Market Trends of Jordan ICT Industry
Consistent Digital Transformation Initiatives are Driving the Market
- Jordan, despite its modest size in the Middle East, is actively advancing its digital agenda. In 2021, it unveiled the National Digital Transformation Strategy & Implementation Plan for 2021-2025. This strategic blueprint aims to bolster the digital economy through enhanced procedures and capabilities, paving the way for a cutting-edge digital infrastructure and elevated government service standards.
- Robust software solutions are crucial for ensuring e-government efficiency and creating synergy among government departments and institutions. Jordan has made significant progress in its digital transformation, with 960 government services digitized and automated, achieving a 40% completion rate.
- The International Trade Administration estimates that 98% of ICT companies in Jordan fall under the category of small and medium-sized enterprises (SMEs). Such significant development of SMEs in the country demands cloud-based solutions to scale their IT infrastructure.
- The government is actively involved in strengthening the country's digital strategy by making significant investments. In September 2023, Jordan Source, a program under the Ministry of Digital Economy and Entrepreneurship, unveiled its pioneering digital publication, JoSourceIT. This publication offers a comprehensive view of Jordan's tech landscape, spotlighting Jordan Source's partners in ITO, BPO, and gaming. It serves as a valuable resource for industry stakeholders and potential investors, providing insights into the nation's ICT sector.
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IT and Telecom Sector is Expected to Increase Demand
- As businesses and individuals increasingly embrace digital strategies, data generation in the country has surged. Consequently, the nation is ramping up investments in data center facilities to handle this complexity.
- The Ministry is leading the development of a digital infrastructure that meets international standards. This initiative includes establishing data centers and launching a private cloud computing platform. The platform provides government institutions with essential cloud-based solutions, enabling a smooth digital transition. The Digital Economy and Entrepreneurship planned to activate 1 million digital identities in 2023.
- Telecommunication operators in the country are currently investing in 5G infrastructure as part of the ongoing commercial launch of 5G in Jordan. Players are investing in Jordan's market to expand the country's network capabilities.
- In September 2023, Orange Jordan and Aqaba Container Terminal (ACT) made a significant move in Jordan and the region by signing an agreement to establish a private mobile network for ACT using 5G technology. This collaboration positions Orange Jordan as the first communications provider in the country and the broader Middle East and Africa region within the Orange Group to establish a private 5G network for business sector customers.
- According to Ericsson, the number of smartphone subscriptions in the Middle East and North Africa has increased from 490.47 million in 2020 to 597.44 million in 2023. The rising smartphone penetration in the MENA region, including Jordan, is driving the demand for a wide range of ICT solutions, such as mobile network infrastructure and e-commerce platforms, among others.
- Furthermore, the nation is expected to gain significant growth in 5G networks. According to GSMA, in 2022, 4G connections dominated the mobile landscape in the Middle East and North African (MENA) region, comprising 48% of all connections. Projections suggest that by 2030, 4G connections are set to decline to 33%, making way for 5G with 47% of the connections in the region. Such a rising trend for 5G across the MENA region is expected to boost 5G infrastructure across Jordan as well, creating various opportunities for ICT solution providers.
