AGP Executive Report

US Travel Warning: US embassies in Amman, Jerusalem and Baghdad urged Americans to consider leaving West Asia and be ready for flight cancellations, airspace closures and travel disruptions as tensions with Iran rise. Royal Diplomacy: King Abdullah II spoke with UK PM Andy Burnham, stressing the need to intensify efforts to restore stability and halt Israel’s escalations in the West Bank and Jerusalem. Aviation & Trade Impact: QAIA reported 3.74m passengers in H1 2026 (down 15% y/y) while cargo and aircraft movements also fell, citing regional volatility. Digital Payments: Jordan’s DVLD fully moved licensing payments to e-channels and ended cash payments across all centers from Aug 2. Markets: Amman Stock Exchange weekly trading volume rose to 86.0m JOD (up from 73.4m), with the financial sector leading activity. Standards & Trade Facilitation: JSMO said 151 companies joined the Committed Trader Program in H1 2026, up from 143 a year earlier. Business Links: EuroCham Jordan and Switzerland discussed boosting trade and investment cooperation. Regional Shipping Security: Saudi Arabia’s proposed Red Sea maritime coalition signals a bigger GCC role in protecting key shipping lanes. Energy Costs: Economists backed Jordan’s fuel price freeze as a way to cushion inflation and protect purchasing power.

Regional Security & Energy: The US-Iran conflict is widening across the Middle East, with renewed strikes and retaliations reaching Saudi Arabia, Iraq, Yemen, Jordan and Egypt—raising fears of disruption to oil and shipping and a longer, costlier standoff. Jordan’s Role: Jordan continues intercepting Iranian missiles and is pushing for de-escalation, while King Abdullah discussed regional tensions and Gaza with Canada’s PM Mark Carney. Maritime Trade Protection: Saudi Arabia has launched a multinational maritime defense alliance to safeguard Red Sea/Bab al-Mandeb/Gulf of Aden routes; Jordan is among the reported signatories, alongside 13 other countries. Business & Investment Links: EuroCham Jordan met Switzerland’s embassy to explore ways to strengthen trade and investment cooperation. Public Health: WHO Director-General Tedros visited Jordan, highlighting collaboration on universal health coverage, mental health, and emergency support for refugees and Gaza patients. Tariffs Watch: US Section 301 forced-labor tariffs were finalized for imports from 60 countries, adding new cost pressures for global trade. Aviation/Travel: Jazeera Airways expanded Amman services with three daily flights. Local Economy Snapshot: Royal Jordanian reported a net profit of JD 1.4m in H1 2026, citing continued resilience amid regional challenges.

Red Sea Security: Saudi Arabia launched a Saudi-led, 14-nation maritime defence coalition to protect shipping around Bab al-Mandeb, the Red Sea and the Gulf of Aden, with a Riyadh meeting drawing 43 countries plus an EU delegation and plans for joint operations coordination and a general secretariat in the Kingdom. Jordan’s Regional Role: Jordan’s King Abdullah spoke with Canada PM Mark Carney about de-escalation, stressing Jordan will take necessary measures against Iran’s aggression and calling for stronger international efforts to prevent new facts on the ground in Gaza and the West Bank. Iran-US Escalation Risks: The Iran war keeps widening, with Iran claiming strikes on U.S. assets in Kuwait and Bahrain while the U.S. says it hit dozens of IRGC targets; Jordan also reported intercepting Iranian missiles. Gaza Ceasefire Mechanics: A “Board of Peace” framework is set to oversee Hamas disarmament and Gaza’s transition, with Hamas saying it agreed to phased disarmament while Israel has not endorsed the reports. Local Business Signal: Central Bank of Jordan kept its main interest rate unchanged at 5.75%, a key backdrop for borrowing and investment decisions.

Middle East Security: Iran and the U.S. traded missile barrages again after a brief lull, with Jordan reporting it intercepted Iranian missiles for a second straight day and Kuwait reporting a strike that killed one person. Jordanian Impact: The renewed escalation keeps Jordan on the frontline, with claims and counterclaims over attacks and interceptions involving U.S. bases in the region. Red Sea Trade Protection: Saudi Arabia launched a multinational defensive maritime coalition to secure the Bab al-Mandab Strait, the Red Sea and the Gulf of Aden, with 14 countries backing the plan after a Riyadh meeting involving representatives from 43 states plus the EU; Jordan is listed among founding members. Regional Diplomacy: Pakistan, acting as mediator, said U.S.-Iran talks are ongoing and focused on de-escalation around the Strait of Hormuz even as attacks continue. Business Angle: With shipping and energy routes under pressure, the alliance signals a push to protect trade flows that matter directly to regional economies and logistics.

Middle East Security: Jordan condemned Iran’s attack on a Chinese facility in Kuwait and said it intercepted Iranian missiles again after the US and Iran resumed missile barrages, raising fears of a wider regional spillover. Red Sea Trade Protection: Saudi Arabia pushed ahead with a Red Sea maritime defence coalition, with 43 countries attending and Jordan among the backers, aiming to secure Bab al-Mandeb and Gulf of Aden shipping lanes. Jordanian Foreign Policy: King Abdullah II spoke with France’s Macron about stopping regional escalation and Israel’s moves in the West Bank. Aviation & Tourism Impact: Royal Jordanian reported a first-half 2026 net profit of JOD 1.4m, but blamed higher fuel costs and regional disruptions; the carrier also expanded Amman services. Legal/Enforcement Efficiency: Jordan’s Justice Ministry said enforcement departments transferred about JD184m in three months, citing faster digital procedures. Cybersecurity Capacity: Willis College (Canada) announced a DND-funded partnership to build cyber-defence training for the Jordanian Armed Forces.

Middle East Security: Jordan says it intercepted and destroyed five Iranian missiles early Thursday, hours after the U.S. carried out a “heavy wave” of strikes on Iran-linked IRGC targets; no casualties were reported in Jordan. Regional Escalation: The conflict is widening as the U.S. and Saudi Arabia strike Iran-backed militias in Iraq, while Iran vows retaliation after attacks tied to a missile strike on a U.S. base in Jordan. Diplomacy Under Strain: Officials point to deep mistrust and a stalled diplomatic track, with hopes for a durable ceasefire fading as attacks resume. Trade & Energy Pressure: With the Strait of Hormuz facing renewed disruption, shipping and energy risks are rising, adding pressure to fuel and food prices across the region. Human Rights Watch: A new report highlights Jordan’s long delay in submitting an overdue periodic report to the UN Committee on Economic, Social and Cultural Rights, urging a review of rights tied to work, health, education, housing, and social protection.

Middle East Security: Jordan’s air defences intercepted and destroyed five Iranian missiles as US and Saudi forces carried out coordinated strikes on Iran-backed militias in eastern Iraq, killing at least 20; the US also said it redirected 20 vessels in its Iran blockade. Energy & Markets: The regional escalation pushed oil higher, with Brent futures jumping above $90, while markets tracked the risk of a wider conflict. Diplomacy & Regional Support: King Abdullah spoke with Egypt’s Sisi, with both leaders stressing rejection of attacks on Jordan and Arab states and calling for intensified efforts to restore calm; US-GCC strategic coordination was also reaffirmed with Jordan in Washington. Jordan Trade & Logistics: Jordan moved to expedite cargo flow through Aqaba Port and border crossings, including faster customs clearance and reduced vessel wait times, to protect supply chains amid regional disruption. Industrial Policy: The Ministry of Industry reviewed progress on Jordan’s Industrial Policy 2024–2028, including energy-efficiency steps for industrial facilities. Business Pulse: Amman Stock Exchange trading rose modestly (up 0.53%).

Middle East Security: Jordan says it intercepted and destroyed five Iranian missiles launched toward U.S. and regional targets, as Washington reported it also stopped an “attempted surprise attack” and carried out joint U.S.-Saudi strikes on Iran-backed sites in Iraq. Oil & Trade: The renewed escalation pushed Brent up again (around the mid-$80s), reviving worries for shipping through the Strait of Hormuz and wider Gulf trade. Diplomacy on Hormuz: Oman’s proposal for regional joint management of the Strait of Hormuz—based on voluntary fees—was rejected by Tehran, which insists on control of key lanes. Regional Politics: Pakistan and Jordan condemned Israeli settler incursions at Al-Aqsa and urged urgent international action, including a proposed emergency meeting of Arab and Islamic countries. Local Business/Finance Watch: With regional tensions back in focus, Jordanian firms tied to energy, logistics, and cross-border trade may face renewed cost pressure as markets react.

Digital Health Push: Jordan’s Digital Health Center is now producing 45,000+ remote radiology reports and supporting dialysis and intensive care via links to hospitals and health centres, with Crown Prince Hussein urging wider connectivity across the public system. Central Banking & Cybersecurity: The Central Bank of Jordan has picked BIO-key to roll out national biometric authentication for the financial sector, aiming to cut reliance on passwords and tokens. Diplomacy on Gaza/West Bank: Foreign Minister Ayman Safadi held calls with regional partners and also spoke with Pakistan’s Ishaq Dar, stressing concern over Israeli strikes and settler violence, including Al-Aqsa incursions, and backing a coordinated Arab-Islamic response. UNRWA Under Fire: Jordan condemned an Israeli raid on the UNRWA Kalandia Training Centre in East Jerusalem as a violation of international law and UN agency immunities. Regional Security: Kuwait’s foreign ministry condemned drone attacks targeting Jordan and reaffirmed solidarity, while GCC foreign ministers coordinated to reduce tensions and protect navigation in the Strait of Hormuz. Agriculture Exports: Jordan’s Agriculture Ministry says export policies boosted competitiveness and supported food security, including JD2m in direct support for air and sea shipments.

Banking & Finance: Housing Bank for Trade and Finance Group reported net profits of JOD 82.2m in the first half of 2026, up 2.6%, and said it issued the Kingdom’s first blue bond (USD 100m) with EBRD support to fund sustainable projects tied to water and the National Water Carrier. Digital Government: Jordan climbed to 71% in the 2025 Government Electronic and Mobile Services Maturity Index (GEMS), its highest score in four years, as digital services expand for citizens and businesses. Real Estate Law: The Lower House will debate amended Real Estate Ownership Law provisions, including full digitalization of property procedures and faster dispute resolution for jointly owned properties. Central Banking Tech: The Central Bank of Jordan selected BIO-key for a national biometric authentication initiative to standardize secure access across the financial sector. Water Infrastructure: Cabinet approved a $97m financing agreement with France’s development agency for the National Water Carrier Project, aimed at completing financial closure and starting implementation. Trade & Regional Economy: Iraq and Jordan discussed boosting bilateral trade ties and convening an Iraqi-Jordanian economic committee in Baghdad. Regional Security With Business Impact: Jordan and the UN stressed upholding the US-Iran ceasefire and resuming talks, as drones and cross-border tensions continue to raise risks for regional stability and commerce.

Regional Diplomacy: Jordan’s FM Ayman Safadi met UN chief António Guterres in Amman, urging strict adherence to the US-Iran ceasefire, a return to talks, and freedom of navigation through the Strait of Hormuz, while also pressing for Gaza ceasefire implementation and lifting Israeli restrictions on humanitarian aid. Cabinet & Social Policy: The Cabinet approved changes to public-sector unpaid leave rules (shorter eligibility from 5 to 3 years, and open-ended leave duration) plus updates on private school ratings and a new social protection framework. Water Infrastructure Finance: Jordan cleared a $97m financing agreement with France’s development agency to support the National Water Carrier Project, a $5.8bn mega plan aimed at boosting water security via desalination and major pipeline works. Public Services Digital Push: Crown Prince Hussein urged faster completion of digital automation at the Civil Status and Passports Department and wider public awareness of Sanad e-services. Transport & Congestion Plan: Government moved forward on “Park and Ride” facilities, including an electronic garage for about 1,000 vehicles, linked to BRT corridors. Industry & Exports: Jordan’s industrial exports rose 8.2% in the first five months to about JOD 3.668bn, with gains across Europe and parts of Asia and Arab markets. Tourism Uptick: Overnight tourist arrivals reached 491,788 in June (+1.8% y/y), lifting total tourists and visitors to 600,216 (+0.8% y/y). Security & Early Warning: Jordan tested a national mobile emergency alert system across governorates through Aug. 2, and reported drone incidents in the region amid a US-Iran fighting lull.

National Emergency Alerts: Jordan’s National Center for Security and Crisis Management starts today testing the National Mobile Warning System across most governorates through Aug. 2, with trial messages based on dust-storm warnings in Arabic and English plus a distinctive alert tone. Trade & Industry: Jordan’s textile and garment exports to the U.S. will be exempt from customs duties under a newly signed Reciprocal Trade Agreement, with other Jordanian exports facing tariffs capped at 10%, a boost for a sector that exceeded JD 431m in exports to the U.S. in the first four months. Remittances: Central Bank data shows remittances from Jordanians abroad rose 15% in the first five months of 2026 to $2.06bn, led by the UAE, U.S., Saudi Arabia and others—supporting liquidity and consumption. Aqaba & Energy Security: A Prime Minister visit to Aqaba highlighted natural gas infrastructure steps and UNESCO’s Aqaba Marine Reserve listing, aiming to reassure investors amid regional security concerns. Regional Risk to Markets: Oil prices slid as U.S.-Iran hostilities paused, even as Red Sea shipping risks and drone incidents near Jordan’s border kept volatility high. Exports Momentum: Jordan’s industrial exports rose 8.2% in the first five months of 2026, with gains across multiple international markets.

Industrial Trade: Jordan’s industrial exports jumped 8.2% in the first five months of 2026, with gains across markets like Switzerland, China, the Netherlands and Belgium, and Arab demand rising in Syria, the UAE and Palestine. Garments to US: The Industry Ministry says Jordanian garment and knitted apparel exports to the United States will enter with zero customs duties under a new reciprocal trade agreement, while other Jordanian goods face reduced tariffs of 10%. Agriculture & Food Security: Jordan’s local wheat and barley harvest has reached about 110,000 tonnes, with total deliveries expected at 130,000–140,000 tonnes, supporting strategic reserves. UNESCO & Tourism/Environment: Aqaba Marine Reserve was added to UNESCO’s World Heritage List, boosting Jordan’s environmental profile and long-term tourism value. Diplomacy: Ayman Safadi discussed Jordan-Canada ties and regional escalation with Canada’s foreign minister, stressing freedom of navigation through the Strait of Hormuz and renewed Gaza humanitarian access. Regional Risk: The Strait of Hormuz remains a flashpoint, with talk of a wider international naval effort to protect shipping as tensions with Iran continue.

US-Jordan Trade: Industry Minister Yarub Qudah says Jordanian apparel and textile exports have secured full duty exemption in the U.S., after nearly a year of talks under the new Reciprocal Trade Agreement signed in Washington—expected to boost exports to the U.S., Jordan’s biggest market for garments. Energy in Aqaba: Prime Minister Jaafar Hassan inaugurated natural gas stations in Aqaba’s Al-Quweira Industrial City and the Southern Industrial Zone, targeting lower industrial energy costs and supporting export competitiveness. UNESCO & Tourism/Environment: Jordan celebrated the Aqaba Marine Reserve’s UNESCO World Heritage listing, highlighting its coral biodiversity and climate resilience—an international boost for conservation and marine tourism. Local Transport Sustainability: Amman was ranked a regional leader for zero-emission buses in a UITP report, with Greater Amman Municipality praised for governance and ownership of electric buses and charging infrastructure. Regional Trade Flows: Jordanian imports from Iraq plunged over 60% in H1 2026, while exports stayed broadly stable, pointing to shifting regional economic conditions. Maritime Security Watch: Qatar fully resumed maritime navigation after a two-week suspension tied to Gulf security tensions, as Hormuz-related risks continue to shape shipping decisions.

Trade & Industry: Jordan’s Minister of Industry, Trade and Supply Yarub Qudah announced garment and knitted apparel exports to the U.S. will enter with zero customs duties under the new reciprocal trade agreement, while the U.S. cuts tariffs on other Jordanian goods to 10%—a boost for a sector that exceeded JD 431m in exports in the first four months of 2026. Agriculture & Food Security: Jordan’s wheat and barley harvest intake hit about 110,000 tonnes, the largest in nearly 15 years, with total deliveries expected at 130,000–140,000 tonnes; officials say strategic reserves remain strong and imports will continue to protect supply. Investment & Business Links: Amman and West London chambers signed an MoU to deepen trade and investment ties, aiming for more direct partnerships and joint ventures. Industrial Development: Jordan Industrial Estates Corporation (JIEC) signed a twinning agreement with Morocco’s MedZ to share expertise on industrial estates and economic zones. Energy Costs: Heat waves are pushing up electricity bills as households shift between fans and air conditioning, often landing in higher tariff brackets. Tourism & Heritage: Aqaba Marine Reserve was inscribed on UNESCO’s World Heritage List, highlighting the Red Sea’s marine biodiversity and climate-resilient coral reefs.

US Tariffs on Forced Labour: The U.S. has imposed new 12.5% tariffs on imports from Nigeria and other countries under Section 301, targeting nations Washington says haven’t adopted or enforced bans on goods made with forced labour; the policy replaces expiring temporary duties and sets a 10% rate for countries with stronger commitments, including Jordan. Jordan Labour Market Reform: A fresh op-ed argues Jordan’s main employment problem isn’t unemployment numbers but weak labour demand, saying jobs grow when investment, productivity and competitive sectors expand—not just through training and temporary schemes. Regional Risk for Jordan’s Economy: Reporting highlights how renewed Iran-related strikes and shipping fears are weighing on Jordan’s economic hopes, especially around Aqaba and Red Sea logistics. Aqaba/Red Sea Security: Separate coverage notes missile threats and interceptions across the region, underscoring how quickly geopolitical shocks can disrupt trade and travel. Business-Travel Demand Watch: Delta admitted softer bookings on its new Atlanta–Riyadh route, a sign that Middle East tensions can hit airline demand even when routes launch. Jordan-Related Diplomacy: Jordan’s foreign minister warned Israel’s West Bank actions could push the territory toward “explosion,” adding political risk that can spill into regional commerce.