Jordan Attracts $1.64 Billion in Foreign Direct Investment for 2024
Jordan recorded net Foreign Direct Investment (FDI) inflows of $1.637 billion in 2024, showcasing continued investor confidence despite regional challenges. This figure accounted for 3.1% of the Kingdom's Gross Domestic Product (GDP) for the year, according to preliminary data released via the Jordan News Agency, Petra.
FDI Performance in 2024
The $1.64 billion inflow demonstrates Jordan's ability to attract capital, a key priority for the government. While specific year-over-year comparisons for the full year weren't detailed in the immediate snippets, earlier data showed strong FDI growth in previous periods (e.g., H1 2023 saw a 20.9% increase YoY, and total 2022 FDI surged 83% YoY), suggesting continued momentum, albeit potentially moderated by regional factors later in the year.
Key Investment Sources
Arab countries remained the dominant source of FDI into Jordan in 2024, contributing nearly 65% of the total inflows.
GCC Dominance: Gulf Cooperation Council (GCC) countries alone accounted for 32.5%, led by Kuwait (9.1% of total FDI), followed by Saudi Arabia (8.2%), the UAE (7.1%), and Qatar (4.5%).
European Investment: European nations contributed 21.4%, with the UK being the single largest European investor (8.3%), and EU countries collectively accounting for 7.1% (led by France at 3.8%).
Asian Investment: Non-Arab Asian countries provided 5.2%, primarily driven by India (2.6%) and China (2.4%).
Top Sectors Attracting FDI
The investment flowed into diverse sectors of the Jordanian economy:
Finance and Insurance: Attracted the largest share with 23.4% of total inflows.
Information and Communication Technology (ICT): Received 10%.
Mining and Quarrying: Accounted for 9.1%.
Transport and Storage: Drew 8.4%.
Wholesale and Retail Trade: Attracted 7.7%.
Manufacturing: Received 7.6%.
Real Estate: Remained a strong draw, with purchases by non-Jordanian individuals accounting for 19.1% of total FDI.
Context: Economic Modernization Vision
This FDI performance aligns with Jordan's Economic Modernization Vision (2023-2033), a national strategy aiming to unleash economic potential, create jobs, and improve quality of life. A key target of the vision is to attract significant investment, around $18 billion in FDI by 2033, particularly into priority sectors like ICT, healthcare, tourism, mining, and manufacturing. Government efforts include simplifying business regulations and creating a more attractive investment climate.
Looking Ahead
Securing over $1.6 billion in FDI during a challenging year regionally is a positive indicator for Jordan's economy. The continued inflow, particularly from GCC partners, is vital for funding projects outlined in the Economic Modernization Vision and driving sustainable growth. Maintaining stability and continuing pro-investment reforms will be key to keeping this momentum going forward.
Source: Zawya