The role of foreign direct investment in Jordan's economic development

Jordan’s economy has benefitted from key reforms since the 1990s, helping to attain macroeconomic stability and improve human development indicators. However, the country remains highly dependent on foreign aid and remittances and the current regional unrest strongly affects economic activities.Jordan has performed relatively well in attracting foreign direct investment. FDI inflows reached 10% of GDP during 2000-11. The regional instability and the economic slowdown in the Gulf States have nevertheless considerably affected investment inflows which were halved in 2011 compared to 2008. Prospects for recovery are still uncertain.The privatisation process has been a major driver in attracting foreign investors, but is now largely completed. A law on public-private partnerships (PPPs) is being prepared in order to set up a new legal and institutional framework.