Taiwan-Jordan Economic Relations
The Jordanian economy, one of the smallest economies in the Middle East, is attractive to foreign investors due to its skilled workforce. In 2019, Jordan pursued important structural reforms, introducing new regulations to govern aspects of financial transactions, such as insolvency, digital payments, and public procurement, and in so doing, becoming one of the top 20 performers in the World Bank’s 2020 Doing Business report, which takes into account a country’s progress on making it easier for small- and medium-enterprises to operate.
Jordan has also developed a Five-Year Reform Matrix to lay the foundations for more sustainable, inclusive growth that can deliver on agendas involving jobs, youth, and gender. These medium-term reforms aim to make the economy more efficient and reorient it toward export-led growth by creating a better business and investment environment.
Overview of Bilateral Trade
Bilateral trade between Jordan and Taiwan totaled US$421 million in 2018, US$368 million in 2019 and US$306 million in 2020. In 2020 the Taiwan-Jordan bilateral trade represented a decrease of 17% over the previous year. Taiwan's exports to Jordan amounted to US$247 million, decreasing 18%, while Taiwan's imports from Jordan amounted to US$60 million, decreasing 9%. The five main export products were woven and long pile fabrics, electric lamps and lighting fittings, phenols, televisions, and self-contained electric motors. The top five imported products were Mineral or chemical fertilizers, natural calcium phosphate, textile materials, copper waste and scrap, synthetic fibers.
Overview of Bilateral Investment
According to statistics from the Investment Commission of the Ministry of Economic Affairs, 64 Jordanian direct investment (FDI) cases for a total amount of US$22 million were approved from January 1989 to December 2020. From 2017 to December 2020, four new cases were approved for a total amount of US$2.8 million. The major industries are fuel oils, machinery, and wholesales.
As for Taiwan's outward investment to Jordan, 5 cases were approved from 1989 to December 2020. This approved investment amounted to US$39 million.
Strategically, Taiwan and Jordan share common interests in trade, investment, industrial, and SME affairs. In term of economic and trade relations between Taiwan and Jordan, a substantial and positive progress has been observed. Therefore, it is suggested that the Taiwan-Jordan Trade and Investment Working Group can be established. This explores ways to deepen the trade and investment ties between the two countries and lay a groundwork for stronger future trade relationships.