The recent royal visit to Tokyo marks a significant milestone in Jordanian-Japanese relations. It comes at a critical time as Jordan seeks to diversify its economic partnerships and attract high-quality investments that align with its Economic Modernization Vision. The visit emphasized practical economic cooperation, aiming to open new channels between the public and private sectors and transform existing collaboration into a long-term, productive partnership.

 

Japan has been a key development partner for Jordan for nearly four decades. Through the Japan International Cooperation Agency (JICA), Japan has supported strategic projects in water, energy, and transportation. Recent initiatives include the “Water Supply Control System Project in Ma’an Governorate,” valued at approximately USD 89 million, and the “Electricity System Operation Enhancement Project,” worth around USD 60 million. Additionally, the “Economic and Social Development Program” provided USD 48 million in 2023 and USD 50 million in 2024, reflecting Japan’s continued commitment to supporting Jordan’s reform and development efforts.

 

This partnership is built on a solid institutional foundation of bilateral agreements. Over the years, Jordan and Japan have signed agreements covering technical assistance (1985), air transport (1995), mutual visa exemptions (1997), peaceful uses of nuclear energy (2012), defense cooperation (2016), and most recently, the Agreement on the Promotion and Protection of Investment (2020), which significantly strengthened the legal framework for investment between the two countries.

 

Economically, trade between Jordan and Japan reached USD 560 million in 2024. Jordanian exports to Japan totaled USD 68 million, primarily phosphates and fertilizers, while Japanese exports to Jordan amounted to USD 493 million, mainly vehicles, tires, and industrial equipment. While the trade balance favors Japan, these figures highlight a solid base for expanding Jordanian exports, particularly in manufacturing, food processing, and mining sectors.

 

During his visit, His Majesty the King met with Japanese business leaders, the Chamber of Commerce and Industry, and the Japan External Trade Organization (JETRO). These meetings highlighted the goal of elevating bilateral cooperation to a new level. His Majesty called for establishing a joint investment window to coordinate opportunities and proposed regular Jordan-Japan business forums to strengthen investor communication. Key focus areas include technological innovation, smart agriculture, logistics, food manufacturing, and chemical and mineral industries.

 

The visit also reflects Jordan’s strategic response to shifts in global supply chains, as Japanese companies aim to diversify production and reduce dependence on traditional markets. Jordan offers a stable investment environment and a strategic gateway to the Middle East, Africa, and Europe, positioning the country as a competitive partner for transforming cooperation from development aid into knowledge- and technology-driven production partnerships.

 

His Majesty’s visit represents a strategic step in advancing Jordan’s economic diplomacy and reinforcing its position as a productive and globally connected economy. Japan, in turn, sees Jordan as a trusted partner contributing to regional stability, opening the door to a new era of balanced and sustainable economic cooperation between the two nations.

 

By Raad Mahmoud Al-Tal — Department of Economics, University of Jordan