Bank of Jordan and Central Bank of Iraq Forge Economic Partnership, Paving Way for Regional Digital Transformation, 1 OCT
The Bank of Jordan and the Central Bank of Iraq have recently inked a partnership, signaling a significant development in the economic ties between the two nations. This collaboration is set to bring about an array of economic benefits for both countries, reinforcing regional stability and growth.
Strengthening Bonds and Fostering Economic Growth
The partnership stems from a meeting between the Governor of the Bank of Jordan and the Governor of the Central Bank of Iraq, Ali Al-Alaq, in the Jordanian capital. This collaboration is a testament to the increasing economic rapport between the two nations and their joint commitment to foster regional economic development. The agreement is expected to unlock a myriad of economic opportunities, potentially paving the way for increased investments, job creation, and economic stability in the region.
The Second Digital Mashreq Forum: A Step Towards Digital Transformation
On February 24, 2022, Iraq, Jordan, and Lebanon reconfirmed their commitment to the digital transformation of their economies, during the Second Digital Mashreq Forum. Organized by the World Bank Group, the event served as a platform for high-level officials, private sector representatives, entrepreneurs, investors, and business executives to discuss digital reforms, regional collaboration, and opportunities in the post-COVID-19 recovery phase. The forum emphasized the importance of digitizing government services, expanding broadband access, and fostering digital literacy among citizens and public service employees.
Saroj Kumar Jha, World Bank Mashreq Regional Director, highlighted the potential of digital transformation in promoting accountability, transparency, and regional cooperation. He stated, “The digitization of government, digital payments, and expanding broadband access in the three countries will offer opportunities for additional investments, more job creation, more stability, and more peace in this region.”
Bank of Jordan’s Expansion in the Region
The Bank of Jordan recently announced the commencement of its operations in Iraq with the inauguration of its first branch in Baghdad. Shaker Fakhouri, Chairman of the Board at the Bank of Jordan, expressed that this move is a part of the bank’s strategy to expand its business operations where markets are witnessing substantial growth and promising opportunities.
Fakhouri added, “Our decision to establish a branch in Iraq serves to boost our regional presence and exemplifies the strategy adopted by the Bank, namely expanding its business operations in the region. This is expected to reflect positively on the services offered to both our current and prospective clients. Furthermore, we strive to develop our banking scheme in a manner that reflects the Royal visions of boosting investments and achieving economic coordination and collaboration between the two states, thus consolidating our robust economic and historical relations with Iraq.”
Future Prospects: Towards a Regional Digital Economy Hub
These recent developments, coupled with the commitment to digital transformation, reveal a promising future for the region. With an explosive bandwidth capacity growth reaching 35 percent yearly, the Mashreq region has the potential to become a regional digital hub, given a conducive enabling environment. This will necessitate a fair and proportionate regulatory framework that encourages competition and facilitates access to widespread and inclusive cloud-based services.
The ongoing efforts towards digital transformation also underscore the importance of digital financial services. Jordan, for instance, has witnessed significant progress, with 1.8 million mobile wallet users. The adoption of digital payment methods and the emergence of cryptocurrencies signal the inevitable digital disruption in the financial sector, necessitating further work on regulation, infrastructure, and acceptance networks.
As the region gears up for these significant transformations, it’s crucial to ensure that digital upskilling for workers remains a priority to keep pace with the evolving job market. The partnership between the Bank of Jordan and the Central Bank of Iraq marks a significant step in this direction, setting a precedent for other nations in the region to follow suit.
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