The Jordanian economy has been experiencing a downward trend since 2011, reflected among others in a negative trade balance, weak business growth and a rising unemployment rate.
Nonetheless, Jordan's private sector provides opportunities for growth, innovation, and employment. Particularly MSMEs often fail to compete with foreign companies, partly due to a lack of qualified personnel, limited access to business development services and rigid legal frameworks. As a result, Jordan’s density of MSMEs is considerably lower than in other higher middle-income countries. Additionally, Jordan's economic growth does not create enough job opportunities. To help tackle these challenges, the projects “Employment-oriented MSME promotion” and “Trade for Employment” aim to support Jordanian’s private sector in accordance with “Jordan 2025 – A National Vision and Strategy” and the “Jordan Economic Growth Plan 2018-2022.”
The GIZ projects “Employment-oriented MSME promotion” (GIZ MSME) and “Trade for Employment (GIZ T4E)” commissioned ICON-INSTITUT GmbH to carry out in-depth analyses of the ICT, tourism, and food processing sectors in Jordan. The sector studies provide a comprehensive understanding of the sectoral structure, current and projected trends, as well as challenges and opportunities for improved competitiveness of MSMEs domestically and abroad. Further, ICON developed a replicable methodology for the analyses of other economic sectors in Jordan, focusing on the role and development potential of MSMEs.