Keeping in view the lessons learned from international developments, extensive market research carried out on various industries, proximity to lrbid City (which is known as “University Town of the Middle East”) and also being adjacent to King Abdullah University Hospital and Jordan University of Science and Technology the following sectors have been selected to be part of IDA:

The Jordanian Healthcare infrastructure is considered as one of the most modern healthcare infrastructures in the Middle East.

The healthcare sector of Jordan has witnessed double digit growth due to:

Growing population – including demand from Syrian Refugees

Shift in disease profile towards more chronic illnesses as a result of a life style changes

There is increased government focus to improve healthcare infrastructure of the country. Today, Jordan boasts of having 9 JCI accredited facilities which puts the country on the medical tourist map. Leading causes of death in Jordan are:

– 40% are observed to be caused by Cardiovascular diseases indicating the rise of lifestyle diseases in the country.

Other leading causes of death  include  communicable  diseases (15%),   non-communicable   diseases   (13%),   cancers    (11%) and injuries (11%)

Market study and healthcare sector stakeholders have identified the following  specialties as critical in term of attention with high demand: o  Gynecology

Gastroenterology and pediatrics

Orthopedics

Cardiology

Forecasted healthcare demand and supply gap:

It is estimated that by year 2030 Jordan will require an additional 13,000 hospital beds if current infrastructure is maintained. In the event patient lead times and overall improvement in the system is to be implemented an additional 28,000 hospital beds would be required by 2030.

At lrbid and IDA level, additional hospital bed requirement is 2,100 beds (improved infrastructure would lead to 4,300 additional hospital beds.

Jordan has earned a strong reputation within the region of having one of the most skilled and educated labour force. People of the Kingdom hold education very dear to them, which is evident from the fact that 95.9% of the population is literate (the highest literacy rate in the region) and holding a university degree is almost a prerequisite to be part of the Jordanian society.

Over the years it has come to light that with the exception of a few prominent universities, curriculum in most institutions has not kept pace with changes in the overall environment. This has led to a precarious situation where by graduates are frustrated for not being able to secure jobs and companies are struggling to identify suitable candidates. To be explicit, approximately 40% of the unemployed population has a higher education degree.

In addition, there are limited seats for subjects that are in high demand in prominent universities, which leads to students either electing alternate subjects that may not be of their choice in order to  be affiliated with a good university, or, compromises  with the  institution and pursue their chosen field.

Various professionals in the field of IT, engineering, medicine, finance etc cited that Jordan and the region at large lacks institutions that provide knowledge transfer, knowledge update, skill development, training etc that is imperative for practicing professionals to keep up to date with the ever changing environment. These institutions will also help fresh graduates and vocational students to add certifications that can significantly increases their chances of employment.

Annually,Jordan hosts close to 40,000 international students (UNESCO) and in 2014, 20,000 Jordanians went abroad for college education. In addition,the government is also providing scholarships and assistance to people for obtaining education in the fields to medicine and engineering.

In conclusion, it is evident that in Jordan there is significant potential for additional quality institutions keeping in view higher education demand reaching 530,000 students by 2030, 40% of the graduates are unemployed, international students look towards Jordan for quality education and professionals have raised their concern for continuous professional training and knowledge transfer.

Technological progress is a considerable driving force  behind economic growth and job creation. Jordan’s vision is to  become  a major regional ICT leader and an internationally recognized exporter of IT products and services, capitalizing on its core human capital advantage. In order to incentivize investment in IT sector, Government of Jordan included IT sector under section 8(a) of Investment Law giving it  following tax incentives across Jordan:

In Jordan majority of revenue is generated by hardware segment in comparison to software and IT services segment.Most of the hardware revenue is generated by importing computers and other peripherals in bulk and installing them with softwares, catering to local and regional markets, and reselling them in the region.

IT enabled services (ITES) has witnessed significant growth in Jordan. Call centers represents majority of the revenue generated by ITES, with its revenue growing at a CAGR of 46.3% from 2010 to 2014 (USD 2.8 million to USD 12.9 million). Jordan provides a skilled and educated workforce and an Arabic dialect that is widely recognized by Arabic speaking countries which is why regional companies prefer to set-up/outsource their call centers in Jordan.

IDA will also cater to fresh graduates from neighboring university,JUST, and also from universities across Jordan, by providing space for incubators and start-ups in the Cluster,to develop and market new and innovative ideas.

Pharma Market Synopsis

The pharmaceutical industry is one of the largest and most significant industry in Jordan which is primarily driven by exports even with limited foreign investment. Size of the market was valued at JOD683mn (US$962mn) in 2015,with pharmaceutical sales accounting for 33.7% of spending on healthcare and 2.5% of GDP. Jordan is the only country in the region to export more pharmaceuticals than it imports,yielding a positive trade balance.It is estimated that the sector will remain a net exporter and would grow by approximately 7.2% till year 2025.

Analysis suggests that Jordan is a generic products driven pharmaceutical market accounting for over 50% of the total sale of drugs. This trend is expected to continue in the near future with the increasing demand for affordable medicine in Jordan and neighboring region. Leading markets such as KSA and UAE are shifting towards generic products to regulate the cost of medicines and this presents itself as an opportunity for Jordan’s pharmaceutical sector.

Advanced Engineering (Medical Devices) Market Synopsis

Jordan is the 9th largest market for medical device in MEA region, which is estimated at a value of US$ 286.Smn in 2015. As of 2015 market value is 10.4% of the total Jordan health expenditure and 0.7% of the GDP.

The medical devices market is forecasted to grow at a CAGR of 8.1% from 2014 to 2019, with a per capita spend increase from estimated US$ 35.7 in 2014 to US$ 49.4 in 2019.The key driver for medical device market is medical tourism. Since Jordan is a leading destination for medical tourism in the MENA region the healthcare facilities require constant upgrade of medical devices to keep up with the neighboring markets and leading medical tourism destinations globally.

Manufacturing of medical devices is done at a small scale in Jordan, focusing mainly on low technology products such as consumables, dental products and optical products.

To support the economic zones of IDA, it is imperative to provide this highly skilled workforce comprising academics,doctors,engineers and other professionals a community which provides a sense of living,with dedicated parklands, schools, shops and community centers that is at par with the 21st century lifestyle.

Residential  Community:

IDA on its own is to generate approximately 13,000 core jobs comprising of professionals falling within socio economic classification A,Band C. Based on population statistics, this means that these 13,000 people will support  a total population  of 80,000 people.

If the residential market of lrbid is evaluated, the following comes to light:

o             The residential market in lrbid comprises dated stock

o             With the influx of foreign nationals due to the political climate in neighboring countries, there is a shortage of residential units as a whole – especially quality units

o             The demands and requirements of professionals are changing and focusing more on nucleus family structures –  which has an impact on size of units.

In order to ensure exclusivity and quality of the development, IDA has allocated land that can accommodate approximately 3,400 households i.e. a population of 20,000 persons.

To cater to different social economic segment of society and also have a broader population base, plots have been designated for villas and apartments.

lrbid has put itself on the map as a university town with four prominent universities of Jordan including Jordan University of Science and Technology and Yarmouk University . These universities accommodate 81,000 students (10,000 foreigners) that represents approximately 25% of the kingdoms university enrolment. This position will further be enhanced with IDA introducing foreign universities branches and curriculums and specialized training centers for professionals that would cater to demands of not only Jordan but the MENA and Asian region.

Currently, 45,000 students within lrbid seek student accommodation. Due to lack of dedicated and quality facilities 40,000 students have to make do by taking private residential apartments on rent and sharing with other students. This situation is to be further augmented with the development of the Education Cluster of IDA, which is estimated to draw and maintain 20,000 students year round when operating at full capacity.

IDA has dedicated plots for the development of student accommodation that can house approximately 20,000 students. It is important for investors within this category to have strong commitment to provide adequate facilities and services to students as the Education Cluster of IDA is to attract a significant amount of students from outside lrbid and Jordan

Retail:

lrbid is a fast growing town with income levels increasing at almost 5% over the last decade and population increasing by 6% year on year.This has spurred the need for increasing modern retail options such as malls as people now view shopping as a family activity.

In lrbid there are only 3 facilities that can fall under the ambit of malls and each of them are operating at full capacity. However, it has been noted that residents seeking a finer experience travel to Amman for shopping.

With the establishment of IDA and the supporting residential community, there will be a concentration of professionals, with higher degree of disposable income who would require a more refined retail experience than what is available in the lrbid Governorate.

Based on international standards for determining retail requirement, it is estimated that IDA would require formal retail of 20,000 sqm (net internal area) which would mean the development size would be [open: 40,000 sqm]. This development will cater to a resident population of 20,000 persons and in an additional influx of approximately 10,000 persons during the day who would be employed within the many industries of IDA.

Schools:

Education institutions are the cornerstone of any society and a focal point for a community. It is estimated that IDA will  house approximately 20,000 residents of with close to 7,000 school going age population.

To cater to this demand for education, IDA set-aside total of five plots (in the initial stage) to allow investors and education service providers to benefit from this requirement. However, if indigenous demand from IDA is set aside and lrbid district is considered, it is estimated that the district would require an additional 21 schools in the next 15 years which further  supports the development of schools

Hospitality:

Amman’s hospitality supply is weighted towards 5-Star hotels with very limited internationally branded 4-Star and 3-Star rooms, highlighting the market’s emplacement and opportunities within those segments. Whereas lrbid’s hospitality supply market is very limited and weighted towards the lower end of the market,comprising mostly of 3-Star with some 4-Star properties.

In lrbid, demand is generated mostly through JUST, KAU hospital, the neighboring Al Hassan Industrial Estate and MICE. Future demand generators i.e. offices, specialized hospitals and universities are expected to further increase demand.

It is expected that future hotel guests’ behavior is going to mirror current guests, seeking value for money when booking a hotel,for that reason IDA will host a midmarket 4-Star hotel.

This operates in a similar fashion to an upper tier 3-Star hotel yet with the expertise of managing a large banqueting area.

The Serviced Apartment units will cater to less price sensitive travelers and families which will not comprise of a large portion of demand. For that reason, serviced apartments account for just 30% of total stock.