Jordan Extends Industrial Incentives as Ma’an Package Targets Manufacturing Costs
Jordan is extending incentives for industrial estates in Madaba, Salt and Tafileh for another three years and has approved a broader package for the Al Rawdah Industrial City in Ma’an, as the government seeks to attract manufacturing investment outside the capital and tie public support more closely to production, employment and local value creation.
The measures come as Jordan continues to adjust its investment framework under the Economic Modernisation Vision, with the government seeking to improve the operating environment for investors while directing more economic activity towards the governorates.
Jordan’s Minister of Investment, Dr. Tareq Abu Ghazaleh, said in a Jordan TV interview that the three-year extension is intended to give viable projects that have been delayed by market conditions, regional crises and other challenges more time to complete construction and enter production. Eligibility remains linked to actual project implementation, the employment of Jordanian workers and the creation of industrial value added, according to Petra.
The three industrial estates had attracted 105 companies and more than JD162 million in investment by the end of June, Abu Ghazaleh said, with the minister putting employment generated at more than 3,400 jobs.
A separate statement from the Jordan Industrial Estates Company, however, reported more than 1,640 jobs across the three estates. The differing figures should be read with care, as the two government sources do not explain whether they are using different employment definitions or reporting bases. JIEC said the estates had occupancy rates of 40%, up from 27.5%, while investments were distributed across Madaba, Salt and Tafileh.
Ma’an package focuses on operating costs
The more extensive package is aimed at Al Rawdah Industrial City in Ma’an, where the government is offering incentives covering some of the principal costs facing manufacturers during the early years of operation.
According to the Ministry of Investment, the package provides electricity-cost support for five years. The government will cover 75% of electricity costs during the first two years, 50% during the next two years and 25% in the fifth year.
Companies will also be eligible for support for employing workers from the local area for up to three years, including contributions towards wages, social security payments and transportation costs. For export-oriented manufacturers, the government will subsidise 50% of container-handling costs at Aqaba Port for three years.
Land is another component of the package. Industrial plots covering more than 20 dunums will be priced at JD7.5 per square metre, compared with JD15 previously, subject to a maximum total area of 120 dunums, according to the Ministry of Investment.
For investors, the combination is notable because it addresses several upfront and operating costs at the same time. Energy prices, land expenditure, labour costs and export logistics can have a material effect on the economics of a manufacturing project, particularly during the ramp-up period.
Incentives linked to investment performance
The support is not unconditional. Projects seeking the Al Rawdah incentives must begin operations within the required timeframe, achieve at least 30% local value added and meet minimum employment requirements for residents of the governorate, according to the Ministry of Investment.
The Cabinet has also limited access to the wider industrial-estate incentive programme in Madaba, Tafileh and Salt to up to 15 companies per estate, according to the Jordan Times’ report on the Cabinet decision. The newspaper also reported that the programme will continue to be financed through an existing government grant rather than creating an additional burden on the Treasury.
That performance-based approach is important from an investment-policy perspective. Rather than treating incentives simply as a reduction in project costs, Jordan is linking access to measurable outcomes such as operational start-up, employment and domestic value creation.
Part of wider investment reforms
The industrial measures form part of a broader effort to update Jordan’s investment framework. The Ministry of Investment said the amended Investment Environment Regulation for 2026 was published in the Official Gazette on June 4, with the changes aimed at improving the investment environment, streamlining procedures and supporting investment attraction and job creation.
The government has also been using incentives to encourage investment in governorates rather than concentrating activity in Amman. The Ministry said the Al Rawdah package followed Prime Minister Jaafar Hassan’s visit to Ma’an and subsequent directives concerning the needs of investors and local communities.
For international manufacturers, the policy shift presents an opportunity but also leaves practical questions for due diligence. The value of the incentives will ultimately depend on infrastructure availability, energy reliability, workforce availability, logistics costs and the speed with which projects can move from approvals and construction into commercial production.
Jordan’s government is effectively testing whether targeted incentives can convert industrial land and development zones into productive manufacturing capacity. The performance of the projects receiving support — measured in factories entering production, capital deployed, jobs created and local value generated — will determine whether the strategy succeeds in attracting longer-term industrial investment to the country’s governorates.
