Time for Jordan to reclaim its renewable energy leadership

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At a time when Arab countries are racing to exploit renewable energy resources, Jordan appears to be slowing down in the race, despite having the necessary resources and potential.

Saudi Arabia, the UAE, Egypt, and Morocco, Africa’s renewable energy frontrunner, are pressing ahead with major investments in clean energy and mining. Kuwait is making progress, and Syria is expected to enter the renewable energy market in the medium term.

Once a regional leader in energy efficiency and renewable development, Jordan’s position has steadily declined. This backward slide risks costing the country an estimated $2 billion in missed economic opportunities over the next five years.

According to the World Bank and the Arab Future Energy Index, Jordan has slipped from 2nd place among Arab nations in energy efficiency in 2015 to 4th in recent years.

Renewable energy now makes up over 26 per cent of Jordan’s domestically produced electricity. However, its contribution to GDP remains under 2 per cent, highlighting a disconnect between technological advancement and tangible economic impact.

Analysts suggest that increasing this figure to 3.5 per cent within five years, an achievable development target, could add approximately $900 million to the national economy, provided the energy strategy is properly implemented and quality investments are secured.

Jordan also sits on a promising foundation of mineral resources, including phosphate, potash, copper, gold, silica, and uranium. Yet, the mining sector’s contribution to GDP remains limited to 9.1 per cent, with phosphate and potash making up the bulk.

Little has been done to diversify the country’s mineral base or strengthen geological infrastructure. Projections indicate that expanding the sector to contribute 11.5 per cent of GDP within five years, through exploration and development of other minerals—could yield at least $1.08 billion in additional income.

Together, renewable energy and mining could generate nearly $2 billion in development gains for Jordan within a decade. But serious challenges remain: slow project implementation, weak coordination among government bodies, outdated investment legislation, funding gaps, and a lack of industrial partnerships.

Time is not on Jordan’s side. With regional competition intensifying, the window of opportunity is closing fast. What is urgently required is a bold leap forward: enacting and modernising current policies, energising public-private partnerships, and cultivating a dynamic, investor-friendly environment.

Otherwise, these promising figures will remain theoretical, while nations that moved faster claim the rewards.

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