RIYADH: Jordan’s foreign direct investment inflows rose 3.7 percent year on year in the third quarter of 2024, reaching $457.8 million, according to preliminary data from the balance of payments. 

This figure represents 3.2 percent of the nation’s gross domestic product, reflecting sustained investor confidence despite economic headwinds in the region, the Jordan News Agency reported. 

For the first nine months of 2024, total FDI inflows amounted to $1.3 billion, or 3.3 percent of GDP, slightly down from $1.6 billion in the same period of 2023.

However, the 2024 figure surpassed cumulative FDI levels seen in both 2021 and 2022, signaling long-term growth momentum. 

While foreign investment in Jordan has traditionally focused on energy, tourism, real estate, manufacturing, and services, the country launched its Economic Modernization Vision in 2022 to boost growth. The plan targets $60 billion in investments and 1 million jobs over the next decade, with key sectors including ICT, health care, tourism, real estate, mining, and agriculture. 

The latest data showed that Arab nations contributed nearly half of Jordan’s FDI inflows in the first three quarters of 2024, accounting for 49.1 percent. Among these, Gulf Cooperation Council countries led with 31.7 percent. 

EU nations accounted for 11.5 percent, with the Netherlands and France contributing 4.9 percent and 3.5 percent, respectively. 

Non-Arab Asian countries made up 7.2 percent, led by China at 2.5 percent and followed by India at 2.1 percent. The remaining 32.2 percent came from various global regions. 

The financial and insurance sector was the top recipient of FDI, attracting 15.7 percent of total inflows. Manufacturing attracted 7.7 percent, followed by information and communication with 7.5 percent, mining and quarrying at 7.3 percent, and transportation and storage at 7.0 percent. Wholesale and retail trade accounted for 6.1 percent. 

Notably, real estate and land investments by non-Jordanian individuals made up 14.9 percent of total FDI, highlighting the ongoing appeal of Jordan’s property market. 

Jordan’s strong FDI performance reflects its strategic efforts to enhance its investment climate and capitalize on its position as a regional business hub. 

Economic experts projected Jordan’s growth to range between 2.5 percent and 3 percent in 2025, driven by an improved business environment and increased investments, according to the Jordan News Agency report last month. 

This aligns with the country’s average growth rate of 2.5 percent over the past decade, as reported by the World Bank, providing a solid foundation for expansion. 

Recent government measures, such as reducing penalties for unlicensed vehicles and offering tax cuts for electric cars, aim to boost financial and social stability, addressing economic challenges and attracting further investment. 

RIYADH: Saudi energy giant Aramco plans to build an oil refinery in Bangladesh, potentially transforming the sector in the Bay of Bengal, revealed the Kingdom’s Ambassador Essa Al-Duhailan.

During the launch of the report “Enhancing Saudi-Bangladesh Economic Engagement: Trends, Key Challenges and Long-Term Growth Prospects” at the Foreign Ministry in Dhaka, the ambassador emphasized Aramco’s potential investment.

Saudi Arabia, home to the largest Bangladeshi expatriate community, has increasingly engaged with Bangladesh through investment agreements and establishing a joint business council, signaling a deepening economic partnership. 

The proposed refinery aims to address Bangladesh’s growing demand for petroleum products while positioning itself as a regional supplier to markets like China and India. 

“We are talking about Aramco, the biggest oil company in the world. They are willing to come to Bangladesh to build a refinery here,” said Al-Duhailan, according to state-run news agency Bangladesh Sangbad Sangstha.

The ambassador highlighted the transformative potential of establishing a maritime route between Chattogram and Jeddah or Dammam, enhancing trade efficiency and connectivity, BSS reported.

“Our international company, Red Sea Gateway Terminal, is already operating the Patenga terminal and is keen to contribute to the Matarbari deep-sea port,” he added.

Reflecting on past challenges, Al-Duhailan mentioned Aramco’s previous high-profile delegations to Bangladesh from 2016-2018, which did not yield engagement. “But we will not talk about the past. We will talk about the future,” the ambassador said, calling for renewed focus on bilateral cooperation.

The event also spotlighted the broader Saudi-Bangladesh relationship. Al-Duhailan said that ACWA Power, the world’s largest renewable energy company, is exploring a $3.5 billion investment in Bangladesh. 

He added that the South Asian country is a green field for investment while advocating for reforms to streamline bureaucratic processes and combat corruption.

The report detailed pathways to deepen economic ties and outlined opportunities for Bangladesh to boost exports to the Kingdom, expand imports of vital resources, and attract investment in key sectors.

Challenges such as bureaucratic inefficiencies and corruption were also addressed, with strategic recommendations for overcoming these barriers.

The ambassador emphasized the importance of combining political and economic engagement for mutual benefit. “We have unique relations… we have many success stories,” he said, urging both nations to create more collaborative achievements in trade, culture, tourism, and beyond.

The analysis, prepared by the Bangladeshi Foreign Ministry, serves as a roadmap for enhancing bilateral economic engagement, offering valuable insights for policymakers and investors from both nations. It sets the stage for a strengthened partnership poised to unlock new growth opportunities, BSS reported.

In March, Bangladesh secured a $1.4 billion financing deal with the International Islamic Trade Finance Corp., enabling it to strengthen crude oil imports from suppliers like Saudi Aramco. 

The funding bolstered the South Asian nation’s energy security and alleviated pressure on its dollar reserves, underscoring Aramco’s pivotal role in Bangladesh’s energy landscape.

Bangladesh’s government, led by Nobel laureate Muhammad Yunus, has emphasized strengthening ties with Saudi Arabia as a key priority. Following his first meeting with Al-Duhailan in August, Yunus underscored the Kingdom’s role as a vital partner in addressing Bangladesh’s economic challenges.