A Stable, Connected Gateway to the Region
From national economic reform to Amman's rise as a regional business hub, discover why global investors choose Jordan.
Investing in Jordan
Jordan is classified as a country of high human resources and enjoys strong economic and strategic relations with the MENA region and the world. As an emerging destination for renewable energy and clean technology, the country stands at the forefront of socio-economic growth and sustainable development.
According to a report issued by the Economic Policy Council, Jordan's Economic Growth Plan 2018–2022 will put Jordan on a sustainable growth trajectory and double its economic growth over the coming five years, at minimum. Boasting an investor-friendly environment, modern infrastructure, robust economic growth, political stability, and security, the Jordanian economy is attractive to foreign investors because of its skilled workforce and employment opportunities. As a major tourist destination in the Middle East, it attracts medical tourism in addition to entertainment and historical-sites tourism. According to the World Bank, Jordan has made important reforms to put its economy on the path to long-term prosperity, covering income tax, business regulations, and investment promotion laws.
Despite regional turmoil, Jordan continues to be an attractive destination for foreign investors who view the country as an oasis of peace in a volatile region — one that maintains stability, moderation, and security for an exceptional quality of life. Jordan has an advanced education system and an efficient labor force with lucrative investment incentives and tax exemptions, offering extensive market access through several global free trade and bilateral agreements.
Based on Jordan's Vision 2025, the economic growth plan is set to increase gradually from 6.5% in 2021 to 7.5% in 2025. This aims to jumpstart Jordan's economic growth in line with government efforts that have actively reduced red tape and bureaucracy, upgraded the economic legislation framework, and streamlined economic judicial transactions.
A Modern City with a Rich History
Amman, the capital city of Jordan with a population of 4.4 million, is the country's economic, political, and cultural center. While having a rich history dating back to 8000 BC, Amman is today considered one of the most modernized Arab cities in the world, adding to its cultural heritage and making it a popular touristic and investment destination.
The main characteristic of Amman is its distinct topography, which offers breathtakingly gorgeous landscapes that give the city an unusual setting of beautiful views, landmarks, and historical heritage sites. Perhaps its most important characteristic is its steady growth and change, making it one of the most popular locations in the Arab World for multinational corporations to set up their regional offices.
As Amman continues to grow and change at a fairly rapid pace, the city is taking active steps to cope with all the environmental and demographic changes within its context. Supported by laws and regulations simplified by the Jordan Investment Commission, the country remains an attractive destination for business and investment, balanced by quality of life and value-added job opportunities.
Investment Incentives
Jordan maintains an extensive system of incentives aimed at promoting various types of investment. Positioned as a gateway to the wider region, the country enables investors and entrepreneurs' access to markets of more than 1 billion consumers.
A report by the World Bank issued in April 2019 revealed that Jordan's real GDP registered growth of 2% in 2018, projecting a gradual increase to 2.2% in 2019 and 2.6% over the medium term. Jordan's top contributing sectors to GDP are services, finance, and tourism.
The Jordanian Investment Law and the Investment Incentives Regulation provide several incentives for economic activities, including:
- check_circleCustoms duty exemptions and tax reimbursement on production inputs for manufacturing and vocational activities
- check_circleCustoms duty exemptions and reduction to 0% of the General Sales Tax on production requirements and fixed assets for manufacturing and vocational activities
- check_circleTax reimbursement on services necessary for manufacturing and vocational activities
Additionally, goods required for several economic activities — including hotels and tourist facilities, entertainment and tourist recreation, conference and exhibition centers, hospitals, and specialized medical centers — are exempted from customs duties and general sales taxes. With the amended Investment Law No. 30 of 2014, a wide range of exemptions and deductions on income tax, sales tax, and customs fees for investments inside or outside development zones and free zones ensures economic stability and positions Jordan as an attractive destination for foreign investors.
For more information about the investment law and exemptions, visit the Jordan Investment Commission.
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