Jordan: Between a rock and a hard place

As I walk down through the old city of Amman negotiating my way through the hassle of street vendors and small shop keepers - all of whom are inviting me with a tired smiles - I get a sense of the fault lines that have the potential to rock this small and vulnerable country.

First, let’s look at the population within Amman. The majority of those living in the City are of Palestinian origin, of whom the vast, vast majority would love to back their bags and head back to Palestine. Not too dissimilar to other Arab nations, more than 50% are under the age of 25, most do not have formal qualifications, and nearly all have very poor job prospects for the future – even tourism, a pillar of their informal economy, has been hit by the unrest of the wider region.

Next, let us examine the perception held by many on the street. In talking to people, either who are trading or just living in these areas, they are utterly convinced that the standard of living in the rest of the World is far superior to that which they endure in Jordan. In addition, many are also convinced that the present system of Government in Jordan is actively seeking to concentrate the best of the country’s resources into the hands of the privileged few. Needless to say, it is neither here nor there whether they are accurate in their beliefs; as we have seen throughout the Arab world, a widely held perception or negativity can be a very dangerous catalyst.

Finally, but no means least, let’s consider the external influences on this Arab nation. To the North, Syria remains to be in an increasingly disturbing and bloody turmoil; to the West, the Israeli-Palestine conflict continues to simmer; and to the East we have Iraq, which is looking more and more unstable by the day. No doubt, such extreme unrest on the doorstep of Jordan will be both uncomfortable for the Government and unsettling for the country’s people.

I hope the King holds good council at this dangerous time.

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Written by Fadel Takrouri.

Fadel is a businessman and the Chairman of the British Arab Federation (BAF)

The BAF is an organisation committed to enabling the British Arab Community of the UK. We conduct research, hold seminars and events concerning Arab Business, Arab Culture and Arab News.

Relief for internet Start Ups, opportunities for the Young

As Budget day approaches, the debate between cutting expenditure versus cutting taxes looks set to overheat.

One thing, regardless of Party ideology, I hope we can all agree on is that at any given time we need government to create conditions that encourage further trade and also new businesses to open. The more businesses that open and succeed, the more taxes the government has at its disposal to maintain public services – some of which in turn could be instrumental in helping many back to work.

At a time when opportunities for the young are an upmost priority for policy makers; I am advocating a tax break (or policy) that could benefit this and other groups with few prospects at present. In talking to business owners and young budding entrepreneurs, both within the British Arab community and outside of it, my suggestion focuses on allowing new internet business start ups to develop before being strangled at conception.

To elaborate, one option the Chancellor could adopt in the coming Budget is to allow a 100% five year tax relief for all internet start ups.

Such a move would not just encourage the unemployed or underemployed young people of Britain to set up their own business, but, in allowing flexibility regarding the location of these new internet start ups, it could also attract entrepreneurs from around the world too. The benefit to government, or the UK economy, could be several fold; job creation (more money put into circulation and fewer on benefits), increase our export of goods, greater eventual tax revenues and a more diverse, reinvigorated business sector.

This simple tax measure would be relatively inexpensive to implement and, as these are yet to be created ventures, the public purse would not be left short. In the long term, making it easier and more affordable for people to start businesses will pay dividends in the future.

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Written by Fadel Takrouri. 

Fadel is a businessman and Chairman of the British Arab Federation (BAF). 

The BAF is an organisation committed to enabling the British Arab community of the UK. We conduct research, hold seminars and events concerning Arab Business, Arab Culture and Arab News.