Latest news with #JordanEconomy
The National
08-07-2025
- Business
- The National
Jordan offers investors more pathways to citizenship after rules revamp
Jordan 's move to revamp its Citizenship By Investment programme has opened up more pathways for foreign investors to obtain a passport, but it is unlikely to make an economic impact in the short term, analysts say. Amman will grant Jordanian nationality to foreign investors through additional routes including pouring capital in local companies' shares, establishing new projects in important sectors or purchasing equity in existing projects, according to Petra news agency. The Cabinet last week approved an updated framework for granting citizenship and residency to investors that is aimed at attracting more foreign capital, creating new jobs and contributing to the Jordanian economy. 'While we appreciate the Jordanian government's efforts to develop the private sector, we believe the new citizenship policy will have limited economic impact in the near term,' Tianchen Peng, economist at Oxford Economics, told The National. 'The investment thresholds across all three routes – along with additional requirements like maintaining high employment levels – are prohibitively high.' Jordan has granted citizenship to 561 investors since 2018, with Syrian and Iraqi investors topping the list, according to Jordan's investment minister Mothanna Gharaibeh. However, Mr Peng said combined with Jordan's existing social welfare system and escalating tension in the region, 'the policy may lack sufficient appeal to attract eligible investors, particularly those based outside the region'. Jordan's economy is projected to expand by 2.6 per cent this year before accelerating further to 2.9 per cent in 2026, according to the International Monetary Fund's recently published Regional Economic Outlook. Both projections were lower than previous forecasts, mirroring a broader downwards trend because of US tariffs uncertainty. The Washington-based fund last month approved about $700 million to Jordan to address its long-term vulnerabilities in the water and electricity sectors and address public health emergencies. The Jordanian passport has relatively better strength in the Middle East compared to various countries in the region, according to the Henley Passport Index. It ranks 88th on the latest index, with visa-free access to 51 countries, according to the Henley Passport Index 2025 Global Ranking. By contrast, Syria ranks 102nd, Iraq 101st, Yemen 100th and Libya in the 99th position. The UAE is 8th and Saudi Arabia is 59th. This is out of a ranking of 103, where some countries are in tie positions. With stricter immigration rules in some protectionist economies, investors are casting a wider net for citizenship opportunities. Pathways to citizenship Under the revised criteria, Jordan will grant citizenship to foreign investors who inject at least one million Jordanian Dinars ($1.4 million) in new capital by buying shares in Jordanian companies. A maximum of 20 per cent of the investment can be concentrated in a single company, and the investor must retain the shares and any related proceeds for three years, according to Petra. Citizenship can also be granted to investors who set up new projects in vital sectors with a paid-in capital of at least 700,000 dinars in Amman or 500,000 dinars outside the capital, provided the projects create 20 jobs for Jordanians in the capital or 10 jobs outside it. Another route is purchasing equity in existing projects with a capital injection of at least one million dinars and new fixed assets worth at least 500,000 dinars. Investors must submit a feasibility study and audited financial reports, create 20 new jobs and hold the new shares for three years to qualify. Existing investors may qualify if their average equity share in fixed assets over the past three years totals at least 700,000 dinars in Amman or 350,000 dinars outside the capital. First-degree family members of the investor, who are inheriting or receiving shares, may also qualify for citizenship. This is provided the original investor's stake remains unchanged for three years. Citizenship can also be granted to investors in the pharmaceutical warehousing, medical equipment and large-scale food logistics sectors, with minimum capital of 3 million dinars and 20 Jordanian pharmacists employed in Amman or 10 outside the capital over three years. Another route is employing 150 Jordanians in Amman or 100 in other governorates for at least one year before application, with employment levels sustained for two consecutive years after receiving citizenship, Petra said. A cap of 500 investors per year will be applied, subject to security clearance and financial due diligence, the state news agency said.
Zawya
04-07-2025
- Business
- Zawya
Jordan investor confidence index rises 6.2% in Q1 2025
AMMAN — The Jordan Investor Confidence Index, published quarterly by the Jordan Strategy Forum, rose by 6.2 per cent in the first quarter of 2025, reaching 156.7 points, up from 147.6 points in Q4 2024. According to the Forum's latest report, the Economic Activity Confidence Sub-Index declined from 138.3 points in the last quarter of 2024 to 128.7 points in Q1 2025. This drop occurred despite real GDP growth of 2.7 per cent in Q1 2025, an increase from 2.0 per cent during the same period in 2024 and consistent with growth in Q4 2024, the report said. Jordan's budget deficit after grants stood at approximately JD537 million in Q1 2025, showing improvement from JD681 million in Q4 2024, though remaining above the JD428.8 million recorded in Q1 2024. Foreign direct investment (FDI) inflows reached around JD227.2 million in the first quarter. Meanwhile, the industrial production index registered a slight decrease, dropping to 87.7 points from 87.8 in the previous quarter. The Monetary System Confidence Sub-Index rose marginally to 200 points in Q1 2025, compared with 199.2 points in Q4 2024. This was attributed to a notable increase in the Central Bank of Jordan's foreign currency reserves, which rose from JD14.90 billion to JD15.61 billion. The interest rate gap between the Jordanian dinar and the US dollar narrowed slightly to 2.0 percentage points, down from 2.1 points in the previous quarter. Additionally, the value of bounced checks decreased significantly, from JD367.6 million in Q4 2024 to JD256.7 million in Q1 2025. The Financial System Confidence Sub-Index posted the most substantial gain, rising sharply from 114.3 points to 169.3 points in the first quarter. This was supported by an increase in foreign investor activity on the Amman Stock Exchange (ASE), where the ratio of purchased to sold shares rose to 105.3 per cent, up from 56.4 per cent in Q4. The ASE index recorded a gain of 478.8 points, closing at 5,112.3 points in Q1 2025. In parallel, credit facilities extended to the private sector grew marginally by 0.1 per cent, reaching JD31.39 billion. The Jordan Investor Confidence Index reflects ongoing efforts by the Jordan Strategy Forum to promote investment, strengthen economic fundamentals, and enhance the Kingdom's business environment in support of improved living standards for citizens. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
Zawya
01-07-2025
- Business
- Zawya
Jordan: 2.7% GDP growth recorded in Q1of 2025 despite regional turbulence
AMMAN — Jordan's Gross Domestic Product (GDP) grew by 2.7 per cent in the first quarter of 2025, up from 2.2 per cent during the same period in 2024, according to preliminary estimates released by the Department of Statistics (DoS). DoS report highlighted broad-based sectoral growth despite ongoing regional instability and its ripple effects on Jordan's economy, reflecting what experts have described as the outcome of "prudent economic policies." Despite ongoing regional instability and its impact on international economic conditions, most economic sectors in the Kingdom recorded positive growth during the first quarter of the year, the report said. The figures, the report said, align with the objectives of the Economic Modernisation Vision, which aims to sustain and gradually accelerate economic growth across key sectors. The agriculture sector led the growth chart, posting an 8.1 per cent expansion with contribution of 0.45 percentage points to overall GDP growth. The electricity and water sector followed with 5.8 per cent growth, adding 0.08 percentage points, while the manufacturing sector grew by 5.1 per cent, contributing the highest among all sectors at 0.88 percentage points. Social and personal services also performed positively, recording a 3.4 per cent growth rate and contributing 0.27 percentage points. The manufacturing sector emerged as the largest contributor to GDP growth, followed by agriculture and the finance, insurance, and real estate services sector. Foreign trade performance Jordan's national exports increased by 10.6 per cent in the first third of 2025, reaching JD2.752 billion, compared to JD2.488 billion during the same period in 2024. Re-exports also rose by 10 per cent, amounting to JD268 million, up from JD260 million a year earlier. According to the monthly foreign trade report issued by the Department of Statistics (DoS) on Sunday, overall exports totaled JD3.038 billion, marking a 10.6 per cent increase from JD2.748 billion recorded in the corresponding period last year. Meanwhile, imports during the same period climbed by 12.7 per cent, reaching JD6.554 billion, compared to JD5.818 billion in 2024. Jordan's foreign reserves remained strong, standing at $22.8 billion at the end of May, enough to cover the Kingdom's imports of goods and services for approximately 8.8 months. Inflation remained contained, averaging around 2 per cent during the first five months of 2025, further contributing to the country's overall economic stability.
Zawya
27-06-2025
- Business
- Zawya
Jordan: IMF Executive Board approves 3rd review of Jordan's EFF Programme
AMMAN — The International Monetary Fund (IMF) has completed the third review of Jordan's four-year Extended Fund Facility (EFF), enabling the Kingdom to draw an additional $134 million, the Fund announced on Wednesday. The latest disbursement brings total financing under the EFF arrangement to nearly $595 million since its approval in January 2024. The programme aims to support Jordan's economic reform efforts and help maintain macroeconomic stability amid ongoing regional challenges. In a significant show of support, the IMF also announced a separate $700 million programme under the Resilience and Sustainability Facility (RSF), aimed at helping Jordan tackle long-term challenges in the energy, water, and health sectors. Following the IMF Board's meeting, Deputy Managing Director and Acting Chair Kenji Okamura praised Jordan for holding steady despite tough regional conditions. 'Growth in 2024 and so far in 2025 has exceeded expectations. Inflation is low, reserve buffers are strong, and the authorities are pursuing sound fiscal and monetary policies,' Okamura said. According to the IMF, Jordan's international reserves topped $20 billion by the end of 2024, and the country's external position remains stable, with the current account deficit projected to stay near 6 per cent of GDP. The Fund attributed the stable inflation and strong reserve position to the Central Bank for helping keep inflation in check and maintaining investor confidence through its commitment to the exchange rate peg. The Fund also welcomed the government's gradual steps to reduce public debt while maintaining essential spending on social support and public investment. Jordan recorded a 2.5 per cent growth rate in 2024, and economic activity is expected to gradually strengthen going forward. The new $700 million in RSF support will go toward reforms to strengthen the electricity and water sectors and boost Jordan's ability to respond to future health crises. 'These reforms are critical to strengthening Jordan's long-term economic resilience,' Okamura said. The IMF reaffirmed its backing for Jordan's broader reform plans, which focus on encouraging private-sector growth, improving the business environment, and creating more opportunities, especially for youth and women. The IMF emphasized the need for continued international support, noting that Jordan continues to feel the pressure of regional instability and the responsibility of hosting large numbers of refugees. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
The National
26-06-2025
- Business
- The National
IMF disburses more than $830 million to Jordan
The International Monetary Fund disbursed $834 million to Jordan on Wednesday in two tranches. The Washington-based lender said Jordan was provided immediate access to $134 million upon the third completion of its External Fund Facility (EFF) to support Amman's economic programme. The IMF approved an additional $700 million as part of the Resilience and Sustainability Facility (RSF) to support the country's longer-term vulnerabilities in the water and electricity sectors, and to help its ability to take on public health emergencies. The fund said Jordan has consistently met the targets under its EFF programme, with economic growth reported at 2.5 per cent last year. The fund said growth this year was so far stronger than previously expected. The IMF approved the $1.2 billion EFF programme with Jordan last year. 'Jordan continues to maintain macroeconomic stability despite external headwinds from regional conflicts and heightened global economic uncertainty, owing to the authorities' steadfast pursuit of sound policies and continued strong international support,' said Kenji Okamura, IMF deputy managing director and acting chairman. In its most recently published Regional Economic Outlook, the fund said it expects economic activity to pick up this year after being affected by the Gaza war. The IMF projected in the outlook for Jordan's economy to expand by 2.6 per cent this year before accelerating further to 2.9 per cent in 2026. Both projections were lower than previous forecasts, mirroring a broader downwards trend because of tariff uncertainty. Jordan is also expected to be impacted by reduced foreign assistance following the dismantling of the US Agency for International Development, one of several countries in the region that had relied on the agency for assistance. The IMF said reforms have helped strengthen Jordan's fiscal sustainability, while further efforts should be made to enhance mobilising revenue and take measures to continue lowering its public debt. 'Efforts should also continue to improve the efficiency and viability of the public utilities to preserve the sustainability of public finances, while improving service delivery,' Mr Okamura said. The fund also said Jordan should accelerate structural reforms to improve its business environment and attract private investment. 'Strong and timely donor support remains essential to help Jordan navigate the challenging external environment, host the large number of refugees, and meet Jordan's development objectives,' Mr Okamura said. The fund said reform measures under the RSF will focus on strengthening the financial sustainability for the energy and water sectors, strengthen fiscal and financial sector resilience, and enhance pandemic preparedness.
