Let us all remember that Jordan’s resilience, stability and international presence are not by coincidence. They are rather the fruits of decades of hard work and sacrifices based on the values of moderation, openness, respect for humanity and a genuine conviction among Jordanians that they are stakeholders in this endeavour. His Majesty King Abdullah II 10 August 2014

JORDAN Challenges & Opportunities

Contents Jordan: Seeking Peace & Prosperity Regional Political Dynamics Working for Peace Final Status Issues Jerusalem Extremism & Sectarian Conflict Jordan: A Safe Haven Impact of the Humanitarian Crisis on Jordan Global Responsibilities Jordan’s Humanitarian Outreach Inter-Faith & Intra-Faith Initiatives Evolutionary Reform Role of the Monarchy in Jordan's Democracy Domestic Reform Path Major Political Reform Milestones Advancing Jordan’s Reform Model Economic Opportunities Economic Climate Ten-Year Blueprint Public-Private Partnership Hub for Business Destination for Innovation A World of Wonders Information & Contacts

Cover photo by Bashar Alaeddin

November 2014

mediterranean sea

israel

Following his ascension to the Throne in 1999, His Majesty King Abdullah II continued in the footsteps of his father, His Majesty the late King Hussein, in democratisation, pluralism and providing a regional model of development and prosperity.

YOUNG

COMMITTED

TOLERANT

More than 60% of Jordanians are below the age of 30

More than 20% of GDP invested in education

Heartland of Islam and Christianity, Jordan is a land of faith and fellowship

JERUSALEM

irbid jerash

mafraq az zarqa

amman madaba

palestine

azraq

dead sea

gaza strip

bair al jafr

petra

maan

egypt

ras an naqb aqaba

gulf of aqaba

red sea

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iraq

sea of galilee

Located in the heart of a turbulent region, the Hashemite Kingdom of Jordan is stable, secure and remains focused on improving the quality of life for its people.

As a result of its ongoing political and economic reform efforts, Jordan has significantly enhanced the well-being of its people by maintaining its traditions and values and continuously building its infrastructure, human capital and economy.

syria

golan heights

wadi rum

al mudawwarah

saudi arabia

Regional Political Dynamics

lebanon

jordan river

JORDAN: SEEKING PEACE & PROSPERITY

Working for Peace If we succeed in resolving the core conflict of the Middle East, we will strike at one of the main roots of violence and instability in the Middle East.

Jordan is working with all international partners, especially the United States and the European Union, to address the region’s central crisis and single greatest driver of regional division, extremism and instability—the Palestinian-Israeli conflict.

King Abdullah II of Jordan

Our Last Best Chance: The Pursuit of Peace in a Time of Peril (Vicking, 2011)

Final Status Issues

Jordan considers a resolution to this conflict a higher national security interest, which also serves the interests of the region and the wider international community. As a key regional and international actor, Jordan will exhaust all options to keep the Palestinian cause alive and on the international agenda, including using its global leverage as a member representing the Arab-Pacific bloc on the United Nations Security Council. A just and lasting resolution to the conflict is one which allows a two-state solution that meets the needs of both sides: a sovereign, independent and viable Palestine, and security and acceptance for Israel. This is the core of all major international proposals, including the Arab Peace Initiative, which has been on the table for over a decade now and promises to bring Israel peace, not only with the Palestinians, but with Arab and Muslim countries as well. As one of only two Arab states with a peace treaty with Israel, Jordan knows all too well that with international commitment, and enough goodwill on all sides, peace can be within reach.

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Negotiations must succeed, before the window for the two-state solution closes, and with it the solution to the final status of all four key issues that affect Jordan:

Borders Jerusalem Refugees Water Regional events should not divert us from our collective responsibility to resolve this conflict as a flashpoint for global instability.

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Jerusalem As a direct descendant of the Prophet Mohammad (blessings and peace be upon him), one of the greatest responsibilities of the Hashemite King of Jordan is to preserve the Arab identity of Jerusalem and protect its Muslim and Christian Holy Sites. Hashemite Custodianship over Jerusalem’s Holy Sites is an established fact since 1924, and includes safeguarding Al Aqsa Mosque, the third holiest site to 1.7 billion Muslims—one quarter of the world’s population. Following the United Nations Assembly vote granting Palestine

General

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non-member observer status in 2013, His Majesty King Abdullah II and Palestinian President Mahmoud Abbas signed a historic agreement, known as the Holy Sites Agreement, reaffirming that His Majesty King Abdullah II is the Custodian of the Holy Sites in Jerusalem, and has full right to exert all legal efforts to safeguard and preserve them. According to the 1994 Jordan-Israel Peace Treaty, “Israel respects the present special role of the Hashemite Kingdom of Jordan in Muslim Holy shrines in Jerusalem”.

Let me be absolutely clear, any invasion or division of the site of Al Masjid Al Aqsa would be viewed, not only as a breach of Israel’s obligations, but as profound religious transgression. The international community must send a clear message that such a transgression —or any attempt to erase the Arab, Muslim, or Christian identity of Jerusalem—will not be tolerated. His Majesty King Abdullah II Address to the UN General Assembly, 2012

Extremism & Sectarian Conflict The security situation in the region is heightened. The current alarming course cannot continue. It must be addressed comprehensively for the sake of this and future generations. The fact that the Syrian crisis has continued unresolved has led to a spillover into Iraq, exemplified in the rise of extremist movements; namely, Islamic State of Iraq and the Levant (ISIL), an organisation inflicting horrendous violence and suffering in violation of the core principles of Islam and humanity. Working towards a solution, Jordan denounces the distorted religious ideology used by these groups, and calls for inclusive political solution to the crises in Iraq and Syria that provide peace and security to their citizens. Concerted and comprehensive efforts are required to bring peace and stability to the region as a whole.

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In

Hasakeh Aleppo Hama Homs

Syria, international attention

all Iraqi government efforts towards implementing inclusive just policies that involve all its communities. Jordan also stands by to support the government in combating terrorism, extremism and sectarianism that threatens the unity of Iraq, its land and its people.

Mosul Erbil

Syria

Lebanon

needs to be geared towards a political solution that ends the suffering of the Syrian people, in addition to focusing efforts on combating terrorism and extremism. Both courses must be pursued equally and in parallel.

In Iraq, Jordan continues to support

Deir el Zour

Israel

Damascus

Iraq

Palestine Egypt

Jordan Saudi Arabia

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Baghdad

Impact of the Humanitarian Crisis on Jordan

Jordan: A Safe Haven Jordanians have always opened their arms to neighbours in times of distress, including Palestinians, Iraqis and Syrians. However, the pressure on the country is mounting and exhausting its capabilities and resources. The rapid influx of around 1.3 million Syrians in Jordan, approximately a 20% increase in Jordan’s population, is placing an enormous burden on Jordan’s public resources, particularly education, healthcare, water and energy.

The Zaatari refugee camp, which houses about 80,000 Syrians, is now the world’s second largest. In May 2014, the UNHCR opened a new camp in Azraq, with capacity for 130,000 refugees, adding new strain on Jordan’s limited resources. Among the Syrian refugees in Jordan, most are women and children.

85% of Syrian refugees live within local Jordanian communities, beyond the direct reach of UN and other donor assistance

The Syrian crisis’ impact on Jordan has manifested in several different but interrelated ways, all of which have had the greatest impact on the poorest communities of Jordan’s population. Water

Jordan is now the 2nd water-poorest country on earth, and this valuable resource is being drained at a much faster rate, as Syrian refugees increased the demand on water by an average of 21% throughout Jordan and up to 40% in northern governorates

Health

Hospitals and clinics are stretched to the limit; some medicines are running short; long-eradicated diseases are reappearing

Housing

Rents have skyrocketed due to demand for housing from Syrian refugees; in some areas rent has increased by over 300%

Education

Over 127,000 Syrian students are currently enrolled in Jordanian public schools and refugee camp schools for the 2014/15 term; and approximately 30,000 are on the enrollment waiting list

Security

The huge influx of refugees has created new social tensions in Zaatari and in host Jordanian communities; a new underground economy is on the rise

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Global Responsibilities While Jordan appreciates the international assistance it receives to address the Syrian refugee crisis, so far this year it has only covered 28% of the actual costs. The economic cost of hosting Syrian refugees in Jordan in 2014 will be around US $1.27 billion, according to government of Jordan estimates. The cost of humanitarian needs is estimated at $1.01 billion, according to UNHCR. More tangible support is urgently needed now to enhance Jordan’s resilience and

Humanitarian Outreach

maintain its position as a safe haven in the face of extremism. No country can deal with such huge numbers on its own; let alone one with limited natural resources and strained infrastructure. Donor fatigue is clearly evident, but the increasing suffering of the refugees and their impact on Jordan require that the global community act immediately so that those fleeing oppression can find hope, dignity and shelter.

Jordan is a leader in peace and security efforts at both regional and international levels. Despite its small size and limited resources, a significant portion of Jordan’s military personnel participate in UN peacekeeping operations, demonstrating the country’s global commitment to peace and stability. Jordan has also dispatched field hospitals to conflict zones and areas affected by natural disasters, extending aid to millions around

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the world, including Iraq, the West Bank, Gaza, Lebanon, Egypt, Afghanistan, Haiti, Indonesia, Congo, Liberia, Ethiopia, Sierra Leone and Pakistan. Meanwhile, the Jordan Hashemite Charity Organisation (JHCO) provides direct humanitarian aid to affected countries during and after conflict and natural disasters. Since its establishment in 1990, JHCO has managed to provide aid to people in need in more than 34 countries around the world.

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Inter-Faith and Intra-Faith Initiatives Amman Message

Articulating Islam’s call for tolerance and justice, and exposing the false claims of those who exploit religion, this initiative has gained the broad consensus of Muslim scholars and leaders.

2004

Land of Faith, Land of Fellowship Founded on the values of tolerance, moderation and pluralism, and drawing from its long, rich history of respect and harmony amongst various ethnic and religious groups, Jordan plays a leading role in global inter-faith and intra-faith initiatives.

We are proud that Jordan constitutes a unique model of coexistence and fraternity between Muslims and Christians. We also believe that the protection of the rights of Christians is a duty rather than a favour. Arab Christians have played a key role in building Arab societies, and defending the just causes of our nation.

Jordan recognises the need to reverse the sectarian nature of conflicts and religious tensions in the region and has organised historic conferences based on sustained dialogue within and between religions.

A Common Word

Addressed to leaders of the Christian faith everywhere, A Common Word calls for peace and harmony between Muslims and Christians and is endorsed by a growing list of Muslim and Christian scholars.

2007

Catholic-Muslim Forums

Building on A Common Word, these forums reflect and amplify two great principles and commandments of Islam and Christianity — to love God and love one’s neighbour.

2008 & 2011

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Remarks by His Majesty King Abdullah II "The Challenges Facing Arab Christians" Conference Amman, Jordan 3 September 2013

World Interfaith Harmony Week

Spearheaded by His Majesty King Abdullah II and unanimously adopted by the United Nations General Assembly, World Interfaith Harmony Week aims to promote respect and understanding amongst people of all faiths.

2010

The Challenges Facing Arab Christians

Royal Aal Al-Bayt Conference

2013

2013

This conference discussed threats to the historical identity of Jerusalem’s Muslim and Christian holy sites and affirmed Arab Christians’ essential role in their societies.

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This conference condemned incitement of sectarian Sunni-Shite conflict (fitna), stressed freedom of opinion and faith and affirmed sanctity of human life.

His Majesty King Abdullah II March 2014

Evolutionary Reform

Jordan has made and continues to make significant strides in the reform process, even under difficult and stressful economic and financial conditions. We will not allow economic or regional challenges to be used as excuses to halt the process of reform, which we, hand-in-hand with the people of Jordan, will translate into democratic achievements, one after another.

Role of the Monarchy in Jordan's Democracy The monarchy that my son will inherit will be different from the one i inherited. His Majesty King Abdullah II September 2011

Jordan’s Monarchy has always been a Constitutional Monarchy and the development of its role is a key part of the country’s political evolution.

while the minority serves as a shadow government and the Monarchy retains its role as a unifying institution and guarantor of freedoms and pluralism.

The Monarchy's role in political affairs, such as the formation of governments, will continue to evolve in tandem with the maturing of a party-based parliamentary system. Jordan is moving towards realising a stage in which a majority coalition of parties in Parliament forms a government,

The success of this evolution demands that all stakeholders in the reform process rise to the challenge and achieve the necessary levels of political maturity, participate in decision making through their representatives and through embracing “Active Citizenship”.

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Major Political Reform Milestones In the 2013 Legislative Elections a record number of candidates competed. The

number of women candidates was also a record. Voter registration reached 71%, while voter turnout topped 56.7%, one of the highest in Jordan’s history.

Domestic Reform Path

The Independent Election Commission administered the legislative elections

Jordan’s political life is dynamic, yet it has not leapt into the unknown. It has chosen a “Third Way”, which is a gradual, home-grown, institutionalised approach to democratisation that aims not only to build democracy, but preserve it too. It is based on four interconnected tracks:

Since the legislative elections, a new consultative mechanism for designating prime ministers was established, continues to evolve and is now based

Decentralising decision making and widening citizens’ participation through a “White Revolution” in government performance, leading to a full-fledged parliamentary government system Building new and enhancing existing democratic institutions such as the Independent

Election Commission, Constitutional Court and National Center for Human Rights

Ensuring a system of checks and balances through constitutional amendments, Parliament and a strengthened Judiciary

an

empowered

Continuously reforming key political laws through every elections cycle to guarantee pluralism, transparency and a level playing field for all stakeholders

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and monitored the municipal elections, winning admiration in Jordan and internationally for its role in ensuring clean and transparent electoral processes.

on the highest number of nominations by parliamentary blocs and independent MPs. In addition, one third of the Constitution was revised.

Advancing Jordan’s Reform Model As part of efforts to foster open and inclusive national dialogue on Jordan’s reform,

His Majesty King Abdullah II has published a series of discussion papers. The Royal Committee for Enhancing the National Integrity System aims to strengthen

preventative measures against corruption through enabled institutions, transparency and oversight.

The House of Representatives successfully updated its bylaws,

institutionalising party-based parliamentary blocs. More Jordanians are embracing the spirit of active citizenship through participation in local and national initiatives like Demoqrati, a youth empowerment and democratisation initiative under the King Abdullah II Fund for Development. The number of Jordan's civil society organisations have doubled over the last five years reaching over 6,300, a positive sign of civil vibrancy.

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Economic Opportunities

Securing the prosperity of my people and that of future generations is my top priority. His Majesty King Abdullah II 10 August 2014

AL Abdali Project, Amman

Ten-Year Economic Blueprint The Government of Jordan is currently in the process of developing a 10-year blueprint that will address vulnerabilities in the economy and lay the foundations for generations to come. The blueprint, which will be launched by the beginning of 2015, seeks to achieve a prosperous, resilient, inclusive economy with equality for all, driven by collective action from our private sector, civil society institutions and government.

Economic Climate An open economy with extensive trade and global financial linkages, Jordan has remained an oasis of stability and a gateway to the MENA region. Sound macroeconomic management and sustained structural reform of the past decade — together with Jordan’s young, highly qualified and competitive workforce, supported by world-class infrastructure and its strategic location — have positioned Jordan as a distinctive destination for investments and businesses despite regional turbulence. The IMF just recently forecasted Jordan’s economy to show second strongest growth in 2014 out of all oil-importing MENA countries, while Jordan’s global competitiveness rank improved by 4 places compared to last year. Today, Jordan is ready for doing business more than any time before. Competitive Workforce

World-class Infrastructure

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Public-Private Partnership Jordan has become a regional model for successful Public-Private Partnerships. Jordan is home to Queen Alia International Airport, one of the best 40 PPP projects in emerging markets, according the International Finance Corporation. PPP also enabled the recent successful completion of Aqaba's terminal berth expansion project, which doubled the capacity of the port, transforming it into a key water gateway and logistical hub for the region. Twelve solar projects utilising a PPP model are underway as well as an 117MW wind farm, the first of its kind in the region, which will reduce power generation costs by 25%. These efforts have been combined with new legislation aimed at enhancing the business environment; a new PPP law has just been put forward by the Cabinet, and a new investment law is underway.

Strategic Location

Gulf of Aqaba

Hub for Business Jordan serves global companies as a manufacturing base and outsourcing center, an assembly and logistical gateway, a back office and consulting hub for firms wanting to access the MENA region and especially the GCC region, while its free zones and business parks offer investors unique incentives and services to encourage business growth. Trade relations have been nurtured through multiple free trade agreements, providing Jordan with access to over 350 million customers regionally and over one billion customers worldwide. Key Memberships and Agreements Member of the Greater Arab Free Trade Area (GAFTA) Association agreement with the European Union

Destination for Innovation In just over one decade, Jordan’s ICT sector grew into the third largest contributor to its GDP (12% of the total). Tech exports increased 8 fold and a mature ecosystem with supporting institutions across the entire lifecycle of a company was established. Today,Jordan is home to more than 600 tech companies and 300 startups, employing 6% of the labor force. Amman is also the leading location for Arabic content on the internet as it creates and manages 75% of all Arabic

language internet content from the region, despite accounting for only

2% of the region’s population.

Described by global media and ICT giants as the Arab Silicon Valley, Amman was ranked in 2012 as the world’s 10th best

place to launch a tech start-up and the first in the Middle East in number of technology deals funded in 2011 and 2012. ICT success capitalises on Jordan’s enabling ecosystem including its young, tech-savvy population, liberal and progressive social and political environment and bold education reform, all providing fertile ground for creativity, innovation and entrepreneurship. As the number one education system in the region, Jordan has the highest ratio of bilingual (Arabic-English) workers in the world, graduates the highest

percentage of engineers in the MENA region and has successfully wired 86% of its schools to the net. This is coupled with a progressive regulatory environment, strong IP protections and aggressive infrastructure investments.

Free trade agreement with the United States Member of the World Trade Organization (WTO) Free trade agreements with the European Free Trade Association (EFTA) countries, Singapore and Canada “Advanced Status” European Neighbourhood Policy (ENP)

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A World of Wonders Home to Petra, one of the new Seven Wonders of the World, as well as the Dead Sea, Jerash, Wadi Rum, and other spectacular treasures, Jordan has taken advantage of its stability and safety credentials and unique sites and heritage, as well as the rise in global tourism, to register a 10.5% year-on-year increase in tourism revenues for the past two years. In Aqaba alone, tourism development projects, estimated at over US $3 billion are underway, adding to the luster of this Red

Wadi Rum

Sea resort with its pristine coral reef. The World Bank ranked Jordan first in the region and fifth globally as a medical tourism destination. This is attributed to the excellent reputation of Jordan’s medical services. Amongst the many reasons for investors to tap into Jordan’s tourism potential: Jordanians’ reputation as one of the most welcoming, hospitable, open and generous people in the world.

Jordan has a haunting beauty and a sense of timelessness. Dotted with the ruins of empires once great, it is the last resort of yesterday in the world of tomorrow. I love every inch of it.

Amman Citadel

Information & Contacts

His Majesty the late King Hussein

Petra