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    02-Jun-2025

Enhancing Jordan’s economic vision: The case for smart integration - By Hamad Kasasbeh, The Jordan Times

 

 

In 2022, the government launched its Economic Modernisation Vision with the aim of doubling GDP, creating one million jobs, and attracting JD41 billion in investments by 2033. While ambitious and clearly structured, the rapid global shift toward digital economies and artificial intelligence (AI) requires a comprehensive revision of the vision’s implementation tools. Smart technology is no longer optional, it is a strategic necessity.

 
Integrating AI and digital tools into the national strategy can accelerate implementation, lower costs, and deliver higher-quality results. For example, digitising government services helps reduce delays, cut bureaucracy and improve transparency, making Jordan a more attractive destination for investment, especially in technology-driven sectors.
 
AI also enhances resource allocation, economic forecasting, and financial planning. International experiences have shown that adopting AI can reduce operational costs by up to 20 per cent and increase GDP growth by 1 to 1.5 percentage points annually. In this way, development becomes not just faster, but smarter.
 
Beyond the economy, smart transformation brings social and institutional benefits. Smart agriculture improves productivity and resource efficiency. Digital healthcare improves quality and accessibility. Virtual education empowers youth, particularly in underserved areas. Most importantly, the digital economy opens new job markets, reduces unemployment and supports tech entrepreneurship, especially among women and young professionals.
 
AI also strengthens governance by reducing human intervention and enhancing institutional oversight, supporting Jordan’s broader public sector reform agenda.
 
Of course, challenges remain, such as gaps in infrastructure, limited digital skills, and weak data systems. Yet these are solvable through strategic investment, public-private partnerships, and national upskilling programmes.
 
While the Vision recognises the importance of digital transformation, it has yet to adopt a fully smart framework. Technology is still treated as a supportive tool rather than a core driver. This presents an opportunity to embrace a comprehensive smart strategy that fully integrates AI, automation, and data systems during the remaining period of the Vision through 2033.
 
Global experience shows that smart integration not only improves efficiency but also boosts economic growth. Countries such as South Korea, Estonia, and Singapore reported additional annual GDP growth ranging between 1 per cent and 2 per cent during periods of full digital transformation, according to the OECD and the World Economic Forum. This reinforces the idea that smart technologies are not merely supportive tools, but core enablers of development.
 
In Jordan’s case, reaching growth rates similar to advanced economies may take more time due to infrastructure and capacity gaps. However, World Bank estimates suggest that emerging markets can achieve an additional 0.5 per cent to 1 per cent annual GDP growth through well-implemented smart strategies, offering a realistic and impactful path for Jordan’s economic development.
 
Importantly, integrating smart tools into the Vision does not necessarily require major additional spending. Many smart solutions, if strategically deployed, can be implemented within existing budgets and may even reduce long-term public expenditures through improved efficiency and resource targeting.
 
Smart transformation is also expected to help reduce the trade deficit by boosting digital exports and lowering reliance on costly imports, while attracting foreign investment, especially in tech and knowledge sectors. Countries like India and Estonia have shown how smart ecosystems can improve trade balances and increase FDI inflows effectively. Smart transformation is expected to significantly reduce unemployment in Jordan. Inspired by global experiences, such as Vietnam and India, investing in digital sectors and AI can create thousands of quality jobs, especially for youth and women, helping bring the unemployment rate in Jordan below 13 per cent by 2032.
 
In conclusion, smart transformation is not a replacement for the Vision or the ICT agenda; it is a complementary and enabling phase. It aligns technology with policy, accelerates impact, and improves national outcomes. In a world rapidly embracing AI, Jordan must act decisively. The Vision is already in place, what remains is to equip it with the smart tools to make it real and sustainable.
 

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