You’ve done your research, written your business plan and even started to look for the right people. But where should you locate your business? In Amman, or one of the other big cities, or perhaps even one of the Jordanian special economic zones?

There are many factors that might influence your choice of location, such as the type of customers you want to acquire, where they are located or what kind of transportation infrastructure you need to run your business effectively.

The country’s free, development and economic zones offer special incentives to investors, while setting up an onshore company (not inside a special zone) brings its own benefits.

Types of Premises

The Kingdom’s free zones, economic zones and development zones each offer different types of business premises, from offices and retail offerings, to warehouses and factories for industrial and manufacturing companies.

In Amman city, serviced offices can be found in a number of areas including the Financial District in Shmeisani and the King Hussein Business Park, for example. Office space in Amman can vary significantly, from JOD 40 per square metre (psm) for a basic unit to upwards of JOD 150 psm for prime commercial space.

For retail and F&B businesses, the country’s many malls offer different customer profiles: Amman’s Galleria Mall is a family-oriented, mid-range shopping centre, while Kaza Marka offers outlet stores and Taj Mall houses luxury boutiques and plenty of dining options.

Types of Business

The type of business and its license may have geographical restrictions. For instance, manufacturing companies producing chemicals (e.g. fertiliser, plastic, paint, soap, detergent, perfumes and toiletries) need to be located no less than 5Km away from certain buildings including schools, food factories, hospitals and places of worship; and the distance between the factory and the zone’s border should be no more than 5Km. For more information about which business types have geographical restrictions, see the Jordan Investment Commission Licensing Manual (‘Sectoral Cards’ section):

Free, Development and Economic Zones

Jordan is home to a variety of different zones, industrial estates, economic areas and development zones. Each of these offers their own benefits to investors, both local and international. For instance, many of the zones offer 100% foreign ownership and tax incentives, and benefit from different employment regulations. Tailored infrastructures, constructed to meet the demands of the zone’s companies, are also a prominent feature. With the Jordanian government’s focus on increasing investment, investors are finding fewer issues with regard to infrastructure.

Establishing a business in a free zone also (often) comes hand-in-hand with the benefit of operating within a cluster economy: where companies operating in the same sector aggregate in business clusters.

Advantages include economies of scale and increased innovation, particularly for tech start-ups, which often benefit from having similar businesses close by to exchange ideas.

Free Zones

Jordan’s six public free zones lie outside of the jurisdiction of Jordan Customs, and provide a duty and tax-free environment for the storage of goods transiting Jordan. Other benefits of free zones include 100 percent foreign ownership, even in restricted sectors; no customs duties on imported products used in the company’s operations; and favourable real estate rates.

A total of six public free zones are currently in operation, run and managed by the Jordan Free and Development Zones (JFDZ) group under the purview of the Jordan Investment Commission (JIC):

  • Zarqa
  • Queen Alia International Airport
  • Sahab
  • Al Muwaqqar
  • Al Karak
  • Al Karama
It is also possible to establish and run a private free zone, under the same definitions and conditions as public free zones. There are currently 37 private free zones in operation in Jordan, supervised, managed and invested in by private sector entities. The JIC needs to approve the establishment of private free zones, with the recommendation of the JFDZ Board of Directors.

For more information, log on to the JFDZ website:

Special Economic Zones

Jordanian special economic zones offer tax benefits and easier incorporation requirements, plus other incentives and exemptions. They are ideal for manufacturing companies exporting products abroad, with low rentals and proximity to cities, transport hubs and coastal areas. However, companies wanting to conduct business outside of special economic zones will require an onshore agent. The zones’ special benefits will not apply to outside operations.

Economic zones include the Aqaba Special Economic Zone, run by its own Authority (ASEZA) www.aseza.jo independently of the JIC, and the King Hussein Business Park. www.businesspark.jo.com

Development Zones

Jordan has a number of development zones, located within the country’s main Governorates. These Development Zones are also home to Industrial Estates:

  • King Hussein Bin Talal Development Zone in Mafraq
  • Ma’an Development Zone
  • Irbid Development Zone
  • Dead Sea Development Zone and Jabal Ajloun Development Zone – which are run by the JFDZ under the purview of the JIC:
Development zones offer a number of incentives and exemptions, including a flat five percent corporate income tax rate; exemption from sales tax, customs duties, social services and dividends tax; and 100 percent foreign ownership.

Industrial Estates

Jordan is also home to a number of industrial estates, many of which are Qualifying Industrial Zones (QIZ), run by the Jordan Industrial Estates Company (JIEC) under the purview of the Jordan Investment Commission (JIC). Benefits are similar to those found in its free zones, including: no export/income taxes or social services taxes and no customs duties. They are located within various Development Zones and Governorates:

  • Amman (within the Amman Business Park Development Zone)
  • Al Hassan Industrial Estate (QIZ), in the Irbid Governorate
  •  Al Hussein Industrial Estate, in Karak, near the Dead Sea Development Zone
  • Aqaba Industrial Estate
  • Al Muwaqqar Industrial Estate, Amman Governorate
  • Abdullah II Industrial Estate (QIZ), Sahab, Amman Governorate
  • Zarqa Industrial Estate
  • Al Mafraq Industrial Estate
  • Ma’an Industrial Estate
There are also several privately-run industrial parks: Al Mushatta (Amman), Al Tajamouat (QIZ, Amman), Al Dulayl (QIZ, near Zarqa), Cyber City (QIZ, in Irbid) .jo , Al Qastal Industrial Zone (Amman), Jordan Gateway Park (QIZ) , and Al Hallabat  .

In addition, the JIEC has more industrial estates planned:

  • Madaba Industrial Estate
  • Al Salt Industrial Estate
  • Jerash Industrial Estate
  • Tafila Industrial Estate
For more information on current and forthcoming Industrial Estates, go to: http://www.jiec.com   

Onshore Companies

While free, economic and development zones offer significant investment incentives, there are some restrictions, including the inability to trade onshore (or not within a zone). The main benefit of choosing an onshore location is therefore the ability to trade onshore. Disadvantages include higher capital requirements, higher corporate tax and, for investment in sectors party to restrictions, the need for a Jordanian partner.

Top Tips for Choosing a Business Location

1.       Defining your Business.

The first step to take when deciding where to locate your business, is define what kind of business it is and who your customers are. Refer to your Marketing Plan, which should cover who your customers are/will be and where they will be found.

  • Are you retail, B2C or B2B?
  •  Who are your customers – are they all online or do you rely on passing trade?
Answering these questions to start with, will help you determine where your customers are geographically, and so what location is best for your company – or indeed whether geographical location is a determining factor.

2.       Check out the competition.

Finding out where your competitors are based may well help you decide whether you also need to be based in that location, or whether offering your products/services elsewhere will be more beneficial. Jordan has established numerous special economic zones and free zones, which often also operate as cluster economies. Cluster economies (or business clusters) refers to physical, geographic areas in which companies operating in the same sector are located. These can hold a number of benefits for companies, including an increase in productivity and both national and global competition.

3.       Look at Site Specifics & Infrastructure.

It’s also important to look at the history of the site. For example, what companies have been located there before? Have companies working in the same sector as you failed before or been successful? If you’re in the retail business, for example, and seven shops have failed in that location before, you may want to reconsider the site. Other questions to ask yourself are: is the infrastructure suitable, sound and relevant to my business? And what does the site’s location say about your business? If you’re a luxury clothes brand, for example, you may not want to locate yourself in the middle of a busy, polluted, automotive industrial park. Will you need to make frequent trips to the bank? If so, look for areas with nearby facilities conducive to your business.

4.       Check Your Company Type.

Jordan’s free zones and special economic zones provide cost-effective ways of setting up and running your company, often offering various incentives. However, there are usually also restrictions on the type of business licenses you can apply for in various areas. Before setting your sights on a specific location, check that your business sector is catered to.

5.       Don’t Forget about your Employees and Suppliers.

Customers are of course vitally important. But keeping your employees and suppliers in mind is particularly important if you’ve already built up a great, effective team, and a reliable, fruitful supply chain. Locating your business in an area that’s convenient for your customers, but not for your employees and suppliers, could work against you. Where will your employees eat their lunch, for example? Will the business need to be located near local facilities? Also consider parking and public transport for both your suppliers and staff.

Checklist

  • What kind of business are you? Who are your customers and where can they be found?
  • Where are your competitors based? Are they successful in that location?
  • Has the site proved successful for companies in your sector in the past? Is the infrastructure suitable?
  • What business license do you need, and does your preferred location cater to this?
  • Will the location be suitable and easy for your employees and suppliers?
Jordan’s Zones

Jordan is home to a number of free zones, development zones, economic zones and industrial estates, some of which date back to 1973. Development areas, zones and free zones are regulated by the Jordan Investment Commission (JIC), Industrial Estates by the Jordan Industrial Estates Company (JIEC) and the Aqaba Special Economic Zone is self-regulated by its own designated Authority.

  • Development Areas and Zones (JIC)
    •  King Hussein Business Park
    •  King Hussein Bin Talal Development Area
    • Irbid Development Area
    • Ma’an Development Area
    •  Dead Sea Development Zone
    • Jabal Aljoun Development Zone
  • Aqaba Special Economic Zone (ASEZA)
  • Industrial Estates (JIEC)
  • Free Zones (JIC)
Free Zones

The Jordan Free and Development Zones (JFDZ) group was established in 2010 to operate and manage six public free zones, namely: Zarqa, Queen Alia Airport, Sahab, Muwaqqar, Karak and Karama free zones. It has since merged to form the Jordan Investment Commission (JIC).

Zarqa Free Zone

The Zarqa Free Zone is 100% operational and is a hub for the new and used automotive trade. Its exports’ values in the first five months of 2017 totalled JOD 850 million – making it the most profitable of the public free zones.

Facilities

  • 520 Hectares
  • Situated 35Km north east of Amman, connecting Jordan with neighbouring countries
  • 70 factories/plants licensed industrial companies
  • 175+ warehouses
Benefits

  • No customs duties
  • 30-year leases
  • Industrial projects are exempt from 10% of land fees annually
  • Free capital transference
  • 100% foreign ownership
Industries/Licenses

  •  Industrial
  • Commercial
  • Services
  • Tourism
Queen Alia International Airport Free Zone

The Queen Alia International Airport Free Zone was opened in 1989, to store import and export goods. It has since expanded and in the first five months of 2017 its exports amounted to JOD 116 million.

Facilities

  • 120,000 square metres
  •  Warehouses
 Benefits

  • No customs duties
  • 30-year leases
  • Ability to establish corporate-owned Private Free Zones
  • Industrial projects are exempt from 10% of land fees annually
  • Free capital transference
  • 100% foreign ownership
Industries/Licenses

  • Commercial: duty free shops/goods storage
  • Transit trade services: handling and air support services; aircraft maintenance and repair services; aircraft manufacturing; catering
  • Serves low-pollution & high-tech sectors: light industries, pharmaceuticals, electronics, storage, etc.
  • Tourism
Sahab Free Zone

The Sahab Free Zone was set up in 1997 and lies 25Km south east of the capital Amman, within the King Abdullah II Industrial City. It is 100% developed and its exports in the first five months of 2017 were JOD 35 million.

Facilities

  • 63,000 square metres
  • The Sahab Industrial Estate is located within the Free Zone
Benefits

  • No customs duties
  • 30-year leases
  • Industrial projects are exempt from 10% of land fees annually
  • Free capital transference
  • 100% foreign ownership
Industries/Licenses

  • Industrial
  • Commercial
  • Services
  •  Tourism
Al Karak Free Zone

The Al Karak Free Zone is located within the Al Hussein Bin Abdullah II Industrial Estate, 100Km south of the capital Amman.

Facilities

  • 138,000 square metres
Benefits

  • No customs duties
  • 30-year leases
  •  Industrial projects are exempt from 10% of land fees annually
  • Free capital transference
  • 100% foreign ownership
Industries/Licenses

  •  Industrial
Al Karama Free Zone

The Al Karama Free Zone was set up in 2004 and is in the Al Mafraq Governorate, 360Km east of the capital Amman, on the Jordan-Iraq border.

Facilities

  • 200 Hectares – public free zone
  • 800 Hectares – private free zone area
  • Warehouses
Benefits

  • No customs duties
  • 30-year leases
  • Industrial projects are exempt from 10% of land fees annually
  • Free capital transference
  • 100% foreign ownership
Industries/Licenses

  • Industrial
  • Commercial
  • Services
  • Tourism
Al Muwaqqar Free Zone

Established in 2011, the Al Muwaqqar Free Zone is located 12Km east of AL Muwaqqar town and was set up to cater to increased trade at the Sahab Free Zone, which could not expand due to a lack of adjacent land. It exported JOD 2.5 million-worth of goods in the first five months of 2017.

Facilities

  • 250 Hectares
Industries/Licenses:

  • Electronics, medical, food and beverage, electrical, engineering, wood and cardboard, textiles, chemicals, metals.
Contact:

The Jordan Investment Commission

Economic Zones

Aqaba Special Economic Zone (ASEZ)

The ASEZ was launched in 2001 stretching across 27Km of the Jordan coastline, the country’s sea ports, Aqaba city and an international airport. The private sector-driven Zone is due for completion in 2020.

Facilities

  • South Industrial Zone – the entire southern part of the ASEZ has been designated an industrial estate (the Southern Industrial Zone or SIZ).
  • Fertiliser Chemical Cluster – the South Zone comprises a large fertiliser company cluster, worth USD1 billion.
  • Port
  • Airport
  • Land available for development
Benefits

  • Flat 5% income tax on net profit
  • Exemption from annual land and building taxes
  • Exemption from taxes on distributed dividends and profits
  • Duty-free import of goods in commercial quantities from the National Customs Territory and overseas
  • No foreign equity restrictions on investments
  • No foreign currency restrictions
  • 100% repatriation of profits and capital
  • 100% foreign ownership
  • Foreign labour forces of up to 70% are permitted
Industries/Licenses

  • Tourism
  • Services
  • Heavy industry
  • Commercial
  • Logistics/warehousing
  • Transportation
    Education
  • Health/environment
  • Light industry
 Contact:
Aqaba Special Economic Zone Authority (ASEZA)
Tel: +962 3 209 1000
Fax: +962 3 2030912
E: Info@aseza.jo
www.aqabazone.com

King Hussein Business Park (KHBP)

Located in the capital Amman, the KHBP comprises offices and leisure facilities and has the potential to develop the healthcare, ICT, media, education and security sectors. More than 40 international and local companies plus in excess of 25 start-ups are located in the Park, which employs over 3,600 people.

Facilities

  • 120,000 square metres
  • Offices
  • Support buildings
  • Sports complex
  • Parking
  • Data recovery centre
  • Internal courtyard (4,300 square metres)
  • Service plots
Contact:

King Hussein Business Park
Tel: +962 6 580 5400
Fax: +962 6 580 5428
E: info@businesspark-jo.com
invest@businesspark-jo.com
www.businesspark.jo.com

Development Areas/Zones

Ma’an Development Area

The Ma’an Development Area located in the south of Jordan. The development houses a skills development centre, residential community, industrial park (see industrial estates listing) and a Hajj Oasis (20 Hectares). The project has been on-going since 2008.

Industries/Licenses

  • Manufacturing: building and construction materials
  • Renewable energy
  • Mineral manufacturing
  • Education
King Hussein Bin Talal Development Area

The KHBTDA is located in Mafraq, 60Km north east of the capital Amman. The project was formulated in 2008 and is on-going.

Industries/Licenses

  • Industrial
  • Transport and logistics
  • Distribution
  • Light industry: food and beverages; pharmaceutical and medical supplies; chemicals
Irbid Development Area

The Irbid Development Area is located in the north of Jordan on a plot 3,200 metres squared, 20Km east of Irbid City and 80Km north of the capital Amman.

Industries/Licenses

  • Services (ICT)
  • Healthcare
  • Research and Development
  • Commercial (residential and mixed use)
Dead Sea Development Zone

This zone focuses on the tourism and hospitality sector. It stretches for 40Km on the shores of the east and north coasts of the Dead Sea; and benefits from a highway link to Amman. Investments in existing and incomplete projects totalled JOD 3 billion in H1 2017; with JOD 630 million attributed to projects under development.

Industries/Licenses

  • Tourism
  • Hospitality
Jabal Ajloun Development Zone

This Zone includes a number of towns, 45Km from Amman and sitting at an altitude of 1,239 metres above sea level.

Industries/Licenses

  • Tourism/Eco-tourism
  • Hospitality
  • Retail/services
  • Real estate
Industrial Estates

Benefits:

  • Cost-effective land & buildings
  • Reasonable utility rates
  • The availability of roads and infrastructures
  • Ancillary services
  • One Stop Service Shop
  • Exempt from income and social services tax
  • Exempt from buildings & land tax
  • Exemptions or reductions on most municipality fees
Al Hassan Industrial Estate

Location: Irbid, 80Km north of Amman
Size: 120 Hectares

Al Hussein Bin Abdullah II Industrial Estate (HUIE)
Location:
Al Karak Governorate, 110Km south of Amman
Size: 186.6 Hectares

Abdullah II Ibn Al-Hussein Industrial Estate (AIE)
Location:
12Km south of Amman
Size: 253 Hectares

Aqaba International Industrial Estate (AIIE, under construction. It has QIZ status)
Location:
Within Aqaba Special Economic Zone (ASEZ)
Size: 275 Hectares

Ma’an Industrial Estate (MIE)
Location:
7Km from Ma’an city centre/100Km north of Aqaba Port, within the Ma’an Development Area
Size: 250 Hectares

Al Mafraq Industrial Estate
Location:
Within the King Hussein Bin Talal Development Area (KHBTDA), 60Km north-east of Amman.
Size: 180 Hectares

Al Muwaqqar Industrial Estate
Location:
12Km east of Al Muwaqqar town
Size: 250 Hectares

Contact:
Jordan Industrial Estates Company
PO Box 17, Amman 11512, Jordan
Tel: +962 6 40 22 101
Fax: +962 6 40 21 194
info@jiec.com.jo
www.jiec.com

The Jordan Investment Commission
www.jic.gov.jo 

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