Dr. Hamad Kasasbeh

Three years after launching Jordan’s Economic Modernization Vision, the next phase demands faster implementation and a stronger role for the private sector. The Vision assumes an effective partnership with the private sector, but several challenges still limit its ability to drive growth. This raises a key question: What does the private sector need to become a stronger development partner? And what are the gaps that must be addressed to fully realize the Vision’s goals by 2033?

The Vision identifies major obstacles that hinder private sector effectiveness. These include weak vocational training, skill mismatches in the labor market, limited domestic investment, difficulty accessing long-term finance, and slow administrative processes. It also stresses the need to improve the business climate, boost innovation, and build digital infrastructure.

However, some structural issues were not clearly emphasized. These include weak market competition, the large informal economy, limited sectoral diversity, and the lack of advanced financing tools like development bonds and specialized investment funds. Estimates show that the private sector contributes less than 55% of Jordan’s GDP — lower than in peer economies. Without addressing these weaknesses, the Vision may struggle to achieve its development targets.

One key reform priority is to fully activate Jordan’s special economic zones, investment funds, and industrial cities. While these platforms were created to promote balanced growth, their impact has been limited due to weak links with education, employment, and innovation policies. Repositioning them to focus on high-value sectors could transform them into engines of job creation and entrepreneurship.

Another area needing reform is the financial sector’s role. Banks continue to favor short-term commercial lending over long-term investment in productive sectors. New financing tools are needed to support innovation, sustainability, and green technologies, and to help small businesses grow.

Export performance is another constraint. The Vision rightly highlights exports as key to growth, but many export-oriented firms still struggle with limited access to foreign markets, regulatory barriers, and lack of trade financing. These issues reduce the competitiveness of Jordanian products and hold back the private sector’s expansion.

International examples such as Turkey and Malaysia show how strategic reforms can boost private sector productivity. Turkey expanded exports and improved competitiveness through better governance, university partnerships, and streamlined business processes. Malaysia focused on digital transformation, special economic zones, and innovation, helping reduce unemployment and attract foreign investment.

Most importantly, empowering the private sector has deep social benefits. A stronger business environment means more quality jobs, a larger middle class, and less reliance on public employment. It also strengthens community development and supports youth and women’s participation in the economy.

In summary, reforming the private sector is not only in its own interest — it is essential for achieving the goals of Jordan’s Vision. If structural challenges are left unaddressed, implementation will face delays and outcomes will fall short. The government and private sector must work together as equal partners. This shared effort is the only way to move forward, strengthen economic competitiveness, and build a better future for all Jordanians.