AGP Executive Report

Water Security Deal: Jordan’s Cabinet approved a $97m financing agreement with the French Development Agency to help complete the National Water Carrier Project, a roughly $5.8bn mega build aimed at desalinating 300m cu m of seawater annually and delivering water via a 450km pipeline network. Industrial Exports Momentum: Jordan’s industrial exports rose 8.2% in the first five months of 2026 to JD 3.668bn, with gains across Europe and Asia and notable jumps to Switzerland, China, the Netherlands and Belgium. Transport & Congestion Plan: Government teams advanced studies for an electronic “Park and Ride” system with about 1,000 spaces along Jordan Street and Airport Road, designed to link with Bus Rapid Transit corridors and ease inter-governorate travel. Aqaba Energy & Infrastructure: The Jordanian PM inaugurated two natural gas stations in Aqaba, while Jordan also reported intercepting drones targeting the Kingdom. Regional Security Pressure: Amid a US-Iran strike pause, Jordan and Saudi Arabia reported drone attacks and interceptions tied to Iran-backed groups, keeping energy and logistics risk high. Private Sector Modernisation: Ecorys and local firm Manafeth were selected to support Jordan’s Economic Modernisation Vision under GIZ’s I-PSD project, targeting export growth, industrial acceleration and digital transformation for SMEs. Creative Industries Boost: Zain Jordan renewed its strategic partnership with the Amman International Film Festival—Awal Film for a seventh year, backing Jordan’s film sector as a jobs and revenue driver.

Jordan-US Trade: Jordan’s Reciprocal Trade Agreement with the United States locks in tariffs of no more than 10% for most exports, while textiles and garments keep zero customs duties, with the sector already exceeding JD 431m in exports to the US in the first four months of 2026. Aqaba Energy & Industry: Prime Minister Jaafar Hassan’s Aqaba push highlighted a natural gas station inauguration and the onshore regasification unit foundation stone, reinforcing the city’s role in water, energy, transport and rail amid renewed regional security concerns. Remittances Boost: Central Bank data shows remittances rose 15% in the first five months of 2026 to $2.06bn, led by the UAE, US and Saudi—supporting liquidity and consumption. Manufacturing Exports: Jordan’s industrial exports grew 8.2% in the first five months of 2026, with gains across potash, fertilizers, metals, chemicals and cement. Grain Supply: Jordan received about 110,000 tonnes of locally produced wheat and barley so far, with total deliveries expected at 130,000–140,000 tonnes, strengthening reserves. Regional Shipping Risk: Oil prices slid as US-Iran hostilities paused, but Red Sea and Strait of Hormuz threats keep energy and logistics uncertainty high.

Jordan Exports Boost: Jordan’s industrial exports rose 8.2% in the first five months of 2026, with gains across markets like Switzerland, China, the Netherlands and Belgium, and key products including potash, fertilisers, iron and steel, chemicals, copper, aluminium and cement. Garments Get US Duty-Free Push: The Industry Ministry says Jordanian garment and knitted apparel exports to the U.S. will be fully exempt from customs duties under a reciprocal trade deal, with the U.S. cutting reciprocal tariffs on other Jordanian goods to 10%. Agriculture Output Strengthens: Jordan’s local grain harvest hit about 110,000 tonnes of wheat and barley received so far, with total deliveries expected at 130,000–140,000 tonnes; separately, agricultural exports grew 14% in Jan–Jun 2026, led by vegetables, fruits and big jumps in potato, watermelon and egg exports. Industrial Estates Cooperation: Jordan Industrial Estates Corporation signed a twinning agreement with Morocco’s MedZ to share know-how on industrial cities, investment attraction and logistics services. Trade Diplomacy: Amman and West London chambers signed an MoU to deepen UK-Jordan business links and support partnerships and joint ventures. Regional Risk to Business: Jordan condemned Houthi attacks on a Saudi vessel in the Red Sea and backed measures to protect maritime navigation, as shipping and tourism face renewed security concerns.

Trade & Textiles: Industry Minister Yarub Qudah says Jordanian garment and textile exports to the U.S. are fully exempt from customs duties under the new reciprocal trade deal signed in Washington, with apparel and knitted products getting zero tariffs while other goods face a 10% rate—expected to lift exports (sector already above JD 431m in the first four months). Energy for Industry: Prime Minister Jaafar Hassan inaugurated natural gas stations in Aqaba (Al-Quweira Industrial City and the Southern Industrial Zone) to cut industrial energy costs by 35–60%, with the first station starting at 30,000 cubic meters/day and expandable. Industrial Investment: Arab Potash and Jordan Phosphate Mines are moving toward a major new industrial complex (near $1bn), signaling a shift from competing in global markets to building higher-value local production. Agriculture & Food Security: Jordan’s local grain harvest hit a 15-year high, with about 110,000 tonnes of wheat and barley received so far and deliveries expected to reach 130,000–140,000 tonnes. Industrial Estates Cooperation: Jordan Industrial Estates Corporation signed a twinning agreement with Morocco’s MedZ to share know-how on industrial and logistics zones, investment attraction, and digital transformation. Maritime & Tourism Potential: Jordan’s Aqaba Marine Reserve was listed by UNESCO, boosting the Kingdom’s climate-resilient reef brand and marine tourism appeal.

Garment Exports Boost: Jordan’s Minister of Industry, Trade and Supply Yarub Qudah says Jordanian garments and knitted apparel entering the U.S. will get full customs-duty exemption (zero tariff) under the reciprocal trade deal signed in Washington, while the U.S. cuts reciprocal tariffs on other Jordanian goods to 10%—a move expected to lift exports that already topped JD 431 million in the first four months of 2026. FDI Momentum: Foreign direct investment into Jordan jumped 25% over the past year, with the ministry citing stronger corporate registrations and Jordan’s role as a regional service and logistics hub, including rising freight volumes at the Jaber border crossing. Industrial Estates Cooperation: Jordan Industrial Estates Corporation (JIEC) signed a twinning agreement with Morocco’s MedZ (CDG Group) to share know-how on industrial cities, investor services, logistics, and digital transformation. Agriculture Results: Jordan’s local grain harvest hit about 110,000 tonnes received so far, the biggest in nearly 15 years, as officials point to favorable rainfall and plans to keep strategic reserves strong. Energy Costs Pressure: Heat waves are pushing up electricity bills as households shift between fans and air conditioning, often landing in higher tariff brackets. Trade Links with UK: Amman and West London chambers of commerce signed an MoU to deepen economic cooperation and create more direct partnerships between businesses. Regional Security Watch: Jordan condemned Houthi attacks on a Saudi vessel and reiterated solidarity with Riyadh, as maritime tensions keep affecting the wider region.

Middle East Security & Energy: Jordan says its air defences and Royal Jordanian Air Force intercepted 7 Iranian missiles and 6 drones aimed at the Kingdom, with no casualties or damage reported. Regional Shipping Risk: Iran-backed Houthis renewed attacks on Saudi shipping, claiming missile strikes and a maritime blockade tied to the wider Red Sea escalation—raising fresh pressure on trade routes and energy costs. Trade Policy Shock for Jordanian Firms: The U.S. rolled out forced-labour Section 301 tariffs on 60 economies; Jordan is listed in the 10% bracket, adding cost risk for exporters and importers. Jordan’s Labour Market Debate: A Jordanian economist argues the core problem isn’t unemployment numbers but weak labour demand, calling for policies that unlock investment and productivity-driven job creation. Infrastructure in the Gulf (Business Angle): Bahrain inaugurated the first phase of the North Isa Town Interchange flyover to ease congestion on Shaikh Salman Highway, supporting regional connectivity and logistics. Steel Demand Signal: World crude steel output rose 1.7% in June, but the Middle East saw a 13.4% drop—an uneven regional production picture.

Middle East Security: Jordan’s air defences and Royal Jordanian Air Force intercepted and shot down seven Iranian missiles and six drones targeting the Kingdom, with no casualties reported and engineering teams securing debris sites. Aqaba & Tourism Impact: Jordan’s economic hopes, especially around Aqaba and the port’s role as an alternative route, are being tested as the Iran war spills into regional shipping and raises uncertainty for investment. Red Sea Shipping Risk: The conflict is widening beyond Hormuz, with Houthis declaring a naval blockade and attacking Saudi tankers near Bab el-Mandeb, pushing oil prices above $100 and threatening energy and logistics flows. US Tariffs on Forced Labour: The Trump administration launched sweeping Section 301 tariffs on 60 economies over forced-labour enforcement, with rates of 10% for countries meeting requirements and up to 12.5% for others; Jordan is listed among the 10% tier. Local Business Link: A Jordan-UK Business Forum highlighted private-sector expansion in export-ready sectors like food production, engineering, manufacturing, and digital services—timely as trade rules tighten.

US Forced-Labour Tariffs: The Trump administration is rolling out Section 301 duties on 60 trading partners over forced-labour import bans, with rates at 10% or 12.5% (and some products exempt). The move hits major supply chains, including textile and apparel sourcing, and takes effect as the temporary 10% global tariff expires. Gulf Aviation Warning: Europe’s aviation safety body extended a Gulf airspace warning and issued a fresh bulletin for Jordan, urging airlines to avoid Jordan’s airspace until Aug. 31 due to rising missile/drone activity. Iran-US Escalation, Shipping Stress: The US carried out a 13th night of strikes on Iran as Houthis attacked Saudi tankers in the Red Sea, raising fears of new chokepoints and pushing oil prices above $100. Regional Stance: GCC states and Jordan reiterated support for self-defense and condemned continued Iranian attacks on civilian infrastructure, including energy and ports.

Middle East Energy Shock: Houthis said they attacked two Saudi oil tankers in the Red Sea, raising the risk of a new shipping chokepoint as Brent crude surged back above $100 a barrel. US-Iran Escalation: President Trump warned of “major military punishment” and told Axios he is “close” to a “massive attack” on Iran, while the US carried out a 12th straight night of strikes. Regional Solidarity: GCC states and Jordan jointly condemned Iran’s attacks and reaffirmed the right to self-defence, citing strikes on energy, desalination, ports and airports. Jordan Security Signal: Jordan reported intercepting Iranian missiles and drones amid renewed regional missile activity near Aqaba and Eilat. Trade & Investment Push: King Abdullah met UK business leaders and opened the Jordan-UK Business Forum, highlighting cooperation in automotive, mining, energy, engineering, chemicals, pharma, and apparel/textiles. Nuclear Deal Politics: Trump said the US-Saudi civilian nuclear cooperation deal is “totally subject” to Saudi joining the Abraham Accords, adding uncertainty for regional energy and investment planning.

Red Sea Energy Shock: Houthis claimed they struck two Saudi oil tankers (Encelia and Layla) and warned of a naval blockade, raising fresh Red Sea chokepoint fears as Brent jumped toward $98. US-Iran Escalation: The US carried out a 12th straight night of strikes on Iranian military sites, while Trump vowed to destroy “one bridge or power plant” for every ship attack in the Strait of Hormuz. Jordan Air Security: Jordan’s air defences intercepted four Iranian missiles and six drones over the past 24 hours, with no casualties reported; engineering teams secured debris sites. Regional Retaliation Claims: Iran’s IRGC defended strikes on US bases in Kuwait and Jordan, saying it was targeting American forces. Business & Trade Link: Damascus Chamber of Commerce welcomed Jordan’s expanded entry facilitations for Syrian investors, aiming to boost movement and investment activity. Diplomatic Fallout: The UK withdrew remaining staff from Iran and kept its travel warning in place as tensions keep widening.

Jordan-US Trade: Jordan and the U.S. signed a reciprocal trade agreement in Washington, capping reciprocal tariffs on Jordanian imports to 10% and boosting preferential access for Jordan’s textile and apparel exports, while Jordan commits to removing non-tariff barriers. Aqaba Air Security: Jordan’s air defences intercepted Iranian missile threats over the kingdom, with four missiles shot down and two falling in remote areas, while engineering teams secured crash sites. Regional Energy Shock: Trump warned the U.S. will destroy a bridge or power plant for every Iranian attack on shipping in the Strait of Hormuz, as Iran vowed “eye for an eye” retaliation and oil prices pushed higher on shipping risks. Defense Fallout in Jordan: Iran’s IRGC claimed strikes on U.S. bases in Jordan, targeting air assets and troop accommodation, as the wider conflict continues to raise costs and uncertainty for regional logistics. Royal & Youth Focus: The Prime Minister opened Jerash’s 40th Culture and Arts Festival, while the Crown Prince met Karak youth, stressing skills, tourism projects, and energy cooperation. Business & Finance: LGIS relaunched with a commercial real estate credit-risk insurance product aimed at helping lenders manage foreclosure losses and improve balance-sheet flexibility.

US-Iran Escalation: The U.S. completed its 11th straight night of strikes on Iran, targeting aircraft hangars and drone storage as diplomacy via Pakistan faltered and Trump signaled talks are unlikely. Jordan Air Defense: Jordan’s Armed Forces said it intercepted six Iranian missiles aimed at the Kingdom—four shot down, two falling in remote areas—with no casualties, while engineers secured debris sites. Labour Oversight: Jordan’s Ministry of Labour carried out 15,866 workplace inspections in H1 2026, issuing 5,727 warnings and 2,766 violations, and settling 1,457 worker complaints. Trade Boost: Jordan and the U.S. signed a reciprocal trade deal cutting reciprocal tariffs on Jordanian goods to 10% and granting preferential access for apparel and garments, with Jordan’s exports to the U.S. reported at $850m in the first third of 2026. Energy & Shipping Pressure: Oil prices edged higher as Strait of Hormuz risks and Red Sea disruptions grow, with tankers rerouting after Houthi threats.

Trade & Industry: Jordan and the US signed a reciprocal trade agreement to deepen economic ties, with the US cutting reciprocal tariffs on Jordanian goods to 10% and granting preferential access for Jordan’s apparel and garment exports, while Jordan keeps duty-free access for US products under the 2001 free trade framework; the pact also targets better customs procedures and stronger labor, environmental and intellectual property standards. Regional Energy & Shipping Risk: Iran-US strikes entered a 10th straight day, pushing crude higher as shipping through the Strait of Hormuz stays disrupted; Jordan reported intercepting Iranian missiles and drones, while Qatar, Bahrain and Kuwait condemned attacks and warned of threats to navigation and global energy supplies. Jordan-US Security Fallout: US President Trump suggested the Jordanian air base attack that killed two American troops could have been prevented by “other operators,” as the Pentagon identified the casualties and the war’s costs and munitions needs drew fresh scrutiny in Washington. Petrochemicals in the Gulf: Fluor won front-end engineering and design work for a Bahrain aromatics facility for GPIC, aimed at producing paraxylene and benzene—key inputs for plastics and polyester. Tourism & Skills in Jordan: The prime minister inspected Jerash eco-tourism and Ramtha vocational training projects, pushing service upgrades and curriculum modernization to better match labor market needs.

Parliament Watch: Jordan’s House of Representatives will debate the Economy and Investment Committee’s recommendation on the 2026 Draft Law repealing the Civil Consumer Corporation Law, as the government moves to merge it with the Military Consumer Corporation under one administrative framework to boost efficiency and food security, including unified procurement and better storage, transport and distribution. Tourism Finance: Petra tourism relief measures were finalized to cushion hospitality firms and workers from geopolitical shocks, including deferring and rescheduling sector debts to banks, the Social Security Corporation and utilities, plus a PDTRA risk-management buffer and targeted promotion packages. Shipping & Energy Risk: The Strait of Hormuz remains under pressure as Iran attacks tankers and the US carries out its 10th consecutive night of strikes, while Houthis threaten a Red Sea maritime blockade against Saudi Arabia—raising fears of wider disruption to global energy flows. Aqaba Port Focus: With Hormuz traffic effectively stalled, Jordan’s Port of Aqaba is highlighted as a key logistics and energy hub; Jordan says operations are continuing normally despite regional missile threats. Travel Advisory: The US issued a “worldwide caution” for Americans abroad, warning of potential unforeseen escalation and targeting of diplomatic facilities. Aviation Disruption: International airlines extended Middle East flight suspensions and delays as the US-Iran standoff worsened. Regional Diplomacy: Iran’s interior minister visited Pakistan amid ongoing strikes, signaling talks are still being explored even as tensions escalate.

Jordan Air Defense: Jordan’s Armed Forces said they intercepted and shot down three Iranian missiles aimed at the kingdom, with no casualties and Royal Engineering teams securing debris sites. Regional Security & Markets: The U.S. carried out its 10th straight night of strikes on Iran to degrade capabilities targeting commercial shipping, while Iran retaliated by attacking U.S. allies Kuwait, Jordan and Bahrain; the Strait of Hormuz remains under heavy pressure as oil and shipping risks push prices higher. Casualties Update: The U.S. identified two soldiers killed in Jordan (including 1st Lt. Tyler James Feehan and Pvt. Isabella Gonzales) and said a third service member was missing, as diplomatic efforts continue amid widening attacks. Energy Supply Shock: Yemen’s Houthis announced a maritime embargo on Saudi Arabia, raising fears for Red Sea trade and adding another layer of risk to global energy flows. Water Sector Digital Push: Jordan signed a €765,000 agreement to finance a digital transformation consultancy for the water sector, aiming to assess systems and build smart, secure digital solutions.

US-Iran Escalation: The US launched a new wave of strikes on Iran for a ninth straight day, saying the goal is to “degrade” Iran’s ability to attack commercial vessels in the Strait of Hormuz as shipping fears mount after Iran claimed two oil tankers were “exploded and immobilised.” Jordan on Alert: Iran’s IRGC said it targeted US aircraft at Jordan’s Aqaba airport with ballistic missiles, while Jordan reported intercepting missiles and the UK Foreign Office advised against all but essential travel to Aqaba airport and seaport. Gulf Disruptions: Bahrain and Kuwait reported drone and missile activity, with Kuwait saying an attack hit a power and water plant. Energy Impact: The Hormuz standoff is again rattling energy flows and inflation worries, with oil prices reacting as the corridor’s traffic largely stalls. Diplomacy vs. Force: US officials say diplomacy remains possible, but both sides keep trading blows after the interim ceasefire unraveled.