New Regulation Issued Governing Non-Jordanian Investment

Regulation No. 77 of 2016 governing non-Jordanian Investment (the Regulation) has been published in the Official Gazette on 16/6/2016.

The Regulation offers significant changes as compared with the old regulation, which we have examined in more detail below.

Changes to participation restrictions in particular sectors

Article 3 provides that a non-Jordanian investor may wholly own or partake at any percentage in any project relating to any economic activity provided that such activities do not contravene national security, public order and morals, and public health, excluding those economic activities which are set forth in Article (4), (5), and (6) of the Regulation, unless any other legislation places a restriction on such ownership or participation.

Several sectors have had an increase in the restriction of percentage of participation by reducing the allowed participation of non-Jordanian investors from 50% to 49%, including such activities relating to the maintenance of road transport means and the maintenance of radio and television broadcasting equipment.

Other activities which previously prohibited full ownership by a non-Jordanian investor have now been removed from the Regulation, such as those relating to railway services, rendering it now permissible for a non-Jordanian investor to wholly own companies providing such services.

The Regulation also added certain activities which are completely restricted from any whole or partial ownership by non-Jordanian investors, including activities relating to security services.

Ability to register a Jordanian company with complete or partial ownership

In light of the aforementioned Article 7, the company which is registered by virtue of this Article 7 shall notify the Companies Controller within 30 days of any change or amendment which occurs to its records, including the closing of the company...