Are high electricity costs affecting business in Jordan?

High electricity costs for businesses reduce competitiveness and profitability. In March 2022, Jordan made incremental adjustments to its electricity pricing structure aimed at correcting existing distortions. Despite business climate improvements in recent years, doing business in Jordan can be more difficult than elsewhere in the region.

Did Jordan overcompensate for power shortages in 2013-2017?

Jordan overcompensated for power shortages in 2013-2017 by investing in numerous power purchase agreements causing its electricity grid to be nearly 50 percent over capacity, driving up the average electricity price for both households and businesses.

Is Jordan a price sensitive country?

Jordanian private and public sector consumers of goods and services are often price sensitive. When applicable, U.S. companies are encouraged to make use of export and development financing tools to make offers more attractive.

How difficult is it to do business in Jordan?

Despite business climate improvements in recent years, doing business in Jordan can be more difficult than elsewhere in the region. Companies report frequent changes in senior Jordanian government officials, frequent alterations or amendments to legislation, and a slow bureaucracy adversely affect commercial activity.

Why is business registration so difficult in Jordan?

Companies report frequent changes in senior Jordanian government officials, frequent alterations or amendments to legislation, and a slow bureaucracy adversely affect commercial activity. For companies establishing a physical presence, business registration can be lengthy and tedious.

Why is Jordan a poor country?

Jordan lacks critical natural resources and is also one of the most water scarce countries in the world. The kingdom’s renewable water supply currently only meets about two-thirds of the population’s water demands, with groundwater being used twice as quickly as it can be replenished.