Reasons to invest

1.INVESTMENT INCENTIVES AND TAX EXEMPTIONS

Incentives and advantages outside the Development Areas and the Free Zones

  Production inputs necessary for exercising economic-industrial or vocational activities that are exempted from the custom duties and are subject to the general sales tax in accordance with the provisions of the General Sales Tax Law in force if such activities are imported or locally purchased, provided that Income & Sales Tax Department should refund such tax paid for such activities within (30) days from date of submission of a written refund request thereof. If Income & Sales Tax Department fails to refund such tax within such period, then it shall pay (9%) interest on an annual basis.

2.Strong Banking and Financial Institutions

Jordan enjoys a very well-developed banking sector by regional standards with a wide array of business, investment, and retail services. Both local and international banks are operational and growing in Jordan.

3.EDUCATION AND LABOR EXCELLENCE

(70%) of the population being under the age of 30. Jordan in particular has only (3%) of the MENA region’s population, however it hosts around (10%) of all universities in the Arab world.

Jordanian education is renowned regionally as highly advanced and graduates highly skilled and innovative professionals in the healthcare, engineering and IT fields. In addition; Jordan’s labor market ranks high in terms of quality of higher education and on-the-job-training.

4.Development and Free Zones

The Investment Commission oversees a number of special economic zones, distributed in various locations in the Kingdom and our Investment Window provides simple and fast registration and licensing services to companies operating in Development Zones and Free Zones.

https://www.jic.gov.jo/en/incentives-in-the-dz-and-fz/

5.Macro-Economy –

Jordan is a small-sized country that has emerged as the “business capital of the Levant”. The free market economy of Jordan has grown 7% annually since 1999.

Due to the implementation of liberal economic policies, Jordan has become one of the most competitive Middle Eastern economies. Jordan boasts a modern and developed banking system and is attracting significant foreign investment. Long-term sovereign credit ratings are positive and stable.Along with financial-sector policies that are intended to enhance competition and efficiency, banking supervision and regulation generally conform to international standards.

6.Market Access

Via Jordan’s extensive and global free trade and bilateral agreements , Reach Over 1 Billion Consumers

Locating in Jordan allows investors to use their investment as a base for trade and investment benefiting from the signing of major free trade agreements equaling 55 Bilateral Investment Treaties, 27 Double Taxation agreements and 7 Free Trade Agreements allowing access to regional and international markets. Jordan is a member in the World Trade Organization (WTO), the Greater Arab Free Trade Area (GAFTA), Agadir Agreement, and a party to the EU Association Agreement, Barcelona Declaration. It has also entered FTAs with the US, European Free Trade Association States (Iceland, Liechtenstein, Norway and Switzerland), Singapore, Canada.

7.Ease of Doing Business

Businesses expanding or investing in the region take less time and resources to setup their business in Jordan.

The Jordan Investment Commission’s “Investment Window” department is the one-stop shop for investors or businesses seeking to register their businesses in a streamlined manner that takes up to 7 days.

In a bid to enhance the business registration and licensing procedures; all required documents and permits can be acquired via the Jordan Investment Commission depending on the economic activity of the applicants.

8.Modern Infrastructure

According to the World Economic Forum’s Global Competitiveness Report (2017 – 2018) ; Jordan continues to benefit from a stable and efficient institutional system and good infrastructure, innovation and business sophistication.

At the heart of this effort is a reliance on an ongoing commitment to strong research, innovation and development of technological capabilities.

9.Quality of Life 

Investing and doing business in Jordan is simple and straightforward. But we know that life is more than simply work. Jordan offers a diverse, tolerant, and family friendly environment with all the conveniences of the 21st century.

10.Investor Friendly Environment

The Jordanian government has focused on reforms and investment policy aimed at:

• Liberalization of trade, investment procedures, and elimination of trade barriers.
• Encouragement of foreign investment.
• Encouragement of private sector investment.
• Privatization of previously-owned governmental projects.
• Implementation of stronger trademark and copyright laws.
• Reduction of import tariffs.
• Equal treatment to both Jordanian and non-Jordanian investors, non-Jordanian investors have the right to own any project in full or part, and engage in any economic activity in the Kingdom, with the exception of some trade and contracting services which require a Jordanian partner.

11.Security and Stability

Despite regional turmoil, Jordan continues to be a point of attraction for foreign investors who view the country as an oasis of peace in a volatile region and continuously tries to maintain stability, moderation, and security.

According to the World Economic Forum’s Global Competitiveness Report 2017-2018; Jordan is considered a safe and stable country by both global and regional standards.

Investment Opportunities

 1.Tourism 

Jordan’s fast-growing tourism sector involves many promising niches and high-potential investment opportunities. Travel and Tourism continues to be a vitally important pillar of Jordan’s economy. Jordan features some of the world’s most unique and iconic assets such as;

• Petra – one of the seven world wonders, the Dead Sea – the lowest point on earth, the Baptism site, 
• Wadi Rum desert, turning the country into a rich destination with a wide range of
• tourist attractions. 

2.Industrial sector

The industrial sector in Jordan is considered the most economically significant sector in terms of value-added to the national economy, availability of labor, linkages to other sectors, and the level of technical competence. The Jordanian industrial sector consists mainly of “manufacturing industries” sector, “extractive industries” sector and “electricity and water” sector. These activities are linked backward and forward with sectors such as transportation, insurance, agriculture and trade. The industrial sector is a high contributor to Jordan’s GDP as it constitutes about 25% in 2017, employing more than 240,000 people, most of them Jordanians, in some 18,000 industrial facilities across the Kingdom.

3.Energy 

Domestic demand for energy in Jordan is growing. This growth in the energy sector is a result of industrialization, population growth, and a growing economy.1 Jordan is looking at medium and long-term initiatives across a wide range of energy sub-sectors to diversify its energy sources. These include importing Liquefied Natural Gas (LNG), exploring for oil and gas, implementing an energy efficiency program, importing electricity from neighboring countries and diversifying the types of fuel it uses for power generation. In combination with its favorable climatological conditions, technically skilled labor force, strong grid connectivity, and high insulation and irradiation levels, Jordan is emerging as an ideal location for investment in renewable energy and clean technology. Investments in Jordan’s energy sector will offer a starting point for international companies with the intention of regional or global expansion.

4.Agriculture Sector

Jordan’s agriculture sector is one of the Kingdom’s most competitive sectors that is experiencing strong growth and has doubled its contribution to Jordan’s national GDP from 2.0% to 5.5 % in the past five years. The significant growth is primarily driven by domestic demand and demand in the Middle East and North Africa (MENA) region, to which Jordan enjoys direct market access. With its modern production technology, multiplicity and diversity of products with high technical specifications, and quality standards offered in local and international markets, a variety of lucrative investment opportunities are present in Jordan’s Agriculture sector.

5.Healthcare Sector

The Jordanian healthcare sector is known for its high-quality services, both regionally and internationally. Jordan’s world-class internationally qualified workforce, state-of-the-art medical machinery and equipment, and high-quality medical facilities are all contributing factors making Jordan’s healthcare sector one of the fastest growing sectors in the country. There is a multitude of promising investment opportunities within Jordan’s growing healthcare sector.

6.ICT Sector 

Jordan has succeeded in creating and developing a highly-competitive information and communications technology (“ICT”) sector which is considered one of the pioneering sectors in the Middle East and North Africa (MENA) region. Jordan’s ICT sector attracts an average of $150 million in annual investment. The ICT sector in Jordan serves larger markets in the region in the age of technology and innovation and contributes significantly to the county’s increasing globalization.

7.Transportation & Logistics Sector

Jordan’s transportation and logistics sector plays a key role in Jordan’s economy, contributing to over 8.2% of GDP. It is growing at an annual rate of 6% and employs nearly 7.6% of the Jordanian human capital market, resulting in around 126,000 jobs. A total of 325 licensed transportation and logistics companies are currently operating in Jordan. Moreover, the estimated annual growth in demand for transportation and logistics ranges from 5% to6% until 2030; this is partially due to the increase in population which makes the sector a promising prospect for substantial investment opportunities.

The Jordan Investment Commission

Telephone : +962 (6) 5608400

Fax : +962 (6) 5608416

E-mail : info@jic.gov.jo