There is no doubt that the government's announcement of a package of industrial opportunities represents an important step that deserves serious consideration, especially in light of the economic challenges that Jordan is facing. The national economy needs quality initiatives that open new horizons for growth, and move us from crisis management to opportunity creation. However, this announcement, important as it is, raises a series of legitimate questions about the reasons for choosing these particular opportunities, and about the actual ability to implement and ensure their sustainability.
A preliminary review of the proposed fields reveals that their selection was not random but based on clear determinants. The first of these determinants is represented in the global supply and demand equation; the fierce competition over semiconductors and drone manufacturing has been escalating for years, and the world needs to double production to meet the increasing demand. From here, it appears that betting on these industries is based on a genuine need in the global markets, not just following passing trends.
Another determinant is linked to the exploitation of natural resources, top of which is natural gas, as the completion of the necessary preparations for its extraction approaches. It seems that the government's direction is aimed at maximizing the added value by expanding into processing industries, such as ammonia and methane gas, rather than settling for a traditional role based on exporting raw materials or using them in a limited way.
The investment opportunities presented also highlight a clear relationship between what Jordan has accumulated in terms of experience and competitive ability in the renewable energy sector. This sector has seen significant development over the past two decades, adopting advanced and effective technology, which gives Jordan a relative advantage that can be built upon. This reality permits space for quality investments, such as establishing global data centers reliant on renewable energy for their sustainability, and justifies the move towards investing in battery manufacturing and development.
In this context, it might be useful to consider the experiences of countries like Ireland and Malaysia, both of which have managed to transition from economies suffering from unemployment and brain drain to more dynamic and diverse economies within just a few decades, through a clear strategic choice based on technological transformation and investment in human resources. In the Irish case, technical education and partnerships with global technology companies were a fundamental lever for integrating the local economy into the high-tech global value chains, which directly reflected on lowering unemployment rates. Malaysia, for its part, adopted a long-term systematic approach in building infrastructure and specialized industrial zones, and attracting electronic industries and advanced technologies, with an active role for the state in planning and direction. Both experiences confirm that success was not dependent on size or wealth, but rather the result of clear vision and focus on specialized industries with high added value.
However, it is impossible to ignore the fact that Jordan is not alone in this race; these sectors are targets for major countries and huge economies that possess massive financial capabilities and infrastructure.
Part of the skepticism regarding the government's ability to implement these projects stems from comparing the size of the Jordanian economy with the economies of major industrial countries, whether in terms of the ability to spend on necessary infrastructure or to direct capital and investment funds towards these projects.
However, a careful reading of the announcement suggests that the bet is not on competing with the giants in size, but rather on excelling in specialization. Instead of entering into broad and costly industries, Jordan can focus on specific and precise parts of value chains, and on agile and specialized industries, such as communication antenna technologies and radio frequency cables, among other fields that can reduce the number of competitors, or even achieve regional uniqueness.
The decisive factor in the success of this vision is the human element. The changes that Western societies are undergoing have made them less attractive to entrepreneurial youth than before, while Jordan possesses a significant stockpile of skills and expertise spread abroad, many of whom are genuinely willing to return if the right environment and serious opportunities are available.
Finally, it is impossible to discuss advanced manufacturing without considering the role of universities; it is not only about graduating cadres capable of operating these industries, but also contributing to their development and innovation through a real partnership with the industrial sector in research and development, within a clear institutional framework led by the government.
These industrial opportunities may be the right moment to move from the phase of slogans to a phase of serious work based on planning, specialization, and investment in human capital. So, can we optimally invest in this moment?
