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'Jordan GCC accession win-win situation'

By Omar Obeidat AMMAN -- Jordan's accession to the Gulf Cooperation Council (GCC) will boost the Kingdom's economy as well as the economies of the six-nation bloc, according to a recent study by the Dubai Chamber of Commerce and Industry .

Existing bilateral trade links and strong investment in the Kingdom by Gulf countries will continue to benefit Jordan's economy, while increased tourism and the free flow of Jordan's skilled and educated workforce will boost GCC economies, the study, e-mailed to The Jordan Times Tuesday, explained.

Most economic experts believe that Jordan's accession to the GCC would enable it to strengthen its economy, improve its trade deficit and boost foreign direct investment from Gulf countries, the chamber's report said, adding Jordan's membership in the economic and political grouping would add potential benefits to the GCC, like its close association with the US and European Union and free trade agreements with major countries.

"Jordan owns the most efficient and low-cost labour force in the region," the study noted, pointing out that the Kingdom has one of the highest literacy rates among Arab countries and it has remained a major supplier of high calibre professionals to Gulf countries.

Around 600,000 Jordanians are working in Gulf nations, according to estimates.

Free movement of labour from Jordan to the GCC countries would increase remittance flows to the Kingdom, the study suggested, elaborating that with the eased visa policies, the number of visitors to both sides may also increase considerably.

The study cited official figures from Jordan, which showed that the number of tourists from Gulf states who visited Jordan last year made up 28.2 per cent of the total number of visitors, predicting these numbers to increase in the coming years.

Representatives from the Jordanian commercial and industrial sectors echoed the same remarks of the Dubai Chamber of Commerce and Industry , saying if Jordan joins the oil-rich countries bloc, this will serve the interests of all parties.

Nael Kabariti, president of the Jordan Chamber of Commerce, said the financial and energy resources in the Gulf with highly qualified labour force in Jordan will "create a strong economic force".

Unified customs duties will ease the flow of goods and people, which will result in doubling the trade exchange in the coming few years, Kabariti emphasised.

Nazzal Armouti, deputy chairman of the Jordan Chamber of Industry, said that Jordan and the GCC have many advantages to offer to each other, particularly in the field of joint investments.

In Jordan, there are many industries in the sectors of pharmaceuticals, information technology, electronics and food manufacturing that reached advanced international levels, indicating investors from the Gulf can see these fields as large investment opportunities.

"In light of regional turmoil, Jordan can be a safe haven for Gulf investments," Armouti stated.

In 2010, bilateral trade between Jordan and the six oil-rich Gulf countries exceeded $5 billion, the study said, citing figures by Jordan's Department of Statistics.

The GCC accounted for 24.2 per cent of Jordan's imports in 2010, while 18.4 per cent of the Kingdom's exports were destined for Gulf states, according to the figures.

© Jordan Times 2011

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