Ties across the river

by Riad Al-Khouri July 1, 2007

written by Riad Al-Khouri July 1, 2007

As reform bears fruit, Jordan’s economy may finally beready to take off into sustainable growth. Recentindications of this came at the Dead Sea World EconomicForum gathering in May, which witnessed the signature ofinvestment deals for Jordan totaling $2.5 billion. (Bycomparison, all of 2006’s direct foreign investment intoJordan totaled $3 billion) Given that and other strongeconomic signs, Jordanian GDP looks set to continueexpanding at 6% or more in 2007 and over the next few years;and with population growth decelerating, that means higherper capita incomes. However, Jordan’s path towards sustainable prosperitywould undoubtedly be smoother without major problems inPalestine, given the symbiosis between the two sides of theJordan River. Most Jordanian citizens are originallyPalestinian; but beyond family ties, many East Bankindividuals and firms have business in or with Palestine. The most notable example of investment by Jordan in theWest Bank or Gaza (where the Jordanian dinar is widely used)is in Jordanian banks, the

Riad Al-Khouri

Riad al Khouri is an economist specializing in the Middle East and North Africa region. He has undertaken extensive research on regional trade and political economy, among other topics, and writes widely about development issues. He taught economics at the American University in Beirut (AUB) and Beirut University College (now the Lebanese American University) and worked as a consultant for the European Commission, ESCWA, GTZ, ILO, IOM, OPEC Fund, UNDP, UNIDO, USAID, and the World Bank, among many other public sector organizations, as well as for numerous private firms.

Ties across the river

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