Economy of Jordan

The economy of Jordan is considered an upper-middle income economy, but it faces challenges due to limited natural resources and little land suitable for farming. As of 2023, Jordan's total economic value, known as GDP, is US$50.85 billion, ranking it 89th in the world.

Jordan has many free trade agreements with countries like the United States, Canada, and the European Union, which help it trade goods more easily. It is also part of larger trade groups aiming to boost commerce across many nations.

The main sources of money for Jordan come from selling things like phosphates and potash, tourism, money sent home by Jordanians working abroad, and help from other countries. Because Jordan does not have its own oil, it buys most of its energy from other places. It also makes goods in factories, such as textile products and pharmaceutical medicines.

Jordan has struggled with debt and economic difficulties, especially after the Syrian civil war, which affected tourism and trade. The country has worked to improve its economy through careful budgeting and new trade deals, like the one signed with the UAE in 2025 to increase trade and investment.

Currency

The Central Bank of Jordan started working in 1964 and is the only place that makes Jordanian money, called the Jordanian dinar. This money is tied to the US dollar, meaning its value changes with the US dollar.

There is a chart showing how Jordan’s money grows over time, made by the International Monetary Fund.

The Jordanian dinar can be traded for US dollars at a rate of 0.710.

Jordan has a population of 6,342,948 people, and in 2009, people earned about $4.19 for each hour they worked.

Economic overview

Jordan is considered an "Upper-middle-income country" by the UN. It has one of the freest economies in the Middle East and North Africa, ranking fourth behind Israel, Bahrain, and Qatar. Jordan's banking system is very strong and well-developed.

The official currency in Jordan is the Jordanian dinar, which is tied to the value of the US dollar. This helps keep prices steady in the country.

Jordan has high unemployment, especially among young people and women. Many Jordanians work in nearby countries and send money home, which helps the economy. Jordan is also known for its technology and software industries, with many global tech companies having offices there. The country has good security and is often listed as one of the safest places to walk at night.

Industries

Agriculture, forestry, and fishing

The agriculture sector makes up only 2.4% of Jordan's economy. About 4% of workers are in farming. The most successful farming is growing fruits and vegetables like tomatoes, cucumbers, citrus, and bananas in the Jordan Valley. Other crops, like grains, change a lot because of uneven rainfall. Fishing and forestry are very small parts of the economy. Fishing is split between catching live fish and fish farming, with just over 1,000 metric tons caught in 2002. Forestry is even smaller, with about 240,000 cubic meters of wood taken for fuel in 2002.

Since independence, Jordan's farming has grown a lot. The value of farm products reached JD1.691 billion with a 9% growth rate. Vegetable production grew by 91%, and fruit production rose by 141%, meeting both local and international needs. Jordanian farm products now reach 112 countries, with exports up by 441% to JD1.5 billion. Livestock numbers grew by 54%, totaling 3.8 million animals, and the value of animal products rose by 279% to JD1.305 billion. Farm jobs grew by 38%, now employing 261,000 workers. The Agricultural Credit Corporation's capital grew by 213% to JD100 million, lending JD55 million yearly to 11,000 farmers. These changes help food security, economic ties, and job creation in rural areas.

Mining and minerals

Potash and phosphates are important exports for Jordan. In 2003, about 2 million tons of potash made US$192 million in exports, making it the second most valuable export. Potash production was 1.9 million tons in 2004 and 1.8 million tons in 2005. In 2004, about 6.75 million tons of phosphate rock made US$135 million in exports, ranking fourth among Jordan's main exports. With 6.4 million tons produced in 2005, Jordan was the world's third largest producer of raw phosphates. Smaller amounts of unrefined salt, copper ore, gypsum, manganese ore, and materials for making ceramics are also mined. As of June 2025, Jordan has enough wheat to meet local needs for the next ten months and enough barley for the next eight months.

Industry and manufacturing

The industrial sector, including mining, manufacturing, construction, and power, made up about 26% of Jordan's economy in 2004. More than 21% of workers were in this sector in 2002. Main products are potash, phosphates, pharmaceuticals, cement, clothes, and fertilizers. Construction is a growing part of this sector. Demand for housing and offices for foreign businesses has increased quickly. Manufacturing has also grown, reaching nearly 20% of the economy by 2005, partly because of the United States–Jordan Free Trade Agreement. This agreement created about 13 qualifying industrial zones that make light products like ready-made clothes. By 2004, these zones made nearly US$1.1 billion in exports.

Jordan's free trade agreement with the US has made the US one of Jordan's biggest markets. By 2010, exports to the US would be almost free of barriers. Trade agreements with Middle Eastern and North African countries and others should also help. Jordan has many industrial zones with tax benefits, low utility costs, and better infrastructure to help new businesses. Jordan has abundant potash and phosphates, which are used to make fertilizers. Exports from these industries were expected to be worth $1 billion in 2008. Other important industries are pharmaceuticals, which exported about $435 million in 2006 and $260 million in early 2008, and textiles, worth $1.19 billion in 2007. Despite these strengths, Jordan faces challenges like depending on imported materials and having shortages of water and power. But its open economy and strong fertilizer and pharmaceutical industries should keep bringing in money from other countries.

Jordan has many industrial and special economic zones to boost exports and make the country a big industrial center. The Mafraq SEZ focuses on industry and logistics, aiming to become a regional hub with links by air, road, and rail to nearby countries and eventually to Europe and the Persian Gulf. The Ma'an SEZ is mainly industrial, focusing on meeting local demand and reducing imports. With a national rail system being built, Jordan expects trade to grow a lot, becoming a key trade center in the Levant and the Middle East because of its location and natural resources.

Telecoms and IT

Telecommunications is a big industry, worth about $1.18 billion a year, which is 13.5% of the economy. Jordan's IT sector is the most developed in the region because of telecom liberalization in 2001. The mobile market is very competitive, with three operators: Zain (39%), Orange (36%), and Umniah (25%). Increased competition has led to better prices for users. Mobile use is about 80%.

National strategies for the IT sector started around the year 2000, led by the king. The Information Technology Association in Jordan (int@j) was created to prepare Jordan for the new economy through IT, working with the Ministry of Information Technology. The latest strategy aims to reach certain goals by 2011. The IT sector now makes up over 14% of the economy, including foreign investment and domestic revenue. Employment in the sector grew to 60,000 by 2008. The government is working on IT training and opportunities to increase IT use in society. The strategy aims to double the sector's size to $3 billion and increase internet users to 50%.

The IT industry in Jordan got a big boost after the Gulf War in 1991, when many people from Gulf countries moved to Jordan, including many Jordanian experts from Kuwait. This wave of people affected Jordan in many ways, including its IT industry.

Energy

Energy is a big challenge for Jordan's economy. The government has a $14 billion plan to reduce reliance on imported energy. The plan aims to have renewables provide 10% of energy by 2020 and nuclear energy provide 60% by 2035. The government is also opening the energy sector to competition and plans to offer new projects to international bids.

Jordan has very little oil of its own and relies heavily on oil imports. In 2002, proven oil reserves were only 445,000 barrels. Jordan produced just 40 barrels a day in 2004 but used about 103,000 barrels a day. Oil imports reached about 100,000 barrels a day in 2004. After the Iraq invasion in 2003, Jordan's main oil supply from Iraq was disrupted, so it now gets oil mainly from Saudi Arabia, with Kuwait and the United Arab Emirates as secondary sources.

Jordan has large oil shale resources, estimated at about 40 billion tons, with 4 billion tons thought to be usable. These could produce 28 billion barrels of oil, allowing production of about 100,000 barrels a day. Several companies are talking with Jordan about using these resources.

Natural gas is being used more for electricity. Jordan had modest natural gas reserves but new estimates are higher. Until 2013, most gas came through a pipeline from Egypt, but supplies stopped due to issues there. A liquefied natural gas terminal was built in Aqaba, and a small pipeline from Israel started in 2017, with a larger one expected by 2020.

The National Electric Power Company produces most of Jordan's electricity. Since 2000, efforts to bring in private companies have started. Jordan used nearly 8 billion kilowatt-hours of electricity in 2003 but made only 7.5 billion kWh. Production rose to 8.7 billion kWh in 2004 but needs to keep growing to meet demand, which is expected to grow by about 5% each year. About 99% of people have electricity.

Transport

Transportation adds about 10% to Jordan's economy each year. In 2008, the government made a new plan to improve, modernize, and privatize the transport sector. With ongoing issues in Iraq, Jordan is likely to stay a key point for moving goods and people to Iraq, and tourism is expected to keep growing. Main events coming up include moving Aqaba's main port, building a national railway system, and constructing a new terminal at QAIA. Changing fuel prices will likely affect costs, but they also encourage investment in other transport like buses and trains.

In late June 2025, Jordan's Transport Minister checked new bus routes from Irbid and Jerash to Amman. The test used GPS and set stops. Full service will start in July and August, with routes to Salt and Karak coming later. This is part of a five-year plan to improve public transport across the country.

Media and advertising

Jordan's media has become more private and open in recent years, though the government still has a big role. In 2007, ads spent about $280 million in Jordan's media, with 80% on newspapers, then TV, radio, and magazines. The biggest event in 2007 was the planned launch of ATV, the country's first private TV station, which was cancelled. So, the state-owned Jordan TV remains the only broadcaster. In recent years, Jordan has seen a big rise in blogs, websites, and news sites. The increasing variety in media is good and should help ad revenues and private efforts.

2007 was a great year for Jordan's advertising industry, growing by 30%. After almost ten years of high growth, experts expect a slower pace in 2008. Unlike 2007, no big ad campaigns were planned for early 2008. Jordanian advertising also needs to catch up with the rest of the region in spending per person. As the industry grows, it will naturally slow down. Since 2000, ad spending has grown from $77 million to $280 million in 2007, a 260% increase. The telecom sector spent the most in 2007, about 20% of the market, followed by banking and finance (12%), services (11%), real estate (8%), and automotive (5%). In the next year, especially if the economy slows, it will be important to train ad professionals and use new media markets.

Services

Services made up over 70% of Jordan's economy in 2004. In 2002, nearly 75% of workers were in this sector.

Jordan's banking system has 25 commercial banks, three Islamic banks, and nine foreign banks, with total assets of 57 billion Jordanian dinars (about EUR69.6 billion). From 2010 to 2020, the sector's assets grew by about 5% each year, led by a 7% increase in loans.

The banking sector is seen as advanced both in the region and worldwide. In 2007, profits for 15 listed banks rose 14.89% to JD640 million ($909 million). Jordan's strong growth of 6% in 2007 led to a 20.57% increase in loans to JD17.9 billion ($25.4 billion) by the end of the year. The biggest growth was in trade, construction, and industry. Many banks were hurt by a big drop in the Amman Stock Market in 2006, so they focused more on basic banking in 2007. This led to a 16.65% rise in interest and commission income to JD1.32 billion ($1.87 billion). The stock market also improved in 2007, and losses from investments decreased. Though small globally, Jordan's banking sector has attracted interest from investors in Lebanon and the GCC. New rules and political stability have created a good environment for investment. Conservative policies helped Jordan avoid the 2008 financial crisis, and Jordanian banks were among the few to post profits in 2009.

Banking profits were affected in 2020 by the economic downturn from COVID-19 but recovered to pre-pandemic levels in 2021. The non-performing loan ratio stayed at 5.5% during the pandemic. A 2021 survey showed that the pandemic had limited impact on credit supply, with two-thirds of banks reporting steady or growing loan availability. 50% of banks also reported increased lending to small and medium-sized enterprises. For big companies, the increase was 25%.

90% of banks thought the pandemic would affect the digitization of internal processes. 81% believed daily operations would be impacted, and 90% thought online services would improve.

The construction sector added about JD477.5 million ($678.05 million) or 4.25% of Jordan's GDP in 2007. The Great Amman Municipality finished its plan for the capital, expected to grow from 700 km² to 1700 km² by 2025. Amman is changing from mostly spread out to more tall buildings. Big developments outside Amman include more homes in Zarqa, turning Aqaba into a business and tourist spot, and building luxury hotels and tourist spots along the Dead Sea. New projects include an airport terminal, a ring road around Amman, and a light rail between Amman and Zarqa.

Despite slower growth than in recent years, Jordan's construction and real estate market kept growing in 2007. Trading reached JD5.6 billion ($8 billion), up from JD5.2 billion ($7.4 billion) in 2006. Though the huge growth rates of 75% in 2004 and 48% in 2005 have passed, the future looks good for real estate, as demand continues to exceed supply. Jordan remains an attractive place for foreign businesses, people buying second homes, and Jordanians working abroad. With Jordan's growing population and its key location in the Middle East, the market looks bright for years to come. Though many class-A office projects are being built, it will take time to meet demand. The Amman retail market may get more crowded soon, so builders might focus on other cities for supermarkets and malls.

Jordan's insurance market has 29 companies in a country of just 5.7 million people, so it is crowded. Motor insurance makes up 42.4% of the market, medical insurance 18.6%, fire and property damage 17%, life 9.8%, marine and transport 7.9%, and other types 4.3%. The insurance sector was 2.52% of GDP in 2006, up from 2.43% in 2005. Plans aim to raise its share to 7% soon and 10% later. The sector has potential but is underdeveloped. Challenges include rising prices across the region and people not understanding products well. Cultural issues, like religion, also make it hard to grow. The cost of living has gone up, and the IMF expects inflation to reach 9% in 2008. Salaries haven't changed, so people have less to spend. Besides required motor insurance, other types are seen as luxuries. There may be only a few changes in the market next year. Industry members want better coordination among regulators and the legal system to improve insurance laws.

Tourism

Tourism is seen as having more potential than it currently has, given Jordan's rich history, ancient ruins, pleasant climate, and varied landscape. Despite efforts by the king and marketing, the industry is still hurt by instability in the region. More than 5 million visitors came to Jordan in 2004, bringing in US$1.3 billion. This rose to US$1.4 billion in 2005. Most tourists come from the Middle East, which could help the industry grow as Jordan is relatively stable, open, and safe compared to many neighbors. Tourism directly employs about 30,000 people and contributes 10% to the kingdom's GDP. Despite fewer visitors from Arab and Gulf countries, 2007 was a year of steady growth. Revenue jumped 13% to nearly $2.11 billion in the first 11 months, up from $1.86 billion in the same period in 2006. The sector is guided by the government's National Tourism Strategy (NTS), created in 2004 to guide the industry through 2010. NTS aimed to double tourism revenue and increase tourism jobs to 91,719. The first goal has been met, but the second may be harder: from 2004 to 2007, jobs in the sector rose from 23,544 to 35,484. This is strong growth but less than half of the 90,000+ target. NTS wants to make Jordan a boutique destination for high-end tourists. The strategy focuses on seven areas: cultural heritage (archaeology), religion, ecotourism, health and wellness, adventure, meetings and events, and cruises. The Jordan Tourism Board's marketing budget grew from JD6 million ($8.52 million) to JD11.5 million ($16.3 million). These are good times for tourism in Jordan, with steady growth and big projects planned. The sector needs improvements in infrastructure and marketing, but overall, it has been improving for several years.

Jordan's real GDP dropped by 1.6% in 2020, with a big drop in tourism—a key part of the economy—being one of the main reasons. Tourism provides about 40% of Jordan's export earnings and 10–15% of GDP, with 3.8 million international tourists each year. The sector's share of GDP fell to 3% in 2020, and recovery from the COVID-19 pandemic is likely to be slow.

External trade

Since 1995, Jordan's economy has grown very slowly, with its total value increasing by only about 1.5% each year. Many people in Jordan struggle to find jobs, with about 14% of adults without work—though some think the real number is even higher. Even with these challenges, prices for goods and services have stayed steady because of careful financial management and keeping its money tied to the United States Dollar.

Jordan expected more trade and visitors after making peace with Israel, but this did not happen as much as hoped. Rules making it hard to trade with the West Bank and the Gaza Strip caused a big drop in exports to those areas. After King Abdullah took over, he worked to improve ties with countries in the Persian Gulf and Syria, but this did not help the economy much. Recently, Jordan has focused on joining the WTO and making a special agreement with the U.S. to help grow its exports.

Investment

The total value of companies listed on Jordan's stock market was $37.639 billion in 2005, according to the World Bank.

Salaries

According to a 2015 survey from Bayt.com in the Middle East and North Africa, people from the GCC countries (49%) were a bit happier with their salary increases in 2014 than those from the Levant region (42%).

Aqaba Special Economic Zone

Main article: Aqaba Special Economic Zone Authority

Aqaba is a small city in Jordan with about 100,000 people, but it is expected to grow a lot in the next ten years. It is located at the southern tip of the country, close to the Red Sea, Saudi Arabia, and Israel. This makes it a great place for trade because it is near important routes and has Jordan's only deep-water port.

Since 2001, the Aqaba Special Economic Zone has helped the city develop. It covers an area of 375 km² and offers special benefits to businesses, like lower taxes and easier rules. Companies there pay a low tax of 5% and don’t have to pay taxes on imports or property. This has made Aqaba very attractive for investment, bringing in more money than expected. The zone aims to grow even more, focusing on tourism, finance, and industry.