Abstract Jordan does not have the natural resources of its neighbours and has traditionally imported nearly all of its energy and fuel requirements, but under its National Energy Strategy, renewables and nuclear energy are set to transform the kingdom into a net exporter by 2030, despite a rapidly growing population. With energy imports from Saudi Arabia, Iraq and Egypt consuming 20% of GDP in 2008, as the price of oil surged to nearly $150 a barrel, energy security has become even more of a priority in recent months. The government is seeking an investment of $18bn in the sector to 2020, with the most prominent proposals including developing civil nuclear power, oil shale and renewables. The plans aim to take Jordan’s share of electricity generated from internal sources of energy from 4% to 39% by 2020. Electricity is one of most pressing concerns, as demand growth has been more than double that of primary energy in the past two years, with expectations that demand will continue to rise from 2260 MW in 2008 to 6000 MW by 2020. Wind will be one of the major sources of energy and negotiations for the kingdom’s first wind farm are in the final stages. The government aims to generate some 600 MW by 2015 and to double this capacity by 2020. Although much of the emphasis has been placed on renewables, the kingdom is also exploring its own natural resources, including its vast deposits of shale, among the world’s largest. Nuclear power, while a more long-term prospect, also holds substantial potential. The government hopes to ultimately build four nuclear reactors to generate 30% of Jordan’s electricity requirements by 2030, and has signed nuclear cooperation agreements with a number of developed nations to facilitate this, including France and the UK. With all of these projects in the works, the energy sector is one of the strongest prospects for investment in the Jordanian economy. Although challenges remain, most notably securing financing during the downturn and keeping up with the pace of demand, the sector should see major growth in the next two decades.
This year, with Jordan’s top-end property segment saturated, developers are more eager than ever to focus on large, low-cost housing plans, as well as a range of important transport infrastructure projects. The government has long invested heavily in construction and will increase its spending in 2009, in part as a bid to stimulate the economy. The budget calls for $211.2m to be allocated to public works and housing, up from $202.9m in 2008. Demand looks likely to be strong due to demographic and economic factors. Jordan’s population has been growing at an annual rate of 2.2% to 2.6% over the past 10 years and is forecast to grow by 2.3% in both 2009 and 2010, so the need for residential units will remain strong. Additionally, tourist properties and urban infrastructure remain underdeveloped and the Amman Master Plan, which sets out the structure for the capital’s growth as it expands from a population of 2.2m to 6.4m by 2025, seeks to take advantage of the new opportunities. Transport projects, including the extension of the Amman Right Road, a new terminal at the Queen Alia Airport, a new port at Aqaba, the Amman metro and the National Rail project, have all attracted significant interest from investors and are still on track to come on-line in the coming years. Although some of the larger real estate projects remain on hold, they look likely to restart as the economy stabilises, as contractors take advantage of low interest rates and dropping materials prices.
This chapter provides an interview with Ali Kolaghassi, Vice-Chairman and CEO, Saraya Holdings

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