With right support, ICT sector can drive Kingdom’s economy - int@j

AMMAN - Mohammad Ghazal - Although the ICT sector is already Jordan’s fastest growing sector with an annual growth rate of 25 per cent, the potential for expansion still remains large but has not been adequately explored, according to the Information Technology Association of Jordan-int@j.

The sector’s contribution to the Kingdom’s gross domestic product rose from about 2 per cent in 2000 to about 14 per cent in 2011 and could reach 28 per cent during the next 10 years if certain conditions are met, int@j CEO Abed Shamlawi told The Jordan Times in a recent interview.

“The ICT sector is one of the most promising sectors in Jordan. Its basic asset for success and growth is not water or power, of which Jordan suffers a shortage, but the skilled young human resources in the country and their enthusiasm for innovation and excellence,” he said.

Despite contributing more than $500 million annually to the treasury, the sector only employs about 80,000 people, a fraction of the country’s workforce, he explained, emphasising that ICT can play a larger role in both employing young Jordanians and boosting the economy.

“The ICT sector enjoys a high added value ranging from 55 per cent to 90 per cent and that is considered very high. The country’s strategic geographic location and its stability also play a major role in boosting the sector,” Shamlawi noted.

Within the next 10 years, it is possible for the sector to make up about one-third of the country’s economy, but several issues need to be addressed before Jordan reaches that stage, he added.

The Kingdom’s 450 ICT companies - up from 20 in 2000 - face a shortage of IT graduates who are prepared to join the labour force upon graduation. In addition, a lack of public-private partnership projects and the government’s reluctance to promote the sector are factors that hinder its progress, according to Shamlawi.

“Although the level of IT education is advanced in Jordan compared to other Arab states, there is still a gap between the skills of graduates and those needed by companies. However, the government and the association are working on several initiatives to provide demand-driven training for those graduates, but it needs some time to bear fruit,” he said.

The Kingdom’s ICT services and products, which are exported to more than 45 countries, enjoy huge potential for further growth, he said. However, there is a “dire” need for government help in promoting the sector across the region.

IT revenues reached $731.8 million in 2010, of which $529.5 million were domestic revenues and $202.2 million from exports, according to int@j figures, which also indicated that total IT revenues dropped by 15 per cent in 2010 compared to 2009.

The ICT sector’s total revenues exceeded $2 billion in 2010, according to int@j.

According to the figures, 34 per cent of Jordan’s IT exports in 2010 went to Saudi Arabia, 13 per cent to Iraq, 13 per cent to the UAE, 7 per cent to the US, 5 per cent to Oman, 4 per cent to Palestine, 4 per cent to Egypt, 3 per cent to the Netherlands, 2 per cent to Qatar, 2 per cent to Sudan and the rest to other countries.

“There is a need for more and better promotion of the sector’s services abroad. We cannot do that alone and the government should be more serious in adopting a plan to market such a strategic sector,” Shamlawi noted.

“Government spending on IT locally is on the decline: It is through exports that we can boost the sector,” he added, noting that the lack of laws governing and facilitating e-commerce plays a role in slowing down the sector’s growth.

“In Jordan, we do not yet have instructions on digital signatures and that is fundamental for e-commerce activities. There is also no data privacy law, which can encourage more use of e-transactions, integrate technology in peoples’ lives and boost the sector’s revenues,” he said.

Supporting start-ups and fostering public-private partnership projects in the sector can significantly contribute to stimulating growth in the sector, Shamlawi added.

“Jordan’s ICT sector can play a key role in enhancing services in the fields of health, education, industry and energy. The potential is there and still untapped. If we utilise the potential correctly, the sector will be the main engine for growth in Jordan in the years to come,” Shamlawi asserted in the interview.