Foreign Investment in Jordan

The Hashemite Kingdom of Jordan has long been considered a ray of stability in an otherwise turbulent region and thus has been the preferred destination of foreign investors looking to make their stamp in the Middle East.

The Arabic nation, although not the biggest in population, makes up for its size with its tremendous natural resources such as phosphate, its well-educated workforce, and its strategic location linking the Gulf, Levant, and Egypt.

A land of investment

Foreign investors and companies that realize what an extraordinary opportunity Jordan is have flocked in from all around the globe. Foreign direct investments (FDI) have been a staple of the Jordanian economy, and the government’s positive approach to public-private projects (PPPs) has also played a large part in bringing in more FDIs.

In 2019 the number of FDIs coming into Jordan reached $916 Million, while the total FDI stock reached a record high of $36,203 Million. The two years prior also saw a high influx of FDIs, as 2017 saw a whopping $2,030 Million FDIs come to Jordanian shores, while in 2018 the number was $955 Million.

What is even more interesting is the number of Greenfield investments coming into Jordan. Greenfield projects are FDIs that are characterized by a mother company that starts a new venture in a foreign country and constructs its operational facilities from the ground up. Greenfield projects offer greater economic benefit as foreign companies utilize the resources of the foreign country to set up their facilities and operations.

The number of Greenfield projects that came to Jordan in 2017 was 21, followed by 13 in 2018 and finally 26 in 2019. The total value of Greenfield projects in each of those years was 728 million, 396 million, and 2,290 million USD respectively.

FDI in Jordan is diversified with notable FDIs in the manufacturing, real estate, and service sectors. The Jordanian government’s approach to PPPs also attracts FDIs into other areas such as infrastructure which produces large-scale projects such as transportation and water infrastructure projects.

Greener pastures

It is no surprise many global entities and/or individuals choose Jordan as their preferred investment destination; as the abundance of benefits the country offers coupled with the fertile landscape make it a perfect destination for foreign investments that aim to operate seamlessly at competitive costs while making a nifty profit. Here are some of the main advantages of investing in Jordan.

Taxation benefits

The Jordanian government is adamant to increase foreign investment within its borders and has created an environment that allows for foreign businesses to thrive.

For example, projects can be exempted from general and income services taxes by rates ranging from 25-75% for 10 years depending on the location of the project while there is a 100% exemption on imported fixed assets.

The strong financial services sector

Jordan houses 25 banks on its shores and has become a financial services hub in the Levant. The good relationships Jordan has with international powers such as the GCC, EU, USA, and the UK have made it a financial powerhouse that can receive, transfer, and hold money without issue.

Getting bank credit or a loan in Jordan is a very simple task as well, it even ranks 4th globally when it comes to the ease of getting credit.

A well-educated workforce

Jordan is home to some of the best professionals in the world and has been exporting highly skilled migrants to the gulf for decades. The Jordanian workforce is well-educated thanks to a strong educational system and you’ll have no trouble finding the best employees who have honed their craft in some of the largest global conglomerates that have offices in the country.

A strategic location

Jordan’s location on the crossroads to everywhere important in the region is quite favorable, linking North Africa, the Gulf, and the Levant it has become a critical cog in the region’s economy. Offering mass transit and shipping to and from these areas has made Jordan’s location enviable and has encouraged many companies to set up offices in the country.

Great infrastructure

From a world-class airport in Amman to a bustling seaport in Aqaba, Jordan has the strong infrastructure needed to deal with global trade efficiently. The capital Amman also has a robust city infrastructure from water and electricity supply, seamless transportation, and fast internet that allow businesses to go about their daily routines untroubled.

If you would like to know more about our investment opportunities in Amman contact Amman Vision today.