🇯🇴map Jordan [Economy]

Economic Overview

Jordan is a small, service-led economy with a reputation for stability in a turbulent neighborhood. Think of it as steady rather than flashy: growth has been modest in recent years, with the country working through high unemployment and fiscal pressures while keeping inflation relatively contained. The Jordanian dinar is pegged to the US dollar, which gives the currency a reassuring stability for travelers and businesses pricing contracts. As a regional hub for NGOs and multinationals, Amman benefits from consistent external support, steady remittances, and a well-educated workforce.

The country’s main challenge is that it lacks oil and relies on imports for most of its energy and many essentials. That said, Jordan punches above its weight in tourism, logistics, professional services, and information and communications technology (ICT). Refugee inflows have added pressure to public services but also expanded the consumer base and labor pool. If you value predictability, Jordan’s cautious economic management, pro-reform stance, and strong ties with Western and Gulf partners are appealing.

Major Industries

Services dominate the economy, especially finance, logistics, education, health care, and tourism. You’ll also see a surprisingly capable pharmaceutical industry and a growing ICT sector, with Amman known for producing regional tech talent. Manufacturing focuses on garments (particularly through special zones), fertilizers, and consumer goods that feed regional supply chains. Logistics and distribution thrive thanks to Jordan’s location and the port of Aqaba.

Agriculture is limited by water scarcity, but Jordan still exports specialty produce from the Jordan Valley and supports a strong domestic market for fruits and vegetables. Natural resources include phosphates and potash, which underpin a significant fertilizers industry. Tourism—Petra, Wadi Rum, the Dead Sea—anchors foreign exchange inflows and supports a wide network of SMEs. Renewable energy, especially solar, is expanding as Jordan reduces its energy import bill.

Employment Landscape

Job hunting is centered in Amman, where banks, telecoms, NGOs, and tech firms cluster. Unemployment is elevated, particularly among youth, so competition for local roles can be tough, but niche skills—software, data, digital marketing, project management, and healthcare specialties—are in demand. English is widely used in business, and many teams are multicultural, especially in consulting, development, and logistics. For expats, regional experience and Arabic proficiency help, but strong technical skills often speak louder.

Work culture blends formality with warmth: expect punctual meetings, relationship-driven decision-making, and respect for hierarchy. Remote and hybrid setups are common in tech and creative roles, while more traditional industries expect in-person attendance. Multinationals and large local groups offer structured benefits, while startups can provide flexibility and upside. Contractors and freelancers often find opportunities with NGOs, media, and tech clients.

Business Environment

Jordan’s government has pushed reforms to streamline licensing and digitize services, and it shows—much of the paperwork can now be handled online, especially in Amman and Aqaba. Foreign ownership is broadly allowed, though some sectors have caps or require approvals, so it pays to check the latest “negative list.” Corporate taxes are moderate and vary by sector, with additional incentives in special zones and for priority industries like ICT and tourism. Sales tax and customs procedures are part of the landscape, but dedicated brokers and local advisors make compliance manageable.

Setting up a company typically involves choosing between a limited liability structure or branches/representative offices for foreign firms. Practical tip: onboarding a local accountant early will save you time on filings and payroll setup, including social security registration. Contracts usually follow clear commercial norms, and courts function reliably, though disputes can take time. Overall, the environment rewards good planning, strong local partnerships, and patient capital.

Startup Ecosystem

Amman’s startup scene is one of the region’s most resilient, known for scrappy founders and strong engineering talent. The ecosystem grew around early successes in content, e-commerce, and logistics, and it now spans fintech, health-tech, ed-tech, and SaaS. You’ll find coworking spaces, hackathons, and active mentorship networks that connect founders to diaspora expertise. English-friendly operations make it easy for foreign founders and remote teams to plug in.

Funding is improving but still selective. Angel networks, regional VCs, and corporate venture arms are active, often co-investing with development finance institutions. Incubators and accelerators—both public and private—offer seed support and investor access, with specialized programs in ICT and creative industries. Success stories with regional exits have built confidence, and government incentives for tech exports and job creation add a tailwind.

Investment Opportunities

Jordan is open to foreign direct investment, particularly in tourism, renewable energy, logistics, pharmaceuticals, and ICT services. Aqaba’s special economic zone stands out with streamlined rules, tax advantages, and proximity to regional trade routes. Real estate in Amman and resort locations like the Dead Sea and Aqaba can be attractive for long-term holds focused on hospitality, furnished rentals, or serviced offices. The Amman Stock Exchange lists banks, industrials, and services; it’s a conservative market where due diligence and dividends matter.

Foreign investors benefit from investment protection agreements and clear repatriation rules, though sector-specific caps and approvals may apply. Incentives often target export-oriented and high-employment projects. Property ownership is possible for foreigners, typically with approvals that vary by location and property type—expect a smoother path in designated zones. As always, a local legal partner is your best early investment.

Trade and Global Connections

Jordan’s trade ties are diversified, with strong links to the US, EU, Gulf states, Iraq, and Egypt. Free trade agreements, including one with the US and arrangements with the EU, support garment, pharmaceutical, and fertilizer exports. Imports are heavy on energy, machinery, vehicles, and grains, reflecting limited natural resources and a consumer-driven market. Logistics flows through the Port of Aqaba and overland corridors to Iraq, Saudi Arabia, and beyond.

For operators, Jordan sits neatly in Levantine supply chains: it’s a reliable base for regional distribution, after-sales service, and customer support teams. The currency peg to the US dollar helps with planning and reduces exchange-rate anxiety in cross-border contracts. Payment terms in regional trade can be conservative, with letters of credit common for larger deals. Companies that master customs procedures and last-mile distribution do well here.

Natural Resources

Jordan’s notable resources are phosphates and potash, which anchor a longstanding fertilizers industry. Water scarcity shapes everything: it limits large-scale agriculture and industrial water use, but it also drives innovation in water management and efficient farming. Energy has been a historic vulnerability, with imports covering the bulk of demand, but solar capacity has picked up fast in the past decade. You’ll also see interest in wind power and energy efficiency retrofits.

Agriculture focuses on high-value crops—fresh produce from the Jordan Valley is a staple of local markets and regional exports. Environmental considerations loom large: sustainable tourism, water-saving technologies, and renewable energy all draw policy attention and donor funding. For investors, projects that reduce energy intensity or improve water resilience are welcome. The country’s resource strategy is pragmatic—less extraction, more efficiency.

Financial Infrastructure

Jordan’s banking system is mature and conservative, anchored by well-capitalized local banks with regional footprints. Everyday banking is straightforward, with widespread ATM coverage and good online banking services. Digital payments are common in cities, with mobile wallets, QR codes, and e-billing platforms making life easier for consumers and SMEs. Foreign currency access is smooth, and the dinar’s peg supports predictable pricing and hedging.

Credit is available but risk-assessed carefully; SMEs often rely on collateral or targeted financing programs. For newcomers, opening accounts usually requires residency paperwork, so plan a few weeks for setup. Compliance standards are robust, and consumer protection frameworks have strengthened in recent years. Overall, finance in Jordan favors stability and transparency over rapid risk-taking.

Economic Opportunities for Expats

Jordan can work well for remote workers and consultants who want Middle East access without Gulf prices or intensity. Internet is reliable in urban areas, with plenty of coworking spaces and a friendly community of freelancers and NGO professionals. There isn’t a dedicated digital nomad visa, so most long-stay professionals come on work permits, residency tied to employment, or multi-entry visas—check rules before arrival and plan extensions early. If you bill overseas clients, the stable currency and receptive banking system make operations straightforward.

Taxes are progressive for individuals and depend on residency and income sources, while social security contributions apply to local employment. The cost of living is moderate by regional standards: housing in central Amman can be pricey, but suburban neighborhoods and shared flats are reasonable, and day-to-day costs are manageable. If you’re building a regional client base, consider basing in Amman and leveraging Aqaba or free zones for specific projects. The bottom line: Jordan offers a balanced lifestyle, professional networks, and solid connectivity for those who value stability and access to the wider Middle East.

Ahmed
Ahmed is a business development consultant and cultural advisor originally from Dubai, UAE, with over 14 years of experience in Middle Eastern markets and international corporate expansions. Having worked for major multinational corporations and regional conglomerates across the Gulf Cooperation Council countries, Ahmed has extensive experience facilitating the relocation of international talent to the UAE, Saudi Arabia, and other key Middle Eastern markets.