The law aims at granting incentives, exemptions, and benefits to investors within specific principles and requirements, providing supportive environment for existing investors, and attracting investors in line with the Economic Modernization Vision, towards improving the investment environment in Jordan over the next decade.

The main provisions of the said Law set that both local and foreign investors are equal, ensure free transfers, and provides guarantees and incentives tied to investment added value (economic growth, job creation, export and knowledge, and technology transfer), as well as having procedures and services to be done electronically.

The said Law also promotes investment in strategic and entrepreneurial projects, innovation, research and development, and providing a proper environment to develop SMEs.

The Law grants incentives to value-added investments that employ Jordanians and use domestically sourced raw materials incentives, which also include certain tax benefits that are granted to more sectors than were included in past investment legislation. These sectors will in turn participate in enhancing economic growth, and reducing poverty and unemployment.

Therefore, the Investment Environment Law is intended to regulate investment generally, whether in the development zones and free zones or elsewhere in Jordan, for instance, by granting incentives inside and outside the development and free zones, including basic incentives relating to fixed assets, production requirements, and spare parts for economic activity, from customs duties, in addition to exemptions from income tax due, reductions by 30% on the income tax for economic activities in the least developed regions in the Kingdom as specified under the relevant regulations, or projects that employ at least two hundred fifty (250) Jordanians for a maximum period of five (5) years from the date of actual operation, for example.

Furthermore, in enhancement to the implementation of the provisions of the Law, an Investment Commission has been mandated with the authority to deal with and regulate investments in Jordan, along with an investment window which aims at facilitating licensing procedures and other investor-related matters.

Additionally, the Law stipulates the advantages of investing in development and free zones, and addresses the settlement of investment contract disputes through arbitration, as per agreed upon rules.

We are equipped to advise potential and existing clients to understand the regulatory impact of this new regime on their businesses. Please do not hesitate to contact us for further assistance.