Investment Legislation
Regulation on Non‑Jordanian Investments (2016) — Repealed
The 2016 Regulation on Non‑Jordanian Investments set out rules for foreign ownership and participation in economic activities, including sectoral exceptions and procedural obligations. The regulation was repealed by the Investment Environment Regulation of 2023; consequently, current texts and amendments must be verified.
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Investment Legislation
Updated: 12 March 2023
Editorial summary linked to the identified external source; it is not the original source text.
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The 2016 Regulation on Non‑Jordanian Investments set out rules for foreign ownership and participation in economic activities, including sectoral exceptions and procedural obligations. The regulation was repealed by the Investment Environment Regulation of 2023; consequently, current texts and amendments must be verified.
Key points
- Scope and Current Legal Status
- General Rule and Sectoral Limits (Articles 3–5)
- Registration and Compliance for Foreign Companies with Jordanian Ownership (Articles 6–7)
Useful for: Useful for initial reading and identifying questions that may need legal review.
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Scope and Current Legal Status
The 2016 regulation governed foreign ownership and participation in Jordanian economic projects, specifying permitted activities, prohibitions and registration procedures. Note that the regulation was repealed by the 2023 Investment Environment Regulation, so the currently applicable legal framework and implementing rules must be checked before relying on the 2016 text.
General Rule and Sectoral Limits (Articles 3–5)
The regulation established a general presumption allowing non‑Jordanians to hold any percentage in projects unless restricted for public security, health, or by other statutes, while setting explicit exceptions. It listed activities where foreign shareholding is limited to below 50% (e.g., retail, certain services and transport) and activities fully or partly prohibited to non‑Jordanians (e.g., stone quarries/saws, private security, arms trade, bakeries and certain trades later specified by the Authority).
Registration and Compliance for Foreign Companies with Jordanian Ownership (Articles 6–7)
The regulation allowed a foreign company registered abroad to register a Jordanian company where Jordanians hold at least 50% of capital, subject to exceptions (e.g., public joint‑stock companies and prohibited activities). It imposed procedural duties: notify the Companies Controller of changes within 30 days, submit an annual certified certificate proving continued Jordanian ownership, and regularize ownership if the Jordanian stake falls below 50% within a six‑month period (extendable on justified request).
Exceptions, Administrative Powers, and International Agreements (Articles 8–11) and Amendments
The Council of Ministers, upon recommendation of the Investment Authority’s president, could permit higher ownership percentages or add permitted purposes in specific cases (e.g., projects outside the capital or of special economic importance). The regulation did not apply to investments licensed before its effective date, and international investment protection agreements were to be observed. Two amendments were noted: a 2020 amendment adding travel agencies/tour operations, and a 2019 amendment revising the general ownership provision (Article 3).
Legal notice
Notice: This summary is for general educational purposes and is based on published sources linked on the original post. It does not replace review of the current official texts or consultation with a licensed Jordanian lawyer to verify laws, amendments and effective dates before taking any action.
Frequently asked questions
Scope and Current Legal Status?
The 2016 regulation governed foreign ownership and participation in Jordanian economic projects, specifying permitted activities, prohibitions and registration procedures. Note that the regulation was repealed by the 2023 Investment Environment Regulation, so the currently applicable legal framework and implementing rules must be checked before relying on the 2016 text.
General Rule and Sectoral Limits (Articles 3–5)?
The regulation established a general presumption allowing non‑Jordanians to hold any percentage in projects unless restricted for public security, health, or by other statutes, while setting explicit exceptions. It listed activities where foreign shareholding is limited to below 50% (e.g., retail, certain services and transport) and activities fully or partly prohibited to non‑Jordanians (e.g., stone quarries/saws, private security, arms trade, bakeries and certain trades later specified by the Authority).
Registration and Compliance for Foreign Companies with Jordanian Ownership (Articles 6–7)?
The regulation allowed a foreign company registered abroad to register a Jordanian company where Jordanians hold at least 50% of capital, subject to exceptions (e.g., public joint‑stock companies and prohibited activities). It imposed procedural duties: notify the Companies Controller of changes within 30 days, submit an annual certified certificate proving continued Jordanian ownership, and regularize ownership if the Jordanian stake falls below 50% within a six‑month period (extendable on justified request).
Sources and references
Verify the official text and latest amendments before relying on this material professionally.
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