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AMMAN — Jordan attracted more than US$2 billion in foreign direct investment (FDI) in 2025, marking an increase of more than 25 per cent on the previous year, according to the Arab Investment and Trade Credit Guarantee Corporation (Dhaman).
Jordan received US$2.022 billion in inward FDI during the year and improved its position in Dhaman's 2025 Composite Investment Climate Index, rising two places to rank seventh among Arab countries and 74th globally.
In a statement issued from its headquarters in Kuwait on Wednesday, Dhaman said that the average ranking of Arab states remained unchanged at 102nd worldwide, leaving the region around 23 places below the global average, despite improvements by 13 Arab countries, the Jordan News Agency, Petra, reported.
In its 41st Annual Investment Climate Report 2026, the organisation called for comprehensive and flexible reforms to strengthen the investment environment across the Arab world.
The report identified four priority areas for reform: political and security conditions; institutional, legislative and administrative frameworks; the wider economic environment; and the availability of production factors.
Dhaman said that the value of new FDI projects across Arab countries fell by 9 per cent to US$112 billion in 2025, citing geopolitical tensions as a key factor behind the decline.
Dhaman recommended policies aimed at controlling inflation, maintaining currency stability, reforming tax and customs systems, improving infrastructure and logistics, expanding the role of the private sector and providing additional incentives for priority industries.
The report also highlighted the importance of investing in human capital through education and skills development, increasing labour market flexibility, improving access to industrial land and expanding financing options through banks and other financial institutions.
Dhaman also encouraged Arab governments to draw on successful international experiences in improving investment climates, prioritise reforms with the greatest impact, accelerate digital transformation and tailor policies to each country's resources and economic circumstances.
The report ranked the United Arab Emirates first in the Arab world and 17th globally, followed by Qatar (38th globally), Saudi Arabia (40th), Oman (51st), Kuwait (52nd), Bahrain (57th), Jordan (74th) and Morocco (75th).
Tunisia and Egypt also performed better than the Arab average, ranking 95th and 100th globally, respectively.
The remaining 11 Arab countries; Algeria, Lebanon, Djibouti, Mauritania, Iraq, Libya, Palestine, Syria, Somalia, Sudan and Yemen were ranked between 104th and 158th worldwide.
Established in 1974 as a joint Arab multilateral institution owned by Arab member states and four major regional financial bodies, Dhaman operates as the world's pioneer multilateral investment insurance provider, dedicated to mitigating political and commercial risks to stimulate capital flows into the region.
