Jordan recently approved (April 2026) new amendments to its investment environment within the Economic Modernization Vision. Meanwhile, Turkey announced a very strong investment package during the same month. It is worth noting that the moves of both countries aimed at attracting investments amid recent regional developments are critically important for each of them.

 

Jordan's reforms are, at their core, deep institutional and regulatory reforms aimed at reducing complexity, building confidence, and improving the business environment. The latest reform of Jordan's investment system focused on simplifying procedures and reducing bureaucracy — removing overlaps between regulations, unifying regulatory concepts, and reducing licensing time and cost — in order to shift investment legislation from a complex administrative system to one that is clearer and faster to implement.

 

The amendments also introduced a new concept that has been used in several countries, such as Hong Kong (since 1990), Singapore (2000), the Netherlands (2000), the UK (2008), Saudi Arabia (2019), and the UAE (2018), among others. The concept is "licensing in exchange for commitment," whereby the system allows a license to be granted before the full legal procedures are completed, with compliance verified afterward. This is an important shift from the "strict prior approval" model — which can delay the start of investment and thus postpone its benefits — to a system based on trust and subsequent oversight. This step, however, requires competent monitoring and follow-up.

 

Additionally, investment incentives were expanded so that they no longer apply solely to new projects, but now also cover expansions and reinvestment, thereby encouraging existing investment and not just new investment. This is a rational and welcome step.

 

In line with the Modernization Vision, the reforms also support sustainable investments and job creation by linking incentives to employment and sustainability, and improve the quality of government services through the digitization of procedures and enhanced institutional efficiency.

 

What has Turkey done recently (2025–2026)? Turkey has introduced substantial financial incentives — incentives that Turkey can afford, given its economy of approximately $1.6 trillion, roughly 27 times the size of Jordan's economy. Its public debt-to-GDP ratio is around 25–35%, which is very low compared to Jordan's ratio of 118%.

 

Turkey announced a very powerful investment package in recent days (April 2026), including a significant reduction in corporate tax to 9% — down from 25% — for industrial exporters, and 14% for other exporters. It also offered broad tax exemptions, including a full or near-full exemption on transit trade and foreign profits, a 20-year tax exemption for non-resident foreign individuals, and a 0% tax on foreign income for 20 years — a highly attractive measure for capital flows. Direct financial incentives were also provided (customs and tax exemptions, social insurance support, interest subsidies, and land allocation), along with a $30 billion technology investment support program. On the procedural side, Turkey adopted

 

a "one-stop shop" system through a single platform covering company establishment, permit issuance, tax payment, and residency grants.

 

Jordan and Turkey are not competing with the same tools to attract investment. Jordan relies on an "environment improvement" model — reducing transaction costs and enhancing institutional trust — whose impact will be felt over the medium term. Nevertheless, it is well-suited to Jordan's economy, which is small, resource-limited, and boasts security and stability.

 

The Turkish model, on the other hand, can be called a "profitability stimulation" model — it significantly cuts taxes and directly increases return on investment — with an impact felt in the short to medium term. It is suited to a large industrial economy that relies on exports.

 

Jordan's recent reforms represent an institutional shift toward simplifying procedures and improving the business environment, while Turkey relies on broad tax and financial incentives to rapidly boost investment attractiveness. Although the Turkish approach may have a greater impact on short-term investment flows, the Jordanian approach could prove more sustainable in the long run — provided it is accompanied by targeted financial incentives.

 

 

The author is a former Minister of State for Economic Affairs, Jordan