The Central Bank of Jordan reported that Jordan attracted $776 million (Jd550.18 million) in Foreign Direct Investment (FDI) during the first six months of 2023. This represents a significant increase of 20.9% compared to the same period in 2022.
Additionally, the country saw a substantial increase in FDI during the second quarter of 2023, with $383.8 million flowing in, marking an 85.7% increase compared to the second quarter of 2022. The growth in FDI was driven by both reinvested profits and newly registered investments with the Ministry of Industry, Trade, and Supply.
Beth Morrissey, managing partner at Kleiman International Consultants, attributed this growth in FDI to Jordan’s new Investment Environment Law, which was passed in September 2022. The law was designed to attract new funding, stimulate economic growth, and create job opportunities. As part of these efforts, the Ministry of Investment launched a website called Invest.Jo, which highlights priority sectors and specific investment opportunities.
The new law also provides incentives and exemptions and promotes the use of technology to streamline the investment process. This includes e-services for registration applications, licensing, incentives, as well as visas and investor cards. These changes are part of a broader reform program undertaken as part of the country’s IMF (International Monetary Fund) program.
The increase in FDI inflows is a positive development for Jordan, especially following a decline in previous years. In 2022, the country attracted $1.14 billion in FDI, a significant improvement compared to $622 million in 2021, as reported in the World Investment Report 2023 commissioned by UNCTAD (United Nations Conference on Trade and Development). This suggests that Jordan’s efforts to enhance its investment environment and attract foreign capital are yielding positive results.