Jordan's bid to join the Gulf Cooperation Council (GCC) will not only enhance trade and investment opportunities within the kingdom, but it will also reinforce historical ties between Arab countries, the latest study by Dubai Chamber of Commerce and Industry suggests. The study finds that existing bilateral trade links and strong investment in Jordan by Gulf countries will continue to benefit Jordan's economy, while increased tourism and the free-flow of Jordan's skilled and educated workforce will boost GCC economies. The GCC is one of Jordan's major trading partners. During the last decade, bilateral trade between the GCC and Jordan has increased immensely, the study finds. Last year, bilateral trade between Jordan and the six Gulf countries exceeded the $5 billion mark. According to the Jordan Department of Statistics, the GCC accounted for 24.2 percent of Jordan's imports in 2010, while 18.4 percent of Jordan's exports were destined for Gulf states. Jordan's imports from the GCC are mainly comprised of mineral fuels, oil, plastic articles, iron and steel and aluminum articles and thereof. On the other side, Jordan's exports to the GCC chiefly consist of edible vegetables and fruits, pharmaceuticals, inorganic chemicals, precious metals, stones, machinery, electrical and electronic equipments, and articles of iron and steel. Among the GCC, Saudi Arabia is the top trading partner to Jordan. Saudi Arabia, which supplies crude oil to Jordan, topped the list of exporters, followed by China and the US. In 2010, Jordan's trade (exports and imports) with Saudi Arabia surpassed $3 billion, while total trade between the UAE and Jordan was reported to be over $700 million,. Jordan's bilateral trade with Bahrain, Kuwait, Oman and Qatar was estimated at $306 million, $212 million, $60 million, and $110 million, respectively during the same period, according to the study. Gulf countries investment in Jordan Foreign direct investment (FDI) in Jordan, especially from Gulf countries, grew remarkably during the last decade. According to the International Monetary Fund (IMF), GCC economies, particularly Saudi Arabia, have a major impact on Jordan's economy, as they account for the highest share of Jordanian FDI, trade, remittance and tourism. Figures by the Jordan Investment Board (JIB) have indicated that Saudi Arabia is among the top countries with the largest investment in Jordan. During the last three years, Saudi Arabia has invested over $4 billion in different projects. Moreover, the study says if Jordan is to become a member of the GCC, with the eased visa policies, the number of visitors to both sides may also increase considerably. Jordan has already been a popular tourist destination for many Arab countries. According to data from the Jordan Ministry of Tourism, between 2009 and 2010 some 1.65 million visitors from the six GCC states entered Jordan. Tourists from Saudi Arabia alone accounted for 16.2 percent of total Jordan visitors last year. Official figures indicate that the number of Gulf Arab tourists who visited Jordan last year made up 28.2 percent of the total number of visitors and these numbers are forecast to increase in the coming years. According to the UAE Ministry of Foreign Trade, UAE investment in Jordan is estimated to be in the range of $15 billion, which is expected to grow in the coming years. Kuwaiti investment in Jordan increased from $400m to $8 billion in 2010, while Bahraini investment in Jordan stood at $473 million the same year. Since 2000, Jordan's per capita gross domestic product (GDP) has more than doubled after growing at a rate of around 8 percent per annum. In the wake of the global financial crisis, when the growth rate declined, Jordan's GDP has registered a positive recovery in the first quarter of 2011, the study finds. According to the IMF, Jordan's GDP growth in 2011 is expected to be around 4.2 percent and above 5 percent for the next coming five years. Over the years, unemployment has remained a major problem for the Jordanian economy. In 2010, unemployment was 12 percent, but this is expected to slide slightly to 11.5 percent in 2011.
