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Executive Report on Strategies in Jordan
ICON Group International, June 2007, Pages: 389
How to Strategically Evaluate Jordan
Perhaps the most efficient way of evaluating Jordan is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries
Demand/Market Potential Driven Firm
Relative Accessibility
Accessibility/Supply Averse Firm
Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market - neither a market-driven nor a cost-driven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities.
Latent Demand and Accessibility in Jordan
This report provides an extremely detailed overview of factors driving latent demand and accessibility in Jordan. Latent demand is largely driven by economic fundamentals. But, latent demand only represents half of the picture. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks.
Chapter 2 deals with macro-accessibility. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Jordan:
Openness to Trade in Jordan
Openness to Direct Investment in Jordan
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are also covered in Chapter 2, which is presented from the perspective of an American firm, though it is equally applicable to most firms entering Jordan. This chapter has been authored by local offices of the U.S. Government. I have included a number of edits to clarify the provided information as it relates to the general strategic framework.
In Chapter 3, I summarize the economic potential for Jordan over the next five years for hundreds of industries, categories, and products. The goal of this chapter is to report my findings on the real economic potential, or latent demand, represented by Jordan when defined as an area of dominant influence. The data presented are the result of various spatial econometric and time-series forecasting models which, for each category presented, are applied to forecast and allocate latent demand across all countries of the world and major distribution centers or centers of dominant influence within each country. This is accomplished knowing that economic fundamentals (e.g. income) generally vary from one country to another within a given country over time. In this chapter, I report the allocation for each category for Jordan as an area of dominant influence in the Middle East and, potentially, the world.
The report concludes with trade indicators for Jordan. Often, the amount of trade flowing into and out of a country is a strong indicator of trading partners, trade openness, and related latent demand. Trade indicators are purely statistical in nature. Although international trade is not a direct measure of latent demand, it does provide an indicator of general market conditions with respect to trade flows and trade openness in Jordan.
As a whole, this report presents a strategic assessment of Jordan by considering an extremely broad set of factors affecting both latent demand and accessibility, as outlined in the following chapters.
MACRO-ACCESSIBILITY IN JORDAN
Economic Fundamentals and Dynamics
Infrastructure Development
Road connections with Syria and Saudi Arabia remain good if underdeveloped relative to Western standards. Transportation links with Israel and the Palestinian Authority are hampered by lengthy border checks and transport restrictions. Modern and efficient cargo handling facilities exist at the port of Aqaba. Jordan’s two international airports, Queen Alia near Amman and the Aqaba Airport, provide excellent facilities for cargo traffic.
Blackouts and brownouts occasionally occur in the summer.
Communications have improved, with wider cellular telephone coverage and easier access to pay phones. As the result of a new law reforming the telecommunications sector, an independent telecommunications agency has been established. However, the high cost and low quality of international fax and telephone communications coming into the country remains problematic. Access to the Internet and electronic mail is available throughout the Kingdom, but the top speed for residential service is limited to 49 kbps. ADSL lines, although expensive, are available for business and residential use.
Political Risks
Economic Relationship with the United States
The United States and Jordan have enjoyed a strong bilateral relationship since the 1940’s. Over that period, the U.S. has provided Jordan substantial economic and military assistance, and more recently has become one of the Kingdom’s largest trading partners. Regional tensions related to the Iraqi invasion of Kuwait buffeted the U.S.-Jordan relationship in the early 1990’s. However, close collaboration on the Middle East peace negotiations and King Hussein’s decision in 1994 to sign a full peace treaty with Israel largely restored the relationship. Since that time, the U.S. has repeatedly restated its commitment to assist Jordan as part of a larger effort to promote a comprehensive peace in the region.
Politics and the Business Environment
As Jordan’s third-largest export market (especially for light manufacturing) and the only source of petroleum products at concessionary prices, there is great domestic pressure to expand trade opportunities with Iraq. Prospects have improved somewhat through limited trade with Iraq under U.N. Security Council Resolution 986 and subsequent resolutions (oil-for-food program). However, competition from other countries, as well as the declining level of income in Iraq, has limited Jordan-Iraq trade. Jordan’s regional trade relations, strained during the Gulf War, rebounded somewhat with Saudi Arabia and Gulf nations (including Kuwait) through the determined efforts of King Abdullah II. Trade with the West Bank, Gaza and Israel remains limited due to non-tariff barriers, the complicated nature of trilateral Jordan-PNA-Israel relations and the disruption caused by Israeli-Palestinian confrontations since September 2000. The political problems of the region have not slowed the increase in Jordanian exports to the U.S. under the Qualified Industrial Zone (QIZ) concept.
The Political System
Jordan is a constitutional monarchy. Under the constitution, power is vested in the King and the Parliament, which consists of the Senate and the Chamber of Deputies (or Lower House). The Senate is comprised of 40 appointed members, while the Chamber of Deputies has 80 elected members. The King appoints the Prime Minister and members of the Senate. The King also appoints cabinet ministers in consultation with the Prime Minister.
Parliamentary representatives serve four-year renewable terms. Political parties were legalized in 1992 and approximately 20 are licensed, but they do not exert a great deal of influence on Jordanian political life. The Council of Ministers can issue provisional laws with the King’s approval in the absence of a functioning Parliament.
Marketing Strategies
Agents and Distributors
Following Jordan’s accession to the WTO, the government amended the Commercial Agents and Mediators Law to make the law compatible with WTO.
The current Commercial Agents and Mediator Law governs the contract between foreign firms and commercial agents. It clearly delineates the distinction between commercial agency and distribution contracts relationships. Private foreign entities, whether licensed under sole foreign ownership or as a joint venture, compete on an equal basis with local companies.
The most significant provisions affecting the principal/agent relationship are:
The Commercial agent or commercial mediator must be a Jordanian national, or a Jordanian company registered in accordance with the provisions of this Law. (Article 3)
Once an agency contract is signed, the agent must take the agreement to the Registrar of Companies at the Ministry of Industry and Trade for filing agents’ names and all other related information regarding their agencies in the Kingdom, and another record for filing commercial-mediators. No person shall be entitled to act as an agent or commercial-mediator in the Kingdom unless registered in the commercial agents register or the commercial mediators register. (Articles 4, 5, and 6)
Notwithstanding the contents of the provisions of this Law, or any other legislation, Jordanians and non-Jordanians shall be prohibited from practicing the business of commercial agency or commercial mediation in the import or sale of arms (weapons), or their complementary or developing parts, or the ammunitions which are supplied to the Jordanian Armed Forces and security organizations, including the maintenance of such arms and their insurance. (Article 12)
Foreign companies and institutions registered to operate in the Kingdom may not practice in addition to its activities, the representation of foreign companies incorporated abroad under a commercial agency. This prohibition, however shall not include the commercial agencies which were registered in their name for this purpose prior to the effectiveness (implementation) of the provisions of this Law. (Article 13)
Where the principal cancels the agency contract prior to the expiry of its turn, without an error from the agent, or for any illegal reason, then the agent will be entitled to claim the principal to compensate him for the damages suffered by him, as well as for his loss of profit. (Article 14)
The Jordanian courts shall be the competent courts to look into any dispute or conflict arising from the commercial agency contract, or from the implementation of the provisions of this Law. (Article 16A)
No lawsuit concerning any dispute or conflict arising from the commercial agency contract shall be heard after the lapse of three years from the expiry of the contract or from its termination for any reason whatsoever. (Article 16B)
Pricing Issues
Local importers base their pricing on the export price, freight costs, applicable import tariffs and taxes, the sales tax and profit margin. Recently, policies on customs valuation have been made compatible with Article VII of the GATT code, which limits the scope for arbitrary assessment. However, U.S. manufacturers and suppliers should coordinate with local representatives before assigning a final price to a product. Out of every 10 customs valuation disputes, nine cases are held up by disagreement over the invoice price. It remains a customs officer’s prerogative to reject an exporter’s invoice price, which could result in fines or a higher assessed value.
Franchising Activities
Local investors are increasingly interested in franchising, especially in services and the fast food industry. Despite the economy’s slow growth, the local market remains enthusiastic about U.S. franchises. U.S. retail and service franchises have increased in the last several years. Examples include Subway, Pizza Hut, Popeye’s, KFC, Baskin Robbins, McDonald’s, Dunkin’ Donuts, and Burger King.
Creating a Sales Office
The Companies Act of 1997 provides guidance for registering foreign companies and establishing regional and representative offices. The law distinguishes between four types of business entities:
Non-Operating Foreign Companies (Regional Offices);
Operating Foreign Companies (Branch or Project Offices);
Offshore Companies; and
Joint Ventures.
Non-Operating Foreign Companies (Regional Offices)
A non-operating foreign company is a company, which establishes a regional or representative office to represent the affairs, which it conducts outside Jordan, with the intention of using its regional or representative office in directing the said affairs and coordinating them with the head office. Such a company is not allowed to conduct any business or commercial activity in Jordan, including activities of agents and middlemen. In addition, the number of Jordanian employees should not be less than half of the total number of employees.
Non-operating foreign companies enjoy the following incentives:
Exemption from income and social service taxes on profits generated from business conducted outside Jordan.
Exemption from income and social service taxes on wages and salaries of non-Jordanian employees.
Exemption from the formalities of registration with the Chamber of Commerce and from the payment of registration fees or any other fees in connection to their operations.
Exemption from foreign exchange control restrictions. Regional offices can also maintain an account in Jordan in any foreign or local currency provided that they are fed with moneys from foreign sources. Money can be deposited in and repatriated out of the accounts freely and without restrictions.
Non-operating foreign companies are permitted to import one car for the use of their non-Jordanian employees once every five years, provided that they deposit a bank guarantee for the amount of the duty with the Ministry of Finance (Customs Department). This guarantee will be released upon exporting the car out of Jordan or selling the car locally after paying the duty thereon.
Exemption from customs fees and other charges on imports of office equipment, furniture, business samples and demonstration models. The only tax paid on such imports is the sales tax.
Non-Jordanian employees are granted a residence and work permit.
Operating Foreign Companies (Branch or Project Offices)
An operating foreign company is a company or a body registered outside Jordan, whose head office is in another country, and whose nationality is non-Jordanian. Such companies are classified into two types according to the nature of their activities:
Non-permanent: A foreign company that has been awarded a contract in Jordan requiring the execution of work within a limited period of times (e.g. a construction contract). Upon termination of the contract, a new one may be obtained in order to extend the period of operation. If the company obtains no new contract, then the branch office must be closed and liquidated.
Permanent: A branch office operating in Jordan permanently with licenses to that effect from the concerned authorities.
An operating foreign company is allowed to conduct commercial activities in Jordan after registering and obtaining a work permit.
Registration fees paid for a branch office are JD 250, if the share capital of the foreign company at its home office does not exceed the equivalent of JD 1 million, and JD 500 if it exceeds the equivalent of JD 1 million.
A branch or project office must notify the Controller of Companies in writing of the date it expects its operations to end in Jordan, or the date specified for the termination thereof, at least 30 days prior to that date. It must prove to the Controller of Companies the settlement of all its commitments resulting from operating in Jordan prior to the cancellation of registration.
Offshore Companies
An offshore company can take the form of a private shareholding company with limited liability, a limited partnership in shares, or a public shareholding company. The offshore company is listed as a Jordanian entity, but cannot conduct any business in Jordan. Furthermore, the words “Exempt Company” must be added to the name of the company.
Offshore companies cannot offer their shares for public subscription in Jordan. They are obliged to invest a minimum of 5% of the share capital in securities traded in the Amman Stock Exchange.
Joint Ventures
A joint venture is a commercial undertaking formed by two or more persons, who may be natural persons or legal entities. A joint venture is not subject to the provisions and procedures of registration and licensing and does not have a separate legal identity. However, a joint venture is confined to the special relationship between partners in the venture as specified in the joint venture agreement.
Joint ventures with Jordanian partners are one means of penetrating the local market. The advantage lies in the Jordanian partner’s market experience, which helps in bridging cultural gaps when conducting business. They are also essential in some services where foreign ownership/share of companies cannot exceed 50%.
One of Jordan’s two mobile phone companies is a U.S./Jordanian joint venture. Other joint ventures exist in the Al Hassan Industrial Estate QIZ and the mining and contracting sectors of the economy. Joint ventures in contracting require 50% local partnership.
General Registration Procedures
All enterprises, whatever their legal form, operating in Jordan must register with the Controller of Companies at the Ministry of Industry and Trade. Only joint ventures are excluded. Foreign companies seeking to open a regional office or a branch in Jordan must apply to the Controller of Companies for registration by submitting all necessary documents in Arabic.
Companies operating in Jordan must register with the Chamber of Commerce or the Chamber of Industry, as applicable.
All companies operating in Jordan should register with the Income Tax Department.
Companies employing more than five people must register with the Social Security Corporation.
All enterprises must obtain an annual license from the concerned municipality.
Industrial projects can receive an industrial registration certificate from the Ministry of Industry and Trade upon completing an application with the Department of Industrial Development.
The Jordan Investment Board (JIB) assists investors through every step of the investment process. JIB in Amman also offers one-stop-shop assistance with customs and registering establishing an office.
For details, refer to www.jordaninvestment.com and www.aci.org.jo.
Advertising and Trade Promotion
U.S.-style contests, giveaways, drawings and other creative promotions are gaining popularity as consumers become more sophisticated and competition increases. U.S. exporters can participate in local exhibitions and advertise in newspapers, television, radio, and business journals as a means to locate agents, distributors or buyers. Billboards and electronic screens are also in widespread use. The main local newspapers include:
Jordan Times (English daily)
Al-Rai (Arabic daily)
Al-Dustour (Arabic daily)
Al-Aswaq (Arabic daily)
Al-Arab al-Yawm (Arabic daily)
Supplying Customer Service
Service and customer support are important selling points in Jordan. U.S. firms that compete with European and Asian suppliers find that workshops and training seminars for local agents or sub-contracting firms are useful sales tools.
Public Sector Marketing
The General Supplies Department is the government’s procurement agency. A local agent/distributor or representative must be appointed to act on behalf of any potential American supplier for local tenders. Direct bids for tenders financed by international donors or the World Bank may be permitted as stated in tender documents.
Import and Export Regulation Risks
Trade Barrier Risks
Jordan continues to have an open market economy. Jordan has acceded to the WTO, finalized a Free Trade Agreement (FTA) with the United States, and, through Qualified Industrial Zones (QIZ) significantly increased its exports to the United States.
Valuations on Imports
The customs law of 1999 was amended in March 2000 to include WTO-compliant criteria for customs valuation (which is based on certified invoices) and to make the valuation process clearly defined and more transparent. The law restricts customs officers’ mandate to use arbitrary valuation but still rewards those who uncover invoice misreporting and impose penalties on importers.
The customs valuation is CIF-based. The value of the imported good is converted into JD at the official central bank exchange rate (1 JD = USD 1.41). In some cases, invoice or export discounts have been included in the valuation by the customs department. Still, the exporter should consult the local importer to determine how to best grant any such discounts or rebates.
Licenses Required for Imports
Import licenses are required for imports of:
Non-commercial shipments exceeding JD 2,000 in value;
Biscuits of all types;
Mineral water;
Dried milk for industry;
Used tires;
Certain goods imported from Syria with which Jordan has special trade balance arrangements;
Items requiring prior clearance from specific authorities.
Goods entering the country under temporary entry status, bonded goods and goods benefiting from the investment promotion law are exempt from import licenses (refer www.jordaninvestment.com).
All Jordanian and foreign trading companies must either obtain an importer’s card from the Ministry of Industry and Trade for customs clearance purposes, or pay Customs a fee equivalent to 5% of the value of the imported goods. At the Ministry a complete and updated list of all import requirements and provisions is periodically issued. For non-trading entities such as banks, hospitals and hotels, the ministry issues a special, “limited” card that allows the import of goods specific to that entity’s purpose.
Entering Temporary Imports
U.S. and Jordanian businesses are treated equally with regard to temporary entry rights. Foreign industrial inputs, raw materials, semi-manufactured inputs used in manufacturing for export purposes, equipment for scientific tests, as well as containers and wrapping material used for packaging domestic produce, can be granted temporary entry status for a maximum three year period, subject to approval by the customs department and the submission of a bank guarantee.
Temporary entry exemptions may be obtained by submitting a written request, accompanied by supporting documentation, to the customs department.
Imported primary, secondary, or complementary inputs used in the production of export goods are exempt from custom duties and all additional import fees on a reimbursable or “drawback” basis.
Documentation Required for Trade
According to the Customs Law, every customs declaration must include the following:
Maritime or air bill of lading.
Commercial invoice indicating value, weight, freight and insurance charges, etc. The Jordanian diplomatic mission in the country of origin should notarize all invoices. Certification by the local chamber of commerce is sufficient, subject to the approval of the Customs Department director, in cases in which a Jordanian consulate is not available.
A notarized certificate of origin issued by the relevant authority in the exporter’s local area.
Value declaration form for shipments exceeding JD2000.
The Customs Department may request other documents related to the shipment as needed. All invoices should describe the imported goods in Arabic.
Labeling Issues
Imported products must comply with labeling and marking requirements issued by the Institute of Standards and Metrology and relevant government ministries. These labeling and marking requirements have been made to conform to the relevant WTO directives. Different regulations apply to imported foodstuffs, medicines, chemicals and other consumer products. Importers are responsible for informing foreign suppliers of any applicable labeling and marking requirements.
Restrictions on Imports
The government bans the import of plastic waste, the narcotic plant “qat”, and diesel passenger cars.
Imports of raw leather are restricted to the Jordan Tanning Company; crude oil and its derivatives (except metallic oils) and household gas cylinders are restricted to the Jordan Petroleum Refinery Company; cement is restricted to the Jordan Cement Factories Company; explosives and gun powder are restricted to the Jordan Phosphate Mines Company; and used tires are restricted to tire retreading factories.
Additional Trade Issues
Pre-import clearance is required for certain goods. The clearance, once obtained, acts as an import license. However, these clearances are not automatic. The relevant pre-import license-issuing agency and the respective goods include:
Ministry of Industry and Trade (these are given out in the form of import licenses): flour and its by-products;
Ministry of Agriculture: Frozen animal semen, live animals, fresh/chilled/frozen meat, embalmed wild animals, imported milk products (not required for import of dairy products from countries with whom Jordan has concluded a bilateral trade protocol);
Agricultural Marketing Corporation: Potatoes, onions, garlic, fresh fruit and vegetables (not required for import of fresh fruits and vegetables from countries with whom Jordan has concluded a bilateral trade protocol);
Ministry of Interior/Public Security Directorate: arms and ammunitions, explosives, switch-blade knives, fuel-operated toy cars, remote control operated toy planes, electric and electronic games for commercial use, self-defense electric tools;
Jordan Armed Forces: Military clothing;
Ministry of Energy and Mineral Resources: radioactive materials and uranium;
Telecommunications Regulatory Commission: Wireless receivers and broadcast stations, wireless alarm devices, remote control devices (including motor, garage, window and shutter control; excluding television and video devices), site mapping equipment, wireless receivers and broadcast devices, cellular-phone equipment, wireless microphones, communication terminals, remote control toy-planes (also to be cleared by the Public Security Department of the Ministry of the Interior), mobile TV equipment;
Radio and Television Corporation: Decoders and satellite receivers;
Central Bank of Jordan: Color photocopiers;
Ministry of Health: All types of medical drugs and antibiotics, food supplements for athletes, potassium bromide, food dyes, asbestos pipes and panels, frozen ice cream, baby food and milk, laser pens, oxygen and nitrogen oxide;
Ministry of Municipal and Rural Affairs and the Environment: Halogenous materials, freon gas;
Ministry of Post and Communications: Postal clearing devices;
Ministry of Water and Irrigation: Artesian well drills;
Military Security: Small monitoring cameras.
For the import of used electronic equipment (including photocopiers, refrigerators, freezers and pumps), and used gas water heaters and gas ovens, the following conditions apply:
Equipment must be in suitable, usable condition;
Equipment must conform to Jordanian and international standards;
Equipment must be free of any substances, which may negatively affect the environment and the ozone layer; Importer must supply a certificate from manufacturing company proving the equipment is under three years old (if a manufacturer’s certificate cannot be produced, shipment must be accompanied by certificate of selling agent in the exporting country);
Ten percent of shipment by value must comprise new spare parts.
Controls on Exports
The Customs Department, part of the Ministry of Finance, controls goods that enter and exit the Kingdom. Export licenses are not required for Jordanian-made products, transit goods, free trade zone goods, re-exports or goods entering the country under temporary status. There are exceptions to that rule, particularly with respect to shipments exceeding JD 1000 ($1410) in value to countries which maintain special banking arrangements with Jordan, such as Syria and Iraq. Exports of scrap metal, such as steel, aluminum, or copper, are subject to a fee of JD 25 ($35).
Local Standards
The Jordanian Institute of Standards and Metrology (www.jism.gov.jo) is responsible for most issues related to standards, measures, technical specifications and ISO 9000 certification. The number of Jordanian companies that qualified for ISO 9000 and ISO 14000 certifications continues to grow.
Free Trade Zone Options
Goods may be shipped to Jordan’s free trade zones by shipping agents and representatives of land, sea and air transport and clearing firms. All shipping documentation must be received within 72 hours of arrival and before the shipment is unloaded.
Transit goods entering the Kingdom may be stored in warehouses at the port of Aqaba for up to one month, after which goods must be moved to a free zone area.
Aqaba Special Economic Zone (ASEZ)
The Government of Jordan established the ASEZ in May 2001. The Zone offers a duty free and low tax environment (%5 on all net business income). Along with streamlined business registration and licensing procedures. For more information, please see www.aqabazone.com.
Adherence to Free Trade Agreements
Jordan recently concluded a Free Trade Agreement (FTA) with the United States, which entered into force December 2001, making Jordan only the fourth country in the world to enjoy an FTA with the U.S. The agreement commits both parties to establishing a free trade area over the next 10 years. This includes phased reductions in tariffs, down to zero in 10 years, for trade in goods and barriers. It also streamlines the movement of goods, and natural person.
Jordan acceded to the WTO in April 2000. The EU-Jordan Association Agreement, which will create a free trade area between Jordan and the EU within a twelve-year transition period, came into force in May 2002. Jordan is also a signatory to the Arab Free Trade Agreement, which will establish a free trade zone with ten of the Arab countries by 2008.
Customs Department Contact Information
Jordan Customs Department
Mr. Mahmoud Quteishat, Acting Director General
P.O. Box 90, Amman, Jordan
Telephone: 962-6-462-3186/8; 462-4394/6
Fax: 962-6-464-7791
E-mail: customs@customs.gov.jo
Web site: www.customs.gov.jo
Ministry of Industry and Trade
Mr. Wasef Azer, Minister
P.O. Box 2019, Amman, Jordan
Telephone: 962-6-560-7191/5663774
Fax: 962-6-560-3721 / 568-4692
Web site: www.mit.gov.jo
Investment Climate
Openness to Foreign Investment
Jordan’s investment laws treat foreign and local investors equally, with the following exceptions (as per Regulation No. 54 of 2000, entitled “Non-Jordanian Investments Promotion Regulation”):
Foreign investors may not own more than 50 percent of projects in:
Construction and contracting;
Wholesale and retail trade;
Transport (maritime, air and train transport) and auxiliary services;
Wastewater treatment;
Food services;
Travel agent services;
Import and export services;
Advertising services;
A number of business-related and commercial services;
Under the terms of the U.S.- Jordan FTA, foreign investors are limited to 60 percent ownership in publishing and in aircraft maintenance and repair services.
Foreign investors may not have whole or partial ownership of:
Investigation and security services;
Sports clubs (except for health clubs)
Stone quarrying for construction purposes
Customs clearance services
Land transportation of passengers and cargo using trucks, buses and taxis.
A minimum capital requirement of JD 50,000 (USD 70,000) is set for foreign investors. This requirement does not apply to participation in public shareholding companies.
There is no formal screening or host government selection process for foreign investment. However, investors in large projects find that the informal approval of local and central government officials helps to ensure governmental cooperation in project implementation.
The law stipulates that expropriation is prohibited unless deemed in the public interest. It provides for fair compensation
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