jordan ict sector june 2009

Jordan’s ICT Industry

The Information Technology Association of Jordan - (int@j)

Agenda

Brief about Jordan

Our Region

Jordan’s ICT Sector

Achievements

Opportunities

Jordan

Oasis of stability and tranquility

Leadership with vision

Rich Human Capital

High number ICT graduates yearly

High literacy and enrolment rates (Over 90%)

Commitment to ICT as an engine of growth

Partnerships with leading firms including Cisco and Microsoft

Our Region

Viewed as one market

Over 300 million potential customers

Common language, culture and heritage

Almost 50% under age of 18

Underserved in terms of ICT

Large Jordanian ICT Diaspora

Jordanians are sought after professional workforce in the region

and in the world

High business growth rate due to excess liquidity

Jordan’s ICT Sector

Driven by His Majesty’s vision

Started back in 1999 (REACH Initiative)

5 year National ICT Strategy for a strong industry

Relatively young, yet quite successful

Harnesses our human resources potential

Private sector led with government support

Jordan’s ICT Sector

Fastest growing sector in Jordan's economy (Average 30% growthrate)

Contribution of 10% to 12% to GDP

More than 16000 employee (directly in the ICT firms or in ICTdivisions in firms)

World-class and redundant infrastructure by 2009

Strong business enabling environment

National ICT Strategy 2007-2011

Vision Statement

For Jordan to become a major regional ICTleader and an internationally recognizedexporter of ICT products & services,capitalizing on its core human capitaladvantage

Strategic goals

1. Internet penetration from 11% to 50%2. Sector’s revenues from $1.7b to $3b3. Sector’s employment to 35k

Strategic Pillars

Co

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Reg

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High-level milestones

50% internet Penetration

Competitive fixed-line broadband

Competitive wireless broadband

Affordable internet & access to PCs

Interest & capability to use Internet

Increased demand through e-Gov & e-Commerce

$3b Revenues

Leverage high mobile phone penetration

Outsourcing destination for contact centers

Focus on development of niche IT solutions

Increase R&D spending

Increase capacity in ICT firms

Improve the business climate

Promote importance of IT to businesses

35k Jobs

Ability of universities to supply ICT

graduates with needed skills

Improve Jordan’s ability to attract ICT

investments and skilled ICT

professionals to return to Jordan

Jordan’s IT Exports

Complete Software Development

Quality Control Testing

IT Training, Application Support Services

Interactive Media and animation

Graphic and Web Design

Majority to the Gulf region

10% to the United States, 20% to KSA, 10% to UAE

0

100

200

300

400

500

600

700

2000 2007 2011

Exports (M$)

Achievements

Achievements

New laws enacted

– Labor, Telecom, Private Shareholding, IP, e-Transactions, Investment

Telecom sector liberalized

– Two major international gateways

– Reliable Fixed Line Infrastructure

– Competitive Mobile Market

– Advanced ISP Market

– Licensed WiMAX Operators

Independent Telecom Regulator - TRC

Achievements

Private and public sector partnership

National Broadband Network

Focus on Human Capital

National Prioritization of ICT as a growth engine

Sustainable ICT Sector growth

Graduates Internship Program Subsidies

Achievements & Targets

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000 2007 2011

ICT Employment

0

500000

1000000

1500000

2000000

2500000

3000000

2000 2007 2011

ICT Revenues ($M)

05

101520253035404550

2000 2007 2011

Internet Penetration (%)

Sector Revenue - 2007

Non Value Added

357,850,49352%

HW ProvisionOff the Shelf SW re-Sale

ISPs Business

Value Added 328,212,570

48%SW

DevelopmentTelecom Services

ICT Prof …Domestic USD 686m

Non Value Added

28,512,23414%

HW ProvisionOff the Shelf SW Re-Sale

ISPs Business

Value Added168,395,458

86%SW

DevelopmentTelecom Services

ICT Prof …

Exports USD 197m

Opportunities

Opportunities

E Learning:

Jordan Education Initiative

ICT as a tool in education reform

Local firms delivering world-class products

– ITG - EduWave Platform, World Summit Award Winner

– Rubicon, Math Curricula with Cisco

– Menhaj, IT Curricula with Microsoft

Model that can be replicated

Opportunities

Telecommunications:

Liberalized Telecom Sector

– Liberalized mobile telephone subsector

– Liberalized fixed line subsector

Independent regulator – TRC

Licensed WiMAX Infrastructure

7.5 million mobile phone subscribers

Opportunities

Business Process Outsourcing:

9th globally in AT. Kearny Global Services Location Index (2009)

Availability of necessary ingredients

– Manpower and human talent

– The “right” Arabic and English dialect

– An alternative destination

– The right telecom infrastructure

– The investment climate

– The political and economic stability

Opportunities

Available Intellectual Property (IP):

Built substantial IP

Successful in penetrating US Market

Outsourced work to major industry leaders

Companies with strong record and potential to become industryleaders

Perfect partnership opportunity

Opportunities

Jordanian Diaspora

Linkage with Jordanians abroad

Create demand for Jordanian ICT services and products

Increase Jordanian exports

Promote Investments in Jordan

Opportunities

Regional Gateway:

Arab World as one country

Common language and culture

Two thirds of our exports go to Gulf region

Lucrative and virgin market

Jordanians reputation is soaring

Opportunities

Access to International and Bi-lateral Agreements:

Jordan acceded to the World Trade Organization (WTO) in April2000

The fourth country to sign the Free Trade Area Agreement with theUnited States.

The European Partnership Agreement

Several bilateral free trade agreements with a host of Arabcountries

Opportunities

Internet Business

Content in the region is served through Jordanian content engines(Maktoop, Jeeran, D1G)

Neutral Arabic speaking community

Very close to the region culturally and politically

Opportunities

Associations and Business Councils:

Match making for companies in the two countries

Cross representation between associations and companies

Market intelligence and identifying opportunities

Trade missions and technology promotion

Investment facilitation and consultation

Thank You