Investors Discouraged by Business Environment in Jordan: JSF

Census: 58% See Economic Situation Worsened in 2016, 20.8% Say Taxation too High, 44% of Businesses Expanded

تم نشره في Mon 24 April / Apr 2017. 12:00 AM - آخر تعديل في Mon 24 April / Apr 2017. 07:58 PM
  • A previous ِJordan Strategy Forum (JSF) session - (Petra)

AMMAN —AlGhad— The results of the recent census conducted by the Jordan Strategy Forum (JSF) in March, 2017, show that 55.7 per cent of the investors sampled find the business environment in Jordan discouraging, as opposed to 41 per cent, and 3.2 per cent who said they were unsure.

As for the reasons why so many find it discouraging, 20.8 per cent said the taxes are too high.

According to the census, 15.8 per cent say that median operational costs are too high in Jordan, whereas 15.7 per cent say it is due to the economic recession.

Another 10.9 per cent of the sampled investor segment say that regulations are too complicated.

However, at least 44 per cent have expanded their business in 2016, as opposed to 40 per cent who didn’t, and 12.2 per cent who confirm their business has shrunk.

Meanwhile, when asked whether or not investors have thought about migrating their businesses and relocating overseas, 19.1 per cent of the surveyed sample confirmed they already did, 78.2 per cent say they haven’t thought about it.

As for the reasons why they want to relocate, 24.3 per cent said they were considering better investment environments and opportunities elsewhere.

On taxation too, 17.1 per cent say better policies encourage healthier business dynamics in other countries.

On the other hand, regulation and inaccessibility to funding seems to be the reason why 15.1 per cent have considered relocating or actually have.

Accordingly, at least 58 per cent of the surveyed investors segment see that the economic situation in Jordan, in 2016, is actually worse than it was in 2015.

Only 14.9 per cent think the Jordanian economy has at least slightly recovered, next to 23.1 per cent who think the economic situation has not changed.

As far as the numbers go, direct foreign investment in Jordan has dropped from JOD2.3 billion in 2006 to JOD981 million in 2015.

Over the duration from January to September, 2016, Q1-3, foreign investment in Jordan stands at JOD809.1 million.

The census by the Jordan Strategy Forum included 524 companies, covering 7 per cent more than the census in 2016.