AGP Executive Report

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.

US–Jordan Trade & Investment: Jordan and the United States signed a reciprocal trade agreement to expand bilateral economic ties, easing barriers for American exporters and supporting Jordan’s private sector. Forced-Labor Tariffs Hit Jordan: The US rolled out new Section 301 tariffs on 60 economies over forced-labor claims, with Jordan listed in the 10% tier—replacing the expiring temporary 10% levy and raising new cost pressure for regional trade. Regional Security vs. Economic Hopes (Aqaba): Iran’s renewed strikes and the wider Iran–US escalation are weighing on Jordan’s economic rebound plans, with Aqaba tourism and travel sentiment taking a hit as people are told “don’t come.” Middle East Shipping Risk: Houthis’ Red Sea actions add another chokepoint threat beyond Hormuz, pushing oil volatility and raising the stakes for Gulf logistics that Jordan’s port sector depends on. Jordan in the Crosshairs: Reports say Iranian drones targeted US-linked sites in Bahrain and Jordan, underscoring how quickly regional conflict can spill into Jordan’s business environment.

US Tariffs & Supply Chains: The Trump administration has rolled out new Section 301 tariffs on 60 trading partners over alleged weak enforcement of forced-labour import bans, with rates set at 10% or 12.5% (and multiple product exemptions). The duties start as a temporary 10% global tariff expires, and the USTR says the move covers 99.4% of US imports while aiming to push partners to tighten compliance. Jordan in the List: Jordan is included in the lower 10% tier, reflecting the US view that it has adopted or committed to enforce forced-labour prohibitions. Middle East Energy Shock: Separately, the US-Iran escalation continues for a 13th night of strikes, while Yemen’s Houthis report attacks on Saudi oil tankers in the Red Sea, raising fresh shipping and oil-price risks. Regional Spillover: Iran’s foreign minister warned against using frozen Iranian assets to cover damages, as Gulf countries stay on high alert.

Red Sea Energy Shock: Houthis said they attacked two Saudi oil tankers and warned of wider pressure via a Red Sea blockade, as Brent surged back above $100 a barrel and markets brace for more shipping disruption. US-Iran Escalation: President Trump threatened “major military punishment” and hinted he’s “close” to a “massive attack” on Iran, while the US carried out a 12th straight night of strikes and Iran vowed to keep retaliating. Jordan in the Crossfire: Reports said Jordan intercepted missiles and drones amid renewed regional attacks, while GCC and Jordan backed self-defence and called for an end to Iran’s actions. Policy and Trade Signals: King Abdullah met UK business leaders and opened the Jordan–UK Business Forum in London, pitching Jordan’s investment advantages and trade ties. Local Economy Watch: Jordan’s gold market saw strong demand for investment and jewelry, and Amman expanded waste management services to Shafa Badran and Al-Yarmouk. Regional Business Context: A Syrian-Jordanian business council update highlighted new investor facilities to boost economic cooperation.

Red Sea Energy Shock: Houthis claimed they struck two Saudi oil tankers (Encelia and Layla) and warned of a wider maritime blockade, adding fresh risk to Red Sea shipping as some tankers reportedly rerouted after the threat. Strait of Hormuz Escalation: US forces carried out a 12th straight night of strikes on Iran, while Trump vowed to bomb and destroy “ONE BRIDGE OR POWER PLANT” for every ship attack in Hormuz—pushing oil prices higher (Brent near $98). Jordan Exposure: Reuters reports Iran said it attacked US missile systems and bases in Jordan and Kuwait, underscoring how the conflict is spilling into Jordan’s security and business environment. Syrian-Jordan Trade Facilitation: Jordan expanded entry facilities for Syrian investors and businesspersons with premium/first-class chamber cards, a move welcomed by the Damascus Chamber and the Syrian-Jordanian Business Council as a boost for cross-border investment and trade. Local Markets Watch: Amman Stock Exchange directed listed companies to submit semi-annual financial statements before end of July, keeping corporate reporting on the radar for investors.

Jordan–US Trade: Jordan and the United States signed a reciprocal trade agreement in Washington, capping reciprocal tariffs on Jordanian imports to the US at 10% and boosting preferential access for Jordan’s textiles and apparel, while Jordan will keep duty-free treatment for US goods and remove non-tariff barriers. Refugee Funding Pressure: UNHCR in Jordan says it received about $77.7m for the first half of 2026, covering only 28% of needs, leaving a $202.3m gap as cash assistance continues for refugees and host communities. Regional Security & Markets: The US-Iran standoff deepened as Trump warned the US will destroy a bridge or power plant for each Iranian attack on shipping in the Strait of Hormuz, while Iran warned of “eye for an eye” responses; the escalation is already feeding fuel-price pressure and wider economic uncertainty. Local Economy & Tourism: Prime Minister Jafar Hassan opened the 40th Jerash Festival, while the Crown Prince met Karak youth, stressing education, tourism projects, and energy cooperation. Education: The Ministry of Education completed preparations for the Tawjihi exams for the Class of 2009, with 133,122 students set to sit starting Thursday.

US-Iran Escalation: The US completed an 11th straight night of strikes on Iran, targeting aircraft hangars and drone storage sites, as diplomacy via Pakistan faltered and Trump signaled talks are unlikely. Jordan Under Fire: Jordan reported intercepting Iranian missiles and drones, with explosions heard near Aqaba/Eilat; officials say no casualties were reported. Energy & Shipping Pressure: With Strait of Hormuz tensions rising, oil prices climbed and shipping routes faced new disruptions, adding risk for regional logistics. Labour Watch: Jordan’s Ministry of Labour carried out 15,866 workplace inspections in H1 2026, issuing 5,727 warnings and 2,766 violations, while resolving 1,457 worker complaints. US-Jordan Trade Deal: The US and Jordan signed a reciprocal trade agreement cutting tariffs on Jordanian goods to 10% and expanding preferential access for apparel/garments, aiming to boost bilateral exports and investment. Tourism & Culture: Royal Jordanian was named official carrier for the 40th Jerash Festival, supporting international delegations and ticketing. Travel Advisory: Australia raised travel warnings for Middle East countries including Jordan amid heightened regional risk.

US–Jordan Trade: Jordan and the United States signed a reciprocal trade agreement to deepen economic ties, cut reciprocal tariffs on Jordanian goods to 10%, and give Jordan’s apparel/garments sector more preferential access to the US market, with Jordan continuing duty-free access under the 2001 free trade deal. Royal Visit & Business Links: King Abdullah II departed for the UK to meet major company leaders and attend part of the Jordanian-British Business Forum, signaling continued push for investment and trade cooperation. Markets & FX: The dollar edged higher as US–Iran tensions lifted crude prices and pushed bond yields up, while stock gains tempered demand for safe-haven dollars. Regional Risk for Jordan: Jordan again reported intercepting Iranian missiles and drones, underscoring how the US–Iran conflict is spilling into Jordan’s security environment. Energy & Shipping Pressure: With Strait of Hormuz disruptions and renewed regional threats, oil prices stayed supported, raising inflation worries that can feed into regional economic costs.

Parliament & Consumer Policy: Jordan’s House of Representatives is set to debate a draft law repealing the Civil Consumer Corporation Law, as part of a plan to merge the Civil Consumer Corporation with the Military Consumer Corporation under one administrative framework to boost efficiency and food security, with a committee overseeing legal and financial arrangements. Tourism Relief in Petra: The Petra Development and Tourism Region Authority approved major support for tourism and local businesses, including a 95% exemption from additional waste collection fees and debt relief covering over JD300,000 for tenants of an older commercial complex. Regional Trade & Energy Risk: The US and Iran kept up strikes for a 10th consecutive night while Iran claimed attacks on tankers in the Strait of Hormuz; shipping disruptions and Red Sea threats from the Houthis are pushing oil prices higher and raising concerns for Gulf logistics—an issue that directly touches Jordan’s port and energy routes. Jordan Tech & AI: A Jordanian founder behind Palmear says her AI-Acoustics agriculture system was built after lab results failed outdoors, using real-world audio data to improve performance in the field.

Middle East Security & Energy: The U.S. carried out its 10th straight night of strikes on Iran, aiming to degrade capabilities used against commercial shipping in the Strait of Hormuz, as Iran retaliated by targeting U.S. allies including Kuwait, Jordan and Bahrain; Jordan’s air defenses intercepted missiles, while the conflict has pushed oil prices higher and raised fresh fears for Gulf shipping. Jordan on the Frontline: The Pentagon identified two U.S. soldiers killed in Jordan (from Hawaii and Texas) and said another was missing after attacks on a base near Aqaba, keeping Jordan in the spotlight as a key logistical hub. Regional Escalation via Shipping: Yemen’s Houthis declared a naval blockade against Saudi Arabia, threatening Red Sea oil routes and adding pressure to already strained global energy flows. Jordan’s Fiscal & Social Shield: ESCWA said Jordan faces the highest additional crisis-related financial burden among Arab states relative to GDP, driven by efforts to protect prices and purchasing power. Local Finance & Business Support: CBJ issued JD100m in treasury bonds; SSC launched reduced-interest tourism instalment plans for businesses, while the Ministry of Education set a live lottery for teacher land allocations. Water Digital Upgrade: Jordan signed a €765,000 agreement with Spain to finance digital transformation consultancy services for the water sector.

Middle East Security: The US carried out a ninth straight night of strikes on Iran, with CENTCOM saying the aim is to “degrade” Iran’s ability to attack commercial vessels in the Strait of Hormuz as shipping fears mount. Jordan Spillover: Jordan reported missile interceptions and a fourth missile landing in a remote area without casualties, while Iran’s IRGC claimed it targeted US aircraft at Aqaba Airport and struck US-linked sites in Kuwait and Syria. Shipping & Energy Risk: Iran said two oil tankers exploded and were immobilised, and a separate incident saw a vessel catch fire in the Strait near Oman; UKMTO said the crew abandoned ship and was recovered. Travel & Business Impact: The US and other governments issued renewed travel warnings; flights to Kuwait and Bahrain are gradually resuming after cancellations. Jordan Economy Watch: Preliminary Central Bank data points to stronger remittance inflows (+14.5% in H1 to $2.06bn) and June tourism revenue up 7% to $685m, though H1 tourism revenue still fell 5.3%.