Investment Environment Law in Jordan – Legal Insight for Foreign Investors

Introduction to the Investment Environment Law 2022 – 2025

The Investment Environment Law No. 21 of 2022, effective January 2023, marked a major step in modernizing Jordan’s investment framework. Designed to enhance competitiveness and attract foreign capital, the law introduced new rights, guarantees, and incentives for investors while streamlining licensing and regulatory procedures through digital platforms. 

For international investors and multinational companies, understanding this framework is critical. At Jaradat Lawyers, we guide clients through the Investment Environment Law, its implementing Regulation No. 7 of 2023, and the Licensing Manual, ensuring compliance and maximizing available benefits. 

Key Rights and Guarantees for Investors 

The Investment Law provides extensive protections, including: 

• Equal Treatment, Jordanian and foreign investors enjoy the same rights, privileges, and duties. 
• Ownership Rights, foreign investors may fully own economic activities in Jordan, except for restricted activities under the Regulating Investments for Non-Jordanians Regulation. 
• Employment of Foreign Professionals, companies may recruit non-Jordanian staff in key roles, subject to quotas and conditions. 
• Free Capital Transfers, profits, dividends, and capital may be transferred abroad in convertible currency without delay. 
• Investment Protection, unlawful interference with legally recognized activities and rights is prohibited. 
• Transparency & Digitization, services and approvals are now digitized to reduce delays and increase efficiency. 

To support Comprehensive Investment Service, Regulation No. 7 of 2023 was issued, consolidating 18 regulations into a single regime and clarifying procedures for licensing and incentives. 

Licensing Manual 

Pursuant to Article 42 of the Investment Law, the Ministry prepared a Licensing Manual to unify and clarify licensing procedures. The Manual includes: 

• A summary of licensing procedures for economic activities. 
• The National Classification of Economic Activities (JORSIC). 
• Geographical scope, including development zones and free zones. 
• Provisions on investments by non-Jordanians. 

Key terminology and definitions. 

Step-by-step guidance on initiating activities both inside and outside investment zones. 

Licensing Procedures – Outside Zones 

For activities outside ASEZA, Free Zones, and development zones, the process generally involves: 

• Registering the legal form of the company with the Companies Control Department. 
• Completing post-registration services such as tax and social security registrations. 
• Site selection and environmental approvals. 
• Obtaining planning and building permits. 
• Securing sectoral licenses for regulated activities. 
• Obtaining vocational licenses from municipalities or local authorities. 

Licensing Procedures – Development Zones 

For projects in designated development zones: 

1. Registration of the legal entity. 
2. Registration with the Ministry of Investment as an establishment operating in the development zone. 
3. Post-registration services. 
4. Site selection and environmental approvals. 
5. Planning and building permits. 
6. Sectoral licenses. 
7. Vocational licenses. 

Licensing Procedures – Free Zones 

For projects in free zones: 

1. Registration of the company or entity. 
2. Post-registration services. 
3. Site selection and environmental approvals. 
4. Planning and building permits. 
5. Sectoral licenses. 
6. Business licenses specific to free zone activities. 

Practical Insight for Investors 

While the Investment Environment Law 2022 and its Licensing Manual provide clarity, compliance still requires careful planning. Investors should: 

1. Confirm whether their activity is restricted under the Non-Jordanian Investment Regulation. 
2. Assess the benefits of structuring in ASEZA, Free Zones, or KHBP to optimize incentives. 
3. Track licensing timelines under the Licensing Manual to avoid delays. 
4. Coordinate environmental, planning, and sectoral approvals early. 
5. Use the Comprehensive Investment Service platform to reduce administrative burden. 

Jaradat Lawyers’ Role 

As one of the leading law firms in Jordan, Jaradat Lawyers advises foreign investors, multinational companies, and international law firms on: 

• Eligibility for incentives, exemptions, and benefits under the Investment Law. 
• Structuring companies and registering entities in Amman, ASEZA, Free Zones, and KHBP. 
• Managing all filings with the Companies Control Department, Ministry of Investment, and sector regulators. 
• Providing end-to-end legal support on corporate governance, labour law compliance, contracts, and dispute resolution. 

Conclusion 

The Investment Environment Law No. 21 of 2022 and Regulation No. 7 of 2023 establish a transparent and investor-friendly framework for doing business in Jordan. The Licensing Manual provides detailed procedures for setting up and licensing economic activities both inside and outside Jordan’s investment zones. 

For investors, the opportunities are significant — but so are the compliance requirements. With nearly five decades of combined judicial and legal expertise, Jaradat Lawyers is uniquely positioned to help clients navigate Jordan’s investment environment with confidence.