The Jordanian economy is part of a regional economy, and it is part of a global economy that is much more affected by the course of events than it affects them; because it is a small economy that relies heavily on importing all goods from abroad, especially oil and gas. It is natural that it is affected by the tensions in the Strait of Hormuz through which many imports pass, as well as a significant portion of exports that must pass through the ports of Dubai, which is a center for reclassification and export of goods.
There is a global energy crisis, and we are part of it; because we import more than 80% of our needs from it, especially gas in its liquefied form and cooking gas. If the whole world is suffering, so are we.
What matters is the amount of hedging we use until the crisis is over, while countries have started early to look for alternatives, whether from external or local sources. I am confident that the government is aware of such challenges, and I am confident that it has started early to look for alternatives, especially for industrial gas, electricity generation, or cooking gas.
One of the effects is also the shipping costs and supply chains, as the tension in the Strait of Hormuz has led to their increase worldwide, and we are no exception. Although controlling prices is still within reach, the extent of these prices' resilience is also linked to diversification of sources, but more so to increasing local production and reliance on it, although it will also be affected due to the high costs of importing raw materials used in the industry.
Hedging is the most important plan that should be a priority, but what is even more important is supporting the national product.
Is there a crisis that will escalate? We must hedge!
