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Economy of Jordan[1]
1 Jordanian Dinar
Currency	Jordanian dinar (JOD)
Fiscal year	Calendar Year
Trade organisations	WTO
Statistics
GDP	$31.01 billion (2008 est.)
GDP growth	8.31% (2008 est.)
GDP per capita	$5,000 (2008 est.)
GDP by sector	agriculture (3.6%), industry (10.1%), services (86.3%) (2008 est.)
Inflation (CPI)	15.5% (2008 est.)
Population below poverty line	12.5% (2001 est.)
Gini coefficient	38.8 (2003)
Labour force	1.615 million (2008 est.)
Labour force by occupation	Agriculture (3.6%), Industry (10.1%), Services (77.4%) (2008 est.)
Unemployment	13.5% (2007 est.)
Main industries	Clothing, Phosphate Mining, Fertilizers, Pharmaceuticals, Petroleum Refining, Cement, Potash, Inorganic Chemicals, Light Manufacturing, Tourism
Ease of Doing Business Rank	96th[2]
External
Exports	$6.521 billion f.o.b. (2008 est.)
Export goods	Clothing, Pharmaceuticals, Potash, Phosphates, Fertilizers, Vegetables
Main export partners	United States 22.4%, Iraq 12.9%, India 8.3%, United Arab Emirates 7.8%, Saudi Arabia 7.5%, Syria 4.9% (2007)
Imports	$15.65 billion f.o.b. (2008 est.)
Import goods	Crude Oil, Textile Fabrics, Machinery, Transport Equipment, Manufactured Goods
Main import partners	Saudi Arabia 21%, China 9.7%, Germany 7.5%, United States 4.7%, Egypt 4.4% (2007)
Public finances
Public debt	$6.597 billion (31 December 2008 est.)
Revenues	$5.783 billion (2008 est.)
Expenses	$7.623 billion (2008 est.)
Credit rating	Standard & Poor's:[3] BB+ (Domestic) BB (Foreign) BBB- (T&C Assessment) Outlook: Negative[4] Moody's:[4] Ba2 Outlook: Negative
Foreign reserves	US$13.280 billion (February 2011)[5]
All values, unless otherwise stated, are in US dollars

Part of a series on
Jordan
Geography
Climate  · Governorates  · Nahias Cities  · The Mediterranean Dead Sea  · Red Sea  · River Jordan Nature reserves  · Extreme points
History  · Timeline
Pre-modern history
Ammon  · Moab  · Edom Nabataeans  · Ghassanids Islamic Empire  · Oultrejordain Greater Syria  · Ottoman Empire
Hashemite rule
Hashemites  · Arab Revolt Sykes-Picot  · Transjordan memo. British Mandate  · Emirate of Transjordan Kura Rebellion  · Adwan Rebellion  · Ikhwan raids 1948 War  · 1967 War  · Black September Israel–Jordan Treaty of Peace  · 2011 protests
Economy
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The economy of Jordan is robust and growing. Its GDP per capita soared by 351% in the 1970s, and after only a slight decline of 30% in the 1980s, grew once again by 36% in the 1990s.^[6] Jordan is classified as an emerging market. After King Abdullah II's accession to the throne in 1999, liberal economic policies were introduced that resulted in a boom lasting for a decade, continuing through 2009. It is now one of the freest and most competitive economies in the Middle East scoring higher than the United Arab Emirates and Lebanon.^{[citation needed]} Jordan has a developed banking sector that attracts investors due to conservative bank policies that enabled the country to weather the global financial crisis of 2009. It is emerging as the "business capital of the Levant" and "the next Beirut". Jordan's economy has been growing at an annual rate of 7% for a decade.

Jordan has more free trade agreements than any other Arab country.^{[citation needed]} Jordan has FTA's with the United States, Canada, Singapore, Malaysia, the European Union, Tunisia, Algeria, Libya, Algeria, Turkey^[7] and Syria. More FTA's are planned with Iraq, the Palestinian Authority, the GCC, Lebanon, and Pakistan. Jordan is a member of the Greater Arab Free Trade Agreement, the Euro-Mediterranean free trade agreement, the Agadir Agreement, and also enjoys advanced status with the EU.^[8]

Jordan can point to its strong leadership from the royal family and the government as well as its highly skilled workforce as the major catalysts for this great economic growth. Increased investment and exports are the main sources of Jordan's growth. Continued close integration into the GCC markets will reap vast economic rewards for the Kingdom in the coming years.

Jordan is an emerging knowledge economy. Education reform, continued privatization and economic liberalization, and economic restructuring are ensuring the path to a knowledge-based economy.

The main obstacles to Jordan's economy is scarce water supplies, complete reliance on oil imports for energy, and regional instability. Just over 10% of its land is arable, and even that is subject to the vagaries of a limited water supply. Rainfall is low and highly variable, and much of Jordan's available ground water is not renewable. Jordan's economic resource base centers on phosphates, potash, and their fertilizer derivatives; tourism; overseas remittances; and foreign aid. These are its principal sources of hard currency earnings. Lacking coal reserves, hydroelectric power, large tracts of forest or commercially viable oil deposits, Jordan relies on natural gas for 10% of its domestic energy needs. Jordan used to depend on Iraq for oil until the Iraq invasion in 2003 by the United States.

Rapid privatization of previously state-controlled industries and liberalization of the economy is spurring unprecedented growth in Jordan's urban centers like Amman and especially Aqaba. Jordan has six special economic zones that attract significant amount of investment amounting in the billions: Aqaba, Mafraq, Ma'an, Ajloun, the Dead Sea, and Irbid. Jordan also has a plethora of industrial zones producing goods in the textile, aerospace, defense, ICT, pharmaceutical, and cosmetic sectors.

Jordan is pinning its hopes on tourism, future uranium and oil shale exports, trade, and ICT for future economic growth.

Exchange Rates[link]

This is a chart of trend of gross domestic product of Jordan at market prices estimated by the International Monetary Fund with figures in millions of Jordanian Dinars.

For purchasing power parity comparisons, the Jordanian Dinar is exchanged per US dollar at 0.359.

Jordan's population is 6,342,948^[9] and mean wages were $4.19 per manhour in 2009.

Economic Overview[link]

Jordan was overwhelming an agrarian nation at the time of its independence in 1946. Following Jordan's annexation of the West Bank, Jordan experienced rapid economic growth due to a near doubling of arable land and a substantial increase in total water supplies as a result of the annexation. However, economic growth would continue up until Jordan's rapid defeat in the Six Day War where Israel annexed the West Bank sending hundreds of thousands of Jordanian citizens back across the border into Jordan proper. This loss of newly gained territory caused massive resource shortages and, ultimately, was essential in the development of social strife which culminated in the Black September civil war. Following the civil war, Jordan returned to prosperity that lasted up until the late 1980s. Economic growth during this period was caused by the oil boom in the Persian Gulf. The sizable Jordanian expatriate community in the Gulf then reinvested in their home country in the form of real estate and luxury goods. However, this growth was unsustainable and the newly affluent lifestyle was being sustained by high oil prices. In Queen Noor's Leap of Faith, she explained how instead of affluent Jordanians investing in the country's infrastructure, they were spending their money on expensive real estate and importing luxury goods from Europe. This new affluent lifestyle would be hard to sustain with the end of the oil boom and the emergence of the Persian Gulf Crisis. Over 300,000 Jordanians and Palestinians were expelled from Kuwait to Jordan due to Jordan's support for the Iraq causing high inflation and shortages. Furthermore, Jordan's favorable trade relations with Iraq had ended and years of heavily discounted and even free oil ceased. Foreign aid from the United States and the Persian Gulf slowed down significantly. Thus began Jordan's decade of economic contraction. Since 1987, Jordan has struggled with a substantial debt burden and rising unemployment. In 1989, efforts to increase revenues by raising prices of certain commodities and utilities triggered riots in the south. The mood of political discontent that swept the country in the wake of the riots helped set the stage for Jordan's moves toward democratization.

Jordan suffered adverse economic consequences from the 1990-91 Gulf War. While tourist trade plummeted, the Gulf states' decision to limit economic ties with Jordan deprived it of worker remittances, traditional export markets, a secure supply of oil, and substantial foreign aid revenues. UN sanctions against Iraq—Jordan's largest pre-war trading partner—caused further hardships, including higher shipping costs due to inspections of cargo shipments entering the Gulf of Aqaba. Finally, absorbing up to 300,000 returnees from the Gulf countries exacerbated unemployment and strained the government's ability to provide essential services.

When King Abdullah II ascended to the throne in 1999, he embarked on an aggressive economic reform plan which aimed to turn Jordan into a the regional hub for ICT and tourism. In 2001, Jordan became a member of the World Trade Organization as a result of significant free market reforms. The 2003 Iraq War sent 750 thousand mostly affluent Iraqis into Jordan attracted by the kingdom's free market policies and political stability. The Iraq War accelerated the economic boom Jordan was experiencing since King Abdullah II's ascension to the throne. Amman was transformed into a regional business center and one of the region's most desirable investment locations. The tourism, real estate, and ICT sectors emerged during this period as Jordan's most competitive sectors. With hundreds of thousands of Jordanians abroad seeking property in their home country and regional investors seeking safe investments, Jordan's real estate sector became one of the region's most dynamic.

King Abdullah has repeatedly emphasised that Jordan has a bright future and that it compares favourably with much of the region on key social and economic indicators. Even though inflation pushed its way up to the 13% mark in the first half of 2008, the shocks to the system are far less than in neighbouring Egypt where inflation crept up to around 23%. Jordan’s economy has come under some pressure in 2007 and perhaps more so in 2008, primarily from global increases in oil and food prices that have affected the government budget and the current account balance. While Jordan is facing enormous economic pressures, it is managing to sustain good levels of GDP growth and foreign investment. There are a number of sectors that have performed well in 2007, including minerals, pharmaceuticals and tourism. Light industry has to face stronger competition and rising energy costs. For the construction materials sector, Chinese goods benefiting from low labour costs and Gulf products capitalising on low energy costs could make life difficult for many local producers of light industrial goods. However, Jordan’s free trade agreements, investment incentives and low transport costs for shipping to major markets are still drawing producers to the country. Steel and cement producers are not expected to face the same challenges as light industry and cement production is due to rise, with two additional plants under construction and likely to provide further export income.

The government is also pushing ahead with the establishment of economic zones to attract new industry and services to less developed areas of the country where problems of unemployment and poverty are particularly acute. Gulf economic growth should ensure more job opportunities for Jordanians in the Gulf and help to support living standards for many Jordanian families. However, its domestic developments will be the key to improving conditions. The government will push ahead with major projects such as the housing initiative, the economic zones, and attracting knowledge-intensive investments that require high-skilled labour and vocational programmes in the hope of creating more jobs and helping to counteract the impact of higher living costs, while at the same time hoping that global developments do not make its job even harder.[1]

Jordan's economic growth slowed in 2009 as a result of the global financial crisis. In 2010, growth picked up in all major economic sectors as the Jordanian government announced a slew of incentives aimed at attracting foreign investment such as tax breaks and the establishment of new free zones.

Industries[link]

Agriculture, forestry, and fishing[link]

Despite increases in production, the agriculture sector’s share of the economy has declined steadily to just 2.4 percent of gross domestic product by 2004. About 4 percent of Jordan’s labor force worked in the agricultural sector in 2002. The most profitable segment of Jordan’s agriculture is fruit and vegetable production (including tomatoes, cucumbers, citrus fruit, and bananas) in the Jordan Valley. The rest of crop production, especially cereal production, remains volatile because of the lack of consistent rainfall. Fishing and forestry are negligible in terms of the overall domestic economy. The fishing industry is evenly divided between live capture and aquaculture; the live weight catch totaled just over 1,000 metric tons in 2002. The forestry industry is even smaller in economic terms; approximately 240,000 total cubic meters of roundwood were removed in 2002, the vast majority for fuelwood.^[10]

Mining and minerals[link]

Potash and phosphates are among the country’s main economic exports. In 2003 approximately 2 million tons of potash salt production translated into US$192 million in export earnings, making it the second most lucrative exported good. Potash production totaled 1.9 million tons in 2004 and 1.8 million tons in 2005. In 2004 approximately 6.75 million tons of phosphate rock production generated US$135 million in export earnings, placing it fourth on Jordan’s principal export list. With production totaling 6.4 million tons in 2005, Jordan was the world’s third largest producer of raw phosphates. In addition to these two major minerals, smaller quantities of unrefined salt, copper ore, gypsum, manganese ore, and the mineral precursors to the production of ceramics (glass sand, clays, and feldspar) are also mined.^[10]

Industry and manufacturing[link]

A recycling project situated a few km outside Amman. The men who work there are usually Egyptian immigrants who work for a few hundred pounds a month in a dangerous working environment, full of toxic fumes where they are required to carry out hard manual tasks.

The industrial sector, which includes mining, manufacturing, construction, and power, accounted for approximately 26 percent of gross domestic product in 2004 (including manufacturing, 16.2 percent; construction, 4.6 percent; and mining, 3.1 percent). More than 21 percent of the country’s labor force was reported to be employed in this sector in 2002. The main industrial products are potash, phosphates, pharmaceuticals, cement, clothes, and fertilizers. The most promising segment of this sector is construction. In the past several years, demand has increased rapidly for housing and offices of foreign enterprises based in Jordan to better access the Iraqi market. The manufacturing sector has grown as well (to nearly 20 percent of GDP by 2005), in large part as a result of the United States–Jordan Free Trade Agreement (ratified in 2001 by the U.S. Senate); the agreement has led to the establishment of approximately 13 Qualifying Industrial Zones (QIZs) throughout the country. The QIZs, which provide duty-free access to the U.S. market, produce mostly light industrial products, especially ready-made garments. By 2004 the QIZs accounted for nearly US$1.1 billion in exports according to the Jordanian government.^[10]

Jordan’s free trade agreement (FTA) with the US – the first in the Arab world – has already made the US one of Jordan’s most significant markets. By 2010 it will have barrier-free export access in almost all sectors. A number of trade agreements with countries in the Middle Eastern and North African regions and beyond should also reap increasing benefits, not in the least the Agadir Agreement, which is seen as a precursor to an FTA with the EU. Jordan also recently signed an FTA with Canada. Furthermore, Jordan’s plethora of industrial zones offering tax incentives, low utility costs and improved infrastructure links are helping incubate new developments. The relatively high skills level is also a key factor in promoting investment and stimulating the economy, particularly in value-added sectors. Despite the fact that Jordan has few natural resources it does benefit from abundant reserves of potash and phosphates, which are widely used in the production of fertilisers. Exports by these industries are expected to have a combined worth of $1bn in 2008. Other important industries include pharmaceuticals, which exported around $435m in 2007 and $260m in the first half of 2008 alone, as well as textiles, which were worth $1.19bn in 2007. Although the value of Jordan’s industrial sector is high, the kingdom faces a number of challenges. Because the country is dependent on importing raw materials, it is vulnerable to price volatility. Shortages in water and power also make consistent development difficult. Despite these challenges, Jordan’s economic openness and long-standing fertiliser and pharmaceutical industries should continue to provide a solid source of foreign currency.[2]

Jordan has a plethora of industrial zones and special economic zones aimed at increasing exports and making Jordan an industrial giant. The Mafraq SEZ is focused on industry and logistics hoping to become the regional logistics hub with air, road, and rail links to neighboring countries and eventually Europe and the Persian Gulf. The Ma'an SEZ is primaril industrial focusing on satisfying domestic demand and reducing reliance on imports. With a national rail system under construction, Jordan expects trade to grow significantly and Jordan will mostly become the trade hub of the Levant and even the Middle East region as a whole due to its geography.

Telecoms and IT[link]

Telecommunications is a billion-dollar industry with estimates showing that core markets of fixed-line, mobile and data service generate annual revenue of around JD836.5m ($1.18bn) per year, which is equivalent to 13.5% of GDP. Jordan's IT sector is the most developed and competitive in the region due to the 2001 telecom liberalization. Market share of the mobile sector, the most competitive telecoms market, is currently fairly evenly divided between the three operators, with Zain, owned by MTC Kuwait, maintaining the largest share (39%), followed by France Telecom’s brand Orange (36%) and Umniah (25%), which is 96% owned by Bahrain’s Batelco. End of year figures for 2007 show that the market trend is towards greater parity, with Zain’s share falling in the space of a year from 47% in 2006 and the other two operators picking up subscribers. The increased competition has led to pricing that is more favourable to consumers. Mobile penetration is currently around 80%. Ambitious subsequent national strategies were formulated already since Y 2000 as a private sector initiative directly led by his majesty the king of Jordan. Information technology association in Jordan ( int@j ) was established to kick off a private sector process that would focus on preparing Jordan for the new economy through IT and shall reflect the national objectives towards automation and modernization in co-operation with the ministry of information technology in Jordan the ( MOICT ). The latest strategy will take the sector through to 2011, aims to bring Jordan to precise objectives. The ICT sector currently accounts for over a 14 % ( indirect ) of the kingdom’s GDP. This figure includes foreign investment and total domestic revenue from the sector . Employment growth in the sector was progressive and reached up to 60.000 ( indirect ) by 2008. The government is working to address employment issues and education related to sector by developing ICT training and opportunities to increase the overall penetration of ICT in Jordanian society. The policy outlines a number of objectives for the country to reach within the next three years, including almost doubling the size of the sector to $3bn, and pushing internet user penetration up to 50%. The early founder of Int@j and its first chairman of the board is Karim Kuwar and early activists who drove the national strategic objectives and helped formulate an action plan through the developing pillars were Marwan Juma Jordan's minister of ICT, Doha Abdelkhaleq on labour and education. Humam Mufti on advocacy and Nashat Masri on Capital and finance amongst others. [3]

Energy[link]

See also: Energy in Jordan, Nuclear energy in Jordan, Oil shale in Jordan

Energy remains perhaps the biggest challenge for continued growth for Jordan’s economy. Spurred by the surge in the price of oil to more than $145 a barrel at its peak, the Jordanian government has responded with an ambitious plan for the sector. The country’s lack of domestic resources is being addressed via a $14bn investment programme in the sector. The programme aims to reduce reliance on imported products from the current level of 96%, with renewables meeting 10% of energy demand by 2020 and nuclear energy meeting 60% of energy needs by 2035. The government also announced in 2007 that it would scale back subsidies in several areas, including energy, where there have historically been regressive subsidies for fuel and electricity. In another new step, the government is opening up the sector to competition, and intends to offer all the planned new energy projects to international tender. [4]

Unlike most of its neighbors, Jordan has no significant petroleum resources of its own and is heavily dependent on oil imports to fulfill its domestic energy needs. In 2002 proved oil reserves totaled only 445,000 barrels (70,700 m³). Jordan produced only 40 barrels per day (6.4 m³/d) in 2004 but consumed an estimated 103,000 barrels per day (16,400 m³/d). According to U.S. government figures, oil imports had reached about 100,000 barrels per day (16,000 m³/d) in 2004. The Iraq invasion of 2003 disrupted Jordan’s primary oil supply route from its eastern neighbor, which under Saddam Hussein had provided the kingdom with highly discounted crude oil via overland truck routes. Since late 2003, an alternative supply route by tanker through the Al Aqabah port has been established; Saudi Arabia is now Jordan’s primary source of imported oil; Kuwait and the United Arab Emirates (UAE) are secondary sources. Although not so heavily discounted as Iraqi crude oil, supplies from Saudi Arabia and the UAE are subsidized to some extent.^[10]

In the face of continued high oil costs, interest has increased in the possibility of exploiting Jordan's vast oil shale resources, which are estimated to total approximately 40 billion tons, 4 billion tons of which are believed to be recoverable. Jordan's oil shale resources could produce 28 billion barrels (4.5 km³) of oil, enabling production of about 100,000 barrels per day (16,000 m³/d). The oil shale in Jordan has the fourth largest in the world which currently, there are several companies who are negotiating with the Jordanian government about exploiting the oil shale like Royal Dutch Shell, Petrobras and Eesti Energia.

Natural gas is increasingly being used to fulfill the country’s domestic energy needs, especially with regard to electricity generation. Jordan was estimated to have only modest natural gas reserves (about 6 billion cubic meters in 2002), but new estimates suggest a much higher total. In 2003 the country produced and consumed an estimated 390 million cubic meters of natural gas. The primary source is located in the eastern portion of the country at the Risha gas field. The country imports the bulk of its natural gas via the recently completed Arab Gas Pipeline that stretches from the Al Arish terminal in Egypt underwater to Al Aqabah and then to northern Jordan, where it links to two major power stations. This Egypt–Jordan pipeline supplies Jordan with approximately 1 billion cubic meters of natural gas per year.^[10]

The state-owned National Electric Power Company (NEPCO) produces most of Jordan’s electricity (94%). Since mid-2000, privatization efforts have been undertaken to increase independent power generation facilities; a Belgian firm was set to begin operations at a new power plant near Amman with an estimated capacity of 450 megawatts. Power plants at Az Zarqa (400 megawatts) and Al Aqabah (650 MW) are Jordan's other primary electricity providers. As a whole, the country consumed nearly 8 billion kilowatt-hours of electricity in 2003 while producing only 7.5 billion kWh of electricity. Electricity production in 2004 rose to 8.7 billion kWh, but production must continue to increase in order to meet demand, which the government estimates will continue to grow by about 5% per year. About 99 percent of the population is reported to have access to electricity.^[10]

Transport[link]

The transportation sector on average contributes some 10% to Jordan’s GDP, with transportation and communications accounting for $2.14bn in 2007. Well aware of the sector’s importance to the country’s service and industry-oriented economy, in 2008 the government formulated a new national transport strategy with the aim to improve, modernise and further privatise the sector. With no imminent solution to the ongoing security crisis in Iraq in sight, prospects for the Jordanian transport sector as a whole look bright. The country will arguably remain one of the major transit points for both goods and people destined for Iraq, while the number of tourists visiting Jordan is set to continue to increase. The main events to follow in the near future are the relocation of Aqaba’s main port, a national railway system, and the construction of a new terminal at QAIA. Volatility in fuel prices is almost certainly going to have negative effects on operational costs and as such may hamper the sector’s average annual growth of around 6%. However, uncertain fuel prices also offer a great deal of incentive to boost private investments in alternative modes of transport such as public buses and improved trains.[5]

Media and Advertising[link]

Although the state remains a major influence, Jordan’s media sector has seen significant privatisation and liberalisation efforts in recent years. Based on official rack rates, research firm Ipsos estimated that the advertisement sector spent some $280m towards publicity in Jordan’s media, 80% of which was spent on newspapers, followed by TV, radio and magazines. The biggest event of 2007 was the cancelled launch of ATV, the kingdom’s first private broadcaster. As a result, the state-owned Jordan TV (JTV) remains the country’s sole broadcaster. In recent years, Jordan has also seen a spectacular rise in the number of blogs, websites and news portals as sources of news information. The increasing diversification of Jordan’s media is a good sign and should boost advertising revenues and private initiatives.

Recording growth of 30%, 2007 turned out to be yet another outstanding year for Jordan’s advertising industry. Following nearly a decade of double-digit growth, however, most publicity specialists expect to see a relative slowdown in 2008. Unlike 2007, no major campaigns were planned for the first part of 2008. Additionally, the Jordanian advertising had some catching up to do with the rest of the region in terms of average expenditure per capita. As the sector matures, it is only normal for growth figures to gradually decrease. Since 2000 total ad spend increased from $77m to $280m in 2007, an increase of 260%. The Jordanian telecoms sector was the biggest ad spender in 2007, accounting for around 20% of the market, followed by banking and finance sector (12%), services industry (11%), real estate (8%) and the automotive sector (5%). In the next year, particularly if there is a downturn, it will become increasingly important for the sector to develop good vocational training and to begin to take advantage of new media markets.[6]

Services and tourism[link]

Services accounted for more than 70 percent of gross domestic product (GDP) in 2004. The sector employed nearly 75 percent of the labor force in 2002.^[10]

Arab Bank headquarters in Amman

The banking sector is widely regarded as advanced by both regional and international terms. Overall results for Jordan’s banking sector in 2007 were good, with the total profits of the 15 listed banks up 14.89% to JD640m ($909m). Jordan’s strong growth of 6% in 2007 was reflected in a 20.57% expansion in net credit to JD17.9bn ($25.4bn) by the end of the year. Trade, construction and industry saw most improvement. Many banks suffered from the sharp correction in the Amman Stock Market in 2006, encouraging them to focus on core banking business in 2007, and this was reflected in a 16.65% rise in net interest and commission income to JD1.32bn ($1.87bn). They were fortunate, however, that the stock market also picked up in 2007 and total portfolio income losses decreased. Also, although Jordan’s banking sector is small by global standards, it has attracted strong interest from regional investors in Lebanon and the GCC. New regulations introduced by the CBJ, in addition to historical political stability, have helped to create a favourable investment environment. High demand for low-income housing, as well as infrastructure improvement, should mean a positive outlook for Jordan’s banking sector. Its conservative policies helped Jordan avoid the global financial crisis of 2009, Jordanian banks was one of the only countries that posted a profit in 2009.[7]

Contributing an estimated JD477.5m ($678.05m), or 4.25% of Jordan’s GDP, according to figures from the Central Bank, the construction sector performed strongly in 2007 and is set to continue to do so going forward, despite rising fuel and materials costs. While the construction of high-end properties will come to a relative slowdown, the sector’s main growth will be recorded in the low- and middle-class market segments. In 2007 the Great Amman Municipality (GAM) completed its master plan for the capital, which is expected to grow from 700 km² today to 1700 km² by 2025. Amman is to change from a predominantly horizontal to a largely vertical city, as the urban blueprint allows for the construction of various clusters of high-rises. Other significant developments outside Amman include the rapid residential build-up of Zarqa, the ongoing transformation of Aqaba into a commercial and tourist centre, and the construction of a series of high-end hotels and tourist resorts along the Dead Sea. Finally, in terms of infrastructure, a new airport terminal, the Amman ring road, as well as a light rail between the capital and Zarqa are being constructed.

Despite recording a relative slowdown compared to the expansion of recent years, Jordan’s construction and real estate market continued to grow in 2007. Trading totaled JD5.6bn ($8bn), up from JD5.2bn ($7.4bn) in 2006, according to Jordan’s Land and Survey Department. Although the years of astounding growth—some 75% in 2004 and 48% in 2005—seem to have passed, the future looks bright for real estate, as demand continues to outstrip supply, while Jordan remains a very attractive investment destination for foreign businesses, second-home buyers and Jordanians working abroad. With Jordan’s continuing sharp population growth, as well as its strategic location at the heart of the Middle East, the kingdom’s main market drivers indicate a bright future for years to come. Although a number of class-A office space developments are currently under construction, it will take a few years to close the gap between demand and supply. The Amman retail market may become more saturated in the short term. Consequently, developers may turn to other cities to build supermarkets and malls.

Jordan’s insurance market, with 29 companies operating in a country of just 5.7m people, is saturated, despite regulatory encouragements for mergers and acquisitions. In terms of market share based on premiums, motor coverage accounts for 42.4%, medical insurance 18.6%, fire and property damage 17%, life 9.8%, marine and transport 7.9% and other insurance the remaining 4.3%. The insurance sector made up 2.52% of GDP in 2006, up from 2.43% in 2005. Current plans call for increasing the sector’s GDP contribution to 7% in the short term and 10% in the long term. The sector holds great potential but remains underdeveloped. Region-wide price increases and a lack of consumer understanding of products are two major challenges. In addition, cultural considerations, including religion, make improving market penetration difficult. The cost of living has also risen, and the IMF forecasts that the inflation rate will reach 9% in 2008. Salaries have remained unchanged, however, leaving consumers with less disposable income. Other than mandatory motor coverage, insurance products are considered a luxury by average Jordanians, who must often prioritise spending. There will likely only be a few changes to the market in the coming year. Members of the sector would like to see greater coordination among the regulators and those working for the kingdom’s legal system in order to improve insurance laws.[8]

The state of the tourism sector is widely regarded as below potential, especially given the country’s rich history, ancient ruins, Mediterranean climate, and diverse geography. Despite personal appeals by the king and an increasingly sophisticated marketing campaign, the industry is still adversely affected by the political instability of the region. More than 5 million visitors entered Jordan in 2004, generating US$1.3 billion in earnings. Earnings from tourism rose to US$1.4 billion in 2005. The fact that the bulk of Jordan’s tourist trade emanates from elsewhere in the Middle East should contribute to the industry’s growth potential in the years ahead, as Jordan is relatively stable, open, and safe in comparison to many of its neighbors.^[10] The tourism sector remains an important element of the Jordanian economy, directly employing some 30,000 Jordanians and contributing 10% to the kingdom’s GDP. Despite a decline in Arab and Gulf visitors, 2007 marked a year of steady growth for the tourism sector. Revenues jumped 13% to nearly $2.11bn during the first 11 months, up from $1.86bn for the same period in 2006. The sector is overseen by the government’s National Tourism Strategy (NTS), which was established in 2004 to take the industry through 2010. NTS aimed to double tourism revenues during the period and to increase tourism-related jobs to 91,719. The first goal has already been met but the second one might be more of a challenge: between 2004 and 2007 the total number of people employed in the sector rose from 23,544 to 35,484. This is impressive growth, but less than half the 90,000-or-more goal. NTS hopes to place Jordan as a boutique destination for high-end tourists. The strategy identifies seven priorities or niche markets: cultural heritage (archaeology); religious; ecotourism; health and wellness; adventure; meetings, incentives, conventions and exhibitions (MICE); and cruises. The Jordan Tourism Board’s (JTB) marketing budget has increased in the past year from JD6m ($8.52m) to JD11.5m ($16.3m). These are positive times for tourism in Jordan, with steady growth and major projects in the pipeline. The sector has to make improvements of infrastructure and marketing, but overall the industry has been improving for the past several years.[9]

External trade[link]

Jordanian exports in 2006

Since 1995, economic growth has been low. Real GDP has grown at only about 1.5% annually, while the official unemployment has hovered at 14% (unofficial estimates are double this number). The budget deficit and public debt have remained high and continue to widen, yet during this period inflation has remained low due mainly to stable monetary policy and the continued peg to the United States Dollar. Exports of manufactured goods have risen at an annual rate of 9%. Monetary stability has been reinforced, even when tensions were renewed in the region during 1998, and during the illness and ultimate death of King Hussein in 1999.

Expectations of increased trade and tourism as a consequence of Jordan's peace treaty with Israel have been disappointing though not unexpected. Security-related restrictions to trade with the West Bank and the Gaza Strip have led to a substantial decline in Jordan's exports there. Following his ascension, King Abdullah improved relations with Arabic states of the Persian Gulf and Syria, but this brought few real economic benefits. Most recently the Jordanians have focused on WTO membership and a Free Trade Agreement with the U.S. as means to encourage export-led growth.

Investment[link]

Jordan's economy has skyrocketed for almost a decade since King Abdullah II instituted liberal economic reforms with billions invested in Jordan every year from the Persian Gulf, Europe, and America. The main centers of investment are Amman, Aqaba, and the Dead Sea. Significant foreign capital is also invested in Jordan's industrial zones and SEZs.

The stock market capitalisation of listed companies in Jordan was valued at $37.639 billion in 2005 by the World Bank.[10]

The Jordan Investment Board is responsible for support for investors.

Salaries[link]

According to the 2010 Middle East Salary Survey conducted by Bayt.com, Jordanians earn more than their counterparts in other Arab countries with the exception of the oil-rich Gulf:^[11]

27% of Jordanian workers earn less than $6000 annually

28% earn between $6000 and $12,000 annually

21% earn between $12,000 and $24,000 annually

10% earn between $24,000 and $36,000 annually

6% earn between $36,000 and $60,000 annually

2% earn between $60,000 and $96,000 annually

2% earn more than $96,000 annually

Around 97 percent of Jordanians have more than one source of income, according to the Department of Statistics.^[12]

Aqaba[link]

Though a town of only 100,000 people, Aqaba is setting an example of how to attract investment. In a decade, domestic and foreign investment into the Aqaba region has increased dramatically and the town’s population is set to double over the next 10 years. Certainly, the town benefits from some natural advantages. Located at the southern tip of the country, between Saudi Arabia and Israel on the shores of the Red Sea, the city is close to the Suez Canal, with easy access to key trade centres in both the Middle East and Africa. Aqaba is also the kingdom’s only deep-water port town, taking up most of Jordan’s scant 27 km (17 mi) of coastline. The Aqaba Special Economic Zone (ASEZ) has been responsible for most of this development since it opened in 2001.

It covers 375 km² and offers a basket of tax and tariff incentives, as well as full repatriation rights and more flexible operating regulations. There is a 5% flat tax on most economic activities, no tariffs on imported goods, no currency restrictions and no property taxes for corporate land. Additionally – and somewhat controversially, given Jordan’s past issues with unemployment – companies based in ASEZ are allowed to employ up to 70% foreign workers in their operations. Jordan’s investment profile has been growing nationally, but according to the Jordan Investment Board (JIB), the ASEZ has exceeded investment targets by 33%. By 2006 it had already brought in around $8bn in investment, some $2bn more than the original target of $6bn by 2020. ASEZ expects to attract a further $12bn spread across a number of sectors, including tourism, finance and industry. The Development Law of 2008 set in place a universal framework for special development areas based on the Aqaba model.[11]

See also[link]

• Jordan Investment Board
• Qualifying Industrial Zone

References[link]

Notes[link]

Bibliography[link]

External links[link]

• Jordan Economic Development at the Open Directory Project

Hashemite Kingdom of Jordan اَلمَمْلَكَة اَلأُرْدُنِيَّة اَلهَاشِمِيَّة Al-Mamlakah Al-Urdaniyyah Al-Hashimiyyah
Flag Coat of arms
Motto: Arabic: الله، الوطن، الملك Transliteration: Allah, Al-Watan, Al-Malek Translation: "God, Country, The King"
Anthem: عاش الملك   The Royal Anthem of Jordan   ("As-salam al-malaki al-urdoni")1 Long Live the King
Capital		Amman 31°57′N 35°56′E / 31.95°N 35.933°E / 31.95; 35.933
Official language(s)		Arabic[1]
Spoken languages		English, French, Circassian (Adyghe&Kabardey) Chechen, Armenian Persian, Kurdish, Turkish
Ethnic groups		Arab 98% Circassian 1% Armenian 1%
Demonym		Jordanian
Government		Constitutional monarchy[2]
-	King	Abdullah II
-	Prime Minister	Fayez al-Tarawneh
Legislature		Parliament
-	Upper house	Senate
-	Lower house	Chamber of Deputies
Independence
-	End of British League of Nations mandate	25 May 1946
Area
-	Total	89,342 km2 (112th) 35,637 sq mi
-	Water (%)	0.8
Population
-	July 2011 estimate	6,508,271[3] (106th)
-	July 2004 census	5,611,202
-	Density	68.4/km2 (133st) 138.8/sq mi
GDP (PPP)		2011 estimate
-	Total	$36.893 billion[4] (98th)
-	Per capita	$5,899[4] (108th)
GDP (nominal)		2011 estimate
-	Total	$29.233 billion[4] (90th)
-	Per capita	$4,674[4] (96th)
Gini (2002–03)		38.8 (medium)
HDI (2011)		0.698[5] (medium) (95th)
Currency		Jordanian dinar (JOD)
Time zone		UTC+2 (UTC+2)
-	Summer (DST)	UTC+3 (UTC+3)
Drives on the		Right
ISO 3166 code		JO
Internet TLD		.jo, الاردن.
Calling code		962
1	Also serves as the Royal anthem.

Jordan ( /ˈdʒɔr.dən/;^[6] Arabic: اَلأُرْدُنّ, Al-'Urdunn), officially the Hashemite Kingdom of Jordan (Arabic: اَلمَمْلَكَة اَلأُرْدُنِيَّة اَلهَاشِمِيَّة), Al-Mamlakah Al-Urdaniyyah Al-Hashimiyyah) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing control of the Dead Sea with the latter. Jordan's only port is at its south-western tip, at the Gulf of Aqaba, which is shared with Israel, Egypt, and Saudi Arabia. Over half of Jordan is covered by the Arabian Desert. However, the western part of Jordan is arable land and forests. Jordan is part of the Fertile Crescent. The capital city is Amman. According to the CIA World Factbook, Jordan has the second highest life expectancy in the Middle East, after Israel. The average life expectancy is one position behind the United Kingdom, although the age remains exactly the same (80.05 years).^[7]

The precursor to modern Jordan was founded in 1921 as the Hashemite Emirate, and it was recognized by the League of Nations as a state under the British mandate in 1922 known as The Emirate of Transjordan. In 1946, Jordan became an independent sovereign state officially known as the Hashemite Kingdom of Transjordan. After capturing the West Bank area of Cisjordan during the 1948–49 war with Israel, Abdullah I took the title King of Jordan and Palestine, and he officially changed the country's name to the Hashemite Kingdom of Jordan in April 1949.

Modern Jordan is classified as a country of "medium human development"^[8] by the 2011 Human Development Report, and an emerging market with a free market economy by the CIA World Fact Book. Jordan has an "upper middle income" economy.^[9] Free Trade Agreement (FTA) with the United States went into effect in December, 2001 phased out duties on nearly all goods and services between the two countries. Jordan has also enjoyed "advanced status" with the European Union since December 2010^[10] as well as being a member of the Euro-Mediterranean free trade area. Jordan has more Free Trade Agreements than any other country in the region. It has close relations with the United States and the United Kingdom, and became a major non-NATO ally of the United States in 1996. Jordan is a founding member of the Arab League,^[11] and the Organisation of Islamic Cooperation (OIC). Jordan was invited to Join the Gulf Cooperation Council (GCC). Jordan was the first Arab and Middle Eastern state to join the International Criminal Court. The Jordanian Government is one of three members of the 22 Arab League states to maintain diplomatic relations with Israel, the others being the Egyptian and Palestinian governments.^[12][13]

Part of a series on
Jordan
Geography
Climate  · Governorates  · Nahias Cities  · The Mediterranean Dead Sea  · Red Sea  · River Jordan Nature reserves  · Extreme points
History  · Timeline
Pre-modern history
Ammon  · Moab  · Edom Nabataeans  · Ghassanids Islamic Empire  · Oultrejordain Greater Syria  · Ottoman Empire
Hashemite rule
Hashemites  · Arab Revolt Sykes-Picot  · Transjordan memo. British Mandate  · Emirate of Transjordan Kura Rebellion  · Adwan Rebellion  · Ikhwan raids 1948 War  · 1967 War  · Black September Israel–Jordan Treaty of Peace  · 2011 protests
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Constitution  · Kings Prime Ministers  · Cabinet Parliament  · Political parties  · Elections Law enforcement  · Central Bank Foreign affairs  · Human rights
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Etymology[link]

The kingdom is named after the River Jordan. The name "Jordan" derives from ancient Semitic and has the following meaning from Canaanite root Arda, and eventually Hebrew Yorad (יורד) and Aramaic Yarden (ירדן) meaning "down-flowing" or "one who descends" in the root Yrd (ירד). This refers to the Jordan river, that down flows to the Dead sea. In Arabic the term Al-Urdunn (الأردن) is meaning "Steep/Slope" from the root Ard/Yrd (يرد/أرد ).

Geography[link]

Jordan lies between latitudes 29° and 34° N, and longitudes 35° and 40° E (a small area lies west of 35°). It consists of an arid plateau in the east, irrigated by oasis and seasonal water streams, with highland area in the west of arable land and Mediterranean evergreen forestry.

The Roman Oval Piazza in the ancient city of Jerash

The Jordan Rift Valley of the Jordan River separates Jordan from the West Bank and Israel. The highest point in the country is Jabal Umm al Dami, at 1,854 m (6,083 ft) above sea level, its top is also covered with snow, while the lowest is the Dead Sea −420 m (−1,378 ft). Jordan is part of a region considered to be "the cradle of civilization", the Levant region of the Fertile Crescent. Major cities include the capital Amman and as-Salt in the west, Irbid, Jerash and Zarqa, in the northwest and Madaba, Karak and Aqaba in the southwest. Major towns in the eastern part of the of the country are the oasis town of Azraq and Ruwaished.

Climate[link]

The climate in Jordan is semi-dry in summer with average temperature in the mid 30 °C (86 °F) (mid 90°F) and relatively cold in winter averaging around 13 °C (55 °F). The western part of the country receives greater precipitation during the winter season from November to March and snowfall in Amman (756 m (2,480 ft) ~ 1,280 m (4,199 ft) above sea-level) and Western Heights of 500 m (1,640 ft). Excluding the rift valley the rest of the country is entirely above 300 m (984 ft)(SL).^[14] The weather is humid from November to March and semi dry for the rest of the year. With hot, dry summers and cool winters during which practically all of the precipitation occurs, the country has a Mediterranean-style climate. In general, the farther inland from the Mediterranean a given part of the country lies, the greater are the seasonal contrasts in temperature and the less rainfall.

Atmospheric pressures during the summer months are relatively uniform, whereas the winter months bring a succession of marked low pressure areas and accompanying cold fronts. These cyclonic disturbances generally move eastward from over the Mediterranean Sea several times a month and result in sporadic precipitation.

Most of the land receives less than 620 mm (24.4 in) of rain a year and may be classified as a semi dry region. Where the ground rises to form the highlands east of the Jordan Valley, precipitation increases to around 300 mm (11.8 in) in the south and 500 mm (19.7 in) or more in the north. The Jordan Valley, forms a narrow climatic zone that annually receives up to 900 mm (35.4 in) of rain in the northern reaches; rain dwindles to less than 120 mm (4.7 in) at the head of the Dead Sea.

The country's long summer reaches a peak during August. January is usually the coldest month. The fairly wide ranges of temperature during a twenty-four-hour period are greatest during the summer months and have a tendency to increase with higher elevation. Daytime temperatures during the summer months frequently exceed 29 °C (84.2 °F) and average about 32 °C (89.6 °F). September to March are moderately cool and sometimes very cold, averaging about 3.2 °C (37.8 °F). Except in the rift depression, frost is fairly common during the winter, it may take the form of snow at the higher elevations of the north western highlands. Usually it snows a couple of times in the winter.

For a month or so before and after the summer dry season, hot, dry air from the desert, drawn by low pressure, produces strong winds from the south or southeast that sometimes reach gale force. Known in Western Asia by various names, including the khamsin, this dry, sirocco-style wind is usually accompanied by great dust clouds. Its onset is heralded by a hazy sky, a falling barometer, and a drop in relative humidity to about 10%. Within a few hours there may be a 10 °C (18.0 °F) to 15 °C (27.0 °F) rise in temperature. These windstorms ordinarily last a day or so, cause much discomfort, and destroy crops by desiccating them.

The shamal comes from the north or northwest between June and September. Steady during daytime hours but becoming a breeze at night, the shamal may blow for nine days out of ten and then repeat the process. It originates as a dry continental mass of polar air that is warmed as it passes over the Eurasian landmass.

Petra, one of the New Seven Wonders of the World

History of Jordan[link]

Ancient history[link]

In antiquity, the present day Jordan became a home for several ancient kingdoms including: the kingdom of Edom, the kingdom of Moab and the kingdom of Ammon. Throughout different eras of history, parts of the country were laid under the control of some regional powers including Pharaonic Egypt during their wars with the Babylonians and the Hittites; and for discrete periods of times by Israelites. The Mesha Stele recorded the glory of the King of Edom and the victories over the Israelites and other nations. The Ammon and Moab kingdoms are mentioned in ancient maps, Near Eastern documents, ancient Greco-Roman artifacts, and Christian and Jewish religious scriptures.^[15]

Classical period[link]

Due to its strategic location in the middle of the ancient world, Transjordan became to be controlled by the ancient empires of Persians and later the Macedonian Greeks, who became to dominate the region, following the conquests of Alexander the Great. It later fell under the changing influence of the Hellenistic Seleucid Empire from the North and the Parthians from the East.

The Nabatean kingdom was one of the most prominent states in the region through the middle classic period, since the decline of the Seleucid control of the region in 168 BC. The Nabateans were most probably people of Arabian ancestry, who fell under the early influence of the Hellenistic and Parthian cultures, creating a unique civilized society, which roamed the roads of the deserts. They controlled the regional and international trade routes of the ancient world by dominating a large area southwest of the fertile crescent, which included the whole of modern Jordan in addition to the southern part of Syria in the north and the northern part of Arabian Peninsula in the south. The Nabataeans developed the Arabic Script, with their language as an intermediary between Aramaean and the ancient Classical Arabic, which evolved into Modern Arabic.

The Nabateans were largely conquered by the Hasmonean rulers of Judea and many of them forced to convert to Judaism in the late second century BC. However, the Nabataeans managed to maintain a sort of semi-independent kingdom, which covered most parts of modern Jordan and beyond, before it was taken by the Herodians and finally annexed by the still expanding Roman empire in 106 AD. However, apart from Petra, the Romans maintained the prosperity of most of the ancient cities in Transjordan which enjoyed a sort of city-state autonomy under the umbrella of the alliance of the Decapolis. Nabataean civilization left many magnificent archaeological sites at Petra, which is considered one of the New Seven Wonders of the World as well as recognized by the UNESCO as a world Heritage site.

Following the establishment of Roman Empire at Syria, the country was incorporated into the client Judaean Kingdom of Herod, and later the Iudaea Province. With the suppression of Jewish Revolts, the eastern bank of Transjordan was incorporated into the Syria Palaestina province, while the eastern deserts fell under Parthian and later Persian Sassanid control. During the Greco-Roman period, a number of semi-independent city-states also developed in the region of Transjordan under the umbrella of the Decapolis including: Gerasa (Jerash), Philadelphia (Amman), Raphana (Abila), Dion (Capitolias), Gadara (Umm Qays), and Pella (Irbid).

With the decline of the Eastern Roman Empire, Transjordan came to be controlled by the Christian Ghassanid Arab kingdom, which allied with Byzantium. The Byzantine site of Um er-Rasas is a UNESCO World Heritage Site.

Middle Ages[link]

In the seventh century, and due to its proximity to Damascus, Transjordan became a heartland for the Arabic Islamic Empire and therefore secured several centuries of stability and prosperity,^{[citation needed]} which allowed the coining of its current Arabic Islamic identity. Different Caliphates' stages, including the Rashidun Empire, Umayyad Empire and Abbasid Empire controlled the region. Several resources pointed that the Abbasid movement, was started in region of Transjordan before it took over the Umayyad empire. After the decline of the Abbasid, It was ruled by several conflicting powers including the Mongols, the Crusaders, the Ayyubids and the Mamluks until it became part of the Ottoman Empire in 1516.^[16]

The Arabic Islamic Empire has left desert palaces such as Qasr Mshatta, Qasr al Hallabat and Qasr Amra; and the castles of Ajloun and Al Karak which were used in the Crusader, Ayyubid and Mamluk eras.

In the 11th century, Transjordan witnessed a phase of instability, as it became a battlefield for the Crusade wars which ended with defeat by the Ayyubids. Jordan suffered also from the Mongol attacks which were blocked by Mamluks.

Ottoman rule[link]

In 1516, Transjordan became part of the Ottoman Empire and it remained so until 1918, when the Hashemite Army of the Great Arab Revolt took over, and secured the present day Jordan with the help and support of Transjordanian local tribes.

Hashemite domination[link]

Arab Revolt Tribal Cavalry – Tribes of Jordan and Arabia, c. 1918

Adyghe (Circassian) horsemanship in Transjordan, April 1921

During World War I, the Transjordanian tribes fought, along with other tribes of Hijaz and Levant regions, as part of the Arab Army of the Great Arab Revolt. The revolt was launched by Hashemites and led by Sherif Hussein of Mecca against the Ottoman Empire. It was supported by the Allies of World War I. The chronicle of the revolt was written by T. E. Lawrence who, as a young British Army officer, played a liaison role during the revolt. He published the chronicle in London, 1922 under the title "Seven Pillars of Wisdom",^[17] which was the base for the iconic movie "Lawrence of Arabia".

The Great Arab Revolt was successful in liberating most of the territories of Hijaz and the Levant, including the region of east of Jordan. However, it failed to gain international recognition of the region as an independent state, due mainly to the secret Sykes–Picot Agreement of 1916 and the Balfour Declaration of 1917.^{[citation needed]} This was seen by the Hashemites and the Arabs as betrayal of the previous agreements with the British, including the McMahon–Hussein Correspondence in 1915, in which the British stated their willingness to recognize the independence of the Arab state in Hijaz and the Levant. However, a compromise was eventually reached and the Emirate of Transjordan was created under the Hashemites reign.

British mandate on Transjordan[link]

In September 1922 the Council of the League of Nations recognized Transjordan as a state under the British Mandate and Transjordan memorandum excluded the territories east of the River Jordan from all of the provisions of the mandate dealing with Jewish settlement.^[18] The Permanent Court of International Justice and an International Court of Arbitration established by the Council of the League of Nations handed down rulings in 1925 which determined that both a Jewish and an Arab state in the Mandatory regions of Palestine and Transjordan were to be newly created successor states of the Ottoman Empire as defined by international law.^[19] The country remained under British supervision until 1946.

The Hashemite leadership met multiple difficulties upon assuming power in the region. The most serious threats to emir Abdullah's position in Transjordan were repeated Wahhabi incursions from Najd into southern parts of his territory.^[20] The emir was powerless to repel those raids by himself, thus the British maintained a military base, with a small air force, at Marka, close to Amman.^[20] The British military force was the primary obstacle against the Ikhwan, and was also used to help emir Abdullah with the suppression of local rebellions at Kura and later by Sultan Adwan, in 1921 and 1923 respectively.^[20]

Arar (1897-1949) Poet of Jordan

Under King Abdullah I[link]

On May 25, 1946 the United Nations approved the end of the British Mandate and recognized Transjordan as an independent sovereign kingdom. The Parliament of Transjordan proclaimed King Abdullah as the first King. The country's name was later changed from Transjordan to Jordan.

On April 24, 1950, Jordan formally annexed the West Bank and East Jerusalem, an act that was regarded as illegal and void by the Arab League. The move formed part of Jordan’s "Greater Syria Plan" expansionist policy,^[21] and in response, Saudi Arabia, Lebanon and Syria joined Egypt in demanding Jordan’s expulsion from the Arab League.^[22][23] A motion to expel Jordan from the League was prevented by the dissenting votes of Yemen and Iraq.^[21] On June 12, 1950, the Arab League declared the annexation was a temporary, practical measure and that Jordan was holding the territory as a “trustee” pending a future settlement.^[24][25] On July 27, 1953, King Hussein of Jordan announced that East Jerusalem was "the alternative capital of the Hashemite Kingdom" and would form an "integral and inseparable part" of Jordan.^[26]

Abdullah I was assassinated in 1951 by a Palestinian militant Mustafa Ashu, of the jihad al-muqaddas, as he was leaving the al-Aqsa Mosque in Jerusalem. The reason for his murder was allegedly the power rivalry of the al-Husseinis over control of Palestine, which was declared a part of the Hashemite Kingdom by Adbullah I. Though Amin al-Husseini, former mufti of Jerusalem, was not directly charged in the plot, Musa al-Husseini was among the 6 executed by Jordanian authorities, following the assassination.

Under King Hussein[link]

Jordan, which became a founding member of the Arab League in 1945 and gained independence in 1946, joined the United Nations in 1955. In 1957 it terminated the Anglo-Jordan treaty, one year after the king sacked the British personnel serving in the Jordanian Army. This act of Arabization ensured the complete sovereignty of Jordan as a fully independent nation.

Field marshal Habis Al-Majali and former prime minister Wasfi Al-Tal

In May 1967, Jordan signed a military pact with Egypt. In June 1967, it joined Egypt, Syria and Iraq in the Six Day War against Israel, which however ended in an Israeli victory and the capture of the West Bank and East Jerusalem. The period following the war saw an upsurge in the activity and numbers of Arab Palestinian paramilitary elements (fedayeen) within the state of Jordan. These distinct, armed militias were becoming a "state within a state", threatening Jordan's rule of law. King Hussein's armed forces targeted the fedayeen, and open fighting erupted in June 1970. The battle in which Palestinian fighters from various Palestine Liberation Organization (PLO) groups were expelled from Jordan is commonly known as Black September.

The heaviest fighting occurred in northern Jordan and Amman. In the ensuing heavy fighting, a Syrian tank force invaded northern Jordan to back the fedayeen fighters, but subsequently retreated. King Hussein urgently asked the United States and Great Britain to intervene against Syria. Consequently, Israel performed mock air strikes on the Syrian column at the Americans' request. Soon after, Syrian President Nureddin al-Atassi, ordered a hasty retreat from Jordanian soil.^[27][28] By September 22, Arab foreign ministers meeting in Cairo arranged a cease-fire beginning the following day. However, sporadic violence continued until Jordanian forces, led by Habis Al-Majali, with the help of Iraqi forces,^[29] won a decisive victory over the fedayeen on July 1971, expelling them, and ultimately the PLO's Yasser Arafat, from Jordan.

In 1973, allied Arab League forces attacked Israel in the Yom Kippur War, and fighting occurred along the 1967 Jordan River cease-fire line. Jordan sent a brigade to Syria to attack Israeli units on Syrian territory but did not engage Israeli forces from Jordanian territory. At the Rabat summit conference in 1974, Jordan was now in a more secure position to agree, along with the rest of the Arab League, that the PLO was the "sole legitimate representative of the [Arab] Palestinian people", thereby relinquishing to that organization its role as representative of the West Bank.

The Amman Agreement of February 11, 1985, declared that the PLO and Jordan would pursue a proposed confederation between the state of Jordan and a Palestinian state.^[30] In 1988, King Hussein dissolved the Jordanian parliament and renounced Jordanian claims to the West Bank. The PLO assumed responsibility as the Provisional Government of Palestine and an independent state was declared.^[31]

A handshake between Hussein I of Jordan and Yitzhak Rabin, accompanied by Bill Clinton, after signing the Israel-Jordan Treaty of Peace, October 26, 1994

In 1991, Jordan agreed to participate in direct peace negotiations with Israel at the Madrid Conference, sponsored by the US and the Soviet Union. It negotiated an end to hostilities with Israel and signed a declaration to that effect on 25 July 1994. As a result, an Israeli-Jordanian peace treaty was concluded on 26 October 1994. King Hussein was later honored when his picture appeared on an Israeli postage stamp in recognition of the good relations he established with his neighbor. Since the signing of the peace treaty, the United States not only contributes hundreds of millions of dollars in an annual foreign aid stipend to Jordan, but also has allowed it to establish a free trade zone in which to manufacture goods that will enter the US without paying the usual import taxes as long as a percentage of the material used in them is purchased in Israel.

The last major strain in Jordan's relations with Israel occurred in September 1997, when Israeli agents allegedly entered Jordan using Canadian passports and poisoned Khaled Meshal, a senior leader of Hamas. Israel provided an antidote to the poison and released dozens of political prisoners, including Sheikh Ahmed Yassin.

Under King Abdullah II[link]

Abdullah became king on 7 February 1999, upon the death of his father King Hussein. Hussein had recently named him Crown Prince on 24 January, replacing Hussein's brother Hassan, who had served many years in the position. He is the namesake of King Abdullah I, his great grandfather who founded modern Jordan.^[32]

Visiting Washington, D.C. with Queen Rania, 6 March 2007

Jordan's economy has improved greatly since Abdullah ascended to the throne in 1999, and he has been credited with increasing foreign investment, improving public-private partnerships, and providing the foundation for Aqaba's free trade zone and Jordan's flourishing ICT sector. He also set up five other special economic zones: Irbid, Ajloun, Mafraq, Ma'an and the Dead Sea. As a result of these reforms, Jordan's economic growth has doubled to 6% annually under King Abdullah's rule compared to the latter half of the 1990s.^[33] Foreign direct investment from the West as well as the countries of the Persian Gulf has continued to increase.^[34] He also negotiated a free trade agreement with the United States, which was the third free trade agreement for the U.S. and the first with an Arab country.^[35]

In 2005 BBC international published an article titled "Jordan edging towards democracy", where King Abdullah expressed his intentions of making Jordan a democratic country. According to the article, president George W. Bush "urged King Abdullah, a U.S. ally, to take steps towards democracy."^[36] Thus far, however, democratic development has been limited, with the monarchy maintaining most power and its allies dominating parliament. Elections were held in November 2010, and following the Arab Spring 2011, a new prime minister was appointed. In June 2011 the King has announced a move to a British style of Cabinet Government.

Jordan Joins the Arab Spring[link]

Starting in December 2010 with Tunisia, many of the Arab countries started to revolt against their dictators.^[37] Jordan was not an exception and became the sixth country to revolt after Tunisia, Egypt, Algeria, Yemen and Lebanon.^[38] One of the main causes of their first protest on January 28, 2011 was because of their prime minister Samir Rifai and his new tax policies that made the price of food skyrocket. As many as 2,500 protesters took to the streets, many of them members of the Islamic Action Front who are the main opposition to the Jordan government. Many of these protesters are appealing to King Abdullah who has the power to elect his own cabinet and prime minister. He has promised some changes, but it is unlikely that he will go so far as to expel the Prime Minister. Some of this, however, is not the governments fault, as Jordan’s economy continues to suffer with a two billion deficit and 6.1% inflation rate. In addition, unemployment is recorded at 12% and poverty at 25%. Even so, the population has risen up because of the rising taxes that they cannot afford to pay.^[39] Samir Rifai resigned in February 2011 due to pressure from the public, which in turn influenced the king to relieve him. He was succeeded by Marouf al-Bakhit who had already been the Prime Minister from 2005 to 2007 but resigned due to pressure from the public.^[40] This second time as Prime Minister did not last long, and he resigned again in October 2011 because of a parliamentary vote for him to be fired as he was not causing reforms fast enough.^[41] He was succeeded by Awn Khasawneh who was formerly a judge in the international court of Justice. Jordan’s efforts to control the Arab spring are continually deteriorating as Awn Khasawneh also resigned in April 2012 marking the third resignation of a Prime Minister in the last 18 months. The next Prime Minister will be Fayez al-Tarawneh who was in power in 1998. All of these resignations will put pressure on the King to speed up the reforms and respond to the protesters who have been unsatisfied. The protesters claim that the “...the government wants to eat [our] flesh. Raise fuel prices to fill their pockets with millions.” and they will continue to show restlessness until the government responds to their appeals.^[42]

Government[link]

The Hashemite Kingdom of Jordan is a constitutional monarchy with an appointed government. The reigning monarch is the chief executive and the commander-in-chief of the armed forces. The king exercises his executive authority through the prime ministers and the Council of Ministers, or cabinet. The cabinet, meanwhile, is responsible before the democratically elected House of Deputies which, along with the House of Notables (Senate), constitutes the legislative branch of the government. The judicial branch is an independent branch of the government.

King Abdullah II, Jordanian Head of State.

Queen Rania of Jordan

King Abdullah I ruled Jordan after independence from Britain. After the assassination of King Abdullah I in 1951, his son King Talal ruled briefly. King Talal's major accomplishment was the Jordanian constitution. King Talal was removed from the throne in 1952 due to mental illness. At that time his son, Hussein, was too young to rule, and hence a committee ruled over Jordan.

After Hussein reached 18, he ruled Jordan as king from 1953 to 1999, surviving a number of challenges to his rule, drawing on the loyalty of his military, and serving as a symbol of unity and stability in Jordan. King Hussein ended martial law in 1991 and legalized political parties in 1992. In 1989 and 1993, Jordan held free and fair parliamentary elections. Controversial changes in the election law led Islamist parties to boycott the 1997 elections.

King Abdullah II succeeded his father Hussein following the latter's death in February 1999. Abdullah moved quickly to reaffirm Jordan's peace treaty with Israel and its relations with the United States. Abdullah, during the first year in power, refocused the government's agenda on economic reform.

Jordan's continuing structural economic difficulties, burgeoning population, and more open political environment led to the emergence of a variety of political parties. Moving toward greater independence, Jordan's parliament has investigated corruption charges against several regime figures and has become the major forum in which differing political views, including those of political Islamists, are expressed. While the King remains the ultimate authority in Jordan, the parliament plays an important role.

Parliament[link]

The 1952 Constitution provided for the establishment of the bicameral National Assembly of Jordan (‘Majlis al-Umma’). The Parliament consists of two Chambers: The Chamber of Deputies (‘Majlis al-Nuwaab’) and the Senate (‘Majlis al-Aayan’; literally, ‘Assembly of Notables’). The Senate has 60 Senators, all of whom are directly appointed by the King,^[43] while the Chamber of Deputies/House of Representatives has 120 elected members representing 12 constituencies. Of the 120 members of the Lower Chamber, 12 seats are reserved for women, 9 seats are reserved for Christian candidates, 9 seats are reserved for Bedouin candidates, and 3 seats are reserved for Jordanians of Chechen or Circassian descent. The Constitution ensures that the Senate cannot be more than half the size of the Chamber of Deputies.

The constitution does not provide a strong system of checks and balances within which the Jordanian Parliament can assert its role in relationship to the monarch. During the suspension of Parliament between 2001 and 2003, the scope of King Abdullah II's power was demonstrated with the passing of 110 temporary laws. Two of such laws dealt with election law and were seen to reduce the power of Parliament.^[44][45]

Senators have terms of four years and are appointed by the King and can be reappointed. Prospective Senators must be at least forty years old and have held senior positions in either the government or military. Appointed Senators have included former Prime Ministers and Members of the Chamber of Deputies. Deputies are elected to also serve a four year term. Candidates must be older than thirty-five, cannot have blood ties to the King, and must not have any financial interests in government contracts.^[46]

Constitution[link]

Jordan is a constitutional monarchy based on the constitution promulgated on 8 January 1952. Executive authority is vested in the king and his council of ministers. The king signs and executes all laws. His veto power may be overridden by a two-thirds vote of both houses of the National Assembly. He appoints and may dismiss all judges by decree, approves amendments to the constitution, declares war, and commands the armed forces. Cabinet decisions, court judgments, and the national currency are issued in his name. The council of ministers, led by a prime minister, is appointed by the king, who may dismiss other cabinet members at the prime minister's request. The cabinet is accountable to the Chamber of Deputies on matters of general policy and can be forced to resign by a 50% or more of vote of "no confidence" by that body.

The constitution provides for three categories of courts: civil, religious, and special. Administratively, Jordan is divided into twelve governorates, each headed by a governor appointed by the king. They are the sole authorities for all government departments and development projects in their respective areas.

Legal system and legislation[link]

Jordan's legal system is based on French code law system via the Egyptian civil laws while Islamic law is limited to civic status legislation for Muslims. Religious minority civic status is regulated by respective religious courts. Judicial review of legislative acts occurs in a special High Tribunal. It has not accepted International Court of Justice jurisdiction.

Jordan has multi-party politics. There are over 30 political parties in Jordan from extreme left (Jordanian Communist Party) to extreme right (Islamic Action Front). Article 97 of Jordan's constitution guarantees the independence of the judicial branch, clearly stating that judges are 'subject to no authority but that of the law.' While the king must approve the appointment and dismissal of judges, in practice these are supervised by the Higher Judicial Council.

The Jordanian legal system draws upon civil traditions as well as Islamic law and custom. Article 99 of the Constitution divides the courts into three categories: civil, religious and special. The civil courts deal with civil and criminal matters in accordance with the law, and they have jurisdiction over all persons in all matters, civil and criminal, including cases brought against the government. The civil courts include Magistrate Courts, Courts of First Instance, Courts of Appeal, High Administrative Courts and the Supreme Court. The religious courts include shari’a (Islamic law) courts and the tribunals of other religious communities, namely those of the Christian minority. Religious courts have primary and appellate courts and deal only with matters involving personal law such as marriage, divorce, inheritance and child custody. Shari’a courts also have jurisdiction over matters pertaining to the Islamic waqfs. In cases involving parties of different religions, regular courts have jurisdiction.^[47]

Despite traditional male domination, the number of women lawyers has been increasing. As of mid-2006 Jordan had 1,284 female lawyers, out of a total number of 6,915, and 35 female judges from a total of 630.

A female police officer in Amman

Police[link]

Jordan ranked 24th in the world, 4th in the Middle East, in terms of police services' reliability in the Global Competitiveness Report. Jordan also ranked 13th in the world and 3rd in the Middle East in terms of prevention of organized crime, making it one of the safest countries in the world.^[48]

King Abdullah II on a visit to The Pentagon.

Foreign relations[link]

Jordan has followed a pro-Western foreign policy and maintained close relations with the United States and the United Kingdom. These relations were damaged by Jordan's neutrality and maintaining relations with Iraq during the first Gulf War. During the 1970s, King Hussein negotiated with Iran to halt the military buildup to annex the small Persian Gulf nation of Bahrain. In the 1990s, he tried to mediate the conflict between the United States and Iraq and tried to bring an end to hostilities while still condemning the Iraqi annexation of Kuwait. Jordan has historically been at the forefront of negotiating peace between the Israelis and the Palestinians. King Abdullah II is the mediator between Israel and the Arab League's negotiations for peace and normalization of bilateral ties.

Following the Gulf War, Jordan largely restored its relations with Western countries through its participation in the Southwest Asia peace process and enforcement of UN sanctions against Iraq. Relations between Jordan and the Persian Gulf countries improved substantially after King Hussein's death. Following the fall of the Iraqi regime, Jordan has played a pivotal role in supporting the restoration of stability and security to Iraq. The Government of Jordan signed a memorandum of understanding with the Coalition Provisional Authority in Iraq to facilitate the training of up to 30,000 Iraqi police cadets at a Jordanian facility.

Vladimir Putin visiting the Baptism Site Bethany Beyond the Jordan in the Jordan Valley, 2007

Jordan signed a non-belligerency agreement with Israel in Washington, D.C. on 25 July 1994. King Hussein and Yitzhak Rabin negotiated this treaty. Jordan and Israel signed a historic peace treaty on 26 October 1994, witnessed by President Bill Clinton, accompanied by US Secretary, Warren Christopher. The US has participated with Jordan and Israel in trilateral development discussions in which key issues have been water-sharing and security; cooperation on Jordan Rift Valley development; infrastructure projects; and trade, finance, and banking issues.

Jordan and Israel had generally close relations even before the signing of the 1994 Peace Treaty. On more than one occasion, Jordan warned Israel of an impending attack by Syria and Egypt. Also, during the Black September conflict in Jordan, Israel warned Syria that any Syrian intervention on the side of the PLO against the Jordanian monarchy would result in an Israeli attack. Israel and Jordan along with Lebanon were already negotiating a peace treaty as early as the 1950s. However, this friendship has been damaged several times due to the worsening situation in the Palestinian territories and the slow peace process with the Palestinians. In Israel in 2009, several Likud lawmakers proposed a bill that called for a Palestinian state on both sides of the Jordan River, presuming that Jordan should be the alternative homeland for the Palestinians. Later, following similar remarks by the Israeli Speaker of the Knesset, twenty Jordanian lawmakers proposed a bill in the Jordanian Parliament in which the peace treaty between Israel and Jordan would be frozen. The Israeli Foreign Ministry disavowed the original proposal.^[49][50]

The Jordanian General Intelligence Department is reportedly the CIA's closest partner after Britain's MI6. Also, the release classified US cables on Wikileaks proved the depth of US-Jordan relations. Over 4,000 military cables were sent from Amman, the fifth most popular origin of US military cables worldwide, higher than from London or Tel Aviv. Jordan provides extensive strategic and logistic support to US military forces in Iraq and Afghanistan. However, the leaked military cables show that America had kept Jordan's involvement in the War on Terror quiet whether it be its rendition program or Jordan's leading of counterterrorism operations in Afghanistan and Iraq.

Jordan also participates in the multilateral peace talks. Jordan belongs to the UN and several of its specialized and related agencies, including the World Trade Organization (WTO), the International Meteorological Organization (IMO), Food and Agriculture Organization (FAO), International Atomic Energy Agency (IAEA), and the World Health Organization (WHO). Jordan also is a member of the World Bank, International Monetary Fund (IMF), Organisation of Islamic Cooperation (OIC), Nonaligned Movement (NAM), and Arab League.

Military[link]

Six USAF F-16 fighters in Muwaffaq Salti Air Base in Azraq. JAF F-16's can be seen to the right.

Jordanian troops in a military parade in Amman

Jordanian Special Forces

Jordan has a strong defensive army with strong support and aid from the United States, the United Kingdom and France. This is due to its critical position between Israel and the West Bank, Syria, Iraq, and Saudi Arabia with very close proximity to Lebanon and Egypt. The development of the special forces has been particularly significant, enhancing the capability of the forces to react rapidly to threats to state security, as well as training special forces from the region and beyond.^[51][52]

The Royal Special Forces is a unit of the armed forces of Jordan. The Commander was Prince Abdullah (now Abdullah II of Jordan), 1993–1996. In 2007, these forces received training from Blackwater Worldwide.^[53]

The Royal Naval Force is the Naval entity of the Jordanian Armed Forces.

The Royal Jordanian Air Force (RJAF) (Arabic: سلاح الجو الملكي الأردني, transliterated: Silah al-Jaw Almalaki al-Urduni) is the aviation branch of the Jordanian Armed Forces and includes the Royal Jordanian Air Defence.

UN Peacekeeping force[link]

There are about 50,000 Jordanian troops working with the United Nations in peacekeeping missions across the world. These soldiers provide everything from military defense, training of native police, medical help, and charity. Jordan ranks third internationally in taking part in UN peacekeeping missions.^[54]

Jordan has dispatched several field hospitals to conflict zones and areas affected by natural disasters across the world such as Iraq, the West Bank, Lebanon, Afghanistan, Haiti, Indonesia, Congo, Liberia, Ethiopia, Eritrea, Sierra Leone and Pakistan. The Kingdom's field hospitals extended aid to more than one million people in Iraq, some one million in the West Bank and 55,000 in Lebanon. According to the military, there are Jordanian peacekeeping forces in Asia, Africa, Europe and Latin America. Jordanian Armed Forces field hospital in Afghanistan has since 2002 provided assistance to some 750,000 persons and has significantly reduced the suffering of people residing in areas where the hospital operates.In some missions, the number of Jordanian troops was the second largest, the sources said.^[55] Jordan also provides extensive training of security forces in Iraq,^[56] the Palestinian territories,^[57] and the GCC.^[58]

Political parties[link]

Jordan's most executive power is the King and it is a constitutional monarchy with an appointed government. The King traditionally has held substantial power, however the democratically elected Parliament holds significant influence and power in national governance.

The reforms of 1989 legalized political parties and opposition movements. The result is over 30 political parties, but the only political party that plays a role in the legislature is the Islamic Action Front (IAF). Political parties can be seen to represent four sections: Islamists, leftists, Arab nationalists and liberals. Some other political parties in Jordan including the Jordanian Arab Democratic Party, Jordanian Socialist Party, and Muslim Centre Party, but these have little impact on the political process because of lack of organization and clear platforms on key domestic issues as well as differences and factions within these political parties.

Amman

Ar Ramtha

Ajloun

Karak

Aqaba

Azraq

Deir Alla

Irbid

Jerash

Madaba

Mafraq

Ma'an

Ruwaished

Russeifa

Shoubak

Tafilah

Petra

Salt

Wadi Rum

Zarqa

Administrative centers in Jordan