Amman, July 8 (Petra) – Jordan recorded a substantial 25% surge in
Foreign Direct Investment (FDI) inflows in 2025, with total
investment volumes reaching $2.022 billion, according to the Arab
Investment and Trade Credit Guarantee Corporation (Dhaman).

In a statement issued Wednesday from its headquarters in Kuwait,
Dhaman revealed that the Kingdom advanced two spots to rank 7th
regionally and 74th globally in its 2025 Composite Investment Climate
Index.

Dhaman’s 41st Annual Investment Climate Report for 2026 revealed that
the overall Arab average stabilized at 102nd globally, indicating a
23-rank gap from the global baseline despite notable index
improvements across 13 Arab nations.

The report outlined that rising geopolitical tensions led to a 9%
contraction in new greenfield FDI project costs within Arab
countries, which totaled $112 billion in 2025. Similarly, United
Nations Conference on Trade and Development (UNCTAD) data showed a
10% drop in total FDI inflows to the region, settling at $119.3
billion. More than 80% of these inflows remained concentrated in just
three Arab economies, bringing the region’s global share down to
7.3%.

To counter these macroeconomic pressures, Dhaman recommended that
Arab governments adopt flexible, integrated structural reform
frameworks focusing on four priority pillars. The first pillar
targets geopolitical and security stability by accelerating peaceful
conflict resolution, enhancing regional counter-terrorism and
organized crime coordination, and fortifying the rule of law.

The second pillar addresses institutional, legislative, and
procedural frameworks by streamlining business laws, digitizing
administrative transactions, improving governance, and enhancing
investor protections via domestic arbitration and political risk
insurance. The third pillar emphasizes economic optimization through
curtailing inflation, stabilizing national currencies, reforming tax
and customs codes, upgrading logistics infrastructure, and
incentivizing private sector participation.

The final pillar centers on the factors of production, calling for
the development of human capital through targeted vocational
training, increased labor market flexibility, simplified industrial
land acquisition, and diversified financing channels.

The report highlighted distinct performance tiers across Arab
economies, with Gulf Cooperation Council (GCC) states, Jordan, and
Morocco leading the index. The United Arab Emirates led the region at
17th globally, followed by Qatar at 38th, Saudi Arabia at 40th, Oman
at 51st, Kuwait at 52nd, Bahrain at 57th, Jordan at 74th, and Morocco
at 75th.

Tunisia at 95th and Egypt at 100th also outperformed the regional
average. Conversely, eleven Arab nations – Algeria, Lebanon,
Djibouti, Mauritania, Iraq, Libya, Palestine, Syria, Somalia, Sudan,
and Yemen – ranked lower on the index, placing between 104th and
158th globally.

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.

//Petra// AA