RIYADH: Jordan’s foreign reserves rose by 18.45 percent year on year in March, reaching $20.02 billion—enough to cover 8.5 months of the country’s imports of goods and services, according to official data.
Released by the Central Bank of Jordan, the data “reflects the country’s stable external financial position,” the Jordan News Agency reported.
This aligns with S&P Global’s decision in September to upgrade Jordan’s long-term foreign and local currency ratings to “B+” from “BB-.” The agency also reaffirmed its “B” short-term ratings and raised its transfer and convertibility assessment from “BB” to “BB+.”
S&P noted at the time that Jordan’s structural economic improvements are expected to remain resilient, despite regional pressures.
The agency also indicated at the time that Jordan is well-positioned to leverage international support and has sufficient domestic policy buffers to mitigate impacts from regional conflicts on tourism and the broader economy.
Tariff items exemptions
Up to 91 percent of tariff items enjoy full or partial exemptions under Jordan’s policy of promoting investment and supporting production, according to the Customs Department Director General.
In his remarks to the Jordan News Agency, Ahmed Akalik explained that the exemptions cover various items under international agreements, local decisions, or investment incentives, with the largest waivers to raw materials.
He highlighted that just 9 percent of items are subject to duties between 0 and 25 percent, depending on the commodity type, and that domestic exports are completely duty-free.
Akalik went on to note that the department processed over 950,000 customs declarations in 2024, underscoring the need for new strategies to improve efficiency and transparency, in alignment with King Abdullah’s vision to enhance government performance and empower the private sector.
Arab Fund plans $750m for Jordan
The Arab Fund for Economic and Social Development plans to allocate approximately $750 million to Jordanian projects in the coming years, leveraging partnerships with international and regional institutions such as the World Bank and the European Investment Bank.
A major focus will be the National Water Carrier project, designed to transport desalinated water from Aqaba to Amman, tackling significant water shortages.
The fund will prioritize sustainable energy initiatives such as solar and wind power to address Jordan’s increasing energy needs.
Plans also include investments in education and healthcare infrastructure, such as building new schools and developing hospitals.
AFESD plans to promote regional economic integration, establishing Jordan as a key hub in the energy, healthcare, and education industries. The strategy will emphasize job creation, youth empowerment, and gender equality.
