JORDAN'S LOCAL INVESTORS are in a positive mood.
Share prices on the Amman Stock Exchange (ASE) are up more
than 7% so far this year, a rise that began even before the
end of the US-led invasion of Iraq. Gulf financiers are also
increasingly positive about prospects but western investors
remain cautious.
There are some grounds for the optimism. The reconstruction of
Iraq will provide opportunities for Jordanian companies and the
transit of goods through Aqaba port is also expected to rise
sharply. In the longer term, Iraq, which has the human and natural
resources to become one of the wealthiest and most dynamic states
in the region, will become a more attractive export market.
However, the end of Saddam Hussein's regime also poses major
challenges for Jordan. Iraq, boycotted by most of the world, was an
important market for its neighbours, taking 20% of Jordan's
exports. Iraq's new trade links may be...
