Incentives and exemptions to attract investment in the automotive industry in the Zarqa Development Zone

This direction comes in light of regional competition to attract these high-value industries, and the trend of many companies worldwide to expand in establishing automotive and assembly plants, which requires providing an investment environment and incentives capable of making Jordan a competitive choice for these projects.

The package is based on the principle that the incentive increases as the stages and volume of assembly and manufacturing implemented by the investor within the Kingdom increase. Therefore, complete knock-down (CKD) assembly or manufacturing projects are granted greater incentives than semi-knocked-down (SKD) assembly projects, encouraging broader industrial operations and increasing local value-added. It is stipulated that for complete assembly or manufacturing projects, the investment volume must not be less than $50 million, and for semi-knocked-down (partial) assembly, not less than $20 million, with the employment of at least 50 Jordanian workers in each project, according to Social Security records and maintaining the continuity of their employment.

The package grants complete assembly or manufacturing projects greater support for operating costs; including a 70% support on electricity prices for five years, a 60% reduction in land prices within the Zarqa Development Zone, support for 75% of the container handling cost at the Port of Aqaba, and a 75% discount on the infrastructure cost due to the official entity if the investor undertakes its construction personally.

These projects are also granted a 75% exemption from land registration fees and the real estate sale tax on the property where the economic activity is established.

They are also granted a 100% reduction in the special tax on Jordanian-origin vehicles—whether hybrid, electric, or gasoline-powered—for ten years, alongside other specific exemptions related to registration and customs declarations.

The package encourages complete assembly and manufacturing projects to target export; as it includes reducing income tax on exports to zero percent for five years from the start of exporting, and reducing total income tax to zero percent for ten years, according to the specified conditions to benefit from these incentives.

The goal is not limited to establishing a car assembly plant alone; as benefiting from the income tax exemption in complete assembly projects is linked to establishing or attracting at least three supporting industrial activities, such as manufacturing car glass, seats, batteries, and tires, or engineering and technical services, or operation, maintenance, and spare parts services; helping to build a broader industrial chain around the automotive sector in Jordan.

As for semi-knocked-down (partial) assembly projects, they benefit from lower incentives commensurate with the volume of operations implemented locally; including a 50% support on electricity prices for three years, a 40% reduction in land prices in the Zarqa Development Zone, support for 50% of the container handling cost at the Port of Aqaba, and a 40% discount on the infrastructure cost if constructed by the investor personally.

The package for semi-knocked-down (partial) assembly projects also includes a 50% reduction in the special tax on Jordanian-origin vehicles for ten years, a 50% exemption from land registration fees and real estate sale tax, and a reduction of income tax on exports to zero percent for three years from the start of exporting. The package places the employment of Jordanians among the conditions for benefiting from it; proposing to include the Zarqa Development Zone in the productive branches and local labor support program. In complete assembly and manufacturing projects, wage support can reach up to 100% of the minimum wage in the first year and 50% for the remaining support period within five years, while for semi-knocked-down assembly, support of 50% of the minimum wage for three years is proposed, alongside other support options according to specified programs.

Labor support options also include benefiting from the national employment program or other programs, or the government bearing the workers' social security contributions or a portion of transportation costs to and from companies for three years; directly linking investment incentives to the employment of Jordanians.

The package also includes granting Jordanian-origin vehicles priority in tenders of government entities and official institutions; supporting the demand for locally assembled and produced vehicles and encouraging the investor to expand their activity within the Kingdom.

The incentives are linked to the speed of implementation; requiring the investor to begin establishing, registering, and licensing the project within one year of signing the memorandum of understanding with the Ministry of Investment to set up the activity in the Zarqa Development Zone, ensuring that incentives are directed to projects that actually materialize into investments on the ground. This package is added to the advantages already enjoyed by establishments registered in development zones under the Investment Environment Law, including subjecting the establishment's purchases and imports necessary for its activity within the zone to the general sales tax at a rate of zero, customs exemptions for materials, equipment, and apparatus used in establishing and equipping the project, and an income tax of 5% for industrial activities and 10% for other economic activities.

The package aims to attract actual industrial investments; the greater the investment volume, the higher the percentage of assembly and manufacturing within Jordan, the broader the supporting industries, and the sustained employment of Jordanians, the greater the incentives available to the project; directing support toward building a broader and higher value-added industrial activity in the automotive sector.

The Council of Ministers also decided to approve allocating the necessary funds to begin issuing tenders required to implement the infrastructure works for the Agricultural Industries Development Zone (the Agricultural Industries Complex in the village of Ghor Al-Mazraa and Al-Haditha) in the Southern Ghor area of Karak Governorate.

The decision aims to prepare the infrastructure of the development zone, and enable existing factories in the area to start their operations before the end of the current year; in support of investment and its expansion, and creating a suitable environment for national industry and food processing.

Prime Minister Dr. Jafar Hassan had visited the Agricultural Industries Development Zone in Ghor Al-Mazraa and Al-Haditha, and directed providing the necessary facilities for operating companies; contributing to enhancing their production to support food processing, achieving a positive impact on the local community, and providing job opportunities for the region's sons and daughters.

Within the framework of the government's strategy to enter as a partner and primary shareholder with investing entities in investment projects of economic, developmental, and service importance, the Council of Ministers decided to approve the mechanism of government participation in the combined cycle power plant project with a viable economic return (the Seventh Independent Power Production Project) after determining the participation percentage of the Social Security Investment Fund in the project company's equity at (20%) and that government participation be through the Samra Power Generation Company at (29%), bringing the total participation percentage to (49%).

The decision comes within the framework of government efforts to support investment projects with economic impact, and effectively participate in them through partnership with investment entities, as the government has worked to participate in major investment projects such as the Aqaba - Al-Shidiya - Ma'an railway project, whose cornerstone was laid yesterday to begin implementation through a Jordanian-Emirati partnership on a 50-50 basis, valued at $2.5 billion.

The Samra Power Generation Company will finance its participation in the combined cycle project, amounting to $61 million, from its annual internal resources, while the Ministry of Finance was tasked, in coordination with the Government Investments Management Company and the Samra Power Generation Company, with taking the necessary financial arrangements, and the Ministry of Energy and Mineral Resources, along with the Ministries of Transport and Labor, were tasked with completing the necessary procedures for implementation.

The Council of Ministers decided to approve the National Export Strategy 2026–2029.

The strategy aims to transition Jordanian exports into a new phase based on expanding the product and market base, increasing the number of exporting companies, and raising the competitiveness of Jordanian products and services in foreign markets; with the goal of achieving sustainable export growth at an average of 5% annually, and enhancing their contribution to growth and job opportunities.

The new strategy builds upon an export base achieved by Jordan over past years, as Jordanian exports have grown continuously during the past period; the value of national exports reached about 9.6 billion dinars in 2025, and Jordanian products reached about 150 countries, while the new phase targets expanding this presence, increasing the local value-added of exports, and opening new opportunities for Jordanian companies.

The strategy does not focus solely on increasing the value of exports, but on making them more diverse and sustainable; by reducing reliance on a limited number of products and markets, increasing the number of companies entering the export field, diversifying the product basket, and expanding into new and non-traditional markets.

The strategy sets clear targets for productive sectors, including raising manufacturing exports from 4.7 billion dinars to 7.9 billion dinars by 2029, alongside increasing service exports, enhancing the competitiveness of Jordanian products through quality and innovation, and improving market access.

The strategy focuses on sectors with opportunities for expansion in external markets, including apparel, chemicals, pharmaceuticals, cosmetics, fertilizers, engineering and food products, alongside service exports in the fields of information technology, management and engineering consulting, and creative industries.

The strategy pays special attention to small and medium-sized enterprises by helping them meet external market requirements, providing information and studies on target markets, and supporting promotion and access to buyers, enabling a larger number of Jordanian companies to transition from the local market to exporting.

The strategy capitalizes on the network of trade agreements Jordan is linked to and the opportunities available in regional and international markets, alongside digital economy tools, e-commerce, and artificial intelligence, thereby expanding the ability of Jordanian companies to reach new markets and consumers.

The strategy will be translated into detailed sectoral action plans for the years 2026-2029 that define programs, projects, responsibilities, and funding needs, with periodic follow-up, a interim review in 2027, and an impact assessment in 2029.

The Council of Ministers decided to extend its decision related to regularizing and adjusting the status of migrant labor, issued on 8/6/2026, for all workers in various economic sectors and activities, including domestic workers, until 1/12/2026.

The decision includes a set of incentives and exemptions related to regularizing and adjusting the status of migrant labor, and comes as a continuation of implementing the plan aimed at controlling and organizing the Jordanian labor market, for the purposes of organizing the affairs of these non-Jordanian workers and ensuring their presence in the Kingdom in a legal manner by obtaining work permits duly in the professions in which they work.

Accordingly, the decision will be extended to all workers present on the territory of the Kingdom of various nationalities who entered for the purpose of work and hold previous work permits.

Exempted from the Council of Ministers' decision are those who entered the Kingdom for purposes other than work, granting them a new work permit for one year from the date of submitting the application, fulfilling the full work permit fee, and paying an amount of (500) dinars for all previous periods.

The decision included apprehending and deporting any worker who fails to regularize their status after 1/1/2027.

The Council of Ministers' decision in this regard applies to all workers in various sectors and economic activities, including domestic workers, until 1/12/2026, and it also applies to workers in the Aqaba Special Economic Zone, such that they are exempted from 100% of the delay fines for renewing expired work permits or transferring to another employer in various sectors or economic activities.

Within the framework of administrative modernization, the Council of Ministers approved the Teaching Profession License Bylaw for the year 2026.

Pursuant to the bylaw, every teacher currently working in educational institutions in the public and private sectors is considered to have a teaching profession license by default, as the bylaw applies to teachers who will be appointed in the future starting from the upcoming 2027-2028 academic year.

The bylaw comes for the purpose of organizing the practice of the teaching profession in the Kingdom, by adopting an official license issued by the Ministry of Education as a prerequisite for practicing the profession in all educational institutions and ensuring that teaching is undertaken by individuals possessing the necessary scientific and professional qualifications, thereby enhancing the adequacy of the educational system and guaranteeing the protection of students' right to a distinguished education.

Pursuant to the bylaw, a unified legal framework will be established to grant a license to practice the teaching profession by setting clear criteria for obtaining and renewing the license, applying to those working in the public and private sectors, educational institutions run by the Jordanian Armed Forces, and educational institutions run by the United Nations Relief and Works Agency for Palestine Refugees.

The bylaw aims to enhance the professional capacities and competencies of teachers through passing teaching profession practice exams, which raises the level of educational performance and enhances the educational level of students and the teacher's capabilities.

It also aims to align the legislation governing the teaching profession with national orientations and development plans, in harmony with the National Strategy for Human Resource Development, the Public Sector Modernization Vision, and in support of the strategic objectives of the Economic Modernization Vision.

A mechanism featuring clear governance will be introduced through the formation of a specialized committee that grants teaching profession practice licenses and adopts the necessary policies, standards, and tools, enabling the ministry to continuously monitor the quality of education and professional development procedures.

On another note, the Council of Ministers decided to appoint Dr. Maram Maen Al-Freihat as Vice-Chairman of the Board of Commissioners of the Petra Development and Tourism Region Authority, Dr. Sami Ahmed Al-Hasanat as Commissioner for the Management of the Reserve, and Youssef Mahmoud Al-Awadat as a Commissioner on the Board.