Jordan Times
Monday, April 25, 2005

Kingdom urged to make transition to e-commerce
Internet use in the Middle East is expected to triple in the next three years
By Melanie Jacobson

AMMAN — Jordan should take advantage of the opportunities offered by electronic commerce in order to narrow the gap with developed economies, said a speaker at a two-day conference that concluded yesterday.

The “E-Commerce Conference: Strategies & Policies” provided attendees with the specific knowledge and capabilities needed to participate successfully in the electronic economy.

Intellectual assets and knowledge now exceed physical capital in value, according to Lucinda Jones, a senior legal officer with the World Intellectual Property Organisation (WIPO) and speaker at the conference.

Jones noted that “uncertainty and a lack of awareness and technical skills” are preventing equal participation in the information society.

It is crucial for a country like Jordan to “make the transition to an e-economy so as to narrow the gap between it and developed economies,” Jones said, warning that “not to make that leap would be fatal.”

The conference, which featured American legal experts and Jordanian business leaders, addressed a wide range of overlapping e-commerce, IT, and intellectual property issues.

Tawfiq Al Tabaa, board member of the Jordan Intellectual Property Association (JIPA), which organised the conference, told The Jordan Times the gathering aimed to highlight e-commerce success stories for Jordanian and regional companies to emulate, such as Tejari, the eBay of the Middle East based in Dubai with over 60,000 catalogued items from more than 1,000 suppliers.

Tejari Jordan General Manager Yazan Hatamleh encouraged businesses to stake online territory and capitalise on global online trade, expected to reach $12.8 trillion by 2008.

Expansion of e-commerce is set to take off in the Arab world where Internet users are expected to triple in the next three years, according to Khaldoun Tabaza, a board member of the Arab Private Equity Union.

E-banking, a leading e-commerce sector and a key topic at the conference, was lauded as a “win-win-win” business by Naser M. Khraishi, assistant general manager of IT for the Jordan-Kuwait Bank. Customers, banks, and the overall economy all benefit when banking moves online, he said.

Khraishi admitted that jobs would be lost as the sector goes online, but remained convinced that the move would be beneficial in the long run. Companies that provide infrastructure for e-banking such as SMS services and centralised check clearing could sell their services throughout the region and in the global market, he told The Jordan Times.

Eric Garduo, project manager for the International Intellectual Property Institute, told the audience that “efficiency is the absolute benchmark for international competitiveness,” so the expected job loss would be only temporary. “E-commerce,” he asserted, “will produce more business for companies and, in turn, will provide more jobs.”

He reviewed the factors which enabled e-commerce to succeed in the US, including widespread and affordable Internet accesss and significant market penetration of sophisticated personal computers.

While Jordan's PC penetration is still low and Internet relatively expensive, the situation is improving, Gardu?o said, and Internet cafes are widely used. Moreover, financial institutions like the Jordan Commercial Bank offer SMS banking services, an accessible venue in Jordan, where mobile phone penetration is high.

The conference was held under the patronage of HRH Prince Ali Ben Al Hussein with funding from USAID and support from the WIPO.


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