Encouraging Investment in Jordan Requires More Public Capital Expenditure

تم نشره في Sun 29 October / Oct 2017. 12:00 AM
  • Index up, money, Investment - (Archives)

AMMAN —AlGhad— In response to the Prime Minister Hani Mulqi’s recent statements, economists and experts have concurred that economic reforms do not rely merely on fiscal reforms and encouraging investments, given the latter requires an increase in public capital expenditure, not to mention various reforms in the business environment.

Among the chief issues in this regard is legislative instability and bureaucratic complexities for business in Jordan, which has driven capital away for years.

Instability in tax legislation, procedural complications, high costs of labour, and slow judicial and legal processing are just some of the issues experts have underlined to AlGhad.

“I agree with the premier” says Akram Karmoul, president of the National Society for Consumer Protection (NSCP), “Investment is the catalyst for development. But how do we encourage investment in Jordan?”

“Unfortunately, Jordan’s approach to encouraging investment is unrealistic. It is suspended in theory, and especially the recent plan to revitalise investment.”

Karmoul underlined that the state should support facilities and exemptions for domestic investors, above all, to help make business in Jordan sustainable.

“The absence of a suitable investment environment does not help the cause of development, which ultimately leads to higher unemployment and poverty rates!”

Meanwhile, financial expert Mufleh Aqel underlined that the frequency of amendments to the tax law goes against the encouragement of investment!

“Tax legislative stability is perhaps one of the most important factors for investment, alongside access to capital and low interest rates on premiums” Aqel explained.

Similarly, investment and risk management expert Samer Rjoub described it as “myopic”, talking about amendments to tax legislation and encouraging investments!

Rjoub explained that encouraging investment requires more government capital expenditure, as it increases employment, advances infrastructure, and services.

All in all, “capital expenditures will create jobs, enhance income per capita, and drives consumption, revitalising the economy”.

“Lowering the costs of borrowing will encourage investment” Rjoub Said.

“It is vital that the government exempts Jordanian exports and all labour included, to empower mutual trade agreements and increase profitability of investment” Rjoub added.

He also highlighted the importance of lowering energy costs to support industrial business in Jordan.