Jordan offers foreign investors 100% ownership across almost all sectors, equal statutory treatment with local capital, guaranteed profit repatriation, streamlined single-window licensing, and flat-rate tax incentives in designated Development Zones and ASEZA.
1. The Modern Investment Environment Law Framework
Jordan's Investment Environment Law No. 21 of 2022 unified previous fragmented statutes into a single, cohesive investor protection regime. Administered by the Ministry of Investment, the law establishes the principle of equal treatment between foreign and national investors, explicitly prohibits nationalization or arbitrary expropriation, and grants investors full autonomy to manage their commercial entities and repatriate capital without exchange control barriers.
- Equal legal protection and standing for foreign and domestic capital.
- Unrestricted right to repatriate profits, capital, and liquidation proceeds in foreign currencies.
- Unified electronic licensing platform with statutory approval timeframes.
2. Available Corporate Vehicle Structures for Foreign Investors
International companies entering Jordan generally select one of three main legal vehicles under the Companies Law No. 22 of 1997 (as amended):
- Limited Liability Company (LLC): The most flexible and common vehicle, requiring a minimum of one shareholder with no onerous capital requirements.
- Private Shareholding Company (PSC): Ideal for sophisticated corporate joint ventures, customizable share classes, drag/tag-along rights, and institutional investors.
- Operating Foreign Branch: Permits a foreign entity to directly execute specific public or private contracts awarded in Jordan.
- Regional Representative Office (Non-Operating): A tax-exempt vehicle for regional coordination, market research, and headquarters functions.
3. Special Economic Zones & Fiscal Incentives
Jordan provides substantial fiscal incentives across designated geographic zones. In Development Zones and the Aqaba Special Economic Zone (ASEZA), qualifying projects benefit from flat 5% corporate income tax rates, zero customs duties on imported capital equipment and production materials, and exemptions on dividend distribution taxes.
This content is provided for general informational purposes only and does not constitute formal legal advice. For specific mandates, consult our attorneys directly.
Ahmad Al-Khatib
Managing Partner | Head of Corporate & Transactions
Ahmad is the Managing Partner of ASLA Law Firm with over 20 years of experience advising multinational corporations, private equity funds, and sovereign entities on complex M&A, cross-border investments, and energy infrastructure in Jordan and the MENA region.
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