Setting up a company

FDI in figures

Why you should choose to invest Jordan

Strong points

For several years the country has registered substantial growth and the Jordanian market is opening progressively. The government has made a remarkable effort in controlling public spending, which, according to IMF, has placed Jordan among the most dynamic countries in the Middle East. Jordan has also backed the human factor and its workforce is among the best-trained ones in the Arab world.

The country is politically stable. Its geographical location is also an important asset. The agreements signed by the country have given Jordan access to more than a billion potential consumers.

Weak points

In a political level, Jordan is located in an unstable region being near Iraq, Syria and Israel. On the domestic front, the massive influx of Iraqi refugees, added to a considerable number of Palestinian refugees, may represent a risk factor. In addition, Jordan does not have many natural resources and remains a modest market in comparison with Egypt or its Gulf neighbors. The country registers a substantial structural trade deficit linked to its lack of natural resources and food products. It is very dependent on foreign aid.

Government measures to motivate or restrict FDI

King Abdallah has established a progressive economic liberalization which favors foreign investment. The special economic areas, such as Qualified Industrial Zone (QIZ) and the Free Zone of Agaba offer very advantageous tax regimes for companies. Also, the government has simplified the registration procedures for foreign companies creating a unique office at the Ministry of Industry and Commerce. Finally, the Jordan State has launched a campaign of privatization which has benefited public and private partnerships in several sectors. Among the main measures established by the government, we could cite:
- An income tax exemption during 10 years, variable depending on the place and sector of activity;
- A tax exemption on income generated from the export of goods and services;
- The repatriation of  capital, profits and salaries without charges.

Procedures relative to foreign investment

Freedom of establishment

It is guaranteed except in some sectors which are considered to be sensitive such as publishing, publication, aeronautics, architecture or engineering. Some sectors are totally forbidden to foreign companies such as security services and the maintenance of law and order, sports clubs or passenger transport. The US State Department gives a complete list of the limitations.

Acquisition of holdings

A majority holding interest in the capital of a local company is legal in Jordan, except in certain sectors where foreign interest cannot exceed 49%.

Obligation to declare

The Agency for the promotion of foreign investment in the country provides information about the necessary authorizations for setting up business.

Competent organization for the declaration

The website of the Amman Stock Exchange listing the restrictions on foreign investment.
Jordan's Securities Commission

Requests for specific authorizations

There is no obligation to declare in Jordan. However, in some sectors such as commercial activities, engineering, transport services... foreign capital invested in the company may not be more than 50% of the total capital. In other sectors such as freight or postal services, this share is reduced to 49%.

Finding assistance for further information

Investment aid agency

Jordan Investment Board

Other useful resources

Jordan Investment Board website
Website listing the Jordanian free zones

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Last updates: February 2012