Executive Summary
The Jordanian market continued its expansion in 2007 with a GDP growth estimated at 6%.
Jordan primarily relies on imports, which between 2003 and 2007 rose from JOD 4 billion ($5.7) to JOD 9.5 billion ($13.4) with imports from the US accounting for nearly 15% of all imports. The U.S.-Jordan Free Trade Agreement continues to create advantages for U.S. exporters to provide high-quality products at more attractive prices, as all tariff barriers on virtually all goods traded between the United States and Jordan will be eliminated by 2011.
Multi-billion dollar investments in real estate development, strong tourism receipts, strong export growth to markets such as the U.S., and ongoing strength in service sectors such as medical tourism, keep the economy growing.
Underemployment and poverty remain high, despite a boom in construction, where the use of foreign labor is common. Cost-of-living increases have been caused by the increase in fuel costs, which has had an overall inflationary impact. Increases in housing costs, largely due to a confluence of large-scale real estate projects, and an influx of non-Jordanians, including many Iraqis, has made home ownership more difficult for the middle class.
The main market opportunities can be summarized as follows:
· A continued growth in construction and real estate development that includes a number of projects valued at over $30 billion creates significant market opportunities for US construction product and service providers.
· An expansion of the retail market is underway, creating opportunities in franchising.
· The energy sector, particularly in renewable energy and power generation, municipal gas systems, and oil shale development are also key sectors of growth.
· The medical tourism industry continues to draw in patients from across the region creating opportunities for US medical equipment.
· Upgrades to the logistics system, including the port of Aqaba, new warehousing facilities, and a comprehensive renewal of the trucking fleet also provide opportunities.
· Privatization transactions on the books for the coming years offer interesting investment opportunities.
The Jordanian market, like most markets, is best entered by working closely with a local agent, distributor or partner. The following should be noted, however:
· Complete and direct foreign investment is possible in most, but not all sectors
· Jordanian firms, across multiple sectors, have a high regard for U.S. products for their quality and advanced technology. However, relatively weak representation on the Jordanian market has been cited. Local agents have also commented negatively on their lack of direct access to US suppliers (being required to pass through a regional office).
· U.S. consumer products and brands in the market are well regarded, and there is still much room for the introduction of new U.S. products, services and franchises.
· The perception of distance and delivery time, and lack of familiarity with U.S. products also triggers the need for strong representation by local agents, and active support by the U.S. vendor.
U.S. firms considering the Jordanian market should focus on understanding the specificity of this market as well as the potential for using Jordan as a regional hub for certain types of products or services. Working closely with Jordanian agents, distributors or partners are essential to ensure a competitive position and successful market entry.
In 2007, U.S. exports to Jordan totaled $856 million, while Jordanian exports to the U.S. reached $1,235 million.
Country Commercial Guides can be ordered in hard copy or on diskette from the National Technical Information Service (NTIS) at 1-800-553-NTIS. U.S. exporters seeking general export information and assistance or country-specific commercial information should consult with their nearest Export Assistance Center or the U.S. Department of Commerce's Trade Information Center at (800) USA - Trade, or go to one of the following web sites: http://www.buyusa.gov, http://www.export.gov or http://www.tradeinfo.doc.gov