Executive Summary
Jordan is a haven of stability for business and continues to serve as a commercial hub in the region. Jordan is a strong US ally and has solid cooperative relations with its neighbors and the international business community. Nevertheless, the economy is heavily reliant upon imports.
Healthcare Policy Issues
In 2014, Jordan moved forward on several legislative reforms, including the new Income Tax Law, Public Private Partnership Law, and Investment Law. The Investment Law grants equal treatment to local and foreign investors and grants specific incentives for local and foreign investment in industry; agriculture, tourism, hospitals, transportation, energy, and water distribution. The banking, information and communication technology, pharmaceuticals, and tourism sectors have all experienced key reforms in the past decade. The government pursued economic reform measures as part of its International Monetary Fund (IMF) Extended Fund Facility program, which began in August 2016. Generally, Jordan is among the region’s best in protecting intellectual property rights.
Market Entry
Jordan is the first Arab country to have signed a Free Trade Agreement (FTA) with the United States, a reflection of the openness of the Jordanian economy and the level of market access available to U.S. companies. The U.S.-Jordan FTA creates significant advantages for U.S. exporters. U.S. suppliers can sell products at more attractive prices, as nearly all tariff barriers on goods traded between the United States and Jordan have been eliminated. In general, there are no major barriers to entry into the Jordanian market and the GoJ is making investment easier as it moved up 29 places (from #104 to 75) in the World Bank’s Doing Business Report 2020. Bilateral trade has grown 800% following the entry into force of the FTA.
American companies seeking to do business in Jordan are recommended to find a strong local partner or agents who can assist in navigating the culture, language, and bureaucracy.
Current Market Trends
Jordan is viewed as a regional leader for the provision of medical services, and a relatively popular destination for GCC nationals seeking affordable quality treatment. Physicians tend to be Western-educated and well regarded. Health in Jordan is highly advanced, and Jordan is the most developed countries in the field of medicine in the region. Amman abounds in hospitals specializing in the treatment of cancer, cardiology, ophthalmology, infertility, family medicine and other medical specialties.
The number of hospitals in the kingdom has increased to reach 126 hospitals, 72 of which are private.
According to the Jordanian Association of Pharmaceutical Manufacturers (JAPM) the kingdom’s pharmaceutical exports over 2020-2021 stood at $1.4 billion making it the only national sector to export more than it imports. Pharmaceutical sector is a leading export industry for Jordan, and due to its high quality and good reputation, companies have been able to export (80%) of their production, as the medicines manufactured in Jordan are exported to more than (70) countries in various countries.
Jordan is an attractive environment for scientific research, experimentation and testing in the pharmaceutical sector and the country is working to boost its pharmaceuticals sector and seeks US partners to that end.
According to World Bank, Jordan is ranked first in the MENA region as a best healthcare service provider and a top destination for medical tourism. However, Jordan is facing heavy demands upon its resources due to a growing population and an influx of Syrian refugees which by some counts has exceeded a million. Therefore, expanding the reach of Jordan’s healthcare services in a tight budget environment is a priority of the government. Jordan receives significant international assistance, some of which is dedicated to provision of healthcare services.
Jordan is one of the countries most concerned with health, spending 9.3% of its gross national products on health, in addition to having 86% of the population covered by health insurance, with over 250,000 foreign patients per year.
New and advanced health services have also been developed, including cochlear implantation service for the treatment of deafness, expansion of dialysis clinics and a special registry for its patients to provide services to them regularly without delay, liver, kidney and heart transplants, plastic surgeries in burns, and others.
Best Prospects
• E-Health
• Healthcare management systems.
• Software modules for specific fields and applications (radiology, imaging, etc.).
• Integrated medical insurance solutions.
• Medical devices and equipment
• Customer relations management
• Mobile healthcare applications
• Online medical content providers
Leading Sub-Sectors
Hospital projects and private clinic investments will create demand for medical equipment used in the following areas:
• Cardiology and cardiovascular surgery
• Laparoendoscopic surgery
• Kidney transplantation
• Ophthalmology
• Neurosurgery
• Equipment and supplies for plastic surgery
• Oncology
• Consumables for Clinical laboratories (i.e. tubes/glasses)
• Medical Surgical Sterilizers
• Medical x-ray, Alpha, Beta, Gamma Ray Equipment
• Orthopedic & Prosthetic Appliances
Projects in the pipeline:
In 2020, Jordan’s healthcare expenditures were valued at $3.79 billion; pharmaceutical expenditures were valued at $941 million; and medical device expenditures were valued at $311 million (Source: BMI International). Main projects are associated with medical tourism as well as renovating existing and establishing new medical facilities such as:
o The UCL Medical School has partnered with the Saudi Jordanian Investment Fund (SJIF) and UCLA Health on a $400 million healthcare project in Amman. The healthcare project will consist of a university hospital with 300 beds, more than 60 outpatient clinics, an ambulatory care building, and a medical school with a total capacity for 600 students, with a projected annual student intake of 100 students. more details
o King Hussein Cancer Center – Aqaba Branch
Main Competitors
The European Union member states, such as Germany, are major competitors in healthcare equipment and services. However, US products are very well regarded and often a first choice.
Current Demand
Jordan will see steady foreseeable demand due to 2% year-on-year population growth, a significant number of refugees, and a focus on medical tourism services, ensuring future demand.
Registration Process
Businesses in Jordan must register with the Ministry of Industry, Trade, and Supply, Chambers of Commerce or Industry depending on the type of business they are in, open a bank account, obtain a tax identification number, and register for VAT. They also need to obtain a vocational license from the municipality, receive a health inspection, and register with the Social Security Corporation.
The “Investment Window” at the Jordan Investment Commission (www.jic.gov.jo) serves as a comprehensive investment center for investors. The window provides its services to both local and foreign investors, particularly those in the agricultural sector, medical, tourism, industrial, ICT-BPO, and energy sectors.
Barriers & Challenges
• The US-Jordan FTA has removed most tariff barriers to the market. In general, there are no major barriers to entry into the Jordanian market.
• Regional strife has limited Jordan’s ability to trade with its neighbors.
• Jordan has taken in an estimated 1.2M Syrian refugees due to the conflict, stressing its infrastructure and exacerbating budget challenges, and creating demand for affordable and available healthcare.
• Foreign assistance contributes significantly to Jordan’s economy. The United States provides Jordan with over S1B annually in assistance.
• Despite a well-educated population with a literacy rate of 98%, unemployment (22.80% for Jordanian nationals as of the first quarter 2022), water scarcity, and high rates of poverty remain critical issues in Jordan. The budget deficit resonates across all sectors, undermining economic growth.
Procurement & Tenders
The two primary governmental entities implementing public sector procurements in Jordan are the Government Tenders Directorate (GTD) www.gtd.gov.jo and General Supplies Department (GSD) www.gsd.gov.jo
Local Associations
o Jordan Medical Council: http://jmc.gov.jo/
o Higher Health Council: http://hhc.gov.jo/
o Jordan Private Hospitals Association: https://phajordan.org/
o Department of Statistics http://dosweb.dos.gov.jo/
o Official website for the Centenary of the Jordanian State https://100jordan.jo/
o Jordanian Association of Pharmaceutical Manufacturers http://japm.com/
o Government Health Plans Jordan Vision 2025
Government Links
Regulatory Bodies:
Government Health Plans
Information on future healthcare plans by Jordan can be found in the following planning documents:
Frequently Asked Questions
Q: Do I need a local partner to do business in Jordan?
A: While not legally required, we advise seeking a reputable agent or distributor for doing business in Jordan to assist in navigating the culture, bureaucracy and language challenges.
Q: I see a lot of stuff in the news. Is it safe to travel to Jordan?
A: Jordan is among the most pro-Western and safest countries in the region, and indeed the world to visit. Tourists from all over the world travel to Jordan annually to visit Petra/Wadi Rum, the Dead Sea, and a host of Biblical sites. While general security awareness is advisable when traveling in the region, crime is virtually nonexistent in Jordan and visitors can move freely within the country.
Q: What certification is required to import medical devices to Jordan?
A: Jordan requires USFDA, CE mark, or Japanese certification for all imported medical devices.
U.S. Commercial Service Contact Information
Name: Suzan Barbour
Position: Commercial Specialist
Email: Suzan.barbour@trade.gov
Phone: +962 (6) 590-6966
