RESTRICTED  
  
WT/TPR/G/446  
23 August  2023 
(23-5660) Page: 1/21 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
JORDAN  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex  3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Jordan  
is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Jordan . WT/TPR/G/446 • J ordan  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
1.1   Jordan's Economic Modernization Vision 2030  ................................ ................................  4 
2   ECONOMIC DEVELOPMENT:  ................................ ................................ .........................  5 
2.1   Economic growth and environment  ................................ ................................ ...............  5 
2.2   Regional challenges  ................................ ................................ ................................ ... 6 
2.3   Trade performance  ................................ ................................ ................................ .... 7 
2.4   Investment and investment policy  ................................ ................................ ................  8 
3   SECTORAL DEVELOPMENTS  ................................ ................................ .........................  9 
3.1   Industrial sector  ................................ ................................ ................................ ....... 10 
3.2   Agriculture  ................................ ................................ ................................ ..............  11 
3.3   Services sector  ................................ ................................ ................................ .........  12 
4   IMPORTANT DEVELOPMENTS  ................................ ................................ ....................  13 
4.1   Labour market policies  ................................ ................................ ..............................  13 
4.2   Business environment  ................................ ................................ ...............................  14 
4.3   Government procurement  ................................ ................................ ..........................  15 
4.4   Women's empowerment  ................................ ................................ ............................  16 
5   FOREIGN TRADE POLICY  ................................ ................................ ...........................  17 
5.1   Jordan and World Trade Organizati on (WTO)  ................................ ................................  17 
5.2   Jordan's export strategy  ................................ ................................ ............................  19 
5.3   Regional and bilateral trade liberalization  ................................ ................................ ..... 19 
6   TECHNICAL ASSISTANCE NEEDS  ................................ ................................ ...............  20 
 
 
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  1  INTRODUCTION  
1.1.  During the review period, Jordan has made significant efforts in implementing trade -economic 
policies to promote economic growth, attract foreign investment, and enhance its position in the 
global market, capitalizing on a relatively well -developed infrastructure and a strategic geographic 
location. Jordan has maintained its resilience in spite of the multiple exogenous shocks, the country 
has faced for over a decade. These include the Arab S pring, the rise of terrorism in the region, the 
Syrian crisis and the overwhelming refugee influx, closure of border crossings with Syria and Iraq, 
COVID -19 pandemic, and most recently the impacts of the Russia n Federation -Ukraine crisis , 
particularly the disruption of supply chains and increased inflationary pressures.  
1.2.  Notably, the gross domestic product (GDP) experienced a real growth rate of 2.8% for the first 
quarter of 2020. During the year 2022, the external sector demonstrated robust  performance, 
surpassing expectations in various indicators, most notably in tourism income, which witnessed 
remarkable growth of 110.5%, surpassing pre -pandemic levels. Goods exports also thrived, 
expanding by 33.8%. Collectively, these positive developme nts contributed to mitigating the 
escalation of the current account deficit, primarily driven by the increased cost of imports due to 
rising commodity and global oil prices. Moreover, the overall fiscal deficit, excluding external grants, 
decreased by 0.8  percentage point s, amounting to 4.6% of the GDP.  
1.3.  During the review period, Jordan increased domestic revenues and grants by, inter alia, 
broadening the tax base and reducing tax evasion. This, together with measures to contain 
non-priority expenditures, ha s created space for increased social spending and a strong rebound in 
capital spending during the pandemic. Jordan's public debt is sustainable and is expected to be 
reduced to below 80% of GDP by 2027. The structure of its foreign and domestic debt, about  half of 
the total each, is also considered as favo rable. Government of Jordan (GoJ) has been implementing 
critical fiscal structural reforms. In January 2022, the Cabinet approved a major customs reform 
which simplified and unified the tariff system by re ducing the number of tariff brackets from 16 MFN 
rates and 31 bound rates to just four (three after 2028).  
1.4.   Jordan's peg to the US dollar, backed by adequate international reserves (USD  17.3 billion  in 
2022), has served as an effective anchor for macroecon omic stability including through the 
pandemic. The Central Bank of Jordan (CBJ) has strengthened its prudential supervision of the 
financial sector, the banking sector has remained healthy.  
1.5.  The aggregate volume of Foreign Direct Investment (FDI) in Jordan  exhibiting an impressive 
growth rate of over 82% when compared to the levels recorded during the C OVID -19 period and the 
preceding year. The volume of total investments benefiting from the Investment Environment Law 
has exhibited a substantial increase du ring the first quarter of the current year, soaring by 49.1%.  
1.6.  Despite the high inflation rates recorded globally and, in the region, Jordan has maintained a 
relatively low inflation rate compared to other countries. The inflation rate, as measured by the 
Consumer Price Index (CPI), averaged 1.9% between 2016 and 2022, and it reached only 1.17% in 
the first half of 2023. The GoJ has limited the impact on consumers of rising fuel and food prices 
resulting from geopolitical developments. Jordan's strategic whe at reserves, at 12 months, have so 
far avoided the need to import wheat at elevated prices. Moreover, Jordan's long -term stable -price 
import contracts for gas used in electricity generation have also helped to contain inflation, and the 
authorities re -introduced blanket fuel subsidies in February  2022, reversing a decade -old reform, to 
mitigate passthrough to households.  For 2023, the estimated average inflation rate is 3.0%.  
1.7.  According to the World Bank's (WB) food security report, Jordan stands out as th e least affected 
Arab country by food price inflation, which recorded 3.5%increase. Jordan has placed significant 
emphasis on ensuring food security, as evident from the recent launch of the National Food Security 
Strategy (2021 -30) and the National Plan f or Sustainable Agriculture (2022 -25) in the year 2021. 
These strategic initiatives align with the directives of His Majesty King Abdullah, aiming to position 
Jordan as a regional hub for food security, thereby underscoring Jordan's commitment to fostering 
resilience in its food sector.  
1.8.  Jordan has also been recognized for its strong export -oriented industries, such as textiles, 
fertilizers, detergents, sterilizers and pharmaceuticals. It has capitalized on the challenges and 
seized opportunities in the form of development of new industries. One important development is WT/TPR/G/446 • J ordan  
 
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  the addition of approximately 100 new production lines in national industries, spanning diverse 
sectors including food and medical supplies, in response to the COVID -19 crisis. Notably, Jordan' s 
industries have also contributed significantly to the global fight against the pandemic by exporting 
around 50  million  masks, 300,000 medical bibs, and 100,000 medical labels to countries worldwide. 
These endeavo rs have showcased Jordan's resilience and adaptability in transforming challenges 
into opportunities for economic growth and global contribution.  
1.9.  Jordan continued its contribution to addressing other global challenges, for example the Climate 
change. Jordan has taken steps to address the challenge s by ratifying the Paris Agreement and 
increasing its conditional greenhouse gas emissions reduction target from 14% to 31% by 2030. 
Notable initiatives include the endorsement of the "National Policy for Climate Change in Jordan for 
the years (2022 -2050), " which aims to mitigate the consequences of climate change by curbing 
greenhouse gas emissions in all economic sectors and adapting to the impacts on critical resources 
like agriculture and water. This policy aligns with global efforts for climate stabili ty and sustainable 
development, strengthening Jordan's resilience against climate change challenges.  
1.10.  According to UN -backed report, Jordan is among the countries making progress in achieving 
goals related to carbon dioxide (CO 2) emissions per capita by 203 0. The report ranks Jordan 62nd 
out of 180 countries in the "flourishing index 0.75" and 87th in the sustainability rank.  
1.11.  Jordan 's reform efforts have been recognized by the international institutions. It is considered 
as one of the freest economies in the  Middle East and North Africa region.  
1.12.  Jordan has made significant strides in improving its business climate, earning a spot among 
the top 10 global improvers in the World Bank's 2020 business rankings. The country's first -time 
classification as a top busi ness climate reformer in the MENA region is attributed to three major 
reforms: the introduction of a new secured transactions law, amendments to the insolvency law, 
and the launch of a modern and notice -based collateral registry. The World Bank highlights the 
government's efforts to promote business activity and attract foreign investment. Notably, Jordan is 
one of four countries from the MENA region that accounted for almost half of the region's reforms. 
Jordan experienced a remarkable jump of 29 ranks in the ease of doing business ranking, moving 
from 104th to 75th place since 2018. This progress is regarded as one of the most significant 
advancements in the Kingdom's history in terms of improving the ease of doing business. 
Furthermore, in the "Getting Cr edit" category of the Doing Business report for 2020, Jordan achieved 
a notable rank of (4), reflecting the country's improvements in obtaining credit and the legal rights 
of borrowers and lenders.  
1.1  Jordan 's Economic Moderni zation Vision 2030  
1.13.  During the rev iew period, the (GoJ) has implemented various programs and policies to 
represent a series of successive and complementary programmes in partnership and broad 
participation of all parties from the public and private sectors to achieve comprehensive 
developm ent, sustainable economic growth, and an improved quality of life. The Government 
announced its Priorities Programme aimed to address challenges and promote economic recovery in 
the face of the COVID -19 pandemic.  
1.14.  To complement these efforts, in June 2022,  Jordan's Economic Modernization Vision was 
announced   under the patronage of His  Majesty  King Abdullah  II aiming to enhance, over a 10 -year 
period, growth, and quality of life by creating one  million  new jobs; improving Jordan's ranking on 
global competitiveness, environment, prosperity, and sustainability indexes; and expanding into 
high value -added service and industrial sectors. The authorities estimate the investment needed to 
realize the Vision i s JOD  40 billion , 70% of which is expected to come from the private sector, and 
30% from the public sector, with donor support. With this, EMV creates new foreign direct 
investment opportunities in Jordan.  
1.15.  The vision and its roadmap were developed collabo ratively, relying on data -driven and 
market -driven approaches, analy zing Jordan's competitive position and reviewing national 
development strategies of peer countries. The roadmap consists of eight engines of economic growth 
covering 35 main and sub -sector s, with number of initiatives and a clear implementation plan.  WT/TPR/G/446 • J ordan  
 
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  1.16.  The roadmap emphasizes sectoral linkages, complementary roles of sectors, and shared 
characteristics to promote integration and maximize synergies. One of the engines focuses on 
high-value ind ustries, aiming to position Jordan as a regional hub for industry and increase exports 
of high -quality products. The vision also includes a future strategy for economic growth, targeting 
emerging sectors with high growth potential and aiming to provide mor e income opportunities, 
increase per capita GDP, and enhance Jordan's global competitiveness.  
1.17.  The Council of Ministers has approved the "Executive Program for the Economic Modernization 
Vision 2023 -2025" to implement the initial phase of the vision. The pr ogram me comprises 
183 carefully selected initiatives out of approximately 380 to be executed until the end of 2025. It  
encompasses priority initiatives, projects, policies, and procedures aimed at achieving the Vision's 
goals by 2033. Notably, the program me takes into account the importance of women's 
empowerment, with a focus on initiatives expected to directly impact women's empowerment by 
72%, complemented by an indirect impact of 28%. Performance and progress will be monitored 
through the Government Per formance and Achievement Follow -up Unit of the Prime Ministry via an 
electronic system launched in two phases.  
1.18.  Overall, the Economic Moderni zation Vision with its three phases, seeks to diversify Jordan's 
economy and reduce reliance on traditional industri es. 
2  ECONOMIC DEVELOPMENT:  
2.1  Economic growth and environment  
2.1.  Jordan's economic performance during the period 2016 -2022 has been mixed. In 2017, 
Jordan's GDP growth was 2.5%. However, growth slowed in 2018  and 2019 to 1.9% each year, as 
the Syrian refugee cris is and regional conflicts weighed on the economy.  The Department of 
Statistics has published the quarterly GDP indicators at constant market prices for the first quarter 
of 2023. The report indicates that the GDP grew by 2.8% at constant prices compared to  the first 
quarter of 2022. This growth represents an increase of 0.8  percentage point s from the previous 
quarter (fourth quarter of 2022), where the growth rate was 2.0%.  
2.2.  The COVID -19 pandemic had a significant impact on the Jordanian economy in 2020. GDP 
growth contracted by 1.6%, the first contraction since 2009. However, the economy rebounded in 
2021, growing by 2.2%. Growth in 2022 increase slightly higher, at 2.5%. In the first quarter of 
2023 the GDP grew by 2.8% at constant prices compared to the first quarter of 2022. Despite the 
challenges it has faced, Jordan's economy has shown resilience and has grown in recent years. The 
outlook for the Jordanian economy is positive.  
2.3.  Jordan has undergone multiple waves of economic reform since decades,  with the primary 
objective of liberalizing the economy and fostering growth. These reforms encompass various 
measures such as tariff reduction, trade barrier elimination and attraction of foreign investment. 
Although these reforms have yielded economic ex pansion, several challenges remain. One notable 
challenge pertains to the inadequate emphasis placed on addressing the escalating inequality and 
generating employment opportunities for Jordan's expanding population, particularly due to the 
influx of refuge es from neighboring countries. Consequently, the current ongoing reform process 
places significant importance on two key aspects of economic modernization: the promotion of 
employment and the enhancement of women's economic empowerment.  
2.4.  The I nternational M onetary Fund (IMF)  team and the Jordanian authorities reached a staff -
level agreement on the sixth review of the authorities ' economic reform program me supported by 
the EFF arrangement. The completion of this review will bring the total I nternational Monet ary Fund 
(IMF)  disbursements since the start of the program me in 2020 to SDR 1 ,300 million  (around 
USD 1750 million ).  
2.5.  The Central Bank of Jordan (CBJ) demonstrated its recognition of the global economic 
landscape and its associated inflationary implications. Consequently, it pursued a flexible and 
responsive monetary policy throughout 2022, aligning itself with internatio nal efforts aimed at 
monetary tightening to uphold monetary and financial stability within the nation. This involved 
implementing interest rate hikes on its monetary policy instruments on seven separate occasions. WT/TPR/G/446 • J ordan  
 
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  Despite the challenges encountered, the na tional economy showcased encouraging signs during the 
same period.  
2.6.  Meanwhile, the (CBJ) has successfully maintained monetary and financial stability. It remains 
committed to the peg and has raised policy rates in line with the U S Federal Reserve. As a resu lt, 
inflation has been relatively moderate and has started to decline. The banking system remains 
well-capitalized and liquid, as also confirmed by the recent Financial System Sustainability 
Assessment.  
2.7.  During the period 2016 -2022, the (CBJ) also focused on enhancing the resilience and stability 
of the financial sector by implementing prudential regulations and conducting regular assessments 
of the banking system. In June 2021, the supervisory responsibilities of the insurance sector were 
transferred to th e CBJ which is to develop a risk -based solvency regime in line with international 
best practices.  
2.8.  In response to the profound economic impact wrought by the COVID -19 pandemic, the 
Hashemite Kingdom of Jordan refrained from implementing protective measures . Nevertheless, the 
Jordanian government demonstrated a proactive stance by extending aid and support to neighboring 
countries, with a pronounced emphasis on bolstering the food, sterilizers and detergents. Notably, 
assistance encompassed the provision of essential sterilization materials and personal protective 
equipment.  
2.9.  Additionally, in order to fortify Jordan's economic resilience, the government adopted measures 
to bolster sectors and enhance production capabilities. The government of Jordan played a p ivotal 
role during this period, enacting a comprehensive set of initiatives to aid businesses, households, 
and the financial sector. These initiatives encompassed the provision of liquidity support to banks, 
the facilitation of more lenient loan repayment terms, and the streamlining of credit accessibility. 
The overarching monetary policy of Jordan during this critical juncture sought to achieve a delicate 
equilibrium between fostering sustained economic growth and preserving price stability. 
Simultaneously , due consideration was given to addressing the multifaceted challenges engendered 
by the pandemic in a judicious and efficacious manner.  
2.10.  Fitch Ratings has revised its outlook for Jordan's credit rating from negative to stable, 
signaling the recognition of  the Kingdom's considerable advancements in fortifying its financial 
position and fostering economic recovery in the aftermath of the pandemic. This positive assessment 
by Fitch underscores the efficacy of Jordan's fiscal policies and indicates confidence in the successful 
implementation of challenging structural reforms, which have garnered support from the 
International Monetary Fund (IMF).  
2.2  Regional challenges  
2.11.  The year 2022 witnessed a multitude of risks that significantly impacted the global economy, 
leading to an unfavo rable environment and persistent uncertainty. The gradual relaxation of 
COVID -19 restrictions coincided with geopolitical tensions stemming from the 
Russian  Federation -Ukrainian conflict, resulting in disruptions within global supply chain s, 
particularly in the vital food and energy sectors. These developments, in conjunction with the 
economic policies implemented to mitigate the pandemic's repercussions, contributed to the 
emergence of inflationary pressures that intensified as demand reco vered.  
2.12.  In a region characterized by recent volatility, Jordan has demonstrated exceptional resilience. 
However, regional conflicts have negatively affected Jordan's ability to conduct business with 
neighbo ring countries. Jordan's primary border crossings w ith Syria and Iraq were closed in 2015. 
In contrast, the Jordan -Iraq border crossing at Trebil reopened for restricted trade and travellers in 
August  2020, and the Jordan -Syria border crossing at Nasib -Jaber reopened in August  2021 with full 
capacity.  
2.13.  The closure of the Iraqi -Syrian border has significant implications for Jordan's trade and 
economy, disrupting established trade routes and logistics networks and causing delays, increased 
costs, and potential trade losses for Jordanian enterprises involved in  cross-border trade. This 
disruption poses a threat to economic growth and job opportunities, particularly in sectors heavily 
reliant on trade with Iraq and Syria. The border closure is driven by security concerns, aiming to WT/TPR/G/446 • J ordan  
 
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  manage risks and prevent the mo vement of armed groups and illicit goods, but it is important to 
consider the humanitarian consequences as it restricts the access of refugees and humanitarian aid. 
Additionally, the closure disrupts supply chains, leading to delays, higher transportation costs, and 
possible shortages in the Jordanian market. This decline in trade activity can result in decreased 
investment, economic contraction, and potential job losses. Jordanian businesses may need to 
reconsider their trade patterns and explore alternati ve markets, requiring adjustments in logistics 
and marketing strategies. The possibility of trade diversion also exists, impacting the 
competitiveness of Jordanian businesses in the regional market.  
2.14.  Given the complex nature of these circumstances, it is of  paramount importance to consider 
the specific duration, extent, and underlying reasons for the border closure, as well as the 
geopolitical and security dynamics prevalent in the region. Such factors intricately shape the 
consequences for Jordan's trade an d economy, warranting careful analysis and strategic 
considerations.  
2.3  Trade performance  
2.15.  Jordan experienced a notable increase of 28.7% in its foreign trade volume of goods in 2022, 
reaching a total of USD 38.7 billion . This growth can be attributed to a sim ultaneous increase in both 
exports and imports. Consequently, the trade openness ratio rose to 81.5% compared to 65.6% in 
2016. This upward trend in the ratio can be attributed to the significant expansion of foreign trade, 
which outpaced the growth of the  GDP. These developments were facilitated by the resurgence of 
commercial activity and heightened demand.  
2.16.  In 2022, the trade balance in goods recorded a deficit of USD 14.9 billion , marking a 21.5% 
increase compared to the level observed in 2016. This esca lation can be attributed to the global 
price surge in crude oil and its derivatives, as well as grain prices. To meet the growing domestic 
consumption demand, Jordan imported over 2.3  million  tonnes of wheat and barley in 2022. The 
considerable growth in t he Kingdom's total exports helped mitigate the impact of increased imports 
on the trade balance. Furthermore, the export coverage ratio witnessed improvement.  
2.17.  Since 2016, national exports have surged by 83% to reach USD 12.4 billion  in 2022. The 
primary go ods exported by Jordan included fertilizers, potash and phosphates, garments, chemical 
products, medicinal and pharmaceutical products, as well as vegetables. During the review period 
2016-21, the share of chemical products, Jordan's most important export category, significantly 
increased in total merchandise exports.  
2.18.  On the import side, Jordan procured goods valued at USD 22.8 billion  in 2022, with food, 
including live animals, accounting for 18.9% of total imports. This was followed by oil and its 
by-products at 18.2%, as well as machinery, vehicles, motorcycles, electrical appliances, iron and 
iron products, and plastic.  
2.19.  Approximately 50% of Jordan's total external trade can be attributed to its trade relations 
with Arab countries, while the European  Union stands as the primary import destination. The 
Kingdom of Saudi Arabia is the second -largest importer, with imports valued at USD 4.1 billion in 
2022. China, the United  States , India, and the United Arab Emirates are also significant import 
partners, each contributing over USD 2.1 billion  in imports. Noteworthy export destination for 
Jordanian products include the United  States  (USD 2.3 billion ). The participation of the Middle  East 
(e.g. the Kingdom of Saudi Arabia and the United Arab Emirates) and the EU -27 as destination of 
Jordan's total merchandise exports declined over the period, while that of Asia, notably India, and 
Africa increased.  
2.20.  Balance -of-payments data indicate th at Jordan is a net exporter of services, which is an 
important source of foreign exchange. During 2016 -21, Jordan's surplus in trade in services 
averaged 1,408  million  USD per year. travel (tourism) remains the most important service category, 
contributing  61.1% of total services exports in 2021, followed by transport with 21.2%. Imports of 
services are led by transport, accounting for 57.9% of total services imports in 2021.  
2.21.  The Department of Statistics' monthly report reveals that the total value of expor ts in the first 
third of 2023 has surged to USD 3,788.6  million , indicating a notable 4.0% increase when compared 
to the corresponding period in 2022. Conversely, the value of imports during the same period in WT/TPR/G/446 • J ordan  
 
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  2023 amounted to USD 8,210.3  million , experien cing a slight decline of 0.3% in comparison to the 
first third of 2022. The trade balance deficit, which denotes the variance between import values and 
the overall value of exports, stands at USD 4,421.8  million . Encouragingly, this deficit has 
demonstrate d a reduction of 2.7% in the first third of 2023 when contrasted with the equivalent 
period in 2022.  
2.4  Investment and investment policy  
2.22.  Jordan has implemented various measures to attract direct investment and create a favorable 
investment regime. The country  has undertaken investment reforms and established policies and 
incentives to encourage both domestic and foreign investment. One of Jordan's top priorities for 
economic development is the investment regime, and the government actively encourages both 
dome stic and foreign investment as a deliberate policy to advance economic growth.  
2.23.  In line with its economic modernization vision, Jordan introduced the Investment Law No.  21 
of 2022, which aims to provide a supportive environment for existing investments and attract new 
foreign investments. This law has a significant impact on the country's investment landscape, as it 
creates a more favorable environment for investors by streamlining the process of setting up and 
running businesses. It promotes transparency an d predictability in the investment process.  
2.24.  The main characteristics of the law include equal treatment of domestic and foreign investors, 
freedom of capital movement, guarantees and incentives for investments that contribute to 
economic growth, job creati on, export, knowledge and technology transfer. The law also emphasizes 
the digitization and automation of processes and services to remove administrative and procedural 
barriers and encourage investment in strategic projects, innovation, and research.  
2.25.  The Ministry of Investment (MoIn), established in 2021, serves as the main authority for 
investment in Jordan. It has the responsibility of attracting, encouraging, and promoting investments 
while ensuring a sustainable and favorable investment climate. Th e MoIn implements the country's 
investment policy, develops strategic plans and programs to support local and foreign investments, 
and creates an investment map that identifies opportunities in various sectors and regions.  
2.26.  To facilitate investments, the Mo In promotes investment opportunities, provides information 
and support services to investors, and addresses any difficulties or obstacles they may face. It issues 
guidelines for investment and business activities, conducts sectoral and feasibility studies,  and 
oversees the development and regulation of free zones. The MoIn also monitors international 
investment reports and rankings to enhance Jordan's investment competitiveness and handles 
grievances or disputes in accordance with applicable laws. Additiona lly, it prepares reports on the 
implementation of investment -related plans, strategies, and programs and supervises the work of 
the Public -Private Partnership Unit.  
2.27.  The aggregate volume of Foreign Direct Investment (FDI) in Jordan exhibiting an impressive 
growth rate of over 82% in 2022 when compared to the levels recorded during the C OVID -19 period 
and the preceding year. FDI has emerged as a pivotal driver of Jordan's economic advancement, 
fostering job creation, facilitating technology transfer, and cata lyzing overall economic growth.  
2.28.  The volume of total investments benefiting from the new Investment Law has contributed to 
the growth of FDI, which exhibited a substantial increase during the first quarter of the current year, 
soaring by 49.1%. The law has facilitated 91 investment projects, with an anticipated employment 
scale of job opportunities. This notable surge in investments showcases the growing trust of 
investors in the Kingdom's investment environment, underscoring Jordan's allure as a favorable 
destination for investment and highlighting its appealing prospects for potential investors.  
2.29.  As of end -2022, there were six free zones and industrial estates in operation within Jordan. 
The legal and institutional framework for free zones and for industrial  estates remained largely 
unchanged during the review period. Free zones were established to attract foreign investment and 
to promote export -oriented industries and transit trade, inside which firms benefit from tax 
incentives, streamlined bureaucratic pr ocedures, and better quality of infrastructure. Also, the 
Ministry of Investment (M oIn) is working closely with the zone management authorities regarding 
free zone promotion. Both domestic and foreign firms may apply to operate in the free zones. There 
are no restrictions on foreigners establishing companies in free zones. Usually, firms operating in WT/TPR/G/446 • J ordan  
 
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  free zones are in the sectors of manufacturing, logistics, pharmaceutical R&D, and business service. 
Firms operating in free zones enjoy certain incentives suc h as exemption/reduction of income tax 
for certain activities, exemption/reduction of the General Sales Tax, discount on land lease and utility 
cost, and other investment facilitation measures. Land in the free zones may only be leased.  
2.30.  Jordan offers a ran ge of investment opportunities, particularly in the Aqaba Special Economic 
Zone Authority (ASEZA). The ASEZA is a designated area aimed at attracting investment and 
fostering economic growth in various sectors. It provides incentives and benefits to both l ocal and 
foreign investors, including tax exemptions, simplified administrative procedures, and access to 
state-of-the-art infrastructure.  
2.31.  The Aqaba Special Economic Zone (ASEZ) is a strategic global hub located at the convergence 
of three continents, inv estors are presented with attractive opportunities in the manufacturing sector 
within ASEZ. An area of around 1  million  square met res can be allocated for investments in industries 
like food processing, chemicals, garment, and electronics assembly, with an  added value of at least 
40%. The designated area will be supported by necessary infrastructure to facilitate business setup. 
The investors are incentivized with a competitive 25 -year lease option, starting with a rent -free 
5-year grace period, followed by  the next 5 years with rent based on J OD 1 per square met re. 
Subsequently, rent would be increased every 3rd year based on the current inflation rate. 
Additionally, international flights between Aqaba and T ürkiye  are set to resume fully, further 
facilitati ng business operations.  
2.32.  Key benefits for investors operating within ASEZ include only 5% income tax on net profits, 
no foreign equity restrictions, exemption from custom duties, zero income tax on stored transit 
goods and re -exports, and 40% discounted rat es on transit goods handling. Furthermore, there are 
50% discount rates on Suez Canal fees for goods shipped to ASEZ and containers exported from 
ASEZ.  
2.33.  Other advantages include exemption from sales tax on most goods and services, exemption 
from social serv ices tax, exemption from annual land and building taxes on utilized property, and 
exemption from taxes on the distribution of dividends and profits for activities within and outside 
Jordan. ASEZ also offers various facilities for light/medium manufacturing , warehousing, residential, 
and commercial uses, and allows up to 70% foreign labo ur. Residency and labo ur procedures are 
streamlined to facilitate business operations in the zone.  
2.34.  Recently, the Hashemite Kingdom of Jordan has launched a novel investment online platform, 
accessible through the website www.invest.jo , which showcases a selection of 21 new projects wi th 
a cumulative value of nearly  USD 41.4 billion . This website has been meticulously designed to serve 
as an indispensable resource for investors, offering in -depth and comprehensive information on the 
entire spectrum of available investment opportunities within the country. This user -friendly platform 
provides detailed insights into various sectors of the economy, encompassing areas such as tourism, 
renewable energy, information technology, manufacturing, and agriculture, among others. It 
diligently highli ghts the vast potential and profitability of investing in Jordan's flourishing economy.  
3  SECTORAL DEVELOPMENTS  
3.1.  In 2022, the growth of economy was primarily propelled by improvements in key indicators 
within the external sector. Notable contributors to this growth include a substantial increase in 
tourism income (110.5%), foreign direct investment (82.9%), total exports (32.3%), and 
remittances from Jordanians working abroad (1.5%).  
3.2.  The economic expansion witnessed in 2022 can be attributed to advancements ac ross all 
sectors of the economy. Sectors such as transportation, restaurants and hotels, wholesale and retail 
trade, and construction played significant roles in driving growth. Manufacturing industries, 
recognized for their extensive network connections, both direct and indirect, with other sectors, also 
emerged as a vital contributor. Furthermore, the manufacturing sector holds significance as a labo ur-
intensive industry, providing employment opportunities.  WT/TPR/G/446 • J ordan  
 
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  3.1  Industrial sector  
3.3.  The industrial sector holds a prominent position within the national economy, constituting in 
average approximately 24% of GDP. Moreover, this sector plays a vital role in generating 
employment opportunities, accounting for a substantial portion, equivalent to one -quarter, of the 
count ry's total workforce.  
3.4.  The performance of the industrial sector, encompassing both extractive and transformational 
industries, exhibited notable improvement. In 2022, the sector's contribution to the GDP grew by 
12.3% during the period of 2016 -22. This grow th can be attributed to advancements within the 
manufacturing industries, which experienced an increase of 8.7% fuelled by rising external demand. 
Consequently, national exports witnessed a substantial surge of 83.8%.  
3.5.  Within the extractive industries secto r, exports of phosphate and potash recorded remarkable 
growth rates of 129.7% and 249.3% respectively. These increases were driven by the significant 
global demand for these materials.  
3.6.  Mining sector: Jordan's mining sector holds a prominent and influential  position on the global 
stage, with particular emphasis on phosphate and potash extraction. The phosphate mining 
activities, along with related industries, significantly contribute to the nation's economic growth, as 
evidenced by phosphate exports constitu ting approximately 9% of the total exports in 2022. This 
notable increase of 129.7% compared to 2016 highlights the sector's vitality. Similarly, owing to the 
substantial worldwide demand for potash, especially in fertilizer production, Jordan's potash ind ustry 
assumes a crucial role in the country's economic landscape. Remarkably, potash exports accounted 
for about 13% of the total exports in 2022, displaying an impressive growth rate of 249.3% 
compared to the previous years.  
3.7.  The garment and fashion sector : in Jordan plays a crucial role in the country's economy, 
accounting for  USD 2 billion  in exports, which is about 27% of the total exports. It employs 2.5% of 
the labo ur force, with 69% of the garment workforce being women. The sector experienced 
signific ant export growth, particularly due to the free trade agreement with the United  States , 
leading to a projected 30% increase in exports by 2025. Consequently, employment opportunities 
are estimated to grow by 17% during the same period. Currently, the secto r comprises around 
1,500  large, SMEs, and micro factories, providing jobs for about 87,000 people.  
3.8.  Food Products : Within the realm of the industrial sector, the food industry holds a significant 
position, contributing approximately 27.6% to the Gross Domes tic Product (GDP). Notably, it 
accounts for 17.8% of the sector's total exports, establishing itself as a pivotal sub sector  within this 
domain. The food industry in Jordan enjoys a well -established status, bolstered by a rich historical 
heritage and a comm endable reputation. Its success is attributed to the utilization of both domestic 
and imported raw materials, further enhancing its robustness and sustainability.  
3.9.  Pharmaceuticals : Within the industrial landscape of Jordan, the pharmaceutical sub sector  
stands as a mid -sized yet highly valuable manufacturing entity. Impressively, this sub -sector 
contributes significantly, amounting to 10.2% of the manufacturing GDP, and constitutes 9% of the 
overall manufacturing exports. Demonstrating substantial prowess, th e pharmaceutical sector 
boasts an extensive production capacity, boasting more than 70 production lines. Its business model 
revolves around branded generics, offering a diverse array of products that adhere to rigorous 
international standards, solidifying its position as a reliable and quality -driven player in the global 
market.  
3.10.  The food supplement market: in Jordan holds a substantial value of USD 35 million , and the 
national production plays a contributing role amounting to approximately USD 4 million . While its 
primary focus lies in catering to the Jordanian market, certain companies within the sector also 
engage in exports, accounting for approximately 25% of their production, targeting neighboring 
countries and the United  States . Within the domain o f SMEs in this sector, number of companies are 
dedicated to producing food supplements essential oils, collectively providing employment 
opportunities to 78 workers.  
3.11.  The natural cosmetics sector : in Jordan offers a wide range of body, face, and hair care 
products, with popular items being Dead Sea products and natural olive oil soaps. An overwhelming WT/TPR/G/446 • J ordan  
 
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  majority, approximately 80%, of the sector's output is destined for international markets. 
Particularly noteworthy is the Jordanian Dead -Sea-mud cosmetics mar ket, accounting for a 
substantial 70% share of the country's overall cosmetics exports. Forecasts indicate a positive 
outlook, projecting a 10.19 % CAGR.  
3.12.  Engineering products: Representing a burgeoning sub -sector in Jordan, engineering products 
constitute 5 .0% of the manufacturing Gross Domestic Product (GDP) and encompass 14.1% of the 
manufacturing exports. Despite the abundance of engineers from diverse backgrounds, the 
engineering products sector is still in its developmental stages. Nonetheless, Jordan h olds promising 
prospects in various engineering industries, encompassing heating, ventilation, air conditioning, 
electric products, and construction materials. The country has successfully expanded its market 
access to both regional and international arena s, leveraging existing Free Trade Agreements (FTAs) 
to its advantage. Furthermore, Jordan is witnessing the emergence of a growing base of companies 
functioning as suppliers to assembling firms, further augmenting the sector's potential for future 
growth a nd expansion.  
3.13.  The Ministry of Industry, Trade, and Supply is presently in the process of devising a new 
industrial policy that aligns with the Economic Moderni zation Vision. The central objective of this 
policy is to foster the comprehensive development of  the industrial sector and small and medium 
enterprises within the industry, with a specific focus on technology as well as increasing value added. 
Emphasis will also be placed on promoting green industry practices, thereby contributing to 
environmental su stainability. Furthermore, the policy aims to facilitate the creation of additional job 
opportunities within the industrial domain, thus bolstering the nation's economic landscape.  
3.2  Agriculture  
3.14.  The agricultural sector holds a significant and strategic position within the national economy, 
providing value to several interconnected sectors such as transportation, labo ur, energy, industry, 
and trade. Over the period of 2016 -22, the agricultural sector experienced notable growth, 
expanding by 13.7 %. Consequently, its contribution to the GDP increased, and its relative 
importance in overall output reached 5.3%.  
3.15.  Jordan's agricultural sector plays a critical role in ensuring food security, supporting rural 
livelihoods, and promoting economic diversif ication. The GoJ recognizes the importance of 
sustainable agricultural practices, technology adoption, and value chain development to enhance the 
sector's resilience and its contribution to the overall economy.  
3.16.  Jordan boasts a commendable level of self -sufficiency in various types of vegetables and 
fruits, reaching up to 140% in certain items. Jordan has achieved notable levels of self -sufficiency, 
particularly in the production of vegetables and fruits. Self -sufficiency rates have ranged from 100% 
to 146% for vegetable crops, including tomatoes, potatoes, peppers, cucumbers, zucchini, onions, 
cauliflower, eggplant, among others. Additionally, approximately 60% of garlic and 95% of carrots 
are produced domestically. Moreover, Jordan has demonstrated signific ant achievements in the 
production of nuts such as peaches, nectarines, and apricots, with self -sufficiency exceeding 120%. 
Melons also attain an impressive self -sufficiency rate of 140%. Furthermore, self -sufficiency rates 
for citrus fruits and bananas st and at 60%, while apples demonstrate 26% self -sufficiency, and olive 
oil production reaches 110%. In addition, Jordan is renowned for its high -quality olive oil, dates, 
medicinal herbs, and horticultural products.  
3.17.  Such commendable achievements have been f acilitated by the distinct geographic sub -regions 
of the Jordan Valley, with its northern part, known as the Ghor, being particularly noteworthy. The 
Ghor's year -round agricultural climate, fertile soils, and abundant water supply have earned it the 
title of the food bowl of Jordan, making it a crucial hub for the nation's agricultural productivity.  
3.18.  Self-sufficiency rates differ across various categories. Poultry achieves a self -sufficiency rate 
of approximately 100%, while lamb meat reaches 43%, cows 12% a nd milk 100%. Livestock 
farming, particularly sheep and goats, also holds significant importance within the agricultural 
sector,  
3.19.  As for wheat, Jordan remains a significant importer, unable to achieve a self -sufficiency rate 
exceeding 2.5%. Consequently, th e country's food import bill exceeds USD 4 billion  annually. The WT/TPR/G/446 • J ordan  
 
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  production of wheat and barley in Jordan amounts to approximately 20 ,000 tonnes, predominantly 
affected by limited rainfall in the southern regions.  
3.20.  Jordanian olive oil: is exported to Middle  Eastern, European, and other international markets. 
Jordan exports a diverse range of fresh fruits and vegetables, including citrus fruits (such as oranges 
and mandarins), grapes, tomatoes, cucumbers, eggplants, and peppers. These products are supplied 
to neighboring countries and markets in the Gulf Cooperation Council (GCC) region. Jordan is a 
major producer of premium Medjool dates, which are highly sought after. Jordanian Medjool dates 
are exported to various countries, including the United  States , Europe, and Gulf nations. Jordan also 
exports processed and value -added agricultural products, such as frozen fruits and vegetables, fruit 
juices, jams, pickles, dried herbs, and spices. Value addition enhances the competitiveness and value 
of Jordanian agric ultural exports.  
3.21.  Organic Products: Jordan has been actively promoting organic farming practices, with organic 
agricultural products like fruits, vegetables, and herbs being exported to meet the increasing demand 
for organic and sustainable products in regi onal and international markets.  
3.22.  Agricultural Technology and Research: Jordan has made investments in agricultural research 
and development to improve crop yields, develop drought -resistant varieties, and introduce 
advanced farming techniques. The country i s home to research institutions and cent res focused on 
agricultural innovation and technology transfer to enhance productivity and sustainability.  
3.23.  Water scarcity poses a significant challenge to agriculture in Jordan. The government has 
implemented various  measures to efficiently manage water resources, including the adoption of drip 
irrigation, water conservation techniques, and the promotion of water -saving crops. Additionally, the 
country has invested in desalination and wastewater treatment to supplemen t water supplies for 
agricultural purposes.  
3.3  Services sector  
3.24.  The services sector in Jordan is the most significant contributor to the gross domestic product 
(GDP), accounting for over 70.0% of its composition. Furthermore, approximately 81.5% of the 
Jordani an workforce is employed in this sector, particularly in areas such as "public administration, 
defense, and social insurance" as well as "wholesale and retail trade". The services sector plays a 
vital role in the economy by establishing crucial linkages wi th other economic sectors. It is important 
to note that the continuity and growth of these sectors rely on the services provided by the service s 
sector , encompassing education, health, finance, transportation, tourism, government services, and 
more.  
3.25.  Jordan  has cultivated a thriving culture of entrepreneurship, evident in the significant 
achievements of its tech entrepreneurs. Impressively, 27 of the top 100 tech entrepreneurs in the 
MENA region hail from Jordan, as reported by the World Economic Forum (WEF) . Moreover, 
numerous prominent companies in the region were established and owned by Jordanian 
entrepreneurs, subsequently being acquired by prominent global corporations. The country's 
commitment to fostering innovation is further exemplified by the Innov ative Startups & SMEs Fund, 
which has proven instrumental in attracting 11 investment funds to invest in Jordanian 
entrepreneurial ventures.  
3.26.  Transportation, storage, and communication: This sector demonstrated notable improvement, 
with a growth rate of 12. 4% in 2022 compared to 2016. This growth can be attributed to 
advancements in commercial and tourist transportation. The indicators for air transport also 
displayed positive performance in 2022, with growth rates in the number of passengers and 
quantities of goods transported of 91.8% and 99.8%, respectively, compared to 2021.  The 
telecommunications sector also witnessed positive performance in 2022, as mobile phone 
subscriptions increased by 4.8% and the number of subscribers to broadband Internet services  rose 
by 11.4% compared to 2021.  
3.27.  Financial and insurance services: This sector sustained its positive performance, experiencing 
growth of 21.7% compared to 2016. Consequently, the sector's contribution to the economy 
increased. This growth can be attribute d to the increase in pre -tax net profits of banks by 8.8% and 
the expansion of credit facilities granted by banks to the sector by 8.5% compared to 2021.  WT/TPR/G/446 • J ordan  
 
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  3.28.  Jordan has made noteworthy strides in enhancing financial inclusion, with significant progress 
observe d from 33.1% in 2017 to 50.0% in 2020. Jordan's commitment to financial inclusion extends 
beyond mere access to basic financial services, encompassing a more comprehensive approach that 
caters to the needs of citizens, businesses, and small and medium ente rprises (SMEs). This includes 
facilitating various aspects of financial engagement such as saving, payment, borrowing, investing, 
and insurance, ensuring a more holistic and inclusive financial landscape for all stakeholders.  
3.29.  Wholesale and retail trade: The performance of this sector continued to improve, with a 
growth rate of 9.9% compared to 2016. This growth is indicative of the improved demand, as imports 
increased by 26.7% and total exports rose by 32.3% compared to an increase of 25.0% and 17 .8% 
respectively in 2021. Another positive indicator of the sector's performance is the growth in "general 
sales tax" proceeds by 3.2%.  
3.30.  Restaurants and hotels sector: The recovery of the tourism industry in 2022 contributed to 
the sector's performance impr ovement, with growth of 12.5% compared to 2016. This improvement 
can be attributed to the increase in the number of tourists visiting the Kingdom by 114.1% and their 
increased spending, leading to a growth rate of 110.5% in tourism income.  
3.31.  The Professional  Services sector: in Jordan has recorded noteworthy growth revenues 50% 
of the total revenues within the sector result from the export of consultancy services from Jordan. 
The sector's significance lies in its exceptional diversity, boasting the highest ra te of female 
employment among economic activities within the industry and service sectors of Jordan.  
4  IMPORTANT DEVELOPMENTS  
4.1  Labo ur market policies  
4.1.  The amendments made to Labo ur Law No.  10 of 2023 in the Kingdom of Jordan. These 
amendments allow the Ministr y of Labour to contract with domestic and foreign entities to employ 
Jordanians and regulate employment and worker recruitment. Notably, gender -based discrimination 
among workers is strictly prohibited under the new law. Additionally, the law includes prov isions to 
protect pregnant and breastfeeding women, individuals with disabilities, and night workers, ensuring 
a safe working environment for these groups. The amendments signify Jordan's commitment to 
promoting an equitable and inclusive workforce and uph olding the rights of its labo ur force.  
4.2.  Issuing the instructions of the Flexible Employment Regulation for 2018 according to 
Article  No. 13 of the Flexible Employment Regulation No. 22 for 2017, which aims at enhancing the 
participation in the labo ur market , especially women, through the activation of the part -time work 
and minimizing the number of working days and hours, conditional to providing at least 21 working 
hours per week. The instructions also allowed for remotely work, whether from home or elsewhe re, 
so that the required work can be delivered personally through modern technology applications.  
4.3.  Approving Flexible Employment Regulation No. 22 of 2017, which allows employees in 
coordination with the employer to set flexible working hours, in a manner t hat suits the worker 's 
needs and circumstances and considers the work requirements. Thus, helping to promote the 
economic participation of many groups in society, especially women, and create a more open working 
environment for new and pioneer opportunitie s. This benefits a worker who spent three consecutive 
years in his/ her job, a worker with family responsibilities, a regular university student worker, and 
a disabled worker.  
4.4.  The government has initiated the "National Employment Program 2022" with the pri mary 
objective of generating 60,000 job opportunities for Jordanian citizens within private sector 
establishments. The program me seeks to stimulate the private sector to create sustainable 
employment prospects by introducing employment windows. It involves  direct financial support from 
the government, providing workers with a monthly wage subsidy of 150 dinars for a period of 
6 months, contingent upon the employer and worker entering into a work contract spanning at least 
one year. To launch and execute the  program me, an allocation of 80  million  dinars has been 
earmarked in the general budget for the year 2022. The program me significantly contributes to 
mitigating the issue of unemployment while fostering a genuine partnership between the public and 
private sectors.  WT/TPR/G/446 • J ordan  
 
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  4.5.  The Ministry of Labo ur has inaugurated the inaugural virtual laboratory in Jordan, representing 
a significant milestone in capacity -building and the advancement of vocational and technical 
education and training systems. Recognized as the first virtual electronic training labor atory 
dedicated to enhancing vocational and technical training programs in the country, this facility plays 
a crucial role in realizing the objectives of sustainable development. The implementation of virtual 
reality software within the program me not only cultivates students' skills but also elevates the 
competence of qualified personnel, thus effectively supplying the labo ur market with skilled 
Jordanian workforce and trainers.  
4.2  Business environment  
4.6.  A number of legislations aimed at enhancing the business environment in the Kingdom were 
adopted:  
4.7.  Monitoring and Inspection of the Economic Activities Law No. 33 of 2017, which aims at unifying 
the terms of reference of inspections, and reducing the overlapping and duplication in the power and 
functions of the o fficials institutions concerned with the supervision and inspection of economic 
activities. Thus contributing to the development of the business environment in the Kingdom.  
4.8.  The government regulators have launched a computerized inspection system with the g oal of 
continuously improving inspection procedures across various sectors. The system aims to provide 
high-quality inspection services by simplifying processes and reducing the time, effort, and costs 
associated with controlling and inspecting economic es tablishments. It utilizes risk analysis and 
classification to minimize the need for unregulated inspections by regulatory authorities and optimize 
the use of government resources. The system aims to enhance inspection efficiency, transparency, 
and clarity for the private sector, leading to increased compliance with legal and technical 
requirements and improving the competitiveness of businesses in different sectors.  
4.9.  Issuing the instructions regarding home based business within the municipal areas. These 
instructions aimed at regulate the practice of occupations enabling informal workers, who practice 
occupations from home to work formally, reducing the size of the informal economy, and increasing 
economic participation rates, especially among females.  
4.10.  Amende d Corporate Law No. 34 of 2017, in which the venture capital company was added as 
a new type of companies that can be established in the Kingdom, in addition to regulating the 
provisions of these companies. This amendment is expected to  encourage the esta blishment of such 
companies.  
4.11.  The Law of Security of Rights in Movable Properties number 20 for the year 2018 (Movable 
Properties Law), which established a legislative framework for registering and enforcing security 
interests over movable assets. The law i ntroduced a publicly accessible electronic registry managed 
by the Directorate of Central Trade Registration at the Ministry of Industry, Trade and Supply 
('Registry '), providing creditors with a mechanism to secure priority over movable assets by 
publishi ng their claims in the registry. This enhanced system offers future lenders greater security 
and ease of due diligence, while instilling confidence among lenders with registrable rights over 
movable assets. The primary objective of the Movable Properties L aw is to ensure priority for 
registered security interests, resulting in significant positive impacts on various industries.  
4.12.  Approving the Insolvency Law No. 21 for 2018, which will fulfil a number of important 
requirements that is expected to contribute to improve the economic conditions and the ranking of 
Jordan in international competitiveness reports, through establishing a legislative framework of a 
debtor insolvency (whether it is a c orporate or an individual), and encouraging the debtor to adjust 
his  financial  position, thus enabling him to emerge from the financial insolvency, and providing 
effective mechanisms for cooperation with debtors and insolvents.  
4.13.  The Council of Ministers d ecided to approve the insolvenc y By-law. 8 for the year 2019, issued 
in accordance with Article  141 of the Insolvency Law No.  21 of 2018. Under the By-law, a unified 
electronic record called the "insolvency record " is created in the Companies Control Depar tment, 
through which data, information, and procedures related to insolvency procedures set forth in law 
and Bylaw are  published. The By-law determines the terms and conditions necessary for licensing 
and supervising insolvency agents and handling insolven cy cases in the absence of funds. According WT/TPR/G/446 • J ordan  
 
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  to this By-law, the creditors committee is formed and its functions and conditions are defined, in 
addition to the sale of movable and immovable funds in the event of liquidation, specifying the selling 
procedure s and determining the criteria for the insolvency agents ' fees. 
4.14.  Simplifying sectoral licen ces, efforts are currently underway to streamline and expedite the 
process of commencing business operations for investors and employers within the Jordanian market 
by eliminating the sectoral licen ce requirement specifically applicable to the tourism sector. The 
objective behind this initiative is to significantly reduce administrative procedures and complexities 
associated with obtaining licen ces in the tourism domai n. This strategic move is aimed at fostering 
a more investor -friendly environment, facilitating smoother entry and establishment of businesses, 
and ultimately enhancing the overall business climate in Jordan.  
4.15.  The Competition Law No.  33 of 2004 in Jordan un derwent significant amendments to its 
provisions in 2023 through Law No.  12 of 2023, giving greater powers to the Competition Directorate 
under the Ministry of Industry, Trade, and Supply, enhancing the transparency of decision -making, 
the amendments inclu ded new economic standards and indicators in relation to market dominance. 
Merger control and weak impact agreements, the law also introduced stricter penalties for violations 
in the market. These amendments reflect Jordan's commitment to fostering a compe titive market 
that encourages innovation and fair business practices.  
4.16.  Public -private partnerships (PPPs) have assumed a fundamental role in Jordan's 
comprehensive strategy aimed at attracting private investment, stimulating economic growth, and 
advancing i nfrastructure development and public service provisions.  
4.17.  The Cabinet has granted approval to the draft law concerning Public Private Partnership (PPP) 
projects for the year 2023. The proposed legislation aims to create an investment -friendly 
environment b y establishing partnerships with the private sector in line with Jordan's Economic 
Moderni zation Vision. Its primary objective is to harness the expertise of the private sector in 
infrastructure, public facilities, and services, thus contributing substanti vely to the nation's economic 
growth and social development. The amendments accentuate the importance of inter -ministerial 
collaboration, streamlining the procedures for feasibility studies and bidding, with particular 
emphasis on the pivotal role assumed by the Ministry of Investment. Furthermore, the legislation 
enforces stringent timelines, requiring a response from the government regarding its financial 
commitment to each project within 30 days. Moreover, all partnership initiatives necessitate financia l 
backing from government agencies, and the draft law facilitates this process by ensuring government 
funding is secured prior to the commencement of the bidding and implementation phases.  
4.3  Government procurement  
4.18.  Jordan is continuing its efforts in the fiel d of procurement reforms. Launching a new 
Government Procurement Bylaw  No. 8 for the year 2022 and its amendments, which includes:  
• Harmonizing procurement procedures in all ministries, government agencies, and 
institutions; harmonizing procurement procedur es pertaining to public works, goods and 
services by Replacing 56 government procurement systems in one government 
procurement system.  
• Release the Jordanian electronic procurement system (JONEPS) to improve the 
involvement of both (SMEs) and large companie s in government procurement 
opportunities. JONEPS aims to digitize contract execution and management for all 
stakeholders involved, including the procuring entity, the requesting entity, and the 
contractor. By adhering to the contractual requirements, the system facilitates efficient 
management of implementation and payments throughout the procurement process. This 
significant advancement is expected to greatly enhance the overall efficiency and 
transparency of public procurement procedures in Jordan.  
• Strengthening decentralization through separating the regulatory activities from 
operational activities through establishment of the Higher Procurement Commission 
(Regulatory Commission).  WT/TPR/G/446 • J ordan  
 
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  • Introducing new buying methods such as reverse auctions, open and cl osed framework 
agreements, according to the best international standards.  
• Promoting the application of the concepts of governance, transparency, integrity and 
corruption reduction.  
• Creating a career with regard to the purchasing function by subjecting wor kers in the field 
of purchasing and supplies management in the government sector to intensive training.  
• Determining a ceiling for the maximum amount of fines resulting from the delay by only 
15%. 
• Supporting SME 's by giving them the opportunity to compete w ithin the government 
procurement.  
• Introducing mechanisms for remedies, complaints, and dispute resolution.  
4.4  Women 's empowerment  
4.19.  The Executive Plan for the National Strategy for Women in Jordan for the period 2023 -2025 
has received official approval. This plan serves as a crucial guiding document for policymakers and 
donors dedicated to addressing women's issues in the country. It encompasses six fundamental 
axes, namely: economic empowerment, political empowerment, and participation in decis ion-
making processes, safeguarding human rights, combating violence against women and girls, 
fostering societal culture, and integrating a gender perspective at the institutional level within both 
public and private sectors.  
4.20.  The plan encompasses a total of  50 initiatives and 267 programs and projects, which are 
scheduled for implementation through collaboration with 76 partner s and implementing agencies. 
These initiatives are geared towards achieving tangible progress and advancements in gender 
equality and  women's empowerment in Jordan over the specified period.  
4.21.  In terms of legislative developments, amendments to the Labo ur Law were ratified in 2019, 
introducing provisions for equal pay, the establishment of childcare cent res for workers' children, 
three da ys of paternity leave, as well as flexible working arrangements. Additionally, the Maternity 
Social Protection was introduced in 2020, aimed at empowering working mothers and retaining their 
participation in the workforce. In 2021, there were amendments to  the agricultural workers system, 
and in 2023, alternative instructions for nurseries were implemented. Furthermore, legislation 
related to harassment was amended in 2023, removing restrictions on women's employment and 
working hours in specific occupation s. 
4.22.  The Jordanian government has issued a directive of paramount importance, mandating the 
establishment of dedicated units within all ministries of the country, aimed at promoting the 
economic empowerment of women. The primary objectives of this directive encompass bolstering 
the economic participation of Jordanian women, cultivating an enabling business environment, and 
effectively advancing the nation's sustainable development goals.  
4.23.  These specialized units are entrusted with a diverse array of responsibi lities, including the 
development of pertinent policies, vigilantly monitoring international reports, conducting risk 
analyses, fostering constructive collaborations with stakeholders, identifying and removing 
impediments, establishing a national platform to disseminate essential economic information 
pertaining to women, and actively promoting skills development initiatives tailored to women -owned 
businesses.  
4.24.  By undertaking this comprehensive approach, the ministry seeks to shatter existing gender 
barriers,  harnessing the untapped potential of women to yield substantial economic gains. The direct 
affiliation of these units with the respective ministries' secretary generals underscores their pivotal 
significance in achieving these ambitious objectives.  
4.25.  In ess ence, this initiative represents a momentous stride towards fostering an inclusive and 
gender -responsive approach to policymaking and governance in Jordan. By providing targeted WT/TPR/G/446 • J ordan  
 
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  support and dedicated resources, the government endeavors to create an equitab le and enabling 
environment that will empower women to play a pivotal role in driving the nation's economic 
progress and sustainable development.  
4.26.  In accordance with the national strategic objectives aimed at enhancing women's access to 
leadership roles wit hin both the public and private sectors, as well as complementing the initiatives 
designed to empower women in alignment with the vision of economic modernization, certain 
provisions within the Companies Law, specifically Articles 135 and A/151, have under gone revision. 
These amendments have been introduced to facilitate the representation of women on the boards 
of directors of public shareholding companies.  
5  FOREIGN TRADE POLICY  
5.1  Jordan and W orld Trade Organization (WTO)  
5.1.  Jordan has been an active Member of t he WTO since its accession on 11 April 2000. The country 
has undergone a rigorous process of aligning its trade policies and regulations with WTO standards, 
demonstrating its commitment to upholding the principles and participating in the activities of the  
organization. As a WTO member, Jordan engages in regular trade policy reviews, receives technical 
assistance and capacity -building support, and actively participates in trade negotiations. Jordan has 
also endeavor ed to harmonize its technical standards an d regulations with international norms. Its 
WTO membership has played a pivotal role in shaping its trade policies, fostering transparency, and 
facilitating integration into the global economy.  
5.2.  Furthermore, Jordan is a signatory to the Information Technolo gy Agreement (ITA) under the 
WTO. This agreement allows Jordan to eliminate tariffs on a wide range of IT products, thereby 
promoting market access, encouraging the growth of the IT sector, and facilitating trade in IT goods. 
Being part of the ITA enables Jordanian firms to actively participate in global supply chains, 
collaborate with other ITA participants, and provide consumers with access to technology at more 
affordable prices. Jordan's engagement in the ITA underscores its dedication to fostering an o pen 
trade environment for IT products, thereby contributing to the development and competitiveness of 
the IT sector within the country.  
5.3.  During the review period, the Hashemite Kingdom of Jordan exhibited a steadfast commitment 
to its open market and libera l trade policies, refraining from imposing any protective measures, 
despite the significant challenges and disruptions experienced globally due to the COVID -19 crisis, 
including the closure of borders. Jordan's proactive approach entailed providing essenti al sterilizers, 
safety materials, and personal protective equipment to neighboring countries and international 
organizations. Additionally, Jordan implemented national programs aimed at bolstering the resilience 
of productive sectors in confronting the COV ID-19 crisis. This demonstrated the solidity and 
prudence of the Jordanian economy, affirming its determination to navigate the crisis while upholding 
its principles of multilateral free trade and international cooperation.  
5.4.  In a move to adhere to its inter national commitments within the framework of the World Trade 
Organization, Jordan opted to terminate the regulation exempting profits from goods and services 
exports from income tax for the year 2016. Consequently, the Industry Support and Development 
Fund Regulation No. (45) for the year 2022 was established in collaboration with the World Bank. 
This fund serves as a strategic initiative aimed at bolstering investments and exports within the 
manufacturing sector through the modernization and upgrading of i ndustries. Additionally, it aims 
to foster export development and promotion with full aligned to international commitments while 
incentivizing companies to excel in areas vital to the sector's growth, such as enhanced climate -
responsiveness and increased f emale employment.  
5.5.  Trade Facilitation Agreement (TFA): Jordan continues adherence to the principles of WTO Trade 
Facilitation Agreement (TFA). The Customs Law No.  33 of 2018 and its subsequent amendment, Law 
No. 10 of 2019, have been enacted to establish co mprehensive regulations and procedures 
governing customs in Jordan. The primary objectives of these laws are to facilitate international 
trade, ensure adherence to international standards, and safeguard national security and public 
health. The legislation encompasses various key provisions, including the utilization of advanced 
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  such as accepting original documents without the need for consular or chamber of comme rce 
attestation.  
5.6.  Additionally, the legislation reorganizes procedures related to the protection of intellectual 
property rights. It emphasizes the acceptance of electronic documents by the Department, such as 
cargo manifests and commercial documents attac hed to customs declarations. Furthermore, the law 
provides provisions for the facilitation of trade to entities that comply with its regulations and 
relevant legislations, as exemplified by the establishment of "golden and silver lists ". Moreover, the 
law includes a provision for the issuance of a regulation governing the transit of hazardous and dual -
use goods through Jordan. Notably, the procedures have been simplified, with owners of goods now 
required to provide a concise statement prior to the arrival of their goods in the Jordan. These 
legislative measures signify Jordan's commitment to modernizing its customs procedures, enhancing 
efficiency, and promoting compliance with international standards.  
5.7.  Jordan Customs has launched the Jordan Trade Facilitati on Portal, an online platform aimed at 
providing traders with access to a comprehensive Trade Facilitation Repository and Detailed 
Procedures concerning the import, export, and transit of over 70  products. This initiative seeks to 
improve compliance and re duce transaction delays for traders. Additionally, the portal aligns with 
the WTO TFA measures and implements best practices and standards, specifically focusing on TFA 
Arts. 1.1 and 1.2. The establishment of this portal is part of a broader initiative to enhance the 
Hashemite Kingdom of Jordan's compliance with the WTO TFA and ultimately boost the 
competitiveness of Jordanian SMEs.  
5.8.  Tariff reform: The restructuring of the customs tariff, effective from 13 January  2022, has led 
to a reduction in the number of customs duty categories from 16 to 4. This strategic initiative aims 
to eliminate distortions in customs tariffs and commercial operations, stimulate commercial trade, 
and enhance overall efficiency within the national economy. Under the new structure, the applicable 
categories are as follows: exempt, 5%, 15%, and 25%. It is important to note that goods subject 
to the tax rates of 15% and 25% are those that have a local equivalent. Furthermore, starting from 
1 January  2025, the fees imposed on tariff items falling under the 25% rate will gradually decrease 
to 20% until 31 December  2026. Subsequently, from 1 January  2027, the fees on tariff items subject 
to a 20% rate will be further reduced to 15%. Consequently, the fee categories will be consolidated 
into three categories: exempt, 5%, and 15%. This revised customs tariff structure reflects a 
commitment to streamlining trade procedures, promoting transparency, and fostering economic 
growth within the country.  
5.9.  Ecom merce: In   line with WTO negotiations on trade -related aspects of electronic commerce to 
enabling e -commerce, openness and e -commerce, trust and e -commerce, cross -cutting issues, 
telecommunications, and market access, Jordan has taken significant steps to b oost its digital 
economy. The Council of Ministers has approved the Jordan National E -Commerce Strategy 2023 -25, 
which aims to create an enabling environment for e -commerce, attract investments and businesses, 
and offer better income opportunities for Jord anians. Additionally, the strategy seeks to enhance the 
competitiveness of micro, small, and medium -sized enterprises and their entrepreneurs through e -
commerce solutions and modern trading technologies, both locally and globally. Implemented over 
three st ages within a 10 -year timeframe, aligned with Jordan's Economic Modernization Vision, the 
first stage (2023 -25) focuses on establishing a national mechanism for e -commerce activities and 
launching pilot projects to enhance competitiveness.  
5.10.  Jordan supports  special and differential treatment provisions to aid developing countries in 
global trade, emphasizing a fair and balanced outcome for development and economic growth. It 
aims to strengthen free and fair global trade, fulfilling its commitments as a WTO Member. Jordan 
seeks additional flexibilities for food security as a net food importer developing country. The 
successful implementation of the Trade Facilitation Agreement and the Bali Agreement is a priority 
for Jordan. In services negotiations, Jordan em phasizes harmonizing domestic regulations to 
improve market access.  
5.11.  Jordan expresses its appreciation for the outcome of the Twelfth Ministerial Conference, which 
signifies the endorsement of member states towards the efforts of the  WTO and its consensus -based 
decision -making mechanism. Furthermore, Jordan reiterates its steadfast dedication to actively 
engage in the ongoing negotiations on diverse matters. Additionally, it is worth noting that Jordan 
has initiated the ratification process of the fisheries  subsidy agreement in adherence to the prevailing 
regulations and guidelines within the jurisdiction of Jordan.  WT/TPR/G/446 • J ordan  
 
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  5.12.  Jordan emphasizes the need to ensure that different Joint Statements do not undermine the 
multilateral trading system and consensus -based decisi on-making.  
5.2  Jordan's export strategy  
5.13.  As part of its economic modernization vision for the period 2023 -25, the Jordanian 
government has developed a comprehensive national export strategy with ambitious objectives. The 
primary goal of this strategy is to cult ivate a favorable business environment for Jordanian industrial 
and agricultural goods and services, thereby fostering balanced and stable economic growth.  
5.14.  The strategy is built upon several pillars, including the identification of productive 
opportunitie s and challenges within the industrial sector, the enhancement of export competitiveness 
and quality, the diversification of the product portfolio for goods and services, and the facilitation of 
access to non -traditional markets, as well as the exploration  of new markets. To achieve the outlined 
objectives, an action plan comprising more than 100 activities has been devised and is aligned with 
the key pillars of the national export strategy.  
5.15.  Jordan's export strategy places a strong emphasis on promoting innovation, providing support 
to small and medium -sized enterprises (SMEs), and investing in infrastructure to create an enabling 
environment for businesses. Jordan's export strategy encompasses a range of measures aimed at 
diversifying exports, enhancing competitiveness, and expanding the country's presence in 
international markets. These measures include trade agreements, sector -specific strategies, export 
promotion agencies, export financing and incentives, market diversification, compliance wi th quality 
standards, entrepreneurship and innovation support, skills development, and market intelligence.  
5.16.  Jordan Exports (JE) institution which is established jointly between public and private  sectors 
with the aim of coordinating national export initi atives. JE serves as the overarching organization 
responsible for designing, developing, and promoting the products (goods and services) of small and 
medium -sized enterprises (SMEs) in Jordan. By employing innovative and demand -driven 
approaches, JE empowe rs and enhances the capabilities of Jordanian companies, accelerates export 
development, increases export volume, and strengthens Jordan's global connections.  
5.17.  JE provides various services aimed at supporting development and promotion of SMEs 
product s in foreign markets . Key services offered by JE include Export Readiness Assessment (ERA), 
which evaluates the preparedness of companies for engaging in exports; Export Market Information, 
which offers valuable insights into target markets; Export Financing Info rmation, providing guidance 
on available funding options; Outbound Trade Missions, facilitating business trips for companies in 
Jordan to explore foreign markets; and Inbound Trade Missions, involving the hosting of foreign 
delegations and arranging meetin gs with local businesses.  
5.18.  Furthermore, JE extends its support through an array of additional services, such as providing 
information on events, requirements, and registration processes; evaluating the readiness of 
products or services for export; offering support for promotion, marketing, and related activities; 
arranging visits to relevant organizations; organizing briefings, business -to-business (B2B) 
meetings, and side events; providing logistical assistance for inbound and outbound trade missions; 
offering information on potential funding opportunities; facilitating site visits; providing support 
regarding event locations; and delivering training and capacity -building programs tailored for 
Jordanian exporters.  
5.19.  Through its comprehensive range of services,  JE aims to equip Jordanian exporters with the 
necessary tools, knowledge, and resources to thrive in international markets, contributing to the 
growth and success of Jordan's export sector.  
5.3  Regional and bilateral trade liberali zation  
5.20.  Jordan has actively e ngaged in a broad spectrum of regional and bilateral trade agreements 
with the objective of bolstering trade opportunities and attracting foreign investment, as part of its 
long-standing  pursuit of an export -led economic growth strategy. Through effective negotiation and 
implementation, Jordan has established bilateral Free Trade Agreements (FTAs) with various 
entities, including GAFTA, the United  States , the European  Union , Canada, Singapore, and EFTA 
states. These FTAs have played a pivotal role in granti ng Jordan privileged market access, reducing WT/TPR/G/446 • J ordan  
 
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  tariffs, eliminating non -tariff barriers, and fostering trade and investment with these esteemed 
trading partners. Furthermore, Jordan has assumed the role of a signatory to the Agadir Agreement, 
a regional trad e agreement encompassing Jordan, Egypt, Tunisia, and Morocco.  
5.21.  During the review period, Jordan underwent significant changes in its free trade agreements 
(FTAs), including the signing of a new Association Agreement with the United  Kingdom  on 
1 May 2021, an d the subsequent termination of its Free Trade Agreement (FTA) with T ürkiye .  
5.22.  The decision to simplify rules of origin with the European  Union  (EU), denoted as No.  1/2018 
of the EU -Jordan Association Committee, was officially issued on 4 December  2018, as an 
amendment to Decision No.  1/2016. It grants more lenient rules of origin to Jordanian products 
manufactured in all Jordanian territories, encompassing 50 Harmonized System (HS) non -
agricultural chapters, allowing access to the EU market for a signifi cant majority of Jordanian 
products. To qualify, each factory under the decision must employ at least 15% Syrian workers as 
a proportion of the total workforce . This percentage  will remain valid until 31 December  2030.  
5.23.  In accordance with the strategic vis ion of the Government of the Hashemite Kingdom of 
Jordan, which prioritizes enhancing food, health, and agricultural security, as well as fostering 
integrated industrial projects with various Arab nations, the government has undertaken the 
proactive initia tive of entering into agreements with several Arab countries. The objective behind 
these agreements is to implement comprehensive measures and strategies to achieve the 
aforementioned goals effectively.  
5.24.  The trilateral collaboration between Jordan, Iraq, an d Egypt has been established with the 
overarching objective of attaining success in cost optimization and efficient implementation. This 
collaboration culminated in the signing of an agreement on industrial integration, which is now in 
effect across all th ree nations. The core purpose of this integration is to foster effective cooperation 
and synergy between the respective industrial sectors of Jordan, Egypt, and Iraq, with the ultimate 
goal of achieving substantial savings and maximizing efficiency in thei r industrial endeavors.  
5.25.  The establishment of the Integrative Industrial Partnership for Sustainable Economic 
Development among Jordan, the United Arab Emirates, Egypt, and Kingdom of Bahrain. The 
partnership aims to create synergistic industries, diversify  the economy, generate employment 
opportunities, and leverage the resources and capabilities of the four countries. The collaboration 
resulted in the signing of agreements for nine projects with an expected total investment of 
USD 2 billion , creating aroun d 13,000 jobs and a projected gross domestic product return of 
USD 1.66 billion . The focus is on developing competitive industries, enhancing economic value, and 
achieving self -sufficiency and security in food and health.  
5.26.  Jordan maintains the belief that i ts trade agreements with diverse countries and regional blocs 
provide Jordanian exporters with favorable access and tariff advantages.  
6  TECHNICAL ASSISTANCE NEEDS  
6.1.  Jordan's commitment to trade liberalization has yielded significant benefits, expanding trade 
opportunities, attracting foreign investment, and diversifying export markets. Through the reduction 
of trade barriers and the promotion of economic integration, Jordan aims to enhance its 
competitiveness, stimulate economic growth, and generate employment  opportunities.  
6.2.  To support its trade -related capacity -building and development efforts, Jordan has identified 
several technical assistance needs from the WTO. These needs encompass various areas, including:  
6.3.  Trade Policy Formulation: Jordan seeks technical assistance in developing and formulating 
trade policies that adhere to WTO rules and regulations. This assistance may involve training and 
support in trade data analysis, policy research, and the formulation of strategies to enhance trade 
competitiveness.  
6.4.  Trade Facilitation: Jordan aims to improve trade facilitation measures by streamlining customs 
procedures, simplifying documentation requirements, and enhancing border management. Technical 
assistance from the WTO can help Jordan implement best practices, improve trade logistics, and 
enhance the efficiency of trade -related infrastructure.  WT/TPR/G/446 • J ordan  
 
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  6.5.  Trade -related Capacity -Building: Jordan seeks assistance in building its institutional capacity 
to effectively participate in WTO negotiations and implement WTO agreements . This includes training 
government officials and stakeholders on WTO rules and procedures, enhancing policy analysis 
capabilities, and strengthening legal and regulatory frameworks related to trade.  
6.6.  Agriculture and Food Safety: Given the significance of a griculture in Jordan's economy, 
technical assistance in the agricultural sector is crucial. Jordan seeks support in areas such as 
agricultural policy development, market access, food safety standards, and compliance with Sanitary 
and Phytosanitary (SPS) me asures to enhance the competitiveness of its agricultural products.  
6.7.  Technical Standards and Quality Infrastructure: Jordan aims to align its technical standards 
and quality infrastructure with international norms and standards to facilitate trade. Technica l 
assistance in areas such as conformity assessment, accreditation, and metrology can help Jordan 
improve product quality and meet international requirements.  
6.8.  Trade -related Intellectual Property Rights (TRIPS): Assistance in understanding and 
implementing intellectual property rights regulations, as stipulated by the WTO's Agreement on 
Trade -Related Aspects of Intellectual Property Rights (TRIPS), is essential for Jordan. This may 
include support in strengthening intellectual property protection, enforcemen t mechanisms, and 
promoting innovation and technology transfer.  
6.9.  Trade in Services and WTO Initiatives: Jordan actively seeks technical assistance to evaluate 
its potential accession to various WTO member -state initiatives. These include the Domestic 
Regula tion in Services Initiative and the Trade Facilitation for Development Initiative. The objective 
of seeking accession to these initiatives is to strengthen Jordan's engagement in the multilateral 
trading system and further facilitate the liberalization of its economy.  
6.10.  Trade and environment: Jordan is actively pursuing technical support in the area of trade and 
environment to strengthen the harmonization of its procedures and standards with international 
norms and foster a deeper comprehension of these matte rs. The objective is to ensure that trade 
activities are conducted in a manner that is environmentally sustainable and complies with 
international standards and obligations. Jordan recognizes the importance of striking a balance 
between economic growth and  environmental conservation, and seeks technical assistance to 
enhance its capacity in integrating environmental considerations into trade policies and practices. 
This support will aid Jordan in developing effective strategies for sustainable trade, promot ing green 
growth, and contributing to global efforts in environmental preservation.  
6.11.  These identified technical assistance needs highlight Jordan's efforts to enhance its trade 
capacity, promote economic growth, and further integrate into the global trading  system. Assistance 
in these areas will enable Jordan to achieve its trade -related goals and maximize the benefits of its 
participation in international trade.  
 
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