International Trade in Jordan

News Related to International Trade in Jordan

• *Saudi Arabia Attends 50th Session of Arab Ministerial Transport Council In Jordan - Jun 16, 2013

  SPA -- The Executive Office of the Council of Arab Ministers of Transport concluded here yesterday its 50th session under the chairmanship of the Minister of Transport Dr. Jubarah Bin Eid Al-Suraiseri,

  Source: Congoo

• U.S. puts jets in Jordan, fuels Russian fear of Syria no-fly zone - Jun 16, 2013

  BEIRUT (Reuters) - The United States said on Saturday it would keep F-16 fighters and Patriot missiles in Jordan at Amman's request, and Russia bristled at the possibility they could be used to enforce a no-fly zone inside Syria.Related StoriesMortar attack on Iranian dissident camp in Iraq kills 3Bulgaria to replace new security chief after public backlashProtests mar start of Confederations Cup in BrazilRelationship between Czech PM and aide at heart of graft scandalSeparatist ETA exiles ask for Spain to drop charges against them

  Source: Reuters

• Jordan Estate Now Open to the Public Through Unprecedented Farm-to-Table Visitor Experience - Jun 15, 2013

  Guests to sample Jordan wines, olive oil and chef's cuisine at remote locations, paired with breathtaking views of vineyards, mountains, lakes, gardens and more.

  Source: Wine Business

• Jordan awards USD629m contract to Arabtec-led consortium - Jun 14, 2013

  (MENAFN) Dubai-based construction company Arabtec stated that the Jordanian government awarded a USD629 million contract to build the first phase of a tourism project in the country to a consortium ...

  Source: Menafn.com

• Consortium secures USD629 m tourism project in Jordan: Arabtec - Jun 11, 2013

  (MENAFN) Arabtec stated that it led a consortium that secured a tourism project in Jordan valued at USD629 million, reported Arab News. Arabtec said that the awarded project was for the ...

  Source: Menafn.com

• Arabtec-led JV signs USD629m real estate contract in Jordan - Jun 10, 2013

  Arabtec Holding said Sunday it is part of a joint venture that has signed a USD 629 million contract to develop part of the Saraya Aqaba real estate project in Jordan.

  Source: Construction News-Zawya

• France says tests prove Syria used nerve gas; U.S. sends Patriots to Jordan - Jun 05, 2013

  AMMAN (Reuters) - France said on Tuesday it had performed tests that proved President Bashar al-Assad's forces had used nerve gas in Syria's civil war, a "red line" that the United States and other countries have repeatedly said would demand a response.Related StoriesItalian PM Letta turns to academics to reform constitutionMoscow mayor, Putin ally, says to quit and run in snap electionExclusive - Brazil closer to Boeing on jets deal after Biden visitNew generation of defectors expose North Korean abusesAnalysis - Glimmer of hope for cash-starved Pakistan economy as Sharif takes over

  Source: Reuters

• Chinese shoes boot out Jordan Tanning Company - Jun 04, 2013

  Shoes manufactured in China and sold in Jordan at extremely low prices over the past few years have booted out a Jordanian industrial icon.

  Source: Manufacturing News-Zawya

• Refugee influx worsens Jordan's water woes. - Jun 02, 2013

  Jordan's rapid population increase has left the Jordanian government and local authorities struggling to keep up with the demand for its scant water resources, even as the country is considering drastic solutions to increase its water supply.

  Source: Environmental Health News

• British Airways Celebrates its Return to Jordan - May 31, 2013

  (MENAFN Press) Jordan, 21 May 2013: British Airways celebrated its successful six month return to Jordan with its partners and customers at a ceremony held at the British Embassy in Amman. ...

  Source: Menafn.com

• Jordan's Lafarge cement factory protest escalates - May 30, 2013

  Residents of Qadisiyeh District in the southern Tafileh Governorate on Tuesday renewed their open-ended strike at the entrance of the local cement factory, Lafarge, protesting against the use of coal to operate the facility.

  Source: Construction News-Zawya

Business outline for Jordan

Main Industry Sectors

Agriculture represents about 4% of the GDP and employs less than 3% of the workforce. The lack of water creates an obstacle to agricultural development. The principal crops are wheat, barley, lentils, tomatoes, eggplants, citrus fruits, olives and grapes. Phosphates and potassium are the only natural resources of the country. It should be noted that 6 uranium deposits, representing 3% of the planet's reserves, have been identified but to this day remain non-exploited. The manufacturing sector is rather limited and dominated by textiles, a sector presently in a state of crisis due to international competition.

Industry (mostly pharmaceutical) and mining together contribute to nearly 30% to GDP and concentrate one fifth of the workforce.

The services sector, which employs more than 77% of the workforce, contributes two thirds to GDP. Jordan is particularly active in the fields of communication technologies and financial services. The sectors of distribution and tourism infrastructures also contribute substantially to GDP, although they experienced a slowdown in the recent years. The construction and transport sectors are in full boom. The government encourages the new information technology and tourism sectors.

Economic Overview

Jordan is classified by The World Bank as a "lower middle income country." It is a small country with limited natural resources (the country's three main resources are phosphates, potassium and limestone). Recent economic reforms aimed at liberalizing trade and attracting investments have allowed Jordan to reach good economi results. In 2010, the GDP growth rate was 3.4% adn in 2011 should remain at around 3.5%. Poverty, unemployment (about 13%) and a large foreign debt are the main problems of the country. The Jordanian economy remains vulnerable to external shocks and regional unrest. It is also very dependent on foreign aid, which reached more than a billion USD in 2008. The coutnry is troubled by a relatively large trade deficit, mainly due to the increase in food and energy product subsidies and linked to the decrease in international aid.

Jordan was very little affected by the financial crisis of 2008 and the country has experienced a moderate economic slowdown in the last two years, mostly due to the decrease in money transfers from the immigrant workforce in the countries of the Gulf, which represent on average 3 billion USD annually (15% of the GDP).

FDI in Figures

The Jordanian economy has benefited from massive investment by the Gulf countries which increased from 74 million USD in 2002 to 3.1 billion USD in 2006. However, in the years 2009-2010, FDI has declined to 1 billion USD. These investments are mainly concentrated in the field of real estate (residential and commercial) and in important tourism projects (hotels on the Dead Sea, marinas and hotels at Aqaba). They are also important in the field of financial services.

The process of current programs of investment such as industrial projects, real estate and infrastructures, mainly financed by direct foreign investment, support the economic activity. Nevertheless, the restrictions on foreign credit and the loss of investor confidence could limit the new influx of foreign direct investment, notably in the real estate sector.

FDI Government Measures

King Abdallah has established a progressive economic liberalization which favors foreign investment. The special economic areas, such as Qualified Industrial Zone (QIZ) and the Free Zone of Agaba offer very advantageous tax regimes for companies. Also, the government has simplified the registration procedures for foreign companies creating a unique office at the Ministry of Industry and Commerce. Finally, the Jordan State has launched a campaign of privatization which has benefited public and private partnerships in several sectors. Among the main measures established by the government, we could cite:
- An income tax exemption during 10 years, variable depending on the place and sector of activity;
- A tax exemption on income generated from the export of goods and services;
- The repatriation of  capital, profits and salaries without charges.

Country Strong Points

For several years the country has registered substantial growth and the Jordanian market is opening progressively. The government has made a remarkable effort in controlling public spending, which, according to IMF, has placed Jordan among the most dynamic countries in the Middle East. Jordan has also backed the human factor and its workforce is among the best-trained ones in the Arab world.

The country is politically stable. Its geographical location is also an important asset. The agreements signed by the country have given Jordan access to more than a billion potential consumers.

Country Weak Points

In a political level, Jordan is located in an unstable region being near Iraq, Syria and Israel. On the domestic front, the massive influx of Iraqi refugees, added to a considerable number of Palestinian refugees, may represent a risk factor. In addition, Jordan does not have many natural resources and remains a modest market in comparison with Egypt or its Gulf neighbors. The country registers a substantial structural trade deficit linked to its lack of natural resources and food products. It is very dependent on foreign aid.

Foreign Trade Overview

Jordan is very open to international trade. The share of foreign trade in the country's GDP is around 135%. Its trade balance is currently a deficit, due to its dependence on raw materials. Jordan is a member of the WTO and signed a free-trade agreement (FTA) with the USA in December 2001, removing customs duties on the majority of goods and services until 2010. Jordan has also signed an Agreement of Association with the EU. In june 2010, Jordan signed an accord with Turkey, Syria and Lebanon, in order to create a free-trade zone, with free circulation of goods and workforce between these four near-eastern countries.
The country's top three export partners are India (16%), Iraq (16%) and the United States (13%). The main export commodities are clothes & clothing accessories, fertilizers, pharmaceutical products and edible vegetables. Jordan is also one of the top five exporters of phosphates (together with the USA, China, Russia and Morocco).
The top three import partners are Saudi Arabia (21%), China (10%) and the United States (6%). Jordan mainly imports mineral fuels & oils, vehicles, machinery, and electric & electronic equipment.