The Impact of Turning Jordan into an Economic Free Zone on the Flow of Foreign Investments

  •  Ahmad Y. Areiqat    
  •  Hanan Ibrahim    


Purpose: The purpose of this study is to show that turning Jordan into an economic free zone will lead to a significant increase in foreign investments. This increase, in turn, will lead to an economic growth and to a reduction in the unemployment rate. Jordan is a developing country and any successful investments in the economy sector will have a positive impact on the quality of the social life of its people. This is particularly important now in view of the economic pressure that Jordan is going through as a result of the presence of a huge number of immigrants who have fled the civil wars in neighboring countries. 

Methodology: This study has utilized the relevant literature by way of evaluating the benefits of establishing economic free zones in Jordan. Many of the findings are based on analyzing statistical information published by governmental institutions in Jordan.

Findings: Jordan offers an attractive investment environment due to the security and stability it enjoys compared with other countries in the Arab region. As such, it has succeeded in establishing new economic free zones through partnership with foreign investors. This has led to a significant increase in the flow of more foreign investments in Jordan. The present study shows that turning the whole of Jordan into an economic free zone will lead to yet a further increase of foreign investments, and hence to more empowerment of the economic sector.

Limitations:  The quantitative data available is limited to the years 1999-2007.

Value: The findings of this study can be a point of departure for researchers and economic decision-makers in Jordan to prepare economic plans with the purpose of attracting foreign investments and hence promoting economic growth in the country.

This work is licensed under a Creative Commons Attribution 4.0 License.