AGP Executive Report

US-Iran Escalation: The US launched airstrikes on Iran after blaming Tehran for the crash of an American Apache helicopter, while Iran retaliated with missile and drone attacks on US bases in Jordan, Kuwait and Bahrain—raising fresh doubts over fragile ceasefire talks and pushing oil prices higher. Energy & Shipping Shock: The Strait of Hormuz remains a key pressure point as the US also disabled an Iranian-linked oil tanker in the Gulf of Oman; the wider risk is renewed disruption to regional energy flows and maritime trade. Jordan-Iraq Security: Jordan’s Prime Minister stressed that Iraq’s security is inseparable from Jordan’s, highlighting concerns over drones, border threats and armed groups operating beyond Iraqi state control. Regional Logistics Pivot: Saudi Arabia and Türkiye signed MoUs to strengthen a land corridor and rail/logistics cooperation that could offer an overland alternative to maritime chokepoints during regional crises. Local Business Pulse: Amman Stock Exchange closed down 1.24% as industrials led the decline, with trading volume at JD22.6m. Policy Watch: Council of Ministers decisions include a wage increase and steps aimed at supporting national production and improving public services, with emphasis on keeping price stability.

Energy & Resources: Energy expert Mubarak Al-Tahrawi says Jordan has “enormous” untapped gas, oil shale, and minerals (including copper, gold, and lithium), arguing better exploration institutions and investment could unlock major state revenues. Regional Security & Airspace: Jordan’s air defence intercepted and destroyed five Iranian missiles targeting the Azraq area in Zarqa; debris fell with no casualties or damage, and engineering teams cleared remnants. US-Iran Escalation Impacting Jordan: After a US Apache helicopter crash near the Strait of Hormuz, the US and Iran traded strikes; Iran claimed attacks on US-linked sites in Bahrain, Kuwait, and a Jordan base hosting US forces, while the US said it hit Iranian air defence and radar sites. Cyber & Services Tech: RevBits and Stony Brook University’s Ethos Lab partnered to expand cybersecurity education using RevBits simulations. Business Software Localization: Microshare added 31 languages to its EverSmart™ Pest and Clean AI suites, aiming to speed adoption across multilingual operations in Europe and Asia.

Industrial Policy: Industry Minister Yarub Al-Qudah says Jordan will raise the price preference for national industrial products in government tenders to 20%, aiming to boost local demand, competitiveness, and job creation. Energy & Resources: An energy expert argues Jordan has major untapped gas, oil shale, and mineral potential, calling for stronger geological exploration institutions to unlock reserves that could lift revenues and reduce public debt. Regional Trade & Logistics: Saudi Arabia and Türkiye signed MoUs on railways and logistics, with plans for an overland corridor that could run through Jordan and Syria, and a roadmap to rehabilitate cross-border transport links over the next 4–5 years. Investment & Real Estate: Amman Vision for Investment and Development launched its ninth investment package, offering new land plots for commercial, tourism, sports, and industrial projects, including healthcare developments. Business & Insurance: IGI said its CEO Waleed Jabsheh will present at the East Coast IDEAS Investor Conference in New York on June 10. Humanitarian Watch: UN agencies warn Gaza’s humanitarian situation is worsening despite a ceasefire, with displacement, disease risks, and shortages of key supplies.

Jordan–South Korea Trade: South Korea’s economic and trade cooperation agreement with Jordan officially took effect June 9, setting a framework for deeper ties across investment, tourism, agriculture and the environment, with a joint committee to track implementation. Public Finance & Delivery: Prime Minister Jaafar Hassan urged ministries to start drafting 2027 budgets to meet the constitutional deadline, while pushing strategic spending in water, transport and energy, a JD30 monthly salary increase for lower earners and retirees under JD600, and a 15% cut in operational expenses next year. Energy & Regional Trade: Jordan and Iraq renewed focus on extending the Iraqi oil pipeline through Jordan, with Senate and Iraqi Parliament speakers calling it a mutual economic interest. Energy Resources Outlook: An energy expert said Jordan has large, still-underdeveloped gas, oil shale and mineral potential, arguing that stronger geological institutions and investment could unlock major state revenues. Forced-Labor Tariffs Watch: U.S. trade authorities proposed new Section 301 tariffs on imports from 60 economies over forced-labor concerns, a move Jordan exporters and logistics firms should monitor for knock-on costs.

Energy & Resources: Jordanian energy expert Eng. Mubarak Al-Tahrawi says the Kingdom has “enormous” untapped gas, oil shale and mineral potential, arguing that better geological exploration institutions and smarter investment could unlock major revenues and even future gas exports. Energy Diplomacy: Prime Minister Jaafar Hassan met Iraq’s Parliament Speaker Heibat Al-Halbousi, stressing that Iraq’s security is inseparable from Jordan’s as Amman watches cross-border drone and armed-group threats. Oil & Infrastructure: Jordan’s Senate President Faisal Al-Fayez and Iraq’s Speaker backed advancing the Iraqi oil pipeline through Jordan, calling it a shared economic and strategic win, alongside electricity interconnection. Trade Policy Shock: The US USTR proposed Section 301 forced-labor tariffs of 10% to 12.5% on imports from 60 economies, with comments invited ahead of a July hearing—an issue Jordan exporters and importers should track for knock-on costs. Telecom & Consumer Tech: Orange Jordan wrapped its Ramadan campaign with a grand prize draw, highlighting 5G and fiber services and mobile offers.

Energy & Natural Resources: Energy expert Mubarak Al-Tahrawi says Jordan has “enormous” gas, oil-shale and mineral potential, arguing that better geological exploration and smarter exploitation could lift state revenues and even position the Kingdom as a future gas exporter. Iraq-Jordan Security: Prime Minister Jaafar Hassan told Iraqi Parliament Speaker Heit al-Halbousi that Iraq’s security is inseparable from Jordan’s, highlighting concerns over drones, border/airspace threats, and non-state armed groups operating beyond Iraqi state control. Agriculture & Food Security: Jordan’s National Agricultural Research Center reports promising wheat harvest results at Maru station in Irbid, with research-developed varieties reaching around 400 kg per dunam and total production expected to exceed 70 tonnes, supporting plans to expand high-performing strains. Youth Employment & Skills: The Crown Prince Foundation and UAE’s Abdulla Al Ghurair Foundation launched a strategic partnership under the Nomu initiative to tackle Jordan’s skills gap and youth unemployment, targeting more than 5,600 young people aged 18–35. Industrial Growth: Jordan’s industrial exports rose 2.6% in Q1 2026, while other coverage points to government efforts to accelerate investment and expand industrial hubs.

Aviation & Skills: Joramco Academy (Amman) opened student applications for its four-year Aircraft Maintenance programme starting in October, combining two years of theory with two years of hands-on training at Joramco facilities, with graduates targeted for EASA and CARC licensing and first consideration for jobs at Joramco. Capital Markets: The Amman Stock Exchange recorded JOD 18.2m trading volume with 5.8m shares across 5,970 contracts; the ASE index slipped 0.57% to 4,007 points, while industrial, financial and services indices all edged down. Industry & Exports: Jordan’s industrial exports rose 2.6% in Q1 2026 to JD 2.027bn, led by stronger shipments to Asian and European markets, including big gains to Switzerland and China. Trade & Regional Ties: Prime Minister Jafar Hassan met Iraq’s parliament speaker Haibat Halbousi, reaffirming Amman-Baghdad cooperation and discussing energy, electricity, trade, investment and transport, with a push to boost private-sector partnerships. Food Security: Jordan’s food self-sufficiency improved to 61.4% in 2024, up from 57.3% in 2020, driven largely by vegetables and fruit-tree crops, though imports remain significant.

Industrial Exports: Jordan’s industrial exports rose 2.6% in Q1 2026 to JD2.027 billion, driven by stronger shipments to Asia and Europe, with Switzerland leading growth (+306%) and China up 75%, according to the Jordan Chamber of Industry. Trade Facilitation: The Amman Chamber of Commerce reported certificates of origin exports reaching JD624 million in the first five months of 2026 (+24.1%), with 15,464 certificates issued (+10%). Labor Market Policy: Jordan will suspend foreign worker recruitment across most sectors from June 1, 2026 to boost jobs for citizens, while keeping exceptions for garment/textile, development zones, qualified industrial zones/free zones, and domestic workers. Tourism & Culture: The Ministry of Tourism and Antiquities welcomed the UK’s updated travel advisory, reaffirming Jordan as safe and boosting confidence for tourism. Jerash Festival Prep: Culture Minister Mustafa Rawashdeh inspected preparations for the 40th Jerash Festival, urging top logistical and technical readiness ahead of the July launch.

Workforce Policy: Jordan will suspend foreign worker recruitment across most sectors starting June 1, 2026, aiming to boost jobs for Jordanians as unemployment falls to 16% in Q1 2026; the move keeps exceptions for garment/textile, factories in development zones, qualified industrial zones/free zones, and domestic workers. Trade & Exports: Amman Chamber of Commerce certificates of origin rose 24.1% in Jan–May 2026 to JD624 million, with 15,464 certificates issued (+10%), led by the UAE and Syria, signaling steadier export documentation activity. Tourism Confidence: Jordan’s Ministry of Tourism and Antiquities welcomed the UK’s updated travel advisory, reaffirming Jordan as safe and reclassifying most regions as safe—an immediate boost for European visitor confidence. Aviation Connectivity: Air Arabia outlined a phased return of international routes from UAE hubs, with services including Amman and other regional links, plus scheduled resumptions such as Vienna (June 25) and London Gatwick (July 4). Regional Energy/Industry Diplomacy: Morocco condemned drone attacks affecting the Barakah nuclear plant in the UAE during an IAEA board session, underscoring regional concern for nuclear safety and stability.

Foreign Labor Policy: Jordan will suspend recruitment of foreign workers across most sectors starting June 1, 2026, aiming to prioritize local employment as unemployment falls to 16% in Q1 2026; exemptions include domestic workers, the garment and textile sector, and roles tied to development zones, QIZs and free zones, while approvals issued before the decision remain valid. Food Security & Agriculture: Jordan’s food self-sufficiency rose to 61.4% in 2024 (from 57.3% in 2020) as domestic production and surpluses expanded, with strong results in vegetables (cantaloupe 485%, zucchini 173%, tomatoes 167%) and full self-sufficiency in olives (100%); wheat remains low at 2.9%, showing imports still dominate key staples. Green Investment Push: The Association of Banks in Jordan (ABJ) urged Qatari investors to back Jordan’s green economy priorities—renewable energy, sustainable transport, circular economy and low-emission infrastructure—framing it as a pillar of the Economic Modernization Vision 2023–2033 and highlighting the role of green finance in the banking sector. Industrial Growth Signals: Jordan’s government continues to drive industrial expansion, including factory openings and moves to convert industrial complexes and clusters into development zones, reinforcing momentum for investment and job creation.

Green Finance Push: The Association of Banks in Jordan (ABJ) says Jordan is pitching Qatari investors on green economy projects—renewables, sustainable transport, circular economy and low-emission infrastructure—aligned with the Economic Modernization Vision 2023-2033. Food Security Update: Jordan’s food self-sufficiency climbed to 61.4% in 2024 (from 57.3% in 2020), driven by higher local output and surpluses in crops like vegetables and olives, while key staples such as wheat still rely heavily on imports. Labour Market Rules: The Ministry of Labour has suspended recruitment of non-Jordanians across most sectors from June 1, with exemptions including domestic work and the garment/textile industry, plus certain production inputs in development zones, QIZs and free zones. Industrial Growth & Trade Links: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman, with a possible reactivation of the Damascus–Amman section, as part of efforts to build alternative routes amid Gulf tensions.

Green Finance Push: The Association of Banks in Jordan (ABJ) says Jordan is opening the door for Qatari investors in renewable energy, sustainable transport, circular economy projects and low-emission infrastructure, aligning with the Economic Modernization Vision 2023–2033 and calling on banks to scale green financing. Labour Market Policy: Jordan’s Labour Ministry has suspended recruitment of non-Jordanians across most sectors from June 1, while exempting domestic work, garment/textile, and some production inputs in development zones, QIZs and free zones, plus high-skilled roles. Food Security Update: Jordan’s food self-sufficiency rose to 61.4% in 2024 (from 57.3% in 2020), driven by surpluses in vegetables and key crops like tomatoes, zucchini and cantaloupe, while wheat and other strategic items still rely heavily on imports. Industrial Growth & Trade Links: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman as an alternative connectivity route, including a possible Damascus–Amman reactivation, while Jordan continues positioning industrial zones and logistics plans to attract investment. Venture Capital Spotlight: Anara Impact Capital, backed by KfW and Dara Holdings with Jordan’s ISSF among anchors, has reached a first close of $48m for seed-to-Series A impact startups across learning, wellbeing, financial access and climate resilience.

Labour Market Policy: Jordan’s Ministry of Labour has suspended the recruitment of non-Jordanians across most sectors from June 1, while keeping exceptions for domestic workers, garment/textile and complementary input manufacturers in development zones, QIZs and free zones, plus specialized high-skilled roles. Food Security Update: Jordan’s food self-sufficiency climbed to 61.4% in 2024 (from 57.3% in 2020), driven by higher local yields and surpluses in vegetables and some fruits and livestock, though wheat, fish/seafood and other key staples still rely heavily on imports. Industrial Growth & Investment: The government continues pushing industrial expansion, including new factory openings and incentives tied to industrial zones and development areas, aiming to accelerate investment and sustainable growth. Regional Trade & Logistics: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman, using the Damascus–Amman link as an early step, alongside work on a major Development Road corridor to diversify routes around the Strait of Hormuz. Trade Compliance Risk: The U.S. is moving forward with forced-labour related trade actions that could affect Jordan and other economies, raising the stakes for exporters and supply-chain compliance.

Forced-Labour Tariffs: The US Trade Representative has proposed Section 301 tariffs of 10%–12.5% on imports from 60 economies, including Jordan, after finding failures to enforce forced-labour import bans—setting up a fresh trade pressure point for exporters. Jordanian Exports Watch: Jordan’s pharmaceutical exports rose 17.6% in Q1 2026 to JD147m, supported by market expansion and stronger regulatory recognition. Free Zone Traffic: Vehicle clearance at Zarqa Free Zone fell 65.3% in the first five months of 2026, with EV clearances down 85.7%, linked to tighter import standards. Industrial Push: The government continues rolling out industrial incentives and factory openings, including new plants in Karak and moves to expand industrial clusters. World Cup Economy & Work: With Jordan set for its first World Cup appearance, PM-directed public institutions will start later on match days, while JEF frames football as a growth lever for investment and tourism. Tourism Access: Jordan’s tourism authorities say they’re working to lift travel restrictions and advisories in multiple countries to boost inbound arrivals. Regional Trade Links: Easing trade flows remains a theme as Jordan backs corridor connectivity, including the Aqaba–Tartous route.

Pharma Exports Surge: Jordan’s pharmaceutical exports jumped 17.6% in Q1 2026 to JD147m, driven by new market access and stronger international confidence, with the sector aiming for about JD2.1bn by 2033. Free Zone Trade Signals: Vehicle clearance at Zarqa Free Zone for the domestic market fell 65.3% in the first five months of 2026, with EV clearances down 85.7% after tighter import standards. Industrial Push in Karak: Jordan opened six new factories in Karak (Qatrana/Al-Qatrana area), reinforcing efforts to build industrial clusters and accelerate investment. Exports Momentum: Jordan’s overall exports rose to JD2.129bn in Q1 2026, alongside reports of stronger export categories and re-export activity shifts. Energy & Regional Trade: The EBRD said Jordan is rationalizing energy use and supporting agriculture and tourism amid regional war fallout, while praising the Aqaba–Tartous corridor to facilitate trade. Capital Flows Watch: Foreign investors held 46.3% of Amman Stock Exchange market value by end-May, with net selling in May but continued presence overall. Jordan-Japan Ties: A renewed focus on Jordanian-Japanese partnership highlights development cooperation in infrastructure, water, energy, and human development. World Cup as Investment Lever: JEF framed Jordan’s 2026 World Cup qualification as a chance to attract sports investment and spur tourism and growth across sectors.

Industrial Push in Jordan: Prime Minister Jafar Hassan inaugurated six Chinese-owned Jinsheng International factories in Karak’s Qatraneh area, aiming to build an integrated industrial complex and create about 700 jobs, while directing steps to designate the site as a development zone. Industrial Incentives & Logistics: Hassan also announced new incentives for the Rawda Industrial Area (reduced electricity and land costs, plus support until it connects to the Arab Gas Pipeline) and stressed fast-track work on the Aqaba-Maan land port project, linked to the Aqaba Railway. Engineering Sector Dialogue: Hassan met the Jordan Engineers Association to discuss sector priorities and how to use engineering expertise in major water, energy, transport and infrastructure projects. Prices Watch: Jordan’s wholesale price index rose 1.13% in Q1 2026 year-on-year, with textiles and fuel/metals/construction materials among the biggest movers. Food Security Shock: The World Food Programme suspended food assistance for 135,000 Syrian refugees in Jordan’s host communities due to a funding shortfall, while continuing reduced support in camps. Regional Trade & Shipping: A new “Red Sea Express” service links Egypt’s Ain Sokhna, Jordan’s Aqaba, and Saudi ports to cut transit times and delays for faster container movement. Gulf Disruption Risk: Iran launched missile and drone attacks on Bahrain and Kuwait and targeted civilian shipping routes; US and local air defences reported interceptions, raising uncertainty for regional logistics.