The United States and Jordan enjoy a strong bilateral relationship, underpinned commercially by the U.S.-Jordan Free Trade Agreement (FTA). Since the signing of the agreement in October 2000, bilateral trade has surged over 990 percent, expanding commercial opportunities for U.S. and Jordanian businesses. The FTA gradually eliminated duties on nearly all products by 2010, and includes provisions for trade in services, electronic commerce, intellectual property protection as well as labor and environmental standards. In 2022, bilateral trade of goods and services reached $6.4 billion. U.S. goods and services exports to Jordan accounted for $2.5 billion of which goods and services exports were valued at $1.6 billion and $880 million, respectively.
Unlike its neighbors, Jordan does not have many natural resources, although potash and phosphate mining are among the country’s core industrial sectors, in addition to the manufacture of garments/apparel, chemicals and pharmaceuticals. Jordan is largely reliant on imports across a range of industry sectors, creating opportunities for U.S. exporters. In 2022, Jordan imported $27.3 billion in goods and services, compared to exports valued at $12.4 billion. Jordan’s leading import categories include mineral fuels and crude oil, industrial machinery, transportation equipment including automobiles, electrical and electronic equipment, food and agricultural products, textiles, manufactured goods such as rubber products, paper and cardboard, yarns, chemicals, clothing, and footwear. In 2022, Jordan’s leading sources of imports included: China (15.2 percent), Saudi Arabia (14.9 percent), United Arab Emirates (7.7 percent), United States (5.5 percent), India (5 percent), Switzerland (3.8 percent), and Turkey (3.3 percent). The country’s top export categories include chemicals (fertilizers, pharmaceuticals), garments, mineral products (including potash and phosphates), and vegetable products.
Jordan is one of the smaller economies in the Middle East, with foreign assistance an important component of the $47.5 billion economy. The United States is the single largest contributor of bilateral assistance to Jordan, providing $1.1 billion in 2022. Additionally, in September 2022, the United States signed the fourth Memorandum of Understanding on Strategic Partnership for $1.45 billion per year in bilateral foreign assistance to Jordan from 2023 to 2029. The country faces a range of economic challenges: government debt equals 114 percent of GDP, the national budget deficit is $2.19 billion, and unemployment at 22.8 percent (and as high as 50 percent for young adults under 30 years old). Additionally, after years of economic growth ranging from four to nine percent in the early 2000s, Jordan’s economic growth has slowed significantly since 2008, hovering around 2 percent over the last decade. The economy grew by 2.5 percent in 2022, and economic growth in the near term is expected to be similarly sluggish.
Summary of the top reasons to do business in Jordan:
Bilateral Relationship Favorable for U.S. Business Development
The bilateral relationship between the United States and Jordan spans almost 75 years. The U.S.-Jordan FTA enables nearly all U.S. exports to enter Jordan duty-free.
Reliance on Imports
Jordan is highly reliant on imports, creating opportunities for U.S. exporters across a range of industry sectors that are prepared for global competition.
High Regard for U.S. Products
The public regards U.S. goods, services, and technologies to be of superior quality and performance.
Infrastructure Projects and Government Procurement
There are emerging opportunities to engage in major infrastructure projects or pursue government tenders across a range of sectors, many of which are financed by donor countries including the United States or International Finance Institutions (IFIs). Some projects are coordinated through the Ministry of Investment’s Public Private Partnership (PPP) Unit.
Political Stability & Strategic Regional Platform
Jordan offers political stability for business interests in the Middle East and is one of only six Arab countries to have concluded a peace agreement with Israel. U.S. firms can leverage the country’s international business community. Jordan is strategically positioned to serve as a platform for firms supplying regional markets or seeking access to the Iraqi market.
Political Environment
The Hashemite Kingdom of Jordan is a constitutional monarchy ruled by King Abdullah II bin Hussein. The constitution grants the king ultimate executive and legislative authority. The multiparty parliament consists of a 130-member popularly elected House of Representatives and a Senate appointed by the king. Elections for the House of Representatives occur approximately every four years and last took place in November 2020.
Visit the State Department’s Jordan Country website and the U.S. Embassy in Jordan website for more background on the country’s political and economic environment.