2021-03-23 Myung-Keun Choi, Amman Trade Officer, Jordan
-Announced a new strategy for digital economy transformation-
-Expected to increase demand for digital infrastructure-related adoption in the future-
Jordan Digital Economy Transformation Strategy Overview
In line with the global digital economy transition, the Jordanian government is also pursuing digitalization in the economic/industrial sector. In line with this trend, the Jordanian government reorganized the existing Ministry of Information and Communication into the Department of Digital Economy Entrepreneurship and announced a new strategy for digital economy transformation. This strategy is based on the ICT strategy'Jordan Vision 2015' announced by the Ministry of Information and Communication in 2025, and it can be seen that the focus is on the transformation of the digital economy.
The main vision of the digital economy transformation strategy is a data-driven innovation society. The primary goal is to introduce digital infrastructure, digitize private/government services, provide high-quality data to the economic sector, and expand digital participation of each social entity. Through this, the main goal is qualitative growth that ultimately promotes data-driven digital innovation while increasing efficiency and productivity in each sector of the economy.
<Jordan Digital Economy Transformation Strategy Vision>
Source: Digital Economy and Entrepreneurship Department
The Jordanian government has largely set four sectors as subjects of digital economy transformation. These include civil society, public sector, private sector, and private enterprises. It plans to introduce technology/infrastructure and conduct education centering on the actors, and ultimately, to increase the participation rate of the digital economy in the whole society.
<The subject of digital economy transformation>
Source: Digital Economy and Entrepreneurship Department
Looking briefly at the progress of Jordan's digital economy transformation, it is currently building an e-government service system primarily. It is building a platform that allows users to easily use the services of each public sector with a smartphone, and aims to become a paperless government through computerization of administrative procedures. At the same time, plans to introduce artificial intelligence, data management, and various digital infrastructures are also being established to accelerate digitalization.
The Amman Trade Center intends to share the direction of the digital economy transformation strategy in Jordan and the promising areas for domestic companies to advance through the overseas market news.
Jordan Digital Economy Transformation Governance
The governing bodies of the Jordanian government are the Council of Ministers, the Prime Ministry, the Ministry of Digital Economic and Entrepreneurship, and each government department.
<Governance related to digital economy transformation>
Source: Digital Economy and Entrepreneurship Department
Looking at each role, the Council of Ministers is in charge of generalization, primarily setting priorities for digital economy transformation and providing financial support. The Prime Minister's Office is responsible for the management/supervision of the digital economy transformation policy. The Digital Economy Entrepreneurship Department is a key institution for policy promotion, and is in charge of enacting relevant legislation, establishing roadmaps, introducing infrastructure, and collaborating with other government agencies. And each government entity is carrying out the established plans on the front line.
Digital Economy Transformation Strategy by Sector
The Jordanian government has established strategies in the areas of digital infrastructure, data management, talent development, e-government services, and civil society participation as shown in the chart below. In this overseas market news, we would like to examine the details, focusing on the areas of digital infrastructure, data management, and e-government, which are expected to advance domestic companies in the future.
<Strategies for each field of digital economy transformation>
Source: Digital Economy and Entrepreneurship Department
Digital infrastructure field
In order to transform the digital economy, the proactive step to take is the introduction of infrastructure. Accordingly, the Jordanian government is planning to introduce technologies in fields such as 5G introduction, IoT introduction, artificial intelligence, cyber security, blockchain, open source solution, cloud technology, electronic payment system, and digital ID. The technology introduction status by field is shown in the chart below.
<Status of digital infrastructure introduction>
Source: Digital Economy and Entrepreneurship Department
Data management field
The Jordanian government aims to ensure transparency in the use of information and promote data use in the private and public sectors. The detailed plan for the data management field is shown in the chart below.
<Introduction Status in Data Management Field>
Source: Digital Economy and Entrepreneurship Department
E-government service sector
The government of Jordan continues to promote the introduction of e-government services for the purpose of electronicization in the public service sector. As of August 2020, about 8 e-government services have been launched. As the most recent example, the Jordanian Ministry of Finance is attempting to introduce an electronic invoicing system similar to Korea's National Tax Service tax simplification system.
Expert opinion
According to the opinion of Tawfiq, the head of policy at the Jordan Digital Economy and Startup Department, recently interviewed at the Amman Trade Center, there are four main areas the Jordanian government is currently focusing on. It includes the introduction of artificial intelligence in the industrial field, participation of civil society in the digital economy, creation of an e-commerce market environment, and the introduction of digital infrastructure. In particular, artificial intelligence is already being introduced and tested in certain industries. In addition, it plans to complete the creation of artificial intelligence-related legislation by 4 and introduce technology at the same time. In the case of infrastructure, 2023G is being tested by the Jordan Telecommunications Regulatory Commission, and by 5, it aims to introduce 2023G to society as a whole. As such, each government department in Jordan announced that they are looking forward to cooperation with Korea, which is leading in the field, as they are pursuing a digital transformation project.
implication
Jordan's digital economic transformation has lagged behind other advanced countries, but the government has recently been spurring the digital economic transformation with the spread of COVID-1919 as a starting point. In the future, local advancement is expected to center around digital infrastructure such as 5G, artificial intelligence, blockchain, and cloud systems, where Korea is relatively ahead. The Amman Trade Center in Jordan plans to share information on related projects to be commissioned by each Jordanian ministry with the relevant KOTRA team and support the local advancement of interested domestic companies.
Source: Digital Economy Entrepreneurship Department