Market Research in Jordan

What Is Market Research in Jordan?

Market research in Jordan analyzes the local market dynamics, consumer behavior, industry trends, and competitive landscape. It provides businesses with actionable insights to inform their strategic decision-making processes and understand the unique characteristics and nuances of the Jordanian market.

Why Do Businesses Need Market Research in Jordan?

Market research in Jordan provides valuable insights into consumer preferences, purchasing behavior, and market trends, enabling businesses to identify emerging opportunities, anticipate shifts in demand, and stay ahead of the competition. 

Additionally, market research in Jordan helps businesses mitigate risks by identifying potential challenges, such as regulatory changes, economic fluctuations, and competitive threats. This allows them to develop proactive strategies to address these challenges effectively. 

Moreover, it empowers businesses to optimize their marketing efforts, product development initiatives, and expansion strategies by ensuring alignment with local market dynamics and consumer needs.

Our Current Market Review and Recommendations

At SIS International, we believe that Jordan presents significant opportunities for businesses seeking to expand their presence in the Middle East. With its strategic location, stable political environment, and growing economy, Jordan offers a favorable business climate for local and international companies.

Despite regional instability and economic uncertainty, Jordan’s proactive government policies, investment incentives, and strategic partnerships with international organizations position the country for continued economic growth and development.

Potential ROI: 

With the right market entry strategy and a deep understanding of local market dynamics, businesses can expect a favorable return on investment in Jordan. They can leverage the country’s strategic location, skilled workforce, and supportive business environment.

Key Industries in Jordan

Jordan boasts diverse industries that drive its economy and present business opportunities. Some key industries in Jordan include:

• Information Technology (IT): Jordan’s IT sector is experiencing rapid growth, fueled by a skilled workforce, government support, and investment in infrastructure. Companies like Aramex and Optimiza Solutions are leading players in the sector, offering software development, outsourcing services, and digital solutions.
• Pharmaceuticals: Jordan’s pharmaceutical industry is well-developed and export-oriented, with companies like Hikma Pharmaceuticals and Pharmaline leading the market. The country’s strategic location, strong regulatory framework, and skilled workforce make it an attractive pharmaceutical manufacturing and research destination.
• Tourism: Jordan’s rich cultural heritage and historical sites, including Petra, the Dead Sea, and Jerash, attract millions of tourists annually. The tourism industry offers opportunities for investment in hospitality, travel services, and cultural tourism initiatives, contributing to economic growth and job creation.

Main Tourist Attractions in Jordan

Jordan is home to several iconic tourist attractions that draw visitors from around the world:

• Petra: A UNESCO World Heritage Site, Petra is an ancient city carved into the rock cliffs, known for its stunning architecture and historical significance.
• The Dead Sea: The lowest point on Earth, the Dead Sea is famous for its high salt content, buoyancy, and therapeutic mud, offering visitors a unique and rejuvenating experience.
• Jerash: Known as the “Pompeii of the East,” Jerash is one of the best-preserved Roman ruins in the world. It showcases ancient temples, theaters, and colonnaded streets.
• Wadi Rum: A desert wilderness in southern Jordan, Wadi Rum is renowned for its breathtaking landscapes, towering sandstone cliffs, and adventure activities such as camping, hiking, and camel trekking.
• Amman Citadel: Located in the heart of Jordan’s capital city, the Amman Citadel is an archaeological site featuring ancient ruins, including the Temple of Hercules and the Umayyad Palace.
• Aqaba: Jordan’s only coastal city, Aqaba is a popular destination for beach lovers, diving enthusiasts, and water sports enthusiasts. It offers pristine beaches, coral reefs, and vibrant marine life.

Key Industries

The services, industrial, and tourism sectors drive the market.

The services sector accounts for most of the country’s GDP and employs most of the workforce. It is one of the most advanced sectors in the world.

The industrial sector comprises manufacturing and industries, comprising a large portion of the GDP. In addition, it employs many people. Furthermore, the main exports include garments and textiles, jewelry, and potash. Jordan is one of the top potash exporters globally, and it exports to the other Arab countries, North America, and Asia.

Jordan is home to many ancient and religious sites, which make great tourist attractions. Some of these include (not surprisingly) the Jordan River and Petra (UNESCO World Heritage Site).

Neighborhoods

The capital city is Amman. Amman is the center of the country’s politics, economy, and culture. This city has long, hot, and windy summers. In contrast, winters tend to be rainy, and there’s usually some snow. A large part of Jordan’s populace resides in Amman. Most people in this city are Sunni Muslims. As a result, there are many mosques for worship. Amman boasts many museums, ancient buildings, and cultural sites. Yet, it also has Western influence. Modern hotels and commercial buildings are examples of this.

Petra is another well-known city in southern Jordan. Many tourists visit to enjoy its rich history and see its artifacts. It is also home to one of the new Seven Wonders of the World, the Al-Khazneh temple.

Benefits and Strengths in the Market

Jordan is stable and secure compared to other countries, creating a competitive advantage for investors.

The country’s location is in a strategic place. It serves as a platform for US firms to supply regional markets, like Iraq.

Another strength is that Jordan is the first Arab country to sign a Free Trade Agreement with the US. This agreement permits duty-free exports of US products.

Consumer Base

The people of Jordan are subject to many struggles. For example, many have lost employment as the country has stagnated. Most people have low incomes, and many fall below the poverty line. State employment usually serves as a safety net for these people. Still, many remain unemployed and impoverished.

Poverty in the country impacts spending habits, which is why most people practice restraint when shopping.

Reasons to Grow Your Business in Jordan

Jordan’s market is not perfect. Despite this, it presents unique business prospects.

Its strategic location provides business access to 17 Arab countries.

Another perk is that it has a stable currency. The name of this currency is the Jordanian Dinar (JD). A JD is close in value to the US Dollar.

Jordan’s people are a great resource, but they are underused. As a result, businesses in Jordan will have many available employees.

Challenges of Doing Business in Jordan

While Jordan presents opportunities, businesses also face particular challenges:

• Regional Instability: Jordan’s proximity to conflict zones and geopolitical tensions in the region can impact business operations and investor confidence, leading to market uncertainty and risk.
• Economic Challenges: Jordan faces economic challenges such as high unemployment rates, fiscal deficits, and limited natural resources, which can affect consumer purchasing power and market demand.
• Regulatory Complexity: Despite efforts to improve the business environment, Jordan’s regulatory framework can be complex and bureaucratic, leading to administrative hurdles, delays, and business compliance issues.
• Infrastructure Constraints: Infrastructure gaps in sectors such as transportation, water, and electricity can pose challenges for businesses, affecting logistics, supply chain management, and operational efficiency.
• Skills Mismatch: While Jordan boasts a skilled workforce, there may be a mismatch between the skills offered by graduates and the labor market’s needs, leading to challenges in talent acquisition and workforce development.
• Access to Finance: Access to finance and credit can be challenging for businesses, especially small and medium-sized enterprises (SMEs), due to limited funding availability, high interest rates, and collateral requirements.
• Market Competition: Jordan’s market can be competitive, with both local and international players vying for market share. This requires businesses to differentiate their offerings, innovate, and adapt to changing consumer preferences.