Investment Legislation
Jordanian Investment Law 2014 (repealed)
The 2014 Investment Law established the legal framework for tax and customs incentives, created the Investment Council and Investment Authority, and introduced a one‑stop Investment Window and rules for developmental and free zones. The source indicates the law was later superseded by 2022 legislation; therefore verify the current legal text before relying on it.
Updated: 4 March 2023
Prepared and reviewed by: Ashraf Al-Khawaja
Scope, Definitions and Exclusions
The law contains core definitions (Council, Authority, Investment Window, investor, license, developmental zone, registered enterprise, lead developer) and lists covered economic activities (industrial, agricultural, tourism, media, handicraft and services). It explicitly excludes the Aqaba Special Economic Zone from its scope. These definitions determine competences and rights; verify the current statute for any amendments that may have altered definitions or exclusions.
Tax and Customs Incentives
The statute sets out incentives including reduced income tax for activities in less‑developed areas, customs exemptions for production inputs and machinery, and VAT zero‑rating in specified cases with refund mechanisms within set timeframes. It also lists sectoral exceptions (e.g. banks, telecoms, transport, mining) excluded from some benefits. Practical application depends on the schedules and implementing regulations that specify eligible items, conditions and durations.
Investment Window, Licensing Procedures and Timelines
The Authority is mandated to run a one‑stop Investment Window and licensing bodies must appoint authorized delegates within a prescribed period. The Authority must publish a licensing guide specifying conditions and timelines; delegates are required to decide within set time limits (default 30 working days if none specified after completion of requirements). The law provides an internal appeal to the Authority’s head, referral to a permanent government committee, and judicial review by the High Court. Implementation specifics depend on subsequent regulations and instructions.
Developmental and Free Zones; Land, Developers and Operations
Zones are established by cabinet decision and relevant treasury lands are transferred to the Authority. The law sets out the lead developer’s role and powers to manage and deal with lands within the designated zone, while prohibiting sale of lands earmarked for public use. Long‑term lease terms (up to 30 years, renewable) are allowed for developers and registered enterprises. The statute addresses export exemptions, repatriation of foreign capital and profits, and provides for residency and labor rules to be prescribed by subsequent regulations.
Legal Protection, Dispute Resolution and Transitional Rules
The law provides protection against arbitrary expropriation, permitting compulsory acquisition only for public interest with prompt, fair compensation in convertible currency. Non‑Jordanian investors have rights to transfer capital and profits and to liquidate or sell their investments subject to obligations. Disputes with government entities must be amicably addressed within six months before resorting to courts or arbitration. Transitional provisions repeal prior investment laws while preserving some existing incentives until implementing regulations are issued; the Authority is empowered to inspect, enforce and impose fines for violations.
Legal notice
Disclaimer: This summary is for general educational purposes and is based on the source text linked on the page. It does not substitute reviewing the official legal text or its amendments, nor consulting a licensed Jordanian lawyer. Verify the current statute, amendments and effective dates before making any legal or investment decisions.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.