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Ict & Ites Industry Statistics & Yearbook 2017
Ict & Ites Industry Statistics & Yearbook 2017
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JORDAN ICT & ITES SECTOR STATISTICS 2017
Table of Contents
List of Tables ................................................................................................................................................. 2
List of Figures ................................................................................................................................................ 2
List of Abbreviations ..................................................................................................................................... 3
Introduction .................................................................................................................................................. 4
Executive Summary....................................................................................................................................... 4
Classical Framework...................................................................................................................................... 5
Methodology................................................................................................................................................. 5
Survey Sample Population ............................................................................................................................ 7
Summary of Participants ....................................................................................................................... 7
Participations by Economic Activity ...................................................................................................... 7
2017 ICT & ITES Sector Statistics................................................................................................................... 9
1. IT Revenue Growth (2003 – 2017) .......................................................................................... 9
2017 Telecom Sector Statistics...................................................................................................... 12
1. Telecom Growth 2010 – 2017 ................................................................................................ 12
2. Telecom Revenues .................................................................................................................. 13
3. Internet and Mobile Penetration ............................................................................................. 13
4. Employment and Investment in Telecom ................................................................................. 14
IT and ITES Revenues by Economic Activity ................................................................................................ 15
Domestic Revenue for Various Activities in the Sector .............................................................................. 18
Export Revenue for Various Activities in the Sector ................................................................................... 18
ITES & ICT TRAINING REVENUE ................................................................................................................... 20
ICT Training ......................................................................................................................................... 20
IT Value Added Revenue ..................................................................................................................... 20
IT Imports .................................................................................................................................................... 21
IT and ITES Exports ...................................................................................................................................... 22
IT and ITES Exports Volumes by Country 2017 ................................................................................... 22
IT and ITES Exports Revenue by Country ............................................................................................ 24
IT Export Revenues 2002 – 2017......................................................................................................... 25
Top 10 Exports Markets 2017 vs. 2016 ....................................................................................................... 26
IT and ITES Employment ............................................................................................................................. 26
1. Overall Employment Breakdown............................................................................................ 26
2. IT and ITES Employment by Category ................................................................................. 28
1. Employment by function .......................................................................................................... 29
Appendices.................................................................................................................................................. 32
Appendix A: ISIC 4.0 – ICT and ITES Economic Activities .................................................................... 32
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JORDAN ICT & ITES SECTOR STATISTICS 2017
List of Tables
Table 1: Survey Participants Summary ......................................................................................................... 7
Table 2: Companies Activities ....................................................................................................................... 8
Table 3: IT & ITES Sector Statistics 2017 ....................................................................................................... 9
Table 4: IT Growth Summary 2003 – 2007 ................................................................................................. 10
Table 5: IT Growth Summary 2008 – 2012 ................................................................................................. 10
Table 6: IT Growth Summary 2013 – 2017 ................................................................................................. 10
Table 7: Telecom Statistics 2017 ................................................................................................................. 12
Table 8: Telecom Statistics 2010 – 2017 ..................................................................................................... 13
Table 9: IT & ITES Revenues 2017 ............................................................................................................... 16
Table 10: ITES Revenue 2017 ...................................................................................................................... 20
Table 11: ICT Training Revenue 2017.......................................................................................................... 20
Table 12: IT “Low Value Added” Activities Revenues ................................................................................. 20
Table 13: IT Revenue Value-Add Breakdown.............................................................................................. 20
Table 14: IT Imports 2017 ........................................................................................................................... 21
Table 15: IT& ITES Exports Revenues by Country 2017 .............................................................................. 23
Table 16: IT & ITES Employment by category ............................................................................................. 28
Table 17: ICT and ITES ISIC Definition ......................................................................................................... 32
List of Figures
Figure 1: IT Total Revenues 2003 – 2017 (million USD) .............................................................................. 11
Figure 2: IT Domestic vs. Export Revenues 2003 – 2017 (Million USD) ...................................................... 11
Figure 3: IT FDI and Cumulative FDI 2003 – 2017 (million USD) ................................................................. 13
Figure 4: Telecom Revenues 2010 – 2017 .................................................................................................. 13
Figure 5: Internet and Mobile Penetration 2007 – 2017 ............................................................................ 13
Figure 6: Telecom Employment 2007 – 2017 ............................................................................................. 14
Figure 7: Annual Investment in Telecom 2007 – 2017 ............................................................................... 15
Figure 8: IT and ITES Revenues 2017 (USD) ................................................................................................ 17
Figure 9: IT & ITES Domestic Revenue 2017 (USD) ..................................................................................... 18
Figure 10: IT & ITES Export Revenue 2017 (USD)........................................................................................ 18
Figure 11 Contribution of Value-Added IT activities to Domestic and Export IT Revenues ....................... 21
Figure 12: IT Imports in 2017 ...................................................................................................................... 22
Figure 13: IT and ITES Exports Revenue by Country ................................................................................... 24
Figure 14: IT Exports Revenues 2002 – 2017 .............................................................................................. 25
Figure 15: Top 10 Exports Markets and Number of Markets 2017 vs. 2016 .............................................. 26
Figure 16: Employment by function............................................................................................................ 24
Figure 17: Employment by nationality ........................................................................................................ 29
Figure 18: Employment by location ............................................................................................................ 30
Figure 19: Employment by gender .............................................................................................................. 30
Figure 20: IT & ITES Employment 2002 – 2017 ........................................................................................... 31
Figure 21: Investment in IT & ITES 2017 ..................................................................................................... 31
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JORDAN ICT & ITES SECTOR STATISTICS 2017
List of Abbreviations
IT Information Technology
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Introduction
Jordan’s information and communications technology (ICT) and IT Enabled Services (ITES)1 sectors have
come a long way in the past years and have achieved a great deal of accomplishments in which we can
all take great pride. Today, the ICT ecosystem in Jordan is considered as one of the most developed and
robust in the region. With internet penetration rate exceeding 65% and the expansion of new
technologies, ICT and ITES are listed amongst the government’s highest priorities, and are expected to
continue to contribute to the Jordanian economy.
In spite of the rising regional competition and slower economic growth coupled with regional instability,
the ICT sector continues to stand as one of Jordan’s greatest strengths. To demonstrate the sector’s
growth in terms of numbers and to determine the growth in market size, exports, investments, and
employment, the Information and Communications Technology Association of Jordan (int@j) in
cooperation with the Ministry of Information and Communications Technology (MoICT) have completed
the ICT and ITES Sector Classification and Statistics for the year 2017 aiming to provide clear and
accurate references on Jordan's ICT and ITES sectors. Striving for continuous growth of this sector, is the
single minded focus on the need for development and adoption of new technologies, Standardization,
Research & Development and capacity building.
Executive Summary
Information and Communication Technology (ICT) is generally the combination of Information
technology (IT) and digital telecommunication. Information technology focuses on computers and
related devices, and digital telecommunications, including cellphones, the internet and other digital
networks. The information and communication technology (ICT) sector has played an important role in
Jordan’s economic growth.
Jordan is one of the fastest-growing IT markets in the region. The rapid emergence of the Jordanian IT
sector has transformed Jordan economy as well as its image from a slow-moving low technology
economy to a high-tech land of innovative entrepreneurs.
The country’s cost competitiveness in providing Information Technology (IT) services, continues to
improve and stabilize the economy with a total revenue of $681,710,762 in 2017. This sector has
evolved over the past few years with main focus on IT hardware & infrastructure installation, Software
development, software licenses sale, IT hardware & infrastructure wholesale, telecommunications
equipment and telephones wholesale, telecommunications equipment installation and
telecommunications wireless services. According to the data collected and analyzed from 611
companies currently operating in Jordan, the industry exports revenue have yielded $268,577,218 and
$413,133,545 in domestic revenue. Over the last few decades, top IT companies in Jordan have become
global leaders in information technology (IT) sector and contributing to the growth of technology not
only in Jordan but globally.
Similarly, the telecom sector has registered a phenomenal growth during the past few years and
currently a leading market in the region with a subscriber base of 20,086,582 formed of Internet
Subscribers, Mobile Subscribers and Fixed Line Subscribers.
Jordan’s telecommunication sector has reached unlocking revenue of $1,402,328,032 in 2017 with 4,014
employments. It is predicted that imminent growth in telecom sector will be fueled by further and rapid
1
IT enabled services are the services that make extensive use of information and communication technologies.
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JORDAN ICT & ITES SECTOR STATISTICS 2017
diffusion of smartphones, deployment of new and emerging technologies such as 5G, Internet of Things
(IoT), Data Privacy, Automation, Artificial Intelligence (AI), Blockchain and Machine-to-Machine (M2M)
etc. The Jordanian telecom industry has started witnessing consolidation thus increasing the industry’s
efficiency to share their network coverage assets.
The spurt in growth of ICT sector in Jordan and their significant contribution to the socio-economic
development of the country has compelled the Government of Jordan to create a favorable policy and
regulatory environment for the further growth of these sectors. Suitable policy prescriptions by the
government are necessary for ICT to become one of the key engines of economic development in
Jordan.
Classical Framework
The International Standard Industrial Classification of All Economic Activities (ISIC) is the international
reference classification of productive activities. Its main purpose is to provide a set of activity categories
that can be utilized for the collection and reporting of statistics according to such activities.
ISIC is not a classification of goods and services but rather a classification according to the kind of
productive activity. It is distinctively different in nature and purpose from the classifications of goods
and services, ownership, institutional units or other types of classifications.
All the ICT and ITES Sector classifications in this report were mapped to the fourth revision of ISIC (ISIC,
Rev.4) which is the outcome of a review process that spanned over several years and involved
contributions from several classification experts and users around the world. The fourth revision of ISIC
provides substantially more details at all levels than the previous versions of the classification. This
increased detail responds to requests by both producers and users of statistics.
Methodology
The 2017 ICT and IT Enabled Services (ITES) Sector Classification and Statistics Survey conducted
between November and December 2017 represents a holistic assessment of Jordan’s Information and
Communications Technology (ICT) and IT Enabled Services (ITES) industry.
The Survey was designed based on the International Standard Industrial Classification, Version 4.0 (ISIC
4.0) to provide information on the following topics:
IT and ITES revenue domestic and export
IT and ITES employment
IT and ITES investments
The survey followed a secure mechanism that ensured data confidentiality, collected by IPSOS Jordan.
Data disclosed only to authorize representatives to allow aggregation and analysis of the data provided
by companies. Entered data is split into two separate databases making it virtually impossible to link
companies’ information to their numbers for confidentiality purposes.
Survey Methodology:
The survey followed the Organization for Economic Co-operation and Development (OECD)
definition of the ICT Sector, according to which the guiding principle for what constitutes an ICT
enterprise is: "The production (goods and services) of a candidate industry must primarily be
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Summary of Participants
Survey Participants Summary
Category Total
Initial Identified Companies 725
Non-ICT/ITES or Not in Jordan Identified Companies 32
Total Targeted Companies to fill the questionnaire 611
Total ICT/ITES Identified Companies 611
Total Companies Completed the questionnaire 233
Total Companies Did Not Fill the questionnaire 378
Table 1: Survey Participants Summary
Manufacture of data communications equipment such as bridges routers and gateways (263001) 1 0 1
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JORDAN ICT & ITES SECTOR STATISTICS 2017
IT Outsourcing (9511) 4 0 4
Group A: Companies completed the survey & carried out this activity
Group B: Companies did not complete the survey
Note: Number of total activities is higher than total participating companies as companies have more than one activity.
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JORDAN ICT & ITES SECTOR STATISTICS 2017
IT/ITES revenues
Investment
Telecommunications
Employment
Sector Activity
In 2017, the total revenue registered a growth of around 2.81% to $19 million increase compared to the
year of 2016. The IT & ITES revenue comprises Telecom (67.29%), IT (32.47%), ICT Training (0.10%) and
ITES (0.14%). The ICT sector is a leading employer in Jordan creating 17672 jobs in 2017.
Note: Numbers presented in the table above for the ICT & ITES Sector based on the results of the 2017 Survey.
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IT export revenue has reached ~$268 million in 2017 while domestic revenue stood at ~$409 million.
This means 60.46% of the total revenue is from local economy and 39.54% relies on markets abroad.
With a decline by 9.24% growth in IT domestic revenue in the last year, the export revenue growth has
majorly increased by 29.00% requiring for the sector ecosystem to focus on maintaining their domestic
revenue share in the coming years.
962
895
738 658 677
883 638
770
732
581 614
617
440 547
296
228
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
188 226 192 197 227 210 202 231 300 324
163 268
70 80 178 200 207
40
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
IT Domestic Revenue (million USD) IT Export Revenue ( million UED)
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PSTN (USD) $340,376,899 $334,889,521 $345,281,330 $323,302,868 $289,573,970 $250,738,206 $274,388,912 $252,896,073
Mobile (USD) $977,947,900 $1,002,357,206 $1,009,096,545 $941,229,130 $902,406,696 $861,501,333 $875,155,600 $907,052,647
Internet (USD) $102,193,097 $126,384,027 $121,305,277 $121,945,640 $120,780,044 $111,541,097 $101,866,095 $117,304,096
Penetration
Fixed Line
485,000 424,000 401,000 379,000 376,000 369,000 356,000 328,000
Subscribers
Fixed Line
8.00% 6.80% 6.30% 5.20% 5.00% 4.00% 3.60% 3.20%
Penetration
Mobile Subscribers 6,620,000 7,483,000 8,984,000 10,314,000 11,120,000 13,798,000 9,818,000 9,703,000
Mobile Penetration 108% 120% 140% 142% 147% 145% 100% 97%
Internet Subscribers 2,324,000 3,137,000 4,260,000 5,300,000 5,650,000 7,900,000 10,129,351 9,135,455
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Internet Penetration 38% 51% 67% 73% 75% 83% 103% 100%
Annual Inv. (MUSD) 162.4 179.4 139.8 218.9 403.9 406.7 134.7 212.0
Employment 5317 4600 4596 4212 4304 4159 4225 4014
Table 8: Telecom Statistics 2010 – 2017
2. Telecom Revenues
Telecom Revenues (Million USD)
1,669
1,571
1,462 1,370
1,629
1,547
1,353 1,402
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mobile Penetration Internet Penetration
*Note: TRC, and due to inflated stats collected from operators, adopted a different criteria in data collection, analysis and calculation that
reflect actual figures. This has caused in the sharp decline in mobile penetration.
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6000
5756
5317
5280
5000
5219
4600
4596
4304
4000
4212
4225
4159
4014
3000
2000
1000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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403.9
406.7
248.6
211.9
218.9
179.4
163.8
162.4
162.4
134.2
139.8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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ICT Training
ICT Training Revenue 2017
Final Total Domestic Export
ISIC Activity ISIC Revenue % Revenue % Revenue %
ICT
ICT Training $2,165,872 100% $1,154,102 100% $1,011,770 100%
Training
Total $2,165,872 100% $1,154,102 100% $1,011,770 100%
Table 11: ICT Training Revenue 2017
Table 13 below, shows the contribution of “high value-added” and “low value-added” activities to Total,
Domestic, and Export IT Revenues.
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According to the figures above, more than (82%) of the total IT sector revenue is generated from “high
value-added” activities, 98.20% of exports revenue results from “high value-added” IT activities,
demonstrating that the IT industry brings high value to the Jordanian economy mainly in exports.
High
Value
Add High
71.9% Value
Add 98 %
IT Imports
Export and Import are the most important macro-economic indicators for a country. These indicators
are the integral part of the total developmental effort and national growth of the Jordanian economy.
The export growth would increase the import capacity of the country which would boost up
industrialization as well as overall economic activities. Jordan is seeking to reduce import dependency
on ICT components and promote indigenization. The total IT imports in 2017 is worth $74,484,316.
IT Imports 2017
Total Imports Value (USD) %
Hardware $51,483,540 69.12%
Software $9,129,260 12.26%
IT Services $3,757,061 5.04%
Licenses $6,006,716 8.06%
Others $4,107,740 5.51%
Total USD $74,484,316 100%
Table 14: IT Imports 2017
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IT IMPORTS IN 2017
Licenses $6,006,716 Others $4,107,740
IT Services
$3,757,061
Software
$9,129,260 Hardware
$51,483,540
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IT EXPORTS (USD)
$324,441,323
$299,915,978
$268,577,218
$226,863,277
$230,528,961
$209,526,864
$207,418,148
$202,275,754
$196,907,691
$200,434,541
$191,520,379
$178,116,633
$162,619,518
$79,410,743
$69,728,000
$40,038,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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Iraq 20,003,579
Netherlands 39,714,182
United Kingdom 46,860,576 107,697,202
Saudi Arabia
Figure 13: Top 10 Exports Markets and Number of Markets 2017 vs. 2016
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1. Employment by function
Employment Functions are the activities divided below for the production of final goods or services
intended for the market or for third parties. Usually these functions make up the primary activity of the
enterprise, but they may also include other activities if the enterprise considers these as part of its core
functions.
EMPLOYMENT BY FUNCTION
Customer Care
Management
Technical 26% HR & Admin
14%
Operations 2%
3% Marketing
Other
Technical 3%
Sales
4% 5%
Network IT Support
and 15% Software
Infrastru Development
cture 26%
2%
2. Employment by Nationality
EMPLOYMENT BY NATIONALITY
Foreign…
Jordanian
96 %
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3. Employment by Location
With a total of 13,658 jobs, the sector have succeeded with 13,482 employments locally while 176 are
employed abroad.
EMPLOYMENT BY LOCATION
Abroad 1%
Local 99%
4. Employment by Gender
Of total employments by this sector, 70% of employees are males and 30% are females.
EMPLOYMENT BY GENDER
Female 30%
Male 70%
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13658
13187
12634
12080
11637
11360
11334
11235
11034
10712
10294
9858
10032
8523
8117
8000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 18: IT & ITES Employment 2002 – 2017
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Appendices
Appendix A: ISIC 4.0 – ICT and ITES Economic Activities
ICT and ITES ISIC Definition
Section Code Description
2610 Manufacture of electronic components and boards
2620 Manufacture of computers and peripheral equipment
Manufacture of data communications equipment, such as bridges,
263001
routers, and gateways
Section C - 268001 Manufacture of hard drive media
Manufacturing:
2731 Manufacture of fiber optic cables
332002 Installation of communications equipment
332002 Installation of mainframe and similar computers
4651 Wholesale of computers, computer peripheral equipment and software
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