Free Zones and the Attraction of Foreign Investment: The Experience of the Hashemite Kingdom of Jordan

Abstract

Countries seek to attract foreign capital and
utilize their natural and human resources to
support their national economy and growth.
This, in turn, requires creating a favorable
investment climate legally, regulatory, and
environmentally, as well as providing
facilitations for the requirements of investing
companies. Free zones are among the most
important areas for foreign and domestic
investments, serving as a mechanism to increase
the country's Gross Domestic Product (GDP)
and contribute to diversifying foreign trade
sources. They act as a link between countries
worldwide and help attract human resources
while reducing unemployment.
The free zones in the Hashemite Kingdom of
Jordan are considered a significant investment
center due to the country's geographical
location, political stability, security,
infrastructure availability, customs transactions,
imports, tax incentives, and foreign currency
transfers, among other factors. Therefore, the
aim of this research is to discuss the legislative
and legal frameworks and regulatory
requirements governing the operations of free
zones in the kingdom, as well as the contribution
of these zones to attracting foreign investments
and their impact on the kingdom's exports,
imports, and re-exports. Additionally, their
contribution to the sustainability of investments
and economic development will be examined