The Fourth Jordan ICT Forum concluded last month with calls for increased government support, more funding and increased awareness of the sector to help create jobs and contribute to a knowledge-based economy. Oula Farawati and Nina Robertson report from the event.
The two-day ICT Forum, which witnessed attendance by high-caliber, young technology experts and entrepreneurs, showcased Jordan's information and communications technology (ICT) sector's growing contribution to a limping economy, with the IT sector's exports reaching over $162 million during 2005, up from $40 million during 2002.
"Jordan is unique, special in many ways, particularly in the way it uses ICT," Corporate Vice President of Microsoft's Worldwide Public Sector, Gerri Elliot said.
Several significant factors, Ms. Elliot added, stand behind Jordan's success in the ICT sector: "First, a bold and ambitious course set for the country by the monarch. Second, the tremendous and consistent ambitious commitment and finally, simple execution and Jordanian know-how to execute projects."
She warned, however, that the "global economy does not wait for anyone," and subsequently, Jordan needs to work urgently to become "the technological breadbasket of the Middle East."
The ICT sector has taken on an important dimension in the Jordanian economy. The sector is growing by 50% annually, the income it generates represents roughly 10% of GDP and it employs more than 6,000 people.
ICT has also benefited from the government's push to support its development, through easing investment requirements in the industry, enhancing education in information technology and, most importantly, from the point of view of overseas ICT firms, passing legislation to protect intellectual property rights.
Since 1999, with the prompting of His Majesty King Abdullah, the government initiated a campaign to energize the ICT sector in Jordan. Within this period, revenue has jumped from $60 million to more than $500 million, and the Information Technology Association, Int@j, estimates that foreign direct investments in the Jordanian IT sector during 2005 stood at $93 million, up from $68 million in 2002.
CEO of networking giant 3Com, Edgar Masri, said that with the right ingredients, Jordan can be the beacon of ICT in the Middle East. "The excitement and the drive that Jordan is showing for ICT is giving Jordan a leading role in the Middle East," he added.
However, entrepreneurs in the sector said they were often hampered by the lack of funding at a time when Jordan and the region are enjoying relatively high financial liquidity. The petrodollars generated in the Gulf are being geared towards low risk and quick return investments in real estate. "The level of creativity required to create IT giants needs venture capitalists that accept risk," Mahmoud Khasawneh, founder and CEO of Quirkat, an interactive entertainment solution company, told Jordan Business on the sidelines of the event, held at the King Hussein Convention Centre.
Founder and CEO of leading content provider Info2cell, Bashar Dahabreh, concurred: "There are huge returns to investments in the IT sector, but most of the investment is oriented towards real estate, especially that it is an area that is conventionally less complex and requires less knowledge. An investor just buys the land, develops it and sells it, but the rewards are never anything like investing in something as sophisticated and rewarding as IT." Mr. Dahabreh's company was wholly acquired by Italian content provider Acotel in 2003.
Penetration saga
A major issue of concern during the event was the low Internet penetration in Jordan, and the Arab world in general. Government figures show that only around 10% of Jordanians have access to the Internet. The importance of e-government and other initiatives, like e-education, were stressed. Such schemes would help to increase access to and the availability of the Internet, even reaching more remote areas. Bashar Arafeh, chief commercial officer at mobile service provider Fastlink, said there was an urgent need for investment in the sector and particularly in making the Internet accessible to more people. As an example of a successful way to increase penetration, he cited the time when international mobile service providers gave out millions of free cell phones to new subscribers. This move resulted in unprecedented highs of mobile penetration. The rate in Jordan is about 75% of the population. At the community level, the Kingdom is working to expand a network of information access centers, mainly based in poorer regions, to allow Jordanians to acquire ICT skills. Known as Knowledge Stations, the initiative was launched in 2003, and aims at allowing communities to be able to use ICT in their daily lives as well as to link them into the government electronic information system. The initial pilot stations proved so successful that more than 75 centers have been established.
ICT opportunities in healthcare
Evidence of the impact of ICT on health and healthcare, as well as the wider implications of relevant future technological developments, were highlighted on the first day of the forum.
Speakers from around the world emphasized the benefits that ICT can bring to the provision of healthcare, from cutting-edge applications to healthcare delivery services.
They also stressed the importance and benefits of the use of Electronic Health Records (EHR), longitudinal electronic records of patients, in hospitals, which have proven to greatly improve the quality of care. There was a call for universal use of EHR; however, it was pointed out that for solo or small group practices more government support would be needed. The Middle East extensively uses ICT in healthcare, but the practice of remote healthcare services, experts at the forum said, lag behind the theory. In the context of an ageing society, e-health applications can reduce costs, deliver healthcare services remotely and increase efficiency. e-health can also help prevent diseases and promote healthier lifestyles.
Jordan boasts one of the region's best healthcare services, and is a leader in cardiology screening and treatment. The country has 22.4 physicians, 12.6 pharmacists and 32.5 nurses of all categories per 10,000 patients, and 7.3 dentists per 1,000 patients, experts added. These numbers correspond with a high number of hospital beds and a high performance of local pharmaceutical industries.
Optimiza launched
During the forum, public shareholding company Al-Faris National Investment unveiled its new vision and brand, Optimiza. The company, whose capital was raised from JD10 million to JD25 million, specializes in management consulting, IT services and outsourcing solutions.
Microsoft also announced during the forum the Unlimited Potential Grant awards in the Middle East and North Africa (MENA) region. The awards, which span 30 projects, are worth $2.1 million in cash and more than $2.5 million in software, specialized curricula, and other forms of partnership and support.
In addition, Her Majesty Queen Rania patronized the launch of the Microsoft Innovative Teachers Network (ITN), with Jordan being the second country in the region after Egypt to host a fully Arabized online community for innovative teachers. According to a Microsoft statement, ITN program's "commitment to education and employability allows Microsoft to work in partnership with educators, policymakers and the academic community worldwide, to expand opportunities for students and educators and to encourage the development of a skilled workforce. ITN is also committed to driving the innovation of students studying the sciences today as they are the technology leaders of tomorrow. Microsoft's commitment is focused on fostering innovation, enabling student success in technology and encouraging creativity and entrepreneurialism."
New targets
Int@j chairman Mustafa Naserddine announced new targets the non-profit society has set for the ICT industry, to be reached by 2011. During a speech at the conference opening ceremony, attended by His Majesty King Abdullah, Her Majesty Queen Rania and senior government officials, Mr. Naserddine said that by 2011, Jordan's ICT industry is forecast to reach a 50% Internet penetration, employ 35,000 people, and achieve $3 billion in revenues.
These ambitious targets, many participants noted, will only come with the right marketing of Jordan as ICT investment friendly and after dedicated and serious work to make IT accessible to a larger strata of the society.
Jordan Business 2007
