Jordan: A Shining Investment Destination
Jordan is emerging as an ideal investment destination due to several compelling factors:
- Encouraging Investment Environment: Jordan boasts a well-prepared economic environment designed to attract investments.
- Security and Stability: Jordan is recognized as one of the most stable countries in the region, fostering investor confidence.
- Easy Market Access: Thanks to its strategic geographic location, Jordan offers easy access to various markets.
- Ease of Doing Business: Jordan provides a legal and regulatory environment that simplifies business procedures.
- Tax Incentives and Exemptions: The government offers numerous exemptions and incentives to investors.
- Strong Financial Institutions: Jordan has a robust banking and financial infrastructure.
- Skilled Workforce: Jordan’s effective education system produces a skilled workforce.
- Modern Infrastructure: Jordan possesses a developed infrastructure that meets the needs of investors.
- Development and Free Zones: Several zones offer privileges to investors.
- Quality of Life: Jordan provides a good standard of living for both residents and investors.
- Macroeconomic Stability: The Jordanian economy enjoys stability that attracts foreign investments.
Investment Environment Law
Investment Environment Law No. (21) of 2022, issued in November 2022 and effective in January 2023, aims to improve the investment environment in Jordan by offering various incentives, exemptions, and benefits. Key features include:
- Tax Incentives: Exemptions from customs duties, sales tax, and income tax.
- Energy Support: Subsidies for energy costs.
- Investor Protection: No negative legislative amendments will be applied to investors, and their acquired rights will be preserved.
- Equal Treatment: Jordanian and foreign investors will have equal rights and obligations.
- Infrastructure Incentives: Deduction of infrastructure construction costs from outstanding debts.
Exemptions and Incentives for Investors
Exemptions and incentives for investors are divided into two main categories:
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Outside Development and Free Zones:
- Exemption of fixed assets and production inputs from customs duties.
- Reduction of income tax by at least 30%.
- Support for energy and water costs.
- Approvals for strategic projects contributing to sustainable development.
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Within Development Zones:
- Exemption from sales tax and income tax on certain activities.
- Exemption of machinery and equipment from customs duties.
- Tax exemptions for registered institutions undertaking projects within these zones.
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Within Free Zones:
- Exemption from income tax on salaries and services.
- Exemption from customs duties and taxes on exported goods.
- Exemption of services rendered from the general sales tax.
Jordan offers a unique opportunity for foreign investors to obtain citizenship through various investment routes. The most common path involves investing in the economic sector, which includes industries like manufacturing, agriculture, and tourism. To qualify, investors must deposit a substantial amount in the Central Bank and purchase treasury bonds. Additionally, investing in small and medium enterprises (SMEs) or establishing new businesses can lead to citizenship, provided specific job creation and capital requirements are met.
Another avenue for obtaining Jordanian citizenship is through the ownership of existing investments. This option requires a significant financial commitment, with varying thresholds depending on the project’s location and the investor’s share. Furthermore, the investor’s family, including spouse, children, and dependent parents, can also be eligible for citizenship under specific conditions.
For those interested in commercial ventures, Jordan offers diverse investment options in sectors like pharmaceuticals, automotive, logistics, and hospitality. Each sector has unique requirements regarding investment size, assets, and employment of Jordanian workers. It’s crucial for potential investors to understand these specific conditions and engage legal counsel to navigate the complexities of the process successfully.
Through these features and incentives, Jordan aims to strengthen its investment environment and attract more foreign and domestic investments, contributing to achieving sustainable economic development.
Obtaining Jordanian Citizenship by Investment
Jordan offers a strategic Citizenship by Investment (CBI) program, allowing investors and their families to gain Jordanian citizenship or a five-year residency. This initiative, based on Cabinet Decision No. 3657 (2021) and subsequent updates, aims to boost vital economic sectors while providing a secure and stable environment. Eligible sectors range from industry, agriculture, and tourism to ICT, education, health, and media, with recent expansions including specific commercial areas like pharmaceuticals, automotive, logistics, and real estate. The program highlights Jordan’s commitment to attracting foreign capital, offering a safe haven for wealth and a gateway to enhanced global mobility.
Investors can pursue citizenship through several distinct pathways. One option involves a USD 1,000,000 commitment, either as a three-year interest-free deposit with the Central Bank or through a six-year investment in treasury bonds. Alternatively, citizenship can be secured by purchasing shares or stakes worth at least USD 1,500,000 in productive Jordanian SMEs, held for a minimum of three years. Another significant route focuses on job creation: establishing a new project with at least USD 1,000,000 capital in Amman (or USD 750,000 outside) and creating 20 (or 10 outside Amman) Jordanian jobs; or demonstrating an existing investment with similar asset values and maintaining specific job numbers over three years. A separate pathway also grants citizenship for employing 150 Jordanian citizens in Amman (or 100 outside), maintained for two years.
Beyond citizenship, Jordan offers a five-year residency for those purchasing real estate valued at a minimum of JOD 200,000, held for at least five years. All applicants, including family members (spouse, dependent children, and parents), undergo rigorous security checks and must prove a legal source of funds. The program allows for the inclusion of male children up to 18 years, or up to 30 years if the investment exceeds USD 3 million, extending the benefits of Jordanian citizenship to future generations. This comprehensive framework underscores Jordan’s appeal as a stable and opportunistic destination for global investors.
