Shmaisani-Hussaini Complex,
Shmaisani, Amman, Jordan
Jordan’s government has recently enacted Investment Law No. 30 of 2014, marking a significant shift in the nation’s approach to investment and economic development. This comprehensive legislation is designed to foster a more conducive environment for investors by addressing previous challenges and introducing new incentives.
Objective of the New Investment Law
The New Investment Law aims to streamline and enhance the investment landscape in Jordan. It replaces several earlier statutes, such as the Promotion of Investment Laws and various regulations governing development zones. The primary goals are to simplify the regulatory framework, reduce bureaucratic obstacles, and provide clear and attractive incentives to both domestic and international investors.
Key Features of the Law
Unified Legislative Framework: The New Investment Law consolidates previous investment regulations into a single, cohesive framework, thereby reducing complexity and improving efficiency. It retains the rights and incentives previously enjoyed under the old laws but aims to eliminate duplication and streamline processes.
Incentives and Benefits: The law introduces a range of incentives for investments that utilize local resources and contribute to job creation. These include tax benefits for specific sectors and automatic incentives for projects, regardless of size or location. Additionally, the law provides for tax reimbursement mechanisms and potential additional incentives for smaller enterprises or those in underdeveloped regions.
Investment Commission: To implement the new law effectively, an Investment Commission has been established. This body is responsible for regulating and overseeing investments, ensuring a single point of reference for all investment-related matters, and facilitating a "one-stop-shop" for licensing and permits.
Special Zones and Development Areas: The New Investment Law continues to support development zones and special economic zones like ASEZ, maintaining many of the benefits from previous legislation but integrating them into the new legal framework. It aims to reduce regional disparities and attract investment to various parts of Jordan.
Foreign Investment Regulations: The law confirms that foreign investors are to be treated on par with local investors, ensuring a fair and transparent investment environment. It also upholds the right to repatriate capital and profits while imposing conditions for fair compensation in cases of expropriation.
Impact and Implementation
The enactment of the New Investment Law is expected to enhance Jordan’s economic environment by providing clear regulations, reducing administrative burdens, and encouraging both local and foreign investments. The law's emphasis on transparency and efficiency aims to attract a diverse range of investments, ultimately contributing to economic growth and development in Jordan.
Conclusion
Jordan’s New Investment Law represents a pivotal step in modernizing the country’s investment framework. By unifying regulations, offering new incentives, and streamlining processes, it positions Jordan as a more attractive destination for investors. This legislative reform reflects the government’s commitment to fostering a dynamic and robust economic environment.
