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Monday 30 January 2012

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Jordan: the desert kingdom that has played a pivotal role in the Middle East

The desert kingdom of Jordan is small with few natural resources, but it has played a pivotal role in the Middle East.

Jordan's King Abdullah
Jordan's King Abdullah (R) listens to Yemeni President Ali Abdullah Saleh as they attend a military show. Both men face protests in their respective countries in a knock-on effect from Egypt's unrest Photo: AFP/GETTY

The ruler, King Abdullah II, is a pro-Western monarch with close contacts to the UK and USA, and has taken high profile roles during Middle East peace negotiations.

His wife, the glamorous Queen Rania, is Palestinian, and his role as an Arab ruler, combined with having a large population of Palestinian refugees in his country, has made him a vital part of the regional political fabric.

Educated at Oxford and then Georgetown University in Washington, the 49-year-old is seen as a moderate ruler, and Jordan is also one of only two nations to have made friends with Israel.

The country emerged out of the post-war division of the Middle East by Britain and France. The population at the time was mainly Bedouin tribesmen, but over the decades the ruling family – the King holds all real political power – have transformed the country into a relatively prosperous nation. Last year the UN Human Development report classified the country as having "high human development" and King Abdullah has shown a desire to turn the country into a regional business hub.

A longtime US ally, Jordan was also the first of the Arab League's 22 member nations to sign a free-trade agreement with the United States, back in 2000.

That made it only the third such free trade agreement in US history, following similar FTAs with Israel, Canada and Mexico.

Tourism is also a key part of the Jordanian economy, with the ancient ruins of the "lost city" at Petra, the desert sands of Wadi Rum and the Red Sea resort of Aqaba drawing in over seven million tourists annually.

However, the country of 6.5 million people is certainly not without its problems.

With limited natural resources and a per-capita annual GDP of $4,700 (£2,900), Jordan's economy is heavily dependent of foreign investment and aid, particularly from the United States – a major benefactor for the past 60 years. Unlike neighbouring Saudi Arabia or Iraq, Jordan does not have significant oil reserves.

Over 55 per cent of the country is aged under 25, according to the UN, and unemployment currently stands at 9.5 per cent.

Protests have spread across Jordan in the last few weeks, with demonstrators blaming corruption spawned by free-market reforms for the plight of the country's poor.

Many Jordanians hold successive governments responsible for a prolonged recession and rising public debt that hit a record $15 billion this year in one of the Arab world's smallest economies, heavily dependent on foreign aid.

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