'Start-ups contributed to 0.5% of nominal GDP in 2016'
AMMAN — Technology-based start-ups made up 0. 5 per cent of Jordan's nominal GDP in 2016, of which 0.3 per cent consisted of a direct value added, according to a recent report from the German Agency for International Cooperation (GIZ).
“It’s a very good number, it’s considered to be high,” Nidal Bitar, CEO of the Jordanian Information and Communications Technology Association (Int@j), said of the percentage. “We think we can do a lot based on this report that would benefit the ecosystem and the startups.”
The report, titled “Jordan’s Start-up Economy”, marks the first time a study has quantitatively assessed the contribution of technology and technology enabled start-ups using firm-level data in Jordan, according to the report. The study was implemented by GIZ, Int@j and Orange Jordan.
According to the report, the total GDP contribution of technology-based start-ups to the Jordanian economy is estimated to reach $168 million, a total which considers $109 million in direct contribution, in addition to over $59 million in indirect and induced contributions.
“Major findings included that Jordan's tech start-ups help drive economic growth and inclusion, for example, through high performance potential in terms of export intensity, female employment, high-wage job creation and technology transfer and diffusion,” GIZ team leader for the Employment-Oriented MSME Promotion Project Diana Hollmann told The Jordan Times.
According to the report, 93 per cent of ICT-related enterprise creation and growth is happening in the capital of Amman and the average value added generated by the ICT sector reached 64 per cent of its total output as compared to an average of 40 per cent for manufacturing and an average of 52 per cent for all Jordanian economic activity.