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Reasons To Make Exports and To Invest in Jordan

Jordan is an Arab Muslim country located in the north of the Arabian Peninsula and Western Asia, neighboring Syria in the north, Iraq in the east, Saudi Arabia in the south and southeast, Israel and Palestine (West Bank) in the west. Jordan takes its name from the Jordan River which forms much of the country's northwestern border. The capital, Amman, is Jordan's most populous city as well as the country's economic, political and cultural center.

The diplomatic relations between Turkey and Jordan were established through the signing of the "Treaty of Friendship" on 11 January 1947. Turkish Embassy in Amman has been functioning since April 28, 1947. With over 40 Memorandum of Agreement signed between Jordan and Turkey until today, the legal infrastructure of bilateral relations between the two countries was established. (Turkish Ministry of Foreign Affairs, 2019)

It is beneficial for Turkish exporters to consider that Turkish Airlines has regularly scheduled flights to Aqaba and Amman cities in Jordan.

 

Notable Reasons to Export and Invest in Jordan:

Jordan, which applied customs tax on 3.008 of 8-digit HS Coded products before the FTA signed between Turkey and Jordan on March 1st, 2011, canceled out the customs taxes on 553 products in 2011. As a result, the customs tax-free products have increased to 3.995, and the products subjected to customs duty decreased to 2.454. In 2018, Jordan increased the number of its non-customs products to 5.733, while reducing the number of its customs products to 716.

Upon the notice of termination of Jordan, the Turkey-Jordan Free Trade Agreement (FTA) ended on 22 November 2018 and the preferential trade regime between the two parties had phased out.

However, there are studies towards developing a new Free Trade Agreement between the two countries, that will protect the national industry of the two countries with the contributions of the private sectors, revive the trade, service, agriculture and tourism sectors and increase the mutual trade volume.

Jordan acts as a logistics base both strategically and for the companies that supply the needs of the markets in the region.

Jordan is developing major infrastructure projects, including wind and solar projects, as well as the expansion of Aqaba Port, desalination and water supply investments.

  • Political stability and security of Jordan provide a comparative advantage in the region where it is located.

The bilateral relations between Turkey and Jordan, which both are a Muslim country and have been a member of the Islamic Cooperation Organization since 1969, seem to be advantageous for investment and business development.

According to the TurkStat data, while 406.469 out of 39.488.401 tourists visited Turkey in 2018 were Jordan citizens, 17.634 out of 4 million tourists that visited Jordan in 2017 were Turkish citizens. This figure indicates that Turkey is considered as a country which is worth-to see by Jordan people, however, we can not say the same for Turkish people.

The fact that the Jordanian economy is open to imports provides opportunities for Turkish exporters.

Turkish export products, which have gained prestige in international markets and have competitive power, are attractive for the Jordanian market.

Jordan is located in an ideal position for Turkish companies who want to benefit from the post-war reconstruction of Iraq and Syria to establish new production plants and make investments.

According to World Trade Organization, while Jordan made FTA with 8 countries (Since the one with Turkey has been canceled, there are 7 actual FTAs) Turkey made FTA with 23 countries (Because of the FTA with Syria has been suspended since 2011 and the FTA with Jordan phased out in 2018, there are 21 actual FTAs). Turkish exporters can make exports to the markets in which they have difficulties selling products or to the target countries who made FTA with Jordan such as the USA and Canada by selling products to Jordanian exporters.

Jordan is centrally located in the Middle East, and can strategically serve as an intermediate base for Turkish exporters to access and export to the US and other target market countries which have FTA amongst themselves.

The following table shows some information about Jordan that may be useful for those who want to export from Turkey to Jordan.

 

Working days in Jordan are from Saturday to Thursday for the private sector, and Fridays are a public holiday. The working hours of public enterprises are between 08.00 am to 03.00 pm from Sunday to Thursday. Weekends are Friday and Saturday in Jordan.

Source: Turkish Exporters Assembly – www.tim.org.tr – Jordan Target Market, Country Analysis Report

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