Amman, Aug. 13 (Petra) – The Cabinet, in its session held Wednesday under the chairmanship of Prime Minister Jafar Hassan, approved a series of economic, developmental, and institutional measures, including tax exemptions for the Jordan Football Association (JFA), a comprehensive package of incentives for green hydrogen projects, and the endorsement of strategic cooperation agreements.
The Cabinet decided to exempt the JFA from sales tax on revenues derived from sponsorship and marketing contracts, television broadcasting rights, and match ticket sales. This measure follows the Prime Minister’s visit to the JFA in July, in recognition of the association’s recent achievements, most notably the national football team’s qualification for the 2026 World Cup, and as part of the government’s commitment to supporting preparations for upcoming events.
During the visit, Hassan announced the doubling of the JFA’s budget starting next year to sustain recent successes and expand youth football training centers across the Kingdom’s governorates. The plan also aims to utilize youth center infrastructure to develop football and other sports programs.
The Cabinet decision further stipulates that donations made to the JFA shall be deductible from the donor’s taxable income, and that contractors engaged by the JFA are exempt from work permit fees.
In alignment with the Economic Modernization Vision, the Cabinet approved the Incentives and Exemptions Committee’s decision at the Ministry of Investment to grant green hydrogen projects located outside the Aqaba Special Economic Zone a comprehensive incentives package.
Following its July 2, 2025 decision, the Cabinet tasked the Ministries of Energy and Mineral Resources, Investment, and Finance to review the incentives granted to green hydrogen projects both inside and outside the Aqaba Special Economic Zone. The approved package includes a 5 percent income tax rate with a 1 percent national contribution; exemptions from customs duties, general sales tax, and other levies on all project equipment, fixed assets, and spare parts; as well as exemptions from stamp duties on contracts related to financing, supply, installation, and operation.
Additional benefits include exemption from withholding tax on imported services, a grace period of up to five years before public treasury land rents are collected, and tax exemptions for non-resident financiers on interest, fees, and related loan payments for the duration of project agreements.
These incentives are designed to enhance Jordan’s competitiveness in attracting green hydrogen investments, stimulate clean energy industries such as green ammonia production, create direct and indirect job opportunities, and reinforce the Kingdom’s position as a regional clean energy hub.
The Cabinet also approved a financing agreement and memorandum of understanding with the European Union for €500 million in financial assistance, part of a €3 billion package for 2025–2027 under the comprehensive strategic partnership signed by His Majesty King Abdullah II in January. The package comprises €640 million in grants, €1.4 billion in investments, and approximately €1 billion in macroeconomic support.
In further economic measures, the Cabinet approved adding fixed assets, supplies, and production inputs to the zero-rated tax list, including spare parts for vehicles, electrical appliances, and construction materials. The list is periodically reviewed by the Ministry of Investment’s Incentives and Exemptions Committee.
Additionally, the Cabinet extended the implementation period for the Aqaba tourist resort project to facilitate its completion and endorsed the 2025 Administrative Organization System for the Accreditation and Quality Assurance Commission to enhance its operational efficiency.
An amended 2025 Administrative Organization System for the National Aid Fund was also approved to improve structural and operational effectiveness, alongside the endorsement of the 2025 Scientific Research and Innovation Support Fund System. This measure transfers the fund from the Ministry of Higher Education and Scientific Research to the Higher Council for Science and Technology in line with the government’s restructuring plan, strengthens partnerships with industry and commerce, and prioritizes research funding for the next decade.
The Cabinet further ratified a regulation abolishing the retirement and social insurance system for Jordanian geologists, in line with the Geologists Syndicate’s General Assembly decision to encourage scientifc research and innovation.
In infrastructure development, the Cabinet approved a $3 million agreement for the expansion and rehabilitation of the Ain Ghazal primary wastewater treatment plant and the tanker unloading station, increasing capacity to more than 300,000 cubic meters per day to meet projected demand until 2045. The project complements the National Water Carrier Project and will be operated under the existing public-private partnership framework until 2037.
On the diplomatic front, the Cabinet approved a memorandum of understanding on political and diplomatic consultations between the Ministry of Foreign and Expatriates Affairs and the Ministry of Foreign Affairs of the Republic of Benin, aimed at strengthening cooperation and expertise exchange.
//Petra// AJ
13/08/2025 14:08:20
