Economic partnership between Jordan and US: From aid to investment

The economic relationship between Jordan and the United States plays an important role in boosting Jordan's local economy. This partnership is built on free trade agreements and mutual investments, not just US aid. Despite political challenges and economic pressures, Jordan is working to become a regional hub for business and investment, using its good location and strong infrastructure.

US companies also understand the value of Jordan’s market and its location as a gateway to other regional markets, which opens up more chances for cooperation in areas like technology, industry, and logistics. As Jordan continues its economic reforms, its partnership with the US is a key factor in keeping the economy stable and attracting more investments, despite any short-term political issues. Even with political pressures, these meetings show that Jordan is still working hard to boost its economy.

Recently, His Majesty King Abdullah attended an important economic meeting in Boston, Massachusetts, with several American business and educational leaders. They discussed ways to grow economic partnerships and attract more investment. Jordan is working to improve its economic growth, business environment, and investment opportunities through economic and administrative reforms. These efforts aim to make Jordan a regional center for services and leadership. Free trade agreements with the US and Europe, along with strong infrastructure for technology and innovation, also support Jordan's investment environment and help build new businesses.

Massachusetts is a global center for economic partnerships, particularly in fields like science, industry, healthcare, innovation, technology and education. The meeting included leaders from sectors such as healthcare, biotechnology, life sciences, higher education, technology, and energy. This meeting was especially important because it came at a time when Jordan was facing political pressure from the US, including a decision to freeze US aid to Jordan for 90 days. Despite these challenges, the meetings were a chance to strengthen economic cooperation between the two countries.

The King’s visit showed new investment opportunities for Jordan, even with political pressures. Jordan’s economy is attractive to foreign investors because of its location in the Middle East and its security. During the meeting in Boston, the King presented Jordan as a regional center for innovation and entrepreneurship, taking advantage of free trade agreements with the US and Europe. Institutions like Harvard University and MIT showed interest in increasing cooperation with Jordanian universities. There were also discussions about opportunities for student exchange programmes and joint research in advanced fields like biomedical engineering and renewable energy. These steps will help share knowledge and improve local skills, giving Jordan a better chance of attracting global companies.

The decision to freeze US aid to Jordan for 90 days is a big challenge, as Jordan depends on this aid to support its budget and development projects. However, the meetings in Boston are part of Jordan’s efforts to reduce the impact of this decision by encouraging more foreign investment and expanding trade with the US In 2023, trade between Jordan and Massachusetts reached over $22 million, with Jordan’s exports to the state at $15.3 million and imports from the state at $7.3 million. Exploring new areas of cooperation can help lessen the negative effects of political pressures.

It is important for Jordan to be seen as a regional center for logistics and industry, emphasising its strengths in storage and logistics services, based on its strategic location and trade agreements. These investments can boost the local economy, create new jobs, and help reduce the effects of the current political and economic challenges Jordan faces.

The King’s visit has opened up important opportunities for future economic cooperation. Despite political challenges, the results of these meetings suggest new possibilities for cooperation between Jordan and the US, especially in key sectors. Jordan’s success in attracting U.S. investment and growing its trade partnerships shows its ability to adapt to political changes while continuing to develop. These efforts are a crucial step in achieving long-term economic stability, regardless of short-term political decisions.

Raad Mahmoud Al Tal is head of the Economics Department – University of Jordan