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This chapter contains an overview of the legal framework within which local and international investors operate in Jordan including a look at the new investment law, a rundown of the revised incentives being offered, as well as an examination of the recent tax reforms that have been put in place.

This chapter contains an overview of the tax framework within which local and international investors operate in Jordan, including a look at a newly enacted corporate income tax, a rundown of the incentives on offer to encourage free zone investment and an explanation of the social security law amendment. This chapter contains a viewpoint with Bishr Baker, Managing Partner, EY, Jordan and Iraq

Jordan is one of the Middle East’s pre-eminent medical tourism destinations and a regional leader in pharmaceuticals production, with the kingdom’s efforts to attract further overseas patients set to drive growth in the private hospital segment in the coming years. Around 250,000 medical tourists visited Jordan in 2014 and this number is set to increase, with Saudi Arabia recently approving subsidies for medical treatment at Jordanian facilities. Meanwhile the country boasts high levels of education and, due to the nearly universal primary education and supplemental government programmes, the country’s literacy rate grew from 92% in 2007 to 98% in 2012, well above the average for the MENA region.

Jordan’s information and communications technology (ICT) sector is one of the most developed and robust in the region, bolstered by 15 years of industry friendly policies and a young population of digital consumers. Mobile subscribership soared from 3.13m users, representing 57% penetration in 2005, to 11.1m users and 147% penetration at the end of 2014. The market has seen consumers shift from personal computers and voice/SMS-centric mobile services to a data-driven mobile broadband market, with the popularity of 3G services increasing rapidly since their launch. Meanwhile state support for the IT sector is strong, and in 2010 the government launched a flagship early-stage seed investment company with the goal of supporting 500 new start-ups. The company provides between $30,000 and $70,000 in seed funding for various startup enterprises, and had invested in 95 companies by early 2015. This chapter contains an interview with Majd Shweikeh, Minister of Information and Communications Technology.

Jordan’s tourism industry benefits greatly from a number of competitive advantages including its proximity to large regional feeder markets, diverse landscapes and climates, and the presence of major historical and religious sites. Although regional instability has dampened visitor numbers in recent years, the industry remains an important pillar of the economy, and continues to expand despite the challenges. Indeed, total bed nights spent in Jordan in the first nine months of 2014 stood at 3.92m across all categories of accommodation, an increase of 12.2% on the same period in 2013, while total room nights were 2.27m, up from 2.15m a year earlier. Elsewhere tourism and real estate developments in Aqaba, Jordan’s only coastal city, will help to boost hotel occupancy rates by generating economies of scale across the tourism industry. This chapter contains an interview with Nayef Al Fayez, Minister of Tourism and Antiquities.

Jordan’s industrial sector remains a central pillar of the kingdom’s economy with manufacturing contributing $6bn to the country’s estimated nominal GDP of $35.7bn in 2014. Meanwhile the country’s large mining industry – particularly of potash and phosphate – have fueled the rise of major chemicals and fertiliser industries in the kingdom while the country’s robust building materials sector has benefitted from the GCC construction boom, with worked monumental and building stone exports growing from $21m in 2013 to $50m in 2014. The kingdom’s organised retail segment has witnessed steady expansion over the last few years, with retail sales overall averaging 7.8% growth during the 2011-14 period. Meanwhile the e-retail segment is also on the rise, with Jordan-based online retailers taking advantage of the country’s central location to ship goods to customers in the region, as well as domestic clients. This chapter contains an interview with Brent Heimann, CEO, Arab Potash Company.