Investment Law
Jordan Investment Law (Law No. 30 of 2014)
A concise overview of Jordan’s 2014 Investment Law covering core definitions, fiscal and customs incentives, and the regulatory regime for development and free zones. It also summarizes the licensing mechanism via the Investment Window and the governance role of the Council and Commission.
Updated: 30 January 2022
Prepared and reviewed by: Ashraf Al-Khawaja
Scope and Key Definitions
The law sets out the investment framework within the Kingdom, expressly excluding the Aqaba Special Economic Zone, and provides key definitions (e.g. the Council, the Commission, the Investment Window, development zone, registered enterprise). These definitions determine which bodies exercise authority, how licensing is organized, and which incentives apply, so the full statute should be consulted for precise exclusions and scope limits.
Incentives Outside Development and Free Zones
The law empowers issuance of detailed schedules that specify inputs and services eligible for customs exemptions or zero-rate treatment and tax refunds with prescribed timeframes and interest for delayed refunds. It also provides for income tax reductions in less-developed regions (minimum reduction thresholds are set) under regulation, and permits the Cabinet to grant additional incentives subject to published conditions. Practical application requires checking the implementing regulation and technical-committee criteria for eligibility, expansions or modernization cases.
Incentives Inside Development and Free Zones
Registered enterprises in development zones benefit from a simplified fiscal regime that includes reduced income tax rates for qualifying activities and customs relief on inputs and construction materials used in projects. Certain sectors (e.g. banks, licensed telecom operators, specified financial services, some transport and extraction industries) are excluded from particular incentives. The law also regulates local market sales of zone-origin goods and the method for applying taxes and duties when such goods enter the domestic market.
Investment Window and Licensing Procedures
An Investment Window within the Commission provides a one-stop licensing service, with competent authorities delegating representatives empowered to issue permits through that window. The Commission must prepare a Licensing Guide setting out conditions, procedures and legal time-limits; authorised representatives are required to decide within those timelines and applicants have objection routes to internal committees and judicial review if decisions are delayed or refused. Detailed procedural rules and the composition of governmental review committees are set out in implementing regulations that should be checked.
Governance, Zone Regulation and Dispute Resolution
The law establishes an Investment Council chaired by the Prime Minister and an independent Investment Commission with legal personality to promote and regulate investment and manage development/free zones, including licensing, inspection and in-zone regulatory functions. Provisions govern land transfers, master-developer powers, lease durations, and a protection against expropriation subject to prompt, convertible-currency compensation. Investment disputes are encouraged to be settled amicably within a short period, after which parties may resort to Jordanian courts, arbitration or agreed alternative dispute resolution; administrative and financial penalties apply for violations.
Legal notice
Disclaimer: This content is for general educational purposes and is based on a summary of the original source linked on the page. It does not substitute review of the operative statute or subsequently issued regulations. Verify the official text and amendments and consult a licensed Jordanian lawyer before taking any legal action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.