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Will the Arab Mashreq Return through the Gateway of the Economy?

Trade indicators have begun to reflect this shift. Trade exchange between Jordan and Syria has clearly increased in the recent period, while Jordanian exports to Iraq have continued to grow, and Arab markets now absorb more than 40% of Jordanian national exports. More important than the number itself is the trend it reveals: geographically closer markets are regaining greater weight in the Jordanian economy, after long years when wars, border closures, and instability disrupted a large part of these natural relationships.

But the most important story is not just the volume of exports. The Mashreq that can be economically formed will not be based on selling goods between three or four countries, but on rebuilding the network of movement between them. Iraq needs to diversify its trade outlets, Syria needs to rebuild its economy and infrastructure and restore its role as a link with the Mediterranean and Turkey, while Jordan has a different advantage: the port of Aqaba in the south, direct borders with Iraq and Syria, and land connection with Saudi Arabia and the Gulf. This places it geographically at the intersection of the Red Sea, the Gulf, the Mashreq, and the Eastern Mediterranean.

The value of this geography has practically emerged during the Hormuz Strait disturbances. Transit cargo movement through the port of Aqaba in the first half of 2026 increased by approximately 155% compared to the same period in 2025, and a major part of this movement was destined for Iraq. At the same time, Iraq began using Syria as an alternative route for some of its fuel imports via the port of Baniyas. The strategic meaning here is clear: when traditional routes are disrupted, the value of countries that possess alternative routes is much greater than the size of their local markets.

This is precisely where the way of looking at Jordan changes. Its advantage is not to turn into a huge market, as this does not suit its population and economic size, but to become a node in a larger economic network. The goods that reach Aqaba and can move efficiently towards Iraq or Syria, then to Turkey and the Mediterranean, give the Jordanian location a different value. The same applies to energy, electricity, railways, and logistics zones. The outlines of this have already begun in the joint Jordanian-Iraqi economic city project, in the electricity interconnection projects, and in the direction to expand the railway network in the future so that it becomes part of a regional network that transcends Jordanian borders.

But the economic return of the Mashreq is not automatic. Opening borders alone does not create integration, and increasing the number of trucks does not create an economic corridor. The real corridor needs competitive transit time, coordinated customs procedures, a transport infrastructure capable of absorbing increasing volumes, payment, insurance, and financing systems, legislation that allows capital to move, and most importantly, political and security stability that allows the investor to calculate risks for ten years, not ten days. Here lies the difference between a road on which trucks pass and an economic corridor around which factories, warehouses, investments, and services gather.

There is another, more important aspect: the reconstruction of Syria. Viewing it as a market for selling cement, iron, and foodstuffs only would be a short-term reading. Rebuilding an economy the size of Syria will later require contractors, engineers, banks, insurance, transport, energy, legal and consulting services, supply chains, and project financing. This means that the greatest value will not always be in the commodity that crosses the border, but in the services, capital, and expertise that move with it. The rise in Jordanian exports to Syria today may be just the first phase of a more complex economic relationship if the Syrian recovery path stabilizes.

The real economic value of this interdependence begins when the Mashreq countries move from exchanging goods to integrating production elements. A port in one country can serve the industry in another, the electricity grid can reduce energy costs across borders, and roads and railways can expand the market for the factory, while joint industrial and logistics zones allow the distribution of production stages according to the cost and comparative advantage of each economy. Then, trade growth becomes the result of a broader system that includes investment, production, transport, energy, and finance, not just a temporary increase in the movement of exports and imports.

For Jordan, the economic opportunity lies in being a central part of this integrated system: Aqaba as a maritime gateway, transport and logistics networks as a link, industry, professional, financial, and legal services as value-added components, and electricity interconnection and joint projects as tools for reducing costs and expanding the market. The more Jordan's economy is linked to the markets of Iraq, Syria, and the Gulf, the broader the base of demand and investment for Jordanian companies outside the local market. Economic integration in the Mashreq does not mean canceling borders, but making borders less costly for trade, investment, and production, and turning geographical proximity from a political reality into a shared economic value.

As for the Jordanian implementation, it requires turning this advantage into a specific economic program with defined projects and timelines: accelerating land and rail links from Aqaba towards the Iraqi and Syrian borders, developing logistics and storage centers, reducing the time and cost of goods transit, expanding electricity interconnection, pushing the Jordanian-Iraqi economic city to the actual investment phase, and building a specialized package for Jordanian companies wishing to enter the Syrian market and participate in reconstruction. Transport, energy, industry, investment, customs, and the private sector need to move within a single economic path. The geographical location gives Jordan the opportunity, but the speed of turning this location into projects, trade, investments, and job opportunities is what determines its share of the re-shaping Mashreq economy.

Lawyer and legal expert

yazan.haddadin@haddadinlaw.com

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