Amman, March 31 (Petra) -- Foreign direct investment (FDI) inflows to the Kingdom rose by 25.1 percent in 2025, reaching approximately $2.205 billion, up from $1.618 billion in 2024, according to data released by the Central Bank of Jordan.

The increase underscores growing investor confidence in the national economy and reflects the impact of government-led economic reforms and ongoing implementation of the Economic Modernization Vision.

The positive performance is attributed to a combination of macroeconomic stability, legislative and regulatory reforms, and the rollout of major strategic projects across key sectors, including energy, water, transport, and infrastructure. It also reflects intensified efforts to attract foreign capital through targeted incentives and investment promotion initiatives.

Arab countries accounted for 61.3 percent of total FDI inflows, highlighting the depth of regional economic integration, particularly with Gulf Cooperation Council countries, alongside diversified inflows from Iraq, Egypt, and Libya. European investments represented 13.7 percent, signaling sustained economic engagement with the European Union and the United Kingdom.

Economic experts said FDI exceeding $2 billion marks a significant milestone in supporting economic growth and job creation, stressing the need to sustain reform momentum and further enhance the business environment to ensure continued inflows.

Chair of the Jordanian Businessmen Association Ayman Alawneh said the strong growth in FDI reflects a qualitative improvement in the investment climate and reinforces Jordan’s position as a competitive regional investment destination.

He said the performance demonstrates the resilience of the national economy amid regional and global challenges, supported by stable monetary and fiscal policies, improved regulatory frameworks, and strengthened public-private partnerships.

Alawneh added that increased FDI contributes to expanding production capacity, creating employment opportunities, facilitating technology transfer, and boosting productivity, while also supporting foreign reserves and exchange rate stability.

Member of the Board of Directors of the European Chamber of Commerce in Jordan Mohammad Samadi said the growth reflects a structural shift in international investor perceptions of Jordan as a stable and reliable investment platform within a complex regional environment.

He noted that Jordan is increasingly viewed as a gateway to regional and European markets, rather than a limited domestic market, adding that the current momentum presents an opportunity to expand investment in productive sectors, particularly manufacturing and export-oriented industries.

Economic expert Munir Deh said the rise in FDI is part of a broader improvement in key economic indicators in 2025, including economic growth, foreign reserves, exports, tourism revenues, and remittances, alongside stronger performance on the Amman Stock Exchange.

He said the Kingdom’s ability to sustain positive economic momentum despite geopolitical challenges reflects its resilience, adaptability, and capacity to absorb external shocks.

Vice Chair of the Free Zones Investors Association Amer Jayousi said free zones continue to play a critical role in attracting foreign investment, given their competitive advantages, including advanced infrastructure, strategic location, and investor-friendly incentives.

He added that sustaining investment momentum requires deeper alignment between government policies and private sector priorities to translate inflows into tangible economic growth and job creation.

Economic expert Hussam Ayesh said the growth in FDI reflects a recovery from global and regional disruptions, including the COVID-19 pandemic, the Russian-Ukrainian conflict, and the war on Gaza, indicating renewed confidence in the Kingdom’s economic outlook.

He noted that the diversity of investment sources, spanning Arab, European, and international markets, positions Jordan to further strengthen its global economic partnerships and enhance its standing as a regional investment hub.

//Petra// AJ