CEOs in Jordan cautiously optimistic amid geopolitics and other challenges

Despite facing some significant geopolitical challenges, CEOs in Jordan remain cautiously optimistic about growth prospects. While over half anticipate significant exposure to risks, they are actively embracing reinvention, according to this year’s edition of PwC’s Global CEO study.
Jordan, known for its stability and economic reforms, has demonstrated resilience amidst serious regional conflict. The country boasts a well-educated workforce, strategic location, and a thriving tourism sector. However, CEOs are mindful of the impact of the troubles in neighboring regions.
Jordan has been in the middle of a sea of war and conflict for decades. That includes its involvement in conflict with Israel decades ago, receiving several waves of refugees, facing some of the fallout of the Syrian civil war, and now navigating neutrality in the ongoing conflict in Israel and Lebanon.
Despite positive signs of development and a remarkable degree of stability, the reality is that respondents in Jordan were less optimistic than those in the rest of the Middle East and globally.
A total of 27% of CEOs in Jordan said they believed economic growth would decrease over the coming year, compared to 19% across the Middle East. Only 54% in Jordan said the thought the situation would improve, less that the global average.
Future outlook
As far as the future outlook for revenue growth, sentiment among Jordanian CEOs is mostly on par with the global average, though lower than the general optimism among Middle East as a whole. A notable 86% of leaders in Jordan said they were confident about the prospects for growth over the next three years.
“Jordan is a talent powerhouse with a strategic geographic location that connects continents and markets. Its strong bilateral relations and free trade agreements provide businesses with access to a diverse and expansive global customer base,” said Michael Orfaly, who leads PwC’s Jordanian business.
But clearly, geopolitical conflict remains a serious concern for many business leaders in Jordan. Of those surveyed, 55% of CEOs said that they feel their companies are ‘highly’ or ‘extremely’ exposed to these types of risks. Top risks feared most include geopolitical risks, technological disruptions, cyber risks, and macroeconomic volatility.
Reinvention
Against this backdrop of instability, Jordanian leaders face the multifaceted challenge of “balancing immediate crisis management with long-term strategic planning”, said PwC in its report. It also emphasizes the need to stay ahead of competition through reinvention.
Nearly half (46%) of CEOs believe their companies require significant adaptation within the next decade to remain viable, slightly higher than the global average (42%).
AI and GenAI
Jordanian CEOs are highly optimistic about the potential for GenAI to boost profitability. A significant 61% believe GenAI will drive profitability in the next 12 months, more than the global average of 49%. This strong confidence reflects Jordan’s overall strategy of proactively adopting AI technologies in order to gain a competitive advantage.
What’s more, 82% of Jordanian CEOs express high levels of trust in embedding AI and GenAI into their core business processes. That is also more than the global average of 67%, reflecting a strong belief in AI’s transformative potential.
Sustainability
Sustainability is another integral part of Jordan’s economic vision. A total of 73% of CEOs have initiated climate-friendly investments, aligning with the ‘Green Jordan’ plan. While some CEOs focus more on short-term returns, the majority recognize the long-term benefits of sustainable practices.
In fact, sustainability is increasingly being seen as a major part of the way forward for countries across the Middle East. Many regional governments have adopted ambitious sustainability targets in line with international commitments to decarbonization.
“Amidst a complex geopolitical landscape, Jordanian CEOs are optimistic about growth and are focused on reinvention,” noted Orfaly. “Adoption of emerging technologies, forging new trade partnerships, prioritizing investments in high-potential sectors such as technology, healthcare, and tourism, and accelerating the digitization across sectors to strengthen the national economy.”