phosphate mining and potash extraction from the Dead Sea area are the longest established industries; to these, oil refining, chemical manufacturing, food processing, and the production of metals and minerals have since been added. Other commercial enterprises include paints, plastics and cement production. The ongoing search for exploitable oil deposits - unsuccessful thus far - continues, and attempts have been made to develop alternative sources of power.
The service sector, which accounts for around two-thirds of total output, covers wholesale and retail trading, finance, transport and tourism. This sector has been especially badly hit by events in Iraq, Jordan’s eastern neighbour, which accounted for some 20 per cent of Jordan’s total pre-sanctions trade. UN sanctions against Iraq curtailed much Iraqi transit trade that would otherwise have come through the Jordanian port of Aqaba. Cheap oil supplies from Iraq have been made up, but only in part, by shipments from other Arab countries.
During the latter years of King Hussein’s rule, some economic reforms based on the customary package of deregulation and privatisation were instituted. These brought the country’s rampant inflation under control but failed to dent the country’s massive unemployment problem. These reforms have, by and large, continued under King Abdullah. Many Jordanian workers have moved abroad in search of employment and their remittances are an essential means of support for many families. Jordan is a member of various pan-Arab economic bodies, notably the Council of Arab Economic Co-operation and the Arab Monetary Fund. Jordan joined the World Trade Organization in 2000. Apart from other Arab states, some of which also provide financial aid, other major trading partners include Germany, India, Saudi Arabia and the USA (which is also an aid donor).
Business: English is widely spoken in business circles. Avoid Friday appointments. A good supply of visiting cards is essential. Formality in dress is important and men should wear a suit and tie for business meetings. Office hours: Sat-Thurs 0800-1800 (with one- or two-hour lunch breaks). Government office hours: Sun-Thurs 0800-1500. During the month of Ramadan, working hours are greatly reduced (see Public Holidays section). |
