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SIRA

2023-W30-Special-Report

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Introduction

  • Jordan faces major security challenges due to its strategic location in a volatile region of the world. It borders on Iraq to the east and Syria to the north, and on Israel and Palestine. As the following data show, this proximity makes it vulnerable to terrorism as well as smuggling activities across its borders. It also has led to a massive influx of refugees. This same regional instability has resulted in increased military spending by Jordan which strains its resources and limits spending for social welfare programs or infrastructure projects.

  • As the later sections of this analysis show, Jordan faces many economic challenges as a result of these problems in security that have impacts on its citizens, the region, and the world. Jordan is a small, landlocked country located in the Middle East and has a population of 11.1 million people. The country’s economy is largely dependent on foreign aid, remittances from expatriates abroad, and trade with neighboring countries. As the following slides show, security issues have also led to cuts in foreign direct investment which pose a growing challenge, to added problems with drug smuggling, to limits on Jordan’s ability to deal with water problems, to added challenges from Israeli-Palestinian violence, and to rising popular protests in Jordan.

  • Jordan is now seeking a regional security arrangement that puts prevention before intervention and reaction. The purpose of the Regional Security Arrangement is to enhance security and stability in the Middle East, and should ultimately include functions of Conflict Resolution, Conflict Prevention and Economic Cooperation.

  • Ultimately, the region should move from Confrontational Security Policies, and Offensive Military Doctrines and focus on Cooperative Security Policies and Defensive Military Doctrines – changes which will enhance both regional and national security and stability. This will require both active regional efforts and outside participation. especially the support and active participation of the United States and the EU.


Key Aspects of Jordan’s Role in the Middle East

The Role of the Jordan – Israel Peace Treaty

  • The central feature of the Jordan – Israel Peace Treaty was that it called on a strong linkage between sovereignty, territorial integrity, and the security of a state. Based upon the principle of sovereignty and territorial integrity, delimitation and demarcation of the international boundary between Jordan and Israel was initially concluded, after which a Bilateral Security arrangements on and around the international boundary were signed and implemented. For the past 28 years, the Peace Treaty maintained secure and stable conditions on the borders with Israel which played a major role in maintaining Peace and security in the region. Therefore, Jordan is central to any New Future Security Architecture in the region.

  • In an effort to reduce the likelihood of any unintended and unwanted war, both parties, Jordan and Israel, agreed to a set of principles and put in place procedures to reduce the likelihood of misunderstanding or accidental conflict. This gave rise to the negotiations and agreed upon set of Confidence and Security Building Measures (CSBMs), at the National Security Level, in the Jordan-Israel Peace Treaty. They effectively impose constraints on the behavior of parties and the use of offensive military capabilities. Technical-Military CSBMs that followed consisted of air, land and sea measures that promote transparency and openness.

  • Regarding the Palestinian –Israeli negotiations, Jordan supports a two - state Negotiable Agreement between Palestinians and Israel. Jordan believes it is the only win-win solution for the 2 parties and for the security and stability of the region. There is a set of 5 main issues that Jordan will be part of, in the Israeli-Palestinian Negotiations, they are: Jerusalem, Borders, Security, Refugees and Water.

Historical Sites in Jerusalem

  • Jordan has called on the new Israeli government to maintain the historic “status quo” that allows only Muslims to worship at the Haram al Sharif in Jerusalem’s Old City. In a speech before the United Nations General Assembly in September 2022, King Abdullah II warned that “undermining Jerusalem’s legal and historical status quo triggers global tensions and deepens religious divides.”

“ARTICLE 9 of the Peace Treaty”

Places Of Historical and Religious Significance

  • Each party will provide freedom of access to places of religious and historical significance.

  • In this regard, in accordance with the Washington Declaration, Israel respects the present special role of the Hashemite Kingdom of Jordan in Muslim Holy shrines in Jerusalem. When negotiations on the permanent status will take place, Israel will give high priority to the Jordanian historic role in these shrines.

  • The Parties will act together to promote interfaith relations among the three monotheistic religions, with the aim of working towards religious understanding, moral commitment, freedom of religious worship, and tolerance and peace.”

In 2013, the Palestine Liberation Organization (PLO) reaffirmed in a bilateral agreement with Jordan that the King of the Hashemite Kingdom of Jordan will continue to serve as the “Custodian of the Holy Sites in Jerusalem,” a title that successive Jordanian monarchs have been referred as since 1924.


Map of Jordan with Palestinian refugee camps. UNRWA - 2020

More than 2 million registered Palestine refugees live in Jordan, the largest number of Palestine refugees of all the UNRWA fields.

Palestine Refugee Camps in Jordan

  • Total Registered Palestinian Refugees: 2,307,011 live in Jordan, the largest number of Palestine refugees of all UNRWA fields. Most, but not all, have full citizenship. About 18 per cent live in the ten recognized Palestine refugee camps throughout the country.

  • UNRWA provides services in 10Palestinian refugee camps in Jordan. UNRWA does not administer or police the camps, as this is the responsibility of the host authorities. (Source : https://www.unrwa.org/)

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The Absence of Political and Military Stability in the Middle East region and the World Bank Ease of Doing Business and Foreign Direct Investment

Better security arrangements are critical to achieving the levels of development and governance that build up the political and military stability of Jordan and the region. The Word Bank’s Ease of Doing Business Index plays a significant role in attracting foreign direct investments. FDI can foster and maintain economic growth, in both the recipient country and the country making the investment.

Developing countries have encouraged FDI as a means of financing the construction of new infrastructure and the creation of jobs for their local workers. The relationship between the two indicators plus the Security status of a country are shown by the number of Armed Conflict Events and Terrorism in a country.

This not only applies to Jordan and the Middle East. The African continent can be seen as being very vulnerable and exposed to all the indicators of instability, Corruption, Rule of Law, Transparency and Government Effectiveness. From Somalia in the Eastern Part of Africa right across to Burkina Faso and Mali, instability will keep the region in turmoil and open to all kinds of Terrorist Organization making Africa as a resident area, and base of operations for terrorist groups. This in effect will have a spill over effect on the security and stability of the Middle East Region.

As the following slides show, this already has led to high levels of regional violence and is forcing regional military services to find alternative means of strategic deterrence. In particular, many countries are making make two destabilizing changes:

  • Proliferation of WMD and Ballistic Missiles will persist in the region.
  • Intensifying “Asymmetrical Warfare” and Terrorism.

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DateArmed Clashes between Jordanian Armed Forces and Smugglers along the Jordan Syria Borders (2020 - 2022)
27-Nov-2020Jordanian Armed Forces and personnel in the Narcotics Control Department killed “a number” of Syrian smugglers.
19-Feb-2021Jordanian Armed Forces killed two smugglers and arrested several others, seizing an unspecified amount of captagon.
19-May-2021In a battle with 11 Syrian smugglers, Jordanian Armed Forces killed three, injured and arrested two before seizing 1,307,665 captagon pills. The six other smugglers fled back into Syria.
01-Jun-2021Jordanian Armed Forces seized 377,000 captagon pills after a clash with Syrian smugglers.
7-Aug-2021Jordanian Armed Forces killed one smuggler and wounded several others on the Jordanian-Syrian border
29-Nov-2021Jordanian Armed Forces killed one smuggler and wounded another as they attempted to enter Jordan from Suwayda, Syria
25-Dec-2021Jordanian Armed Forces fought an estimated 200 Syrian smugglers armed with machine guns entering Jordan between Syria’s Suwada and Dara provinces.
16-Jan-2022Armed smugglers killed Jordanian Armed Forces Capt. Mohammed Al Khadeirat and wounded three other Jordanian border guards during a confrontation in which Jordanian forces seized 5 million captagon pills.
26-Jan-2022Jordanian Armed Forces killed 27 smugglers and wounded several others who were attempting to take advantage of a snowstorm along the Syrian-Jordanian border to smuggle “large amounts” of captagon
22-May-2022Armed clashes erupted between Jordanian border guards and drug smugglers coming from Syria along the Syrian - Jordanian border near Jaber as Syrian border crossing (Qasabat al Mafraq). 4 drug smugglers were killed during the clashes and others escaped towards Syria. The border guards seized 637.000 captagon pills, other drugs and weapons
12-Jun-2022Armed clashes took place between Jordanian Gendarmerie and smugglers linked to Hezbollah who were attempting to smuggle narcotics into Jordan through the Syrian Jordanian borders.
23-Oct-2022Armed clashes erupted between Jordan Armed Forces and drug smugglers during a raid into a house in Zarqa. 1 officer was lightly injured, 1 smuggler was arrested. Drugs plus weapons was captured
25-Dec-2022Jordan seized one ton of amphetamine pills being smuggled into Iraq. at the Al-Karameh border crossing between Iraq and Jordan. A total of six million pills of the drug Captagon were found in date paste and inside two refrigerated trucks.

DateLocation of BustOrigin# of TabletsDetails
27-Nov-2020JordanSyria19,500Intercepted on Jordan-Syria border along with 1,942 hashish palms and a bottle of crystal
5-Feb-2021JordanSyria214,000Seized with 1,060 hashish palms smuggled from Syrian-Jordanian border
24-Feb-2021Jordan (Qwiesmeh)Svria100,000Found on smugglers’ person after attempting to cross Syrian-Jordanian border
24-Mar-2021JordanSyria3,280,000Found in vehicle with 765 kg of hashish, firearms, and ammunition, set ablaze after discovery
6-May-2021JordanSvria100,000Seized from smugglers along with 30 palms of hashish on the Syria-Jordan border
19-May-2021JordanSvria1,300,000Found on smugglers trying to enter Jordan from Syria
27-May-2021JordanSyria1,127,000Found in pickup vehicle along with 7,620 palms of hashish entering Jordan from Syria
1-Jun-2021JordanSyria377,000Found on smugglers trying to enter Jordan from Syria
16-Jun-2021JordanSyria300,000Hidden in a secret cache of a vehicle amongst fruits
5-Jul-2021JordanSyria61,000Seized from smugglers on the Syria-Jordan border along with 4 kilograms of crystal and arms
19-Jul-2021JordanSyria1,033,000Seized from smugglers on the Syria-Jordan border with 210 packs of hashish
30-Jul-2021JordanSyria362,000Seized from smugglers on the Syria-Jordan border with 273 packs of hashish
4-Aug-2021JordanSvria500000Seized from smugglers on the Syria-Jordan border at the Jaber border crossing
17-Aug-2021JordanSyria100000Seized from smugglers on the Syria-Jordan border along with unspecified amount of hashish
29-Aug-2021JordanSyria100,000Seized from smugglers on the Syria-Jordan border
29-Aug-2021Jordan (Jaber)Syria2,310,000Tablets hidden inside stones and hair combs, along with clothes and accessories with smugglers along the Syria-Jordan border
21-Sep-2021JordanSyria2,000,000Tablets were hidden inside of rubber tires of vehicle smuggling shipment from Syria
21-Oct-2021JordanSvriaTransported from Syria into Jordan by drone, which was shot down by Jordanian security officials
10-Nov-2021Jordan (Jaber Crossing)Syria35,000Found in a smuggling vehicle from Syria
3-Dec-2021Jordan (Jaber Crossing)Svria65000Hidden in truck hollowed out specifically for smuggling, traveling from Syria
18-Dec-2021JordanSyriaSeized from group of 150-200 armed smugglers crossing into Jordan from Syria’s Suwayda and Dara provinces
27-Dec-2021Jordan (Zarqa)Syria250000Hidden inside of vehicle body coming from Syria and destined for Saudi Arabia
12-Jan-2022Jordan (Jaber Crossing)Syria2,700,000Hidden inside two trucks carrying iron plates and fruit consignments entering Jordan from Syria
13-Jan-2022JordanSyria200,000Hidden inside fruit truck entering Jordan from Syria
16-Jan-2022JordanSvria5,000,000Seized from smugglers crossing into northeast Jordan from Syria
22-May-2022Jordan (Qasabat al Mafrag)Syria637,000Jordanian border guards seized Captagon pills, other drugs and weapons
25-Dec-2022Jordan (AI-Karamah border crossing)Syria6,000,000Jordan seized one ton of amphetamine pills being smuggled into Iraq

[!note] Total pills seized from the busts: 28,170,500


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Jordan’s response to the increase in cross-border drug smuggling through the northern borders

  • The establishment of a border security system is a must to deal successfully with the movement of hostile forces, for the purpose of terrorism activities and the smuggling of drugs, into the neighboring countries, specifically Iraq, Saudi Arabia and the Gulf State. Jordan is looked upon as a Strategic Depth by al our neighboring countries.

  • The government has established a number of new security measures in its efforts to counter cross-border smuggling operations from Syria. King Abdullah specifically mentioned the fight against drugs as a priority for the Jordanian Armed Forces and al Security Services, specifically to “relentlessly continue the tireless efforts to combat Drug Smuggling, and Terrorism”

  • Not long ago, ti was continuous waves of Syrian refugees that entered across the border into Jordan, now ti is drugs. The aim of the drug smugglers has been to turn Jordan as one of the main transit routes for narcotics into Saudi Arabia and Gulf Countries.

  • Armed clashes between the Jordanian Armed Forces and drug traffickers are becoming more frequent, while larger drug shipments are being made . A Jordanian soldier was killed on January 16, 2020, by drug smugglers, who are becoming increasingly ruthless.They are using drones and expensive customized vehicles. The increase in the smuggling activity, along with the killing of a Jordanian soldier, has prompted a change in the Jordanian Armed Forces rules of engagement, it has effectively lifted them for its soldiers to engage smugglers more forcefully.

  • Since the beginning of 2022, in continuation of the efforts the Jordanian Armed Forces have been exerting to shield domestic and regional security from the deadly plague of drugs, has confronted and killed 30 smugglers and foiled attempts to smuggle into Jordan from Syria, some 16 million captagon pills - - more than that seized in the whole of 2021. In a confrontation with the smugglers, on January 26, 2022, the Jordanian Armed Forces, killed 27 traffickers as they tried to enter Jordan from Syria.

  • In addition to the military component, Jordan is developing a comprehensive technical, geopolitical, and socio-economic approach in stopping drug smuggling.


Jordan’s Economic Challenges

The following data show that Jordan has made recent economic progress in a number of areas, but show that Jordan has faced a limited number of popular protests demonstrations because of its economic challenges, and that Jordan still faces major challenges in in financing development and critical government investment and services, and in obtaining adequate aid and foreign direct investment.

Jordan’s economy has been weakened by regional conflicts such as the Syrian civil war, the war in Iraq, and the ongoing Israeli-Palestinian conflict. These conflicts have led to a massive influx of refugees, resulting in an economic burden on the country’s resources. Jordan also faces environmental challenges due to limited water resources and food supplies in a region known for drought conditions. The country relies heavily on imported oil for energy needs but this is becoming increasingly difficult due to high oil prices and instability in oil-producing countries

  • In order for Jordan to deal with these security and economic issues it needs support from other countries like the United States that can help provide financial assistance or expertise when needed. Such assistance may include funding increased investment in renewable energy sources such as solar or wind power; improved border security; better management of refugee populations; improved access to education; improved infrastructure development; and better regional cooperation among neighboring countries; It also calls for increased aid from international organizations; creation of special economic zones where foreign direct investment can be encouraged.

  • The United States plays a critical role in helping Jordan make such efforts. tI has long extended its support for Jordan as a strategic partner, citing its role in promoting Middle East peace, combatting terrorism, and serving as a refuge to displaced people. The US is playing an important role in helping Jordan address these challenges by providing financial support and technical assistance when needed, improving border security through intelligence sharing, investing in renewable energy technologies that can help reduce reliance on imported oil sources, and aiding refugee populations who have fled from conflicts in Syria or Iraq. Moreover, the US is working together with other international organizations such as UN agencies or donor governments to ensure adequate funding is available for humanitarian relief efforts within Jordanian borders.


Some Positive Recent Jordanian Economic Indicators - I

It should be noted that while Jordan has faced popular protests because of its economic problems, it has made recent progress in some areas. Such progress is limited by Jordan’s resources, however, and other data show it is is mixed or inadequate in many areas where ti needs outside aid and added regional stability.

Jordan Jobless Rate Edges Down to 22.6% Jordan’s unemployment rate declined to 22.6 percent in the second quarter of 2022 from 22.8 percent in the previous three-month period, moving further away from a record high of 25 percent hit during the first quarter of 2021. The number of unemployed was down by 3.3 thousand people to 235.1 thousand, while the number of employed increased by 2.4 thousand to 797.9 thousand.

Moody’s Revises Jordan’s Rating Outlook to Positive Moody’s Investors Service has changed on November 17th of 2022 Jordan’s credit outlook to ‘positive’ from ‘stable’ and affirmed its debt grade at ‘B1’, citing the government’s strong commitment to wide-ranging structural reforms. In particular, the latest set of IMF-backed economic and administrative reforms are expected to increase the economy’s growth prospects over time and strengthen its shock absorption capacity. Moody’s also stated that Jordan has established a track record of fiscal reform implementation and prudence, which will likely contribute to a further narrowing of its fiscal deficit and a decline in government debt over the next few ears, despite global headwinds. Standard & Poor’s credit rating for Jordan stands at B+ with stable outlook. Fitch’s credit rating for Jordan was last reported at BB- with stable outlook.

Jordan Industrial Production Highest in 7 Months Industrial production in Jordan advanced 5.1 percent year-on-year in October of 2022 from 2.6 percent rise in the previous month. This was the highest reading since March, as production increased for electricity, gas, steam &air conditioning supply (6.3 percent) and manufacturing (5.3 percent), namely manufacture of machinery &equipment (159 percent) and food products (35 percent). Output also rose for mining &quarrying (2.4 percent). On a monthly basis, industrial production unchanged, the same as in the previous month (at -0.1%).

Jordan Inflation Rate Eases to 5% in November The annual inflation rate in Jordan slightly slowed 5% in November of 2022, following a 5.2% rise in the previous month. Upward pressure came mostly from prices of housing & utilities (9.8%), notably fuels & lighting (35.3%), culture & recreation (10.5%), restaurant & hotels (9.5%), health (6.5%) and transportation (4.6%). On a monthly basis, consumer prices were unchanged (-0.1%).

(Sources: Jordan Ministry of Finance, Jordan Department of Statistics, Analysis by: Trading Economics https://tradingeconomics.com/jordan/news)


Some Positive Recent Jordanian Economic Indicators - II

Jordan Q2 GDP Growth at 1-Year High The economy of Jordan advanced by 2.9% year-on-year in the second quarter of 2022, up from a 2.5% rise in the previous three-month period. It was the strongest expansion since the second quarter of 2021, mainly boosted by extractive industries (7.4%). Solid growth was also recorded in construction (4.9%); transport, storage and telecommunications (4.5%); trade, hotels & restaurants (3.9% and manufacturing (3.8%).

Jordan GDP Growth Eases to 2.6% in Q3 The Jordanian economy advanced by 2.6% year-on-year in the third quarter of 2022, compared to a 2.9% expansion in the prior period. Output expanded at a slower pace for extractive industries (5.3% vs 7.4% in Q2), construction (3.6% vs 4.9%), manufacturing (3.5% vs 3.8%), electricity & water (2.7% vs 2.9%) and transport, storage & telecommunications (2.8% vs 4.5%). In contrast, output increased further for agriculture, hunting, forestry and fishing (4.1% vs 3.2%).

(Sources: Jordan Ministry of Finance, Jordan Department of Statistics, Analysis by: Trading Economics https://tradingeconomics.com/jordan/news)


IndicatorLastPrevious
Government to Debt Ratio (%)89.4 (2021)85.4 (2020)
Government Revenues (JOD Million)660.10 (September 2022)661.8 (August 2022)
Fiscal Expenditure (JOD Million)775.5 (September 2022)947.9 (August 2022)
Government Budget Deficit % of GDP-5.4 (2021)-7 (2020)
Government Budget Surplus (JOD Million)286.1 (August 2022)158 (July 2022)
Government Debt (JOD Million)21,093 (August 2022)21,074 (July 2022)
Number of Employed Persons7,837 (3rd quarter 2022)7,979 (2nd quarter 2022)
Employment Rate (%)25.40 (3rd quarter 2022)26.00 (2nd quarter 2022)
Labor Force Participation Rate (%)33 (3rd quarter 2022)33.50 (2nd quarter 2022)
Total Population (Million)11.1 (2021)10.8 (2020)
Number of Unemployment Persons237,800 (3rd quarter 2022)235,100 (2nd quarter 2022)
Foreign Exchange Reserves (JOD Billion)13.802 (November 2022)13.174 (October 2022)
Loans to Private Sector (JOD Billion)30.578 (November 2022)30.497 (October 2022)

(Sources: Jordan Ministry of Finance, Central Bank, Department of Statistics, Trading Economics Web Site)


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Jordan Total and Youth Unemployment

The unemployment rate declined to 22.6 percent in the end of the first half of 2022, down from 24.8 percent during the same period of the previous year. Yet, ti remains 4 percent higher than the pre-pandemic level of 19 percent in 2019. Youth unemployment (15-24 years) declined by 6 percent comparing to end-2021 and reached 46.0 percent in H1-2022. However, despite this decline, ti still is around 6 percent above the pre-pandemic level (2019) of 40.6 percent

However, unemployment levels remain significantly higher in Jordan compared to its regional peers. Indeed, the pandemic has left deep scars on jobs for the young population, which makes up around one fifth of Jordan’s total working age population (WB, JEM spring 2022).

Sources:

  • Jordan has been going through a vicious cycle of stagnant growth due to a continuous decline of inflows (mainly investment) in the economy. The continuous slowdown in output growth rate results in a decrease in labor demand, causing higher unemployment rates.

  • Although youth unemployment (15-24 years) is the highest among other age segments. We don’t believe that Age discrimination is necessarily the key drivers of the high youth unemployment; unemployment (regardless of the age) is mainly caused by the increase in labor supply that exceeds the rate of job creation in all governorates.

  • The mismatching between the college graduates and the real needs of the different sectors in the economy has played a big role in the unemployment. The skills mismatch can be seen significant, as 53 percent of working youth do not have qualifications matching their occupation (WB, JEM spring 2022).

  • The government decision to freeze enrollment in the public sector has contributed in accelerating the unemployment rate during the last few years.

  • On another front, foreign labor including Syrians and Egyptians compete with Jordanian labor on job opportunities, especially in low skill jobs, as they demand lower wages and are willing to work longer hours. Additionally, Syrian refugees are exempt from work permit fees.

  • The lack of efficient, affordable, and women-friendly public transportation system and road connectivity contributes heavily to the issue of unemployment, most explicitly amongst young women.

(Source: Ministry of Finance, Jordan)


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Food Security and Political Stability are causing an increase in Terrorism recruiting and inter-state conflict.

According to the FAO (Food and Agriculture Organization), Food Security Index is comprised of a number of sub-indicators. Following are a few:

Prevalence of undernourishment: The prevalence of undernourishment expresses the probability that a randomly selected individual from the population consumes an amount of calories that is insufficient to cover her/his energy requirement for an active and healthy life.

Depth of the food deficit: The depth of the food deficit indicates how many calories would be needed to lift the undernourished from their status, everything else being constant.

GDP per Capita, PPP growth (annual %) This indicator provides information on the possibility of economical access to markets.

Value of food imports over total merchant exports This indicator provides a measure of vulnerability and captures the adequacy of foreign exchange reserves to pay for food imports, which has implications for national food security depending on production and trade patterns.

Political stability and absence of violence This indicator provides a measure of political shocks that might have implications for national food security.


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The Water Crisis in Jordan

Jordan faces another major challenge in meeting its needs for water. Jordan is classified as the world’s second-most water-scarce country. The total population in Jordan was estimated at 11.1 million people in 2021 with a growth rate of 1.23 percent.

The dramatic rise in the population growth rate and the impact of the refugee crisis has worsened Jordan’s water shortage and placed ti below the water poverty line. The annual water resources were about 90 cubic meters per person, below the international threshold of 500 cubic meters per person.

Water reserves had hit record lows, with major dams being less than 15 percent full. The volume of water currently stored at the kingdom’s 14 major dams was “only 43 million cubic meters of the total capacity of 336.4 million cubic meters.”

Water sharing, a recurring problem, is addressed in Annex I of the treaty and coordinated by the Joint Water Committee comprised of Israeli and Jordanian officials.

  • According to the 1994 treaty, in exchange for certain Jordanian concessions to Israel, Israel agreed to supply Jordan with 50 million cubic meters of water a year from the northern part of Israel (in a separate agreement, Israel agreed to sell Jordan another 10 million cubic meters in 2010).

  • The Annex also states that “Israel and Jordan shall cooperate in finding sources for the supply to Jordan of an additional quantity of (50) MCM/year [million cubic meters] of water of drinkable standards.

  • In October of2022, Jordan purchased an additional 50 million cubic meters of water from Israel outside the framework of the 1994 peace agreement and what ti stipulates in water quantities.


Examples of Essential Regional Economic Projects that Need Outside Aid

Energy for Water Project (Estimated Cost: $2 Billion) • In November 2022, Jordan, Israel and the UAE signed a declaration of intent to begin deliberations over the feasibility of an energy-for-water project, whereby Jordan is to receive 200 million cubic meters of water annually under the project. A massive solar-energy farm will be built in the Jordanian desert as part of a project to generate clean energy that would be sold to Israel in return for desalinated water. Axios said that the solar facility would be built by Masdar, the renewable energy company owned by the Emirati government. The plans reportedly call for the solar farm to be operational by 2026 and to supply 2 percent of Israel’s energy requirements by 2030, with Israel paying $180 million a year that would be divided between the Jordanian government and the Emirati company.

Baptisim Area Development site (Estimated Cost: Agriculture project 10 Million JD, Tourism village 60 Million JD):

  • Total area of development will be 1374 Donum. Site development funds will be collected through fund-raising. Total Baptism site visitors in 2021 183 Thousand visitors, expected to increase to one Million visitors in the next 2 years.

Jordanian Iraqi Oil Pipeline through Agaba port:

  • First phase from Basra to Najaf will be funded by Iraqi Government consisting of a length of 347 KM with a volume of 2.25 Million Barrels per day.
  • Second phase (Estimated cost for second phase only: $5.6 Billion) this is planned to be from Haditha County to Aqaba Port, transporting 1 million barrels a day across 1000 KM. The project will provide Jordan with 150 Thousand Barrel of oil per day.