Jordan ICT sector scores high on World Bank report

AMMAN — Jordan is one of the most advanced countries in the Mashreq region (eastern Arab world) in terms of developing, adopting and utilising digital infrastructure and services, according to a World Bank report.

The report, a copy of which was e-mailed to The Jordan Times, indicated that Jordan is a trailblazer in the use of mobile and fixed broadband services, which advances economic growth by providing better access to information and increases to productivity.

Titled: “Mashreq 2.0: Digital Transformation for Inclusive Growth and Jobs”, the report lays out the strategic importance of digital infrastructure for countries in the region, takes stock of its status and provides recommendations.

In 2017, 59 per cent of Jordan’s population was subscribed to a mobile broadband package, according to the report. 

Unlike other countries in the region, Jordan does not suffer from lack of competition from different service providers, which is a constraint to broadband diffusion for other countries, the report said.

Commenting on the report, Nidal Bitar, CEO of the ICT Association of Jordan (Int@j), said that almost 100 per cent of Jordanians have access to the Internet. 

“On the other hand, I believe there is a need for an IXP [Internet exchange point] in Jordan, which would result in a reduction of latency which empowers Internet for all interactive applications, video games, teleconferencing and web 2.0,” he told The Jordan Times, adding that it would also “accelerate local Internet exchanges between users, improve overall bandwidth, improve routing efficiency and attract foreign companies”. 

In 2016 and 2017 Jordan created a comprehensive digital economy strategy and an “Internet for All Initiative”, contributing to propelling the Kingdom to become one of the best countries in the region in terms of political and regulatory environment and government usage, according to the World Bank.

Jordan, like Iraq and Lebanon, has a highly skilled and multilingual population, is well placed geographically, and has a high penetration of smart phones and mobile broadband usage, which it can utilise for economic transformation, the report added.

The report recommends that these countries focus on improving the services sector by improving high speed broadband networks and services that target productive segments of the services sector, and that connect existing and new labour market entries to global markets, according to the report.

The startup and entrepreneurship scene in Jordan is progressing aggressively as Jordan ranked 49th on the Global Entrepreneurship Index in 2018. And a recent study “Assessing the Economic Contribution and Potential of Tech and Tech-enabled Startups” conducted by Int@j, GIZ and Orange “showed that technology-based startups’ share in the Jordanian GDP was 0.5 per cent, compared to 0.7 per cent to the GDP of the UK and 0.1 per cent to the GDP of Australia, which shows high potential and deserves more attentions by the policy makers”, Bitar said

However, while it is ahead of many countries in the Mashreq region, Jordan has its own set of struggles, with one of the lowest scores in fixed broadband infrastructure, individual usage and fixed broadband services compared to its peers the report indicated.

In Jordan, the gender gap of mobile ownership was 21 per cent in 2015, as opposed to 11 per cent in Iraq and 2 per cent in countries like Egypt and Turkey. Mobile access is crucial as it provides women with a more independent lifestyle and helps individuals acquire jobs, according to the report.

In addition, while Jordan has three mobile operators who all offer 4G LTE services, less than 20 per cent of subscribers can actually use 4G LTE, according to the report. 

Information flows now produce more economic value than trade in global goods and Mashreq countries should focus on digital infrastructure as geopolitical tensions and increasing instances of unemployment and debt have the ability to cloud economic growth, the report indicated.