Price Sensitivity
Jordanian private and public sector consumers of goods and services are often price sensitive. When applicable, U.S. companies are encouraged to make use of export and development financing tools to make offers more attractive. Those participating in competitive government tenders will find that price is a particularly important consideration when national funds (versus donor assistance funds) finance a procurement.
Domestic Market Size & Purchasing Power
Jordan is considered a lower-middle-income country, with a per capita GDP$ $4,690 per capita GDP in 2024. In comparison to other regional markets, Jordan’s domestic market is small, with a population of 11.8 million. The population growth rate averaged 2 percent over the past 5 years, and over 70 percent of the population is 35 and younger. U.S. companies pursuing opportunities in Jordan often consider a regional strategy to capture greater market share. Jordan presents opportunities for U.S. companies as a back-office location, regional testbed, and stable platform for operations in neighboring countries, notably Syria.
Regional Instability – Signs of New Opportunities
Jordan has been very resilient in a region that has dealt with significant instability in recent years. After more than a decade, trade with and through Syria is resuming. The Nasib - Jaber border crossing between Jordan and Syria reopened in March 2025 at full capacity, opening Jordanian trade to the Syrian market and onwards to Turkey and Europe. Jordan has promoted trade and industrial zones on its side of the border as safe launching pads for companies seeking to explore or expand opportunities in Syria. U.S. companies should be aware that some international brands, though not all, have been the subject of consumer boycotts because of the Israel-Hamas conflict. This year, these boycotts’ intensity is waning, and business conditions are improving notably.
Limited Critical Natural Resources
Jordan is attracting interest in its hydrocarbons and critical minerals, including its new Risha Gas Field and the Kingdom’s uranium deposits. That said, it is one of the most water-scarce countries in the world. The Kingdom’s water supply currently only meets about two-thirds of the population’s water demands, with groundwater being used twice as quickly as it can be replenished. The United States is partnering with the Government of Jordan and other donors and lenders to support the national desalination and conveyance project (NCP), which will desalinate water from the Red Sea and transport it throughout the Kingdom. After its targeted completion in 2030, this project is expected to meet 40 percent of Jordan’s drinking water needs.
High Energy Tariffs
Jordan compensated for power shortages in 2013-2017 by investing in numerous power purchase agreements, causing its electricity grid to be nearly 50 percent over capacity, driving up the average electricity price for both households and businesses despite the oversupply. Electricity remains costly, notwithstanding reforms in 2022 and a new Electricity Law in 2025 aimed at modernizing the sector, promoting renewables (including green hydrogen), and improving tariff efficiency. Jordan believes the General Electricity Law of 2025 will open the door to new technology that will decrease the cost of electricity.
Business Climate
Jordan has strived to improve its business climate in recent years. Jordan offers a stable and business-friendly environment, bolstered by its Economic Modernization Vision (EMV), which drives private-sector-led growth and enhances competitiveness. The country features several industrial zones with attractive tax incentives, streamlined regulations, alongside a thriving ICT hub supported by reduced corporate tax rates and a skilled workforce. Jordan also encourages exports through trade facilitation programs, export financing, and a robust network of free trade agreements, providing businesses with preferential access to global markets. The Ministry of Investment assists new businesses in establishing themselves in Jordan via its one-stop shop and online licensing system. Companies report frequent changes in senior government officials, frequent alterations or amendments to legislation, outdated standards, and a slow bureaucracy as adversely affecting commercial activity. Dissolving a failed business endeavor can be costly.