Doing business in Jordan: Jordan trade and export guide
Updated 11 May 2015
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This publication is available at https://www.gov.uk/government/publications/exporting-to-jordan/exporting-to-jordan
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1. Jordan export overview
Jordan has a strategic position at the heart of the Levant. It is politically stable, with an open business environment. The region attracts more £1 billion worth of UK exports.
Contact a Department for International Trade (DIT) Jordan export adviser for a free consultation if you’re interested in exporting to Jordan.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Jordan.
Sizeable contracts have been signed with Shell that has greatly boosted bilateral trade.
Benefits for UK businesses exporting to Jordan include:
- English is widely used as the business language
- a number of trade agreements with the European Union (EU)
- multi-cultural society
Strengths of the Jordanian market include:
- strategic geographical location – gateway between the east and the west
- well educated and highly skilled workforce
- a favourable business environment
- strong banking system
- competitive costs of doing business
2. Challenges
Doing business in Jordan comes with a few challenges.
Changes of parliament tend to take place every couple of years which leads to changing ministers who will often alter policy and amend regulations. It is advisable to always ask for the latest version of laws and regulations.
Companies setting up in Jordan should be aware of the risks of getting established with the wrong partner. It can be very difficult and expensive to part ways and Jordanian courts will usually come down on the side of the local partner. Going to arbitration can take months and will also prove costly.
Companies should also be aware of delays in payment.
3. Growth potential
3.1 Economic growth
Growth of 3.1% in Gross Domestic Product (GDP) and 2.9% inflation is forecast for 2015.
Jordan economy is among the most open in the Middle East. The authorities have implemented structural reforms to develop the private sector.
Unemployment rate reached 14% in 2014.
Priority sectors for economic development include:
- energy
- Information and Communications Technology (ICT)
- defence and security
- healthcare
- education
- business services
3.2 Free trade agreements
Jordan has policy of open trade links and has signed a number of free trade agreements. The agreements are with:
- EU
- US
- Greater Arab Free Trade Area (GAFTA)
- Singapore
- Canada
- Turkey
3.3 Gateway to Iraq
Jordan is a hub for doing business in Iraq. Most of the largest Iraqi companies have their base in Amman and it can be an ideal location to conduct business for UK companies unable to travel into Iraq. Many foreign companies who operate in Iraq also base their offices in Amman.
4. UK and Jordan trade
UK exports to Jordan reached £200 million in 2014.
The top 3 UK exports to Jordan include:
- medical and pharmaceutical products
- road vehicles
- industrial machinery
Other major exports from the UK to Jordan include:
- luxury goods
- foodstuffs
- clothing
- electrical machinery
5. Opportunities for UK businesses in Jordan
DIT provides free international export sales leads from its worldwide network. Search for export opportunities.
5.1 Healthcare
Jordan is recognised throughout the region as a leader in the provision of healthcare. Existing hospitals are currently expanding and renovating their facilities, while new private and public sector facilities continue to be established.
The Middle East’s leading cancer centre is based in Jordan’s capital, Amman. Specialist centres for illnesses such as diabetes are increasingly being developed.
Jordan has also been classified as the number one destination in the Middle East for medical tourism and ranks fifth worldwide.
Opportunities for UK businesses include:
- ICT in healthcare
- renovation and expansion of existing hospitals
- creation of specialist centers
- co-operation between UK and Jordanian hospitals
- latest technologies in equipment, software and tools
Contact suha.batarseh@fco.gov.uk for more information on healthcare opportunities in Jordan.
5.2 ICT
ICT is the third largest contributor to Jordan’s economy, with revenues accounting for 14% of total gross domestic product (GDP).
Opportunities for UK businesses include:
- outsourcing
- telecommunications
- e-health
- ICT solutions
Contact daliah.shaer@fco.gov.uk for more information on ICT opportunities in Jordan.
5.3 Energy
Jordan’s energy sector is rapidly developing to meet government targets. These are designed to reduce the country’s reliance on external energy sources and introduce more widespread use of renewable energy.
There are also plans to develop the refined products sector which has the potential to make the Kingdom an important location for regional energy integration. Jordan has set out plans to have a fully operational nuclear power facility by 2020 with a generation capacity of 1,000 Mega Watt (MW).
Opportunities for UK companies include:
- direct investments in the renewable energy projects; solar and wind
- energy saving and efficiency products.
Contact raeda.al-ashhab@fco.gov.uk for more information on energy opportunities in Jordan.
5.4 Education and training
Education represents a major source of investment, with more than 70% of Jordan’s population under the age of 30 and a relatively high population growth rate.
Both state and private universities are keen on international collaboration agreements with UK universities. Opportunities are available for general collaborations, such as the one with Lancaster University. More specific collaborations include opportunities for Research and Development (R&D), such as Cambridge University Institute of Biotechnology’s recent partnership with a local biotech company.
Opportunities for UK companies include:
- educational software
- Arabic translation of English content for regional markets
- accreditation
- teacher training
- development of skills and personal development
Contact daliah.shaer@fco.gov.uk for more information on education and training opportunities in Jordan.
6. Start up considerations
Setting up a business in Jordan is facilitated by the Companies Control Department at the Ministry of Industry and Trade. 100% foreign investment is allowed in most industries. Activities in the defence and security industries would need to be cleared by the relevant authorities.
There are several ways you can do business in Jordan:
- appoint a local representative, distributor or agent
- set up own branch office in Jordan
- form a joint venture
6.1 Incentives
Foreign investment has contributed greatly to the modernisation of the Jordanian economy. A number of incentives and tax exemptions are applicable to foreign investment depending on the sector involved and size of investment, under the Investment Law. The newly established Jordan Investment Commission can advise on whether a particular investment would be considered under this law.
7. Legal considerations
Contact the DIT team in Jordan to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
The Jordan Institution for Standards and Metrology is the official body in Jordan for issuing and ensuring companies adhere to Jordanian Standards.
Local importers are responsible for informing foreign suppliers of any applicable labelling requirements.
All labelling and safety instructions should be in Arabic. Production and expiry dates must be printed on the original label or on the container by the manufacturer.
7.2 Intellectual property (IP)
Registration of copyright, patents and trademarks is required. Copyrights are registered at the National Library and patents are registered with the Registrar of Patents and Trademarks which is part of Jordan’s Ministry of Industry and Trade.
It should be noted that the current standards of IP protection in Jordan can be problematic in some areas. DIT recommends consulting with a law firm specialised in Intellectual Property Rights to confirm if there are particular products that may be at risk.
8. Tax and custom considerations
The Ministry of Finance provides more information and a breakdown of the taxes.
8.1 Value Added Tax (VAT)
The general VAT rate in Jordan is currently 16%.
8.2 Corporate tax
The corporate tax rate in Jordan is 14 to 30%.
8.3 Income tax
The income tax rate in Jordan is 14%.
8.4 Customs
Customs tariffs on different products and commodities can be found on the Customs Department website.
8.5 Documentation
For shipments to Jordan, exporters are required to provide:
- certificate of origin
- commercial invoice and an airway bill
- packing list and full description of goods
- health and quality certificate (if applicable)
A customs declaration is also required. Only an authorised forwarding agent in Jordan can process the declaration and it must be filed electronically.
9. Entry requirements
All visitors must have a valid passport with at least 6 months validity.
British citizens can apply for up to a one month visit visa on arrival at Queen Alia International Airport, or from the Jordanian Embassy in London.
9.1 Travel advice
If you’re travelling to Jordan for business, check the Foreign and Commonwealth Office (FCO) travel advice page beforehand.
10. Contacts
Contact the DIT team in Jordan for more information and advice on opportunities for doing business in Jordan.