Table of Contents
- Jordan’s Investment Climate: 2025 Overview & Key Growth Drivers
- Economic Stability and Currency Trends: Data & Analysis
- Sector Spotlights: Energy, Tech, Tourism, and Real Estate
- Government Incentives & Foreign Investment Laws (Sources: invest.gov.jo, moin.gov.jo)
- Taxation and Financial Regulations for Investors (Sources: income.gov.jo, cbj.gov.jo)
- Legal Framework and Compliance Essentials (Sources: invest.gov.jo, moin.gov.jo, justice.gov.jo)
- Workforce, Education, and Demographics: Competitive Advantages
- Infrastructure Upgrades and Digital Transformation Initiatives (Sources: mota.gov.jo, nitc.gov.jo)
- Risks, Political Considerations, and Mitigation Strategies
- 2025–2030 Investment Outlook: Scenarios, Forecasts, and Actionable Next Steps
- Sources & References
Jordan’s Investment Climate: 2025 Overview & Key Growth Drivers
Jordan’s investment climate in 2025 is characterized by ongoing regulatory reforms, sector-specific incentives, and a commitment to economic modernization. The government continues to position the country as a regional hub for business, innovation, and logistics, leveraging its strategic location and stable political environment.
A crucial driver is the Investment Environment Law No. 21 of 2022, which consolidated and modernized previous regulations to enhance transparency, investor protections, and the ease of doing business. The law provides equal treatment to foreign and local investors, allows for 100% foreign ownership in most sectors, and establishes streamlined procedures for licensing and dispute resolution. The Jordan Investment Commission (JIC) serves as a one-stop-shop for investors, overseeing compliance and facilitating registration and incentives.
In 2024, Jordan’s Cabinet approved amendments to further simplify investment procedures, including digitalization of licensing and unified electronic portals for approvals. These changes are expected to be fully operational in 2025, reducing bureaucracy and improving transparency for both domestic and foreign investors (Prime Ministry of Jordan).
Jordan’s investment incentives are centered around export-oriented manufacturing, ICT, renewable energy, and tourism. The JIC offers tax exemptions, customs duty reductions, and land allocation in development zones. Special Economic Zones, such as the Aqaba Special Economic Zone, continue to attract significant FDI due to preferential tax regimes and logistical advantages (Aqaba Special Economic Zone Authority).
According to the Department of Statistics, foreign direct investment into Jordan reached approximately JOD 1.2 billion in 2023, with projections indicating sustained growth in 2025, particularly in sectors like ICT, pharmaceuticals, and renewables. The World Bank’s 2024 “Doing Business” indicators place Jordan among the most improved MENA economies for ease of starting a business and protecting minority investors (World Bank – Jordan).
- Compliance: Jordan enforces robust anti-money laundering and anti-corruption frameworks, with ongoing alignment to international standards through the Central Bank of Jordan and related authorities.
- Outlook: Key growth drivers for 2025 and beyond include public-private partnerships in infrastructure, digital transformation, regional trade integration, and green economy initiatives. The government’s Vision 2033 economic plan targets increased FDI, higher value-added exports, and job creation in knowledge industries (Ministry of Planning and International Cooperation).
With its progressive legal landscape, sectoral incentives, and strategic reforms, Jordan remains a competitive gateway for investment in the Middle East, offering increasing opportunities as the regulatory environment continues to mature.
Economic Stability and Currency Trends: Data & Analysis
Jordan’s economic stability is a cornerstone for investors evaluating opportunities in the region. Over the past decade, the country has demonstrated resilience, underpinned by prudent fiscal management, ongoing structural reforms, and significant international support. As of 2025, the Jordanian economy is forecasted to continue its gradual recovery, with real GDP growth projected at approximately 2.7% for 2024 and further acceleration expected in 2025, driven by diversified sectors including services, tourism, and technology (Central Bank of Jordan).
Monetary policy remains anchored by the Jordanian dinar’s peg to the US dollar, a policy maintained since 1995. The Central Bank of Jordan (CBJ) has reiterated its commitment to this arrangement, citing its role in enhancing investor confidence, stabilizing exchange rates, and containing inflationary pressures. The CBJ’s foreign reserves reached $17.8 billion by the end of 2023, sufficient to cover over 7.5 months of imports, meeting international adequacy standards (Central Bank of Jordan).
Inflation has remained relatively moderate, averaging 2.8% in 2023 and expected to be contained within the CBJ’s target range for 2025, supported by cautious monetary tightening and stable food and fuel prices. The CBJ continues to employ conventional instruments—including open market operations and adjustments to policy rates—to manage liquidity and curb inflation risks (Central Bank of Jordan).
Legal reforms have further reinforced economic stability. The Investment Environment Law No. 21 of 2022 streamlines licensing, enhances investor protections, and provides tax and customs incentives for priority sectors. The law also strengthens dispute resolution mechanisms and ensures equal treatment for foreign and domestic investors, which are critical for compliance and risk management (Jordan Investment Commission).
Looking ahead, Jordan’s economic outlook is cautiously optimistic. Ongoing regional geopolitical risks and reliance on external financing pose challenges; however, sustained reform momentum and robust foreign exchange reserves underpin resilience. For investors, the stable currency regime, improving regulatory environment, and moderate inflation are likely to remain attractive features in 2025 and the near term, provided that global and regional uncertainties do not escalate significantly.
Sector Spotlights: Energy, Tech, Tourism, and Real Estate
Jordan’s strategic location, stable governance, and reform-driven economic agenda have positioned it as a promising investment destination, particularly in the sectors of energy, technology, tourism, and real estate. With the implementation of pro-investment regulations and a focus on sustainable growth, the country is targeting increased foreign direct investment (FDI) through sector-specific incentives and structural reforms.
- Energy: Jordan has prioritized energy diversification and sustainability in its Vision 2025 strategy. The sector has seen rapid growth in renewables, with solar and wind projects now contributing over 27% of the country’s electricity mix by late 2024. The Ministry of Energy and Mineral Resources continues to streamline licensing for renewable projects and offers long-term purchase agreements, tax exemptions, and customs incentives for investors. Ongoing reforms in the electricity market and the recent “Energy and Investment Law” amendments aim to further liberalize the grid and attract private participation through 2025 and beyond.
- Technology: The ICT sector is a pillar of Jordan’s economic modernization, contributing over 14% to GDP and employing more than 85,000 professionals as of 2024. Initiatives from the Ministry of Digital Economy and Entrepreneurship promote start-up growth, digital infrastructure, and foreign partnerships. The recent Digital Economy Law and regulatory sandboxes for fintech and e-commerce are designed to ensure compliance, protect intellectual property, and facilitate cross-border investment. Jordan’s robust digital literacy and English proficiency continue to attract regional and international tech investors.
- Tourism: Despite global volatility, tourism in Jordan rebounded strongly post-pandemic, with 2024 arrivals surpassing pre-2020 levels. The Ministry of Tourism and Antiquities offers incentives for hotel and eco-tourism projects, including reduced land fees and tax breaks. The government’s 2025-2027 Tourism Strategy emphasizes high-value segments such as heritage, adventure, and medical tourism, supported by streamlined licensing and enhanced compliance standards to ensure sustainable development and investor protection.
- Real Estate: Jordan’s real estate sector is underpinned by growing urbanization and demand for residential and commercial space. The Department of Lands and Survey has digitized property registration and transaction processes, reducing compliance barriers and increasing transparency. Regulatory updates, including foreign ownership rules and investor residency pathways, are in effect as of 2024, providing greater legal security. Major developments, especially in Amman and Aqaba, are forecast to drive sector growth through 2025 and beyond.
Looking ahead, these sectors will continue to benefit from government-backed reforms, regional integration, and a focus on compliance and sustainability. Jordan’s ongoing legislative and regulatory improvements underscore its commitment to attracting and protecting investors in an evolving economic landscape.
Government Incentives & Foreign Investment Laws (Sources: invest.gov.jo, moin.gov.jo)
Jordan continues to position itself as a favorable destination for foreign investment, underpinned by a robust legal framework and a range of government incentives designed to attract international capital. The cornerstone of this regulatory environment is the Investment Law No. 30 of 2014, as amended, which guarantees equal treatment for foreign and local investors, ensures the protection of capital, and enables the repatriation of profits and capital without restrictions. The law also outlines dispute resolution mechanisms, including recourse to international arbitration, which is particularly attractive to foreign entities seeking legal certainty and transparency.
To streamline investment processes, Jordan established the Jordan Investment Commission (JIC), now operated under the Ministry of Investment. The JIC provides a “one-stop-shop” service, simplifying licensing, registration, and post-investment support for investors. Recent reforms have further reduced bureaucratic hurdles, with digital platforms introduced for application submissions and document tracking.
Specific incentives are available for investments in priority sectors such as industry, agriculture, tourism, ICT, and renewable energy. These incentives, detailed in the Investment Law and implemented by the Ministry of Investment, include exemptions from customs duties, sales tax, and income tax for up to ten years, depending on the location and sector of the project. Projects located within development or free zones benefit from even greater advantages, such as 0% income tax and exemption from social services tax. Additionally, the government has expanded incentives for green and knowledge-based industries to align with Vision 2025 and the National Economic Modernization Vision.
Jordan’s commitment to investment facilitation is reflected in its participation in bilateral investment treaties and free trade agreements, notably with the United States and the European Union. According to Ministry of Investment statistics, foreign direct investment (FDI) inflows reached approximately USD 1.1 billion in 2023, with expectations for moderate growth through 2025 as regional stability improves and new regulatory reforms take effect.
Looking ahead, the investment climate is projected to further improve with ongoing government efforts to enhance regulatory transparency, digitize investor services, and expand public-private partnerships. The strategic focus remains on fostering a competitive, low-risk environment for foreign investors, particularly within high-potential sectors and special economic zones.
Taxation and Financial Regulations for Investors (Sources: income.gov.jo, cbj.gov.jo)
Jordan’s taxation and financial regulations have been structured to attract foreign direct investment while maintaining compliance with international standards. The Income and Sales Tax Department administers the primary tax framework, including corporate income tax, withholding tax, and sales tax. As of 2025, standard corporate income tax rates in Jordan are sector-dependent: financial institutions and telecom companies face a 35% rate, while manufacturing and most service sectors are taxed at 14–20%. Sales tax (VAT equivalent) generally stands at 16%, with certain goods and services either exempt or taxed at lower rates to encourage investment in targeted sectors.
Significant tax incentives are available for investors operating in designated Development Zones and Free Zones. Companies in Development Zones benefit from a preferential income tax rate of 5% and exemptions from customs duties and sales tax on imported goods and services directly used in production (Income and Sales Tax Department). These incentives are subject to compliance with local employment quotas and investment thresholds, reinforcing Jordan’s push for economic diversification and job creation.
Jordan’s compliance with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards is regulated by the Central Bank of Jordan. The Central Bank oversees licensing, supervision, and reporting for banks, fintechs, and non-bank financial institutions. In 2023, the Central Bank updated its AML/CFT guidelines in line with FATF recommendations, requiring enhanced due diligence, beneficial ownership disclosure, and mandatory suspicious transaction reporting. Investors are obligated to comply with Know Your Customer (KYC) protocols and currency transaction reporting thresholds, which are actively enforced.
Foreign investors may repatriate profits and capital without restriction, subject to tax clearance and compliance with the Central Bank of Jordan’s foreign exchange regulations. There are no foreign ownership limits for most sectors, except for certain strategic industries (e.g., mining, media, utilities), where restrictions or government approval may apply.
Looking ahead to 2025 and beyond, Jordan is expected to continue modernizing its tax and financial regulatory environment. The government has signaled intent to digitize tax filing and introduce more robust electronic invoicing solutions, aiming to improve transparency and ease of doing business (Income and Sales Tax Department). Continued alignment with international financial compliance standards will be a priority, positioning Jordan as a stable gateway for regional investment.
Legal Framework and Compliance Essentials (Sources: invest.gov.jo, moin.gov.jo, justice.gov.jo)
Jordan’s legal framework for investment is grounded in the Investment Law No. 30 of 2014 and its subsequent amendments, which aim to foster a competitive and transparent environment for both local and foreign investors. The law guarantees equal treatment for non-Jordanian investors, protection against expropriation, and repatriation of profits and capital, subject to compliance with local regulations. The Jordan Investment Commission (JIC)—now integrated under the Ministry of Investment—serves as the primary interface for investors, offering streamlined procedures through its electronic single window platform and facilitating licensing, registration, and incentives.
Key compliance requirements include registration with the Ministry of Industry, Trade and Supply, sector-specific licensing, and adherence to labor and environmental standards. Investors should familiarize themselves with Regulation No. 77 of 2016 regarding investment incentives, which offers exemptions on customs duties and sales tax for projects in priority sectors such as ICT, healthcare, tourism, and renewable energy. Strategic investments may also benefit from additional incentives if they contribute significantly to employment or export growth (Ministry of Investment).
Dispute resolution mechanisms are robust, with investors entitled to recourse through the Jordanian judiciary or international arbitration under bilateral investment treaties. The Ministry of Justice has modernized court processes, including the deployment of e-litigation tools and commercial courts to expedite investment-related cases. Amendments in 2023 to the Commercial Companies Law have further clarified corporate governance standards, shareholder rights, and transparency obligations, reinforcing investor confidence.
Statistically, Jordan attracted approximately $1.2 billion in foreign direct investment in 2023, with a projected annual growth rate of 5–7% through 2025, driven by reforms and the expansion of special economic zones (Ministry of Investment). The government’s Vision 2025 plan prioritizes digital transformation and green investment, which are reflected in recent legislative updates and new digital compliance systems for tax and customs.
Looking ahead, investors can expect further facilitation of procedures and alignment with international standards, particularly in anti-money laundering and corporate compliance. Ongoing regulatory reforms and digitalization efforts are set to enhance transparency, reduce bureaucracy, and improve Jordan’s ranking in global investment climate indices over the next few years (Jordan Investment Commission).
Workforce, Education, and Demographics: Competitive Advantages
Jordan’s workforce, education system, and demographic profile form a central pillar of its competitive advantage for investors in 2025 and the coming years. The country’s population, estimated at over 11 million, displays a median age of just under 24 years, positioning Jordan among the most youthful societies in the Middle East. This demographic structure fuels an abundant labor supply and creates demand for jobs and skills development, both of which are critical factors for investors seeking growth opportunities.
The government of Jordan has prioritized education, consistently allocating significant portions of its budget to the sector. According to the Ministry of Education, the nation boasts near-universal literacy among youth and a secondary school enrollment rate exceeding 90%. Higher education is well established, with more than 30 universities and over 50 community colleges, producing approximately 60,000 graduates annually, many in STEM (science, technology, engineering, and mathematics) fields. Jordanian universities are recognized for their regional leadership, particularly in medicine, engineering, and ICT, which aligns with the growing demand for skilled labor in these sectors.
From a legal and compliance perspective, Jordan’s labor laws are governed by the Labor Law No. 8 of 1996 (as amended), which sets out employer obligations regarding contracts, working conditions, and dispute resolution. The government has taken steps to enhance regulatory transparency and streamline employment procedures, including digitalizing work permit processes and strengthening protections against discrimination in the workplace. The Social Security Corporation ensures mandatory coverage for employees, providing investors with a predictable compliance environment.
Jordan’s strategic commitment to workforce development is exemplified by ongoing reforms and international partnerships. Initiatives such as the National Employment Program and sector skills councils, led by the Ministry of Planning and International Cooperation, aim to narrow the gap between education outcomes and labor market needs, particularly in high-growth areas like ICT, healthcare, and renewable energy.
Looking ahead, Jordan’s youthful, educated workforce is expected to remain a key driver for investment. The country’s proactive legislative and institutional framework, combined with substantial investments in human capital, is projected to boost its attractiveness for regional and international investors, especially in knowledge-intensive and export-oriented industries. These trends support a positive outlook for workforce competitiveness and sustainable economic growth through 2025 and beyond.
Infrastructure Upgrades and Digital Transformation Initiatives (Sources: mota.gov.jo, nitc.gov.jo)
Jordan is making significant strides in infrastructure upgrades and digital transformation, positioning itself as a promising destination for investors seeking stable, growth-oriented opportunities in 2025 and beyond. The government has prioritized large-scale infrastructure modernization, particularly in transportation, energy, and digital connectivity, to stimulate economic development, improve competitiveness, and attract foreign direct investment (FDI).
The Ministry of Transport has advanced plans for upgrading the public transport network, including the implementation of the Bus Rapid Transit (BRT) system in Amman and Zarqa, as well as ongoing studies for a national railway project to enhance regional logistics and trade routes. These projects are supported by public-private partnerships and international financing, creating openings for private sector involvement in both construction and operations (Ministry of Transport).
On the digital front, Jordan’s “National Digital Transformation Strategy” (2021–2025) sets out a comprehensive framework for digitizing government services, expanding broadband access, and fostering innovation ecosystems. The strategy targets full digitalization of at least 80% of key government services by 2025 and the enhancement of secure, interoperable digital infrastructure. The National Information Technology Center (NITC) oversees critical initiatives such as the Government Cloud, national digital ID, and secure data exchange platforms, all of which are designed to streamline regulatory compliance and facilitate smoother business operations for investors (National Information Technology Center).
Key statistics underscore the momentum: Jordan’s ICT sector now contributes over 12% to national GDP, with more than 700 active companies and a 90% internet penetration rate as of 2024. The number of digital government transactions processed tripled between 2022 and early 2024, reflecting both rapid adoption and improved service quality (National Information Technology Center).
From a compliance perspective, investors must adhere to sector-specific regulations, including the new Personal Data Protection Law and updated cyber-security standards—both essential for participation in public digital infrastructure projects. The government’s commitment to regulatory clarity and ease of doing business is evidenced by streamlined licensing procedures and digital portals for investment applications.
Looking ahead, Jordan is expected to continue prioritizing infrastructure and digital transformation through 2027, with increased incentives for FDI, further integration with regional digital markets, and expanded opportunities in smart cities, green energy, and logistics. These developments position Jordan as a gateway for investors seeking access to the Middle East and North Africa’s fast-evolving digital and transport corridors.
Risks, Political Considerations, and Mitigation Strategies
Investing in Jordan in 2025 presents a blend of opportunities and risks shaped by the region’s dynamic political landscape, regulatory environment, and economic reforms. Jordan’s relative political stability, compared to neighboring countries, remains a significant draw for foreign investors; however, regional volatility and internal pressures necessitate careful risk assessment and proactive mitigation strategies.
- Political and Regional Risks: Jordan’s geographical proximity to areas of conflict, such as Syria and Iraq, exposes it to potential spillover effects, including refugee influxes and trade disruptions. The government has demonstrated resilience in maintaining domestic stability, but investors should closely monitor evolving regional dynamics. In 2024, Jordan continued to host over 1.3 million refugees, placing fiscal and social pressures on the state (Department of Statistics, Jordan).
- Legal and Compliance Landscape: The principal legal framework governing foreign investment is the Investment Law No. 30 of 2014, which ensures non-discriminatory treatment and guarantees against expropriation except for public interest with fair compensation (Jordan Investment Commission). Amendments have been proposed to further streamline licensing and reduce bureaucratic barriers as outlined in the government’s Economic Modernization Vision 2022–2033 (Ministry of Investment). Investors must also comply with anti-money laundering and anti-corruption regulations, enforced by the Anti-Corruption Commission and the Anti-Money Laundering Unit (Anti Money Laundering and Counter Terrorist Financing Unit).
- Key Risks: Regulatory unpredictability and lengthy administrative procedures can pose challenges, particularly for large-scale or infrastructure projects. Additionally, the risk of policy shifts, often in response to fiscal pressures or donor requirements, should be considered. Currency risk is moderate, as the Jordanian dinar is pegged to the US dollar, but is subject to global economic pressures.
- Mitigation Strategies: Investors are advised to conduct thorough due diligence, engage with reputable local legal counsel, and utilize investment protection treaties. Jordan is a member of the International Centre for Settlement of Investment Disputes (ICSID) and has over 50 bilateral investment treaties offering dispute resolution mechanisms (International Centre for Settlement of Investment Disputes). The government offers various investment incentives in designated development and free zones, which can reduce operational risks.
Looking ahead, the outlook for investment in Jordan in 2025 and beyond remains cautiously optimistic, contingent on continued regulatory reforms and regional stability. Ongoing government initiatives to improve transparency, digitalize services, and attract foreign capital are likely to enhance the investment climate, though geopolitical uncertainties will require ongoing risk management and adaptive strategies.
2025–2030 Investment Outlook: Scenarios, Forecasts, and Actionable Next Steps
Between 2025 and 2030, Jordan’s investment landscape is poised for dynamic development, anchored by recent legislative reforms, robust compliance frameworks, and ambitious national strategies. The government continues to prioritize foreign direct investment (FDI) as a lever for economic diversification and job creation, particularly within targeted sectors such as renewable energy, information and communications technology (ICT), tourism, pharmaceuticals, and logistics.
In 2024, the Kingdom implemented key amendments to its investment environment, most notably with the Investment Environment Law No. 21 of 2022. This law streamlines licensing, expands investor protections, and clarifies dispute resolution, including recourse to arbitration. The Jordan Investment Fund Law further incentivizes large strategic projects, offering exemptions and guarantees for qualifying investments. Compliance is overseen by the Jordan Investment Commission, which provides a “one-stop shop” for licensing and aftercare, aiming to reduce bureaucratic delays.
Statistically, Jordan attracted approximately $1.1 billion in FDI inflows in 2022, with official projections targeting a 20% annual increase through 2025, driven by regional stability and reforms (Central Bank of Jordan). The energy sector, particularly renewables, is a standout: over 20% of Jordan’s electricity now comes from solar and wind, with the government aiming to reach 50% by 2030 (Ministry of Energy and Mineral Resources). The digital economy is also expanding, supported by the national “Digital Jordan 2025” strategy and public-private partnerships.
Looking ahead, three scenarios emerge:
- Optimistic: Continued regulatory improvements, stable regional geopolitics, and successful implementation of public-private projects could see FDI inflows double by 2030, especially in green and knowledge sectors.
- Baseline: Incremental gains in ease of doing business and sectoral growth sustain a steady 10–12% annual increase in investments, with moderate improvement in employment and export figures.
- Adverse: Regional instability or delays in regulatory implementation may constrain investor confidence and slow FDI momentum.
Actionable next steps for prospective investors include: monitoring updates from the Jordan Investment Commission and Central Bank of Jordan for regulatory and macroeconomic developments; capitalizing on sector-specific incentives, particularly in renewables and ICT; ensuring robust compliance with anti-money laundering (Jordan Securities Commission) and local employment regulations; and engaging early with local partners to facilitate market entry and operational resilience.
In summary, Jordan’s 2025–2030 investment outlook is underpinned by a progressive legal framework, government commitment to reform, and sectoral opportunities, albeit tempered by regional and regulatory risks.
Sources & References
- Prime Ministry of Jordan
- Department of Statistics
- World Bank – Jordan
- Ministry of Planning and International Cooperation
- Ministry of Energy and Mineral Resources
- Ministry of Digital Economy and Entrepreneurship
- Ministry of Tourism and Antiquities
- Ministry of Investment
- Ministry of Investment
- Ministry of Education
- Labor Law No. 8 of 1996 (as amended)
- Social Security Corporation
- Anti Money Laundering and Counter Terrorist Financing Unit
- International Centre for Settlement of Investment Disputes
- Jordan Securities Commission
