T

here are several border crossings in Jordan, but most goods arrive through the Port of Aqaba or Queen Alia International Airport and are then distributed to their final destinations by vehicle.  Local representation is very helpful in dealing with customs and customs clearance agents.  Details on the customs clearance stages can be found on the Jordan Customs website.

Jordan’s retail network is gradually transitioning from traditional shops and marketplaces to American-style malls.  Several large malls have opened in Amman, Irbid, Zarqa, and Aqaba and there are plans for outlet stores.  Online and mail ordering is increasingly popular.

Using an Agent or Distributor

Jordanian agents/representatives normally market U.S. products and services under binding agency agreements based on commissions.  Partnering with a local representative who has strong industry contacts, solid reputation and after-sale service capabilities is important for selling and maintaining a continued presence in Jordan.

The Commercial Service in Jordan can provide U.S. companies assistance in finding an agent, distributor or partner through Gold Key or International Partner Search services.  If you have already selected a partner, our office can prepare a due diligence report on your prospective partner through the International Company Profile service before you finalize and sign contracts. For more details contact U.S. Commercial Service – Jordan at office.amman@trade.gov.   

Establishing an Office

A U.S. company can register and operate in Jordan after registering in accordance with provisions of the law and shall submit required documents to the Comptroller of Companies in the Ministry of Industry, Trade and Supply. The U.S. Commercial Service recommends using a local attorney as a legal advisor to help in the process. The Companies Law provides guidance for registering foreign companies and establishing regional and representative offices.  Foreign companies can register as operating companies and non-operating companies. 

Below you will find the steps, time required, and costs of starting a business in Jordan, although some companies have reported delays.

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s  Investment Climate Statements website.

Franchising

The franchise industry in Jordan has developed rapidly in recent years. Local investors are increasingly interested in franchising, especially in the service sector and the fast-food industry. Many well-known U.S. retail and service franchises are already established in the Jordanian market. However, the size of Jordan’s market limits the number of franchise outlets, and not all franchises have been successful. Several major U.S. fast food franchises have been in the market for several years.

Several new malls have opened in Amman in recent years; and there are plans for outlet stores in the southern suburbs of Amman.  The southern city of Aqaba continues constructing new retail facilities in newer vacation communities including Ayla Project, Saraya Aqaba, and Tala Bay.

Direct Marketing

American companies can use email campaigns, social media platforms and the internet to directly market their products to end users in Jordan; however, in general it is recommended to work through a local representative.  American companies can find competent local firms that are capable of organizing marketing campaigns for their products through a range of media; the Commercial Service in Amman can also assist companies with this task.

Joint Ventures/Licensing

Joint ventures with Jordanian partners are one means of penetrating the local market.  A joint venture is confined to the special relationship between partners, as specified in the joint venture agreement, and is essential in some sectors where foreign ownership/share of companies cannot exceed 50 percent.  For more information, contact the Jordan Ministry of Investment.

Express Delivery

There are many reliable express delivery firms within Jordan such as Aramex, an international express, mail delivery, and logistics services company which originated in Jordan, in addition to multinational well-known express delivery organizations such as DHL, FedEx, and UPS.

Aramex released the “Shop and Ship” service that offers an official postal address in the United States of America to which international customers can ship internet orders.  Aramex will then ship the contents of the mailbox and deliver them to its global customers.

Due Diligence

U.S. companies interested in contracting with local agents should conduct due diligence prior to signing any contracts.  Confidential background checks on local companies via a fee-based service are available through the U.S. Department of Commerce or directly through the Commercial Service office in the Embassy. For more details contact U.S. Commercial Service – Jordan at  office.amman@trade.gov.