Jordan provides attractive conditions for investors and is working in the right direction. Attention should be given to increasing the robustness of its policy goals and commitments.
Breach of state obligations is the lowest risk and its level has dropped compared to 2018. It is followed by discrimination between foreign and domestic investors, which has also reduced vis-à-vis last year. The level of unpredictable policy and regulatory change has gone down but it is again the highest risk area.
Jordan has a good performance on two of the EIRA indicators, and a moderate performance on the remaining two indicators. Rule of law has the highest score with 73 points. On management of decision-making processes, the score has improved by 3 points and now stands at 67. The country has maintained a moderate score of 56 on regulatory environment and investment conditions and 49 on foresight of policy and regulatory change.
On a more detailed level, Jordan’s overall sub-indicator performance is good. The highest-scoring sub-indicators are again management and settlement of investor-State disputes (80) and institutional governance (75). Next is respect for property rights which has improved from 58 to 67 points. It now has the same score as regulatory effectiveness (67). The performance on transparency has improved by 5 points and stands at 58. It is followed by communication of vision and policies (54) and restrictions on FDI (45) which have the same score as last year. Robustness of policy goals and commitments continues to be the lowest-scoring indicator with a moderate score of 44.