Jordan’s Quiet Proposition: Stability, Talent and Operational Depth

Jordan continues to position itself as a politically stable, reform-oriented jurisdiction that is situated in a volatile neighbourhood, trading scale for predictability, access, and human capital. For investors who already maintain regional platforms in the Gulf, Jordan functions as a complementary hub that offers access to Levant and Iraqi markets, offering a reasonably sophisticated banking sector, and a legal framework that is converging with international standards.

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Jordan continues to position itself as a politically stable, reform-oriented jurisdiction that is situated in a volatile neighborhood trading scale for predictability, access, and human capital. For investors who already maintain regional platforms in the Gulf, Jordan functions as a complementary hub that offers access to Levant and Iraqi markets, offering a reasonably sophisticated banking sector and a legal framework that is converging with international standards. Under the Economic Modernization Vision launched in 2022, the Vision, the authorities established a 10-year plan with a longer-term outlook built around two strategic pillars. I accelerating sustainable and inclusive growth by unleashing Jordan's full economic potential. And 2. Targeting the improvement of quality of life of all Jordanians to secure a better future for all. With sustainability serving as a cross-cutting foundation for both pillars. The vision is structured around eight drivers of growth spanning 35 sectors and more than 366 initiatives. The first implementation phase, 2022 to 2025, has now concluded, with the second phase, 2026 to 2029, underway and the third phase set to take place between 2030 to 2033, adapted and continuously reviewed as necessary. The investment promotion strategy for 2023 to 2026, administered by the Ministry of Investment, complements the vision through a targeted, sector-specific approach to attracting foreign direct investment and supporting export-led growth. While Jordan's economy remains modest in scale, with GDP growth projected at around 2.8 to 2.9%, the overall trajectory remains firmly pro-investment, supported by an increasingly codified policy environment rather than a discretionary one. 1. Investment law and corporate landscape. Jordan's corporate law framework provides familiar onshore vehicles for international investors, including limited liability companies, private shareholding companies, public shareholding companies, and branches of foreign companies. The Jordanian companies law allows a limited liability company to be established with at least one shareholder and a minimum share capital of JOD1. A private shareholding company requires a minimum capital of JOD 50,000 and a public shareholding company requires minimum authorized capital of JOD 500,000 with at least JOD 100,000 subscribed, and general and limited partnerships remain available for specific use cases. For most mid-market and privately held investments, preferred onshore forms have emerged as either limited liability companies in cases or otherwise a private shareholding company, as a form offering flexibility around governance, profit distribution, and shareholder arrangements. The investment environment law for the year 2022 continues to provide the core guarantees for foreign investors, including equality of treatment in most sectors, protection against expropriation without fair compensation, permitting the repatriation of profits and capital, subject to applicable legislation and international financial practices, and the ability by agreement to submit disputes to mechanisms other than the local courts. Foreign investors generally enjoy national treatment and may resort to alternative dispute settlement mechanisms. Sectoral foreign ownership restrictions remain in place, particularly for certain services and professional activities, and investors must still navigate a list of activities that are either restricted only to local partners or require a local partner, although investments in development zones and free zones may be wholly owned by foreign investors. The policy trend over recent years has been towards progressively refining the regulatory framework across key sectors such as information and communications technology, tourism, logistics, and renewable energy whilst introducing measures to facilitate investment. 2. Platforms for investment, zones and special regimes. Jordan's investment framework introduced and regulates free zones and development zones as central instruments of its investment policy, creating a structured and incentive-based environment. Across Jordan, development zones generally offer reduced corporate income tax rates, oftentimes offering exemptions on customs duties and sales tax for qualifying inputs and assets, while free zones provide tax and duty relief primarily for export-oriented and transit activities, usually subject to restrictions on domestic market access. These regimes are often supported by dedicated zone developers and complemented by Jordan's preferential market access under its trade agreements with the United States and the European Union. This includes Inter-Olia, the Aqaba Special Economic Zone, the King Hussein Business Park, the Zaka Free Zone, and a network of development zones and free zones that provide targeted corporate tax, customs and sales tax incentives to qualifying projects. 3. Sector Opportunities through the 2025 and 2026 lens. For many investors, Jordan's attraction is less about domestic demand and more about its role as an operational base with a skilled, relatively cost-effective workforce and access to surrounding markets. Technology and digital services remain core areas of interest supported by a young, digitally literate population. Renewable energy is another priority area. Tourism and hospitality continue to be central. The sector contributed approximately 11.8% of GDP in Jordan, is ranked first as the most popular destination for medical tourism in the MENA region. Jordan is the second largest reserve of phosphates, the sixth largest producer thereof globally, and has an established pharmaceutical industry with one of the highest ratios of pharmaceutical personnel per capita in the world. Logistics and transport represent a growing opportunity, with the port of Aqaba serving as a gateway to the Levant and Iraq. A US$2.3 billion railway project between the UAE and Jordan, connecting the port of Aqaba with the Shidio and Gor El-Sofi mines is due to be operational by 2030. 4. Practical structuring and market entry. Most multinational investors in Jordan typically operate through a limited liability company, a private shareholding company, or an operating branch of a foreign company, depending on whether they need a joint venture platform, a wholly owned operating subsidiary, or a project-based presence closely aligned with the parent. Whilst the incorporation process is facilitated online via the company's control department's online portal and the Ministry of Investment's investment window, it still often requires what inc. physical documents courier to Jordan, the usual steps of name reservation, preparation of constitutional documents and capital evidence, tax and social security registrations, sector-specific and security clearances were relevant, and compliance with local hiring and immigration requirements. 5. Key Boardroom Questions, Jordan 2025 and 2026. Corporate boards and investment committees assessing Jordanian exposure should consider several critical questions. Do existing or contemplated Jordanian vehicles, whether LLC, private shareholding company, branch or zone-based entity, reflect the latest investment environment law provisions and companies' law requirements, or are legacy structures still in place? Are foreign ownership opportunities being fully leveraged in sectors and zones where 100% ownership is available, including ACOBA, development zones and free zones? Or is the group defaulting to local partner structures where they are no longer required? In light of Jordan's electronic invoicing rollout and tightening transfer pricing documentation requirements, are the group's Jordanian entities prepared for enhanced compliance? And do intragroup arrangements withstand arm's length scrutiny? Could certain functions, including technology support, shared services, business process outsourcing, or renewable energy operations be more efficiently based in Jordan given its skilled workforce, competitive cost base, and targeted fiscal incentives? Is the group actively monitoring and participating in Jordan's growing PPP and infrastructure pipeline, including the Aqaba Container Terminal Upgrade, the UAE Jordan Railway Project and Energy Sector Opportunities, and our structuring, financing and risk allocation frameworks in place? How does the balance between Jordan and other regional hubs reflect the board's risk appetite for concentration, market access, and geopolitical diversification? And is Jordan positioned as a focused operational node within a broader Middle East and North Africa structure? Do Jordanian contracts, shareholder agreements, and governance documents reflect current dispute resolution options? And is arbitration, whether seated in Jordan or externally, properly structured for enforceability against Jordanian assets? How Altamimi and Company can help? Altamimi and Company is uniquely positioned to advise on the full range of corporate, regulatory and transactional matters arising from Jordan's evolving investment landscape. Whether you are establishing a new presence in Jordan, restructuring existing vehicles in light of the investment environment law, navigating zone licensing and tax incentives, or assessing the implications of enhanced compliance requirements, our team is ready to assist.