Foreign Investment Regime

Regulatory framework

The Kingdom of Jordan links Asia with Africa, as well as the

Arab World with Europe. Its geographic location plays a major role

in mobilizing investment to the Middle East region. Foreign

investors are allowed full ownership in many sectors, including

telecommunications, hotels, mining, manufacturing, hospitals and

information technology. In the following sectors, however, foreign

ownership cannot exceed 50 per cent:

Trade and distribution;

Engineering and construction contracting;

Advertising; and

Most transport services.

Certain sectors are entirely closed to foreign investors,

including the following:

Passenger transportation;

Freight road transportation, including taxis, buses and

trucks;

Quarries activities;

Security services;

Investigation services; and

Sports services, including the organization of sports events

and clubs.

Restrictions on foreign equity are lifted or eased under some

bilateral agreements, such as the Bilateral Investment Treaty with

the US, the Euro-Jordanian Partnership Agreement, and the Trade and

Economic Cooperation Agreement between Jordan and Canada. Moreover,

Jordan's Council of Ministers is entitled to waive any

restriction on foreign equity in cases where national interest is

served, or where the project will develop the economy, increase

exports and create jobs for Jordanians, particularly in certain

locations.

The minimum capital requirement for foreign direct investment is

50,000 Jordanian dinars (JOD) or its equivalent, and foreign

investors enjoy the same rights as Jordanians in respect of their

investment and can transfer any returns outside Jordan.

The Investment Law was designed to attract and promote local and

foreign investments into Jordan, and offers investors many

incentives and exemptions. Hotels, conferences and exhibition

centres, agriculture projects, manufacturing, rail and the maritime

transport sectors all enjoy the maximum tax exemption rate of 75

per cent. Projects may also be exempt from income and social

service taxes for a period of 10 years (by 25 per cent, 50 per

cent, or 75 per cent, depending on the location and economic

activity of the project), and any related goods and services

imported or purchased locally are free of sales tax. The imported

fixed assets of a licensed project as well as its spare parts are

fully exempt from customs duties and taxes.

Free & Industrial Estates zones

Established under the Free Zones Corporation Law, 1984, free

zones in...