I
n its pre-summit brief, the WEF notes that the countries of the region are pushing for economic reform to underpin shifting investment and trade priorities. During its regional meeting, the WEF expects opportunities to arise for a constructive multi-stakeholder dialogue on the situation in Syria, Iraq, and Libya with a view to bringing an end to the fighting and, with it, to the still ongoing refugee crisis and other humanitarian emergencies. The WEF also notes the need to address the ever-shifting geopolitical realities that add to the region’s volatility. The meeting in Jordan brings together participants from over fifty countries including key international stakeholders from North America, Europe, and Africa in addition to thought leaders from the Gulf Cooperation Council (GCC) states and the Levant. Organised in partnership with the King Abdullah Fund for Development (KAFD), the summit also aims to showcase the host nation as a fountain of resilience and stability in a region plagued by upheaval. According to KAFD chairperson Imad Fakhoury, “the return of the World Economic Forum on the Middle East and North Africa to Jordan during difficult times in the region is a testimony to the country’s strategic regional role, resilience and vast economic potential.” Mr Fakhoury, also Jordan’s minister of Planning and International Cooperation, added that “the forum continues to provide opportunities for partnerships geared towards inclusive development and investing in human talent.” Jordan hosted nine annual regional WEF meetings, and last did so in 2015.
“Rather than a disruptive force, the Fourth Industrial Revolution may be used to act as a catalyst of increased political stability, economic collaboration, and increased levels of prosperity.” and education. The Jordan meeting hopes to find shared drivers for regional development through improved productivity and the leveraging of new technologies. The WEF’s Fourth Industrial Revolution, which is expected to fuse, and derive synergies from, different technological breakthroughs, features high on the agenda. The WEF estimates that the coming decade will see more technological change than the last half century has produced. WEF forecasters predict that the region is wellpoised to seize the opportunities offered by accelerated technological progress to drive both growth and innovation, and reduce unemployment levels significantly. Rather than a disruptive force, the Fourth Industrial Revolution may be used to act as a catalyst of increased political stability, economic collaboration, and increased levels of prosperity.
Participants of this year’s event will review, amongst others, the impact and effects of lower oil prices on the region on the premise that the trend may open up a number of possibilities as countries try to diversify their economies. In particular the ambitious Saudi Vision 2030 reform plan unveiled by Saudi Arabia in April of last year is considered a blue print for lessening the region’s dependency on oil. The plan emphasises the need to improve both education levels and the country’s physical infrastructure in addition to prioritising investments in non-oil related industries.
The meeting in Jordan will also seek to address the humanitarian crisis suffered by countries embroiled in strife. Close to ninety million people are directly affected by the wars raging in Syria, Iraq, Libya, and Yemen which have uprooted around sixteen million people who were forced out of their homes and saw their livelihood destroyed. The WEF meeting will put considerable effort into promoting public-private partnerships and diplomatic dialogue aimed at furthering conflict resolution efforts amongst its multi-stakeholder community.
In its pre-summit brief, the WEF suggests such reform plans need to be designed in a way to promote inclusive development models supported by a framework that ensures good governance and facilitates broad access to essential services such as energy, healthcare,
The WEF meetings in Jordan have historically proved exceptionally productive. During the 2015 regional summit the country managed to sign nineteen investment deals worth $8.5bn. Jordan’s own 2025 Vision blueprint for the future is now well underway and is widely recognised
for setting concrete goals whilst leave plenty of room to incorporate new developments. The programme prioritises support for the clean energy, tourism, logistics, ICT, and education sectors, amongst others. In 2015, the Jordan government announced new investment opportunities totalling close to $20bn and expected to create up to 180,000 new jobs. The 2015 regional meeting launched the Arab Employment Initiative which promotes lifelong learning and aims to equip the region’s youth with marketable skills. The WEF Regional Business Council is fully engaged in the efforts of the initiative’s nine founding partners to bridge the skills gap and develop new programmes, or expand existing ones, to provide job opportunities. This year, the council is expected to announce that the initiative has attained its goal of providing training to 100,000 young people throughout the region. Bucking the trend, Jordan has skilfully managed to absorb a number of severe external shocks to its economy, steadily expanding its GDP at a 3% annual clip over the past years. In a country report released in November 2016, the International Monetary Fund (IMF) praises Jordan for its sustained effort at promoting reform whilst maintaining an exceptionally stable set of policies. Though growth slackened last year, the IMF expects the pace to pick up in 2017 as productivity indicators improve and foreign direct investment volumes increase. The fund also notes that the economy is set to benefit from a recently signed trade agreement with the European Union which relaxes country-of-origin rules for Jordanian exports. The country is particularly well equipped to help Syria rebuild its war-torn infrastructure and economy once peace is re-established. Tapping into its reputation as an oasis of tranquillity, Jordan is also set to benefit from the construction, slated to begin later this year, of a dual natural gas and oil pipeline that is to link Basra in Iraq to the Red Sea port of Aqaba. The project aims to provide an alternative to the 970-kilometrelong pipeline that pumps 500,000 barrels of oil per day from the Kirkuk oil fields to its Turkish terminal at the port of Ceyhan. However, disputes between the central Iraqi government in Baghdad and the Kurdistan Regional Government, and terrorist activity, frequently interrupt the flow of oil. The new pipeline aims to provide Iraq with a more dependable alternative for the export of its oil. i
“Bucking the trend, Jordan has skilfully managed to absorb a number of severe external shocks to its economy, steadily expanding its GDP at a 3% annual clip over the past years. In a country report released in November 2016, the IMF praises Jordan for its sustained effort at promoting reform whilst maintaining an exceptionally stable set of policies.” 124
CFI.co | Capital Finance International