Jordan is taking major steps to attract foreign investment into its renewable energy sector as part of its broader strategy to strengthen energy security and reduce dependence on imported fuels. The country currently imports around 90 percent of its primary energy needs, making the development of domestic renewable energy resources a national priority.
To support this objective, the government has reaffirmed its commitment to achieving a 30 percent share of renewable energy in the national energy mix by 2030. This target forms a key part of the Ministry of Energy and Mineral Resources (MEMR) Energy Strategy and reflects Jordan’s growing focus on sustainable and secure energy development.
In a recent move, the Jordanian Cabinet approved draft amendments to the Investment Law aimed at making the country more attractive to investors. The proposed changes are expected to simplify investment procedures, broaden access to incentives, and speed up project approvals. One of the most notable updates allows existing companies to qualify for tax and customs incentives when expanding their facilities or increasing production capacity. Previously, these benefits were largely available only to new investment projects.
The reforms also focus on priority sectors such as renewable energy, financial technology, and healthcare. Authorities are working to shorten approval timelines and reduce the number of government agencies involved in project registration. Under the current Investment Environment Regulation, project registration can take between 30 and 60 business days. The Ministry of Investment is seeking to streamline this process to improve efficiency and enhance the overall investment climate.
For foreign investors, the revised framework provides stronger legal protection regarding financial returns. The updated provisions clearly guarantee the right to transfer net profits, dividends, and proceeds from liquidation outside the country, helping to increase confidence among international developers and financial institutions.
Jordan possesses significant solar and wind resources, particularly in its southern and eastern desert regions. Utility-scale solar projects in the country typically range from 20 MW to 200 MW. In addition, interest is growing in advanced renewable energy solutions, including hybrid solar-plus-storage systems and green hydrogen projects. These opportunities are attracting attention from developers and investors from Europe and the Gulf region.
Developers planning renewable energy projects in Jordan must obtain several regulatory approvals, including a generation license from the Energy and Minerals Regulatory Commission, grid connection approval from the National Electric Power Company, construction permits from local authorities, and environmental clearance from the Ministry of Environment.
Land access is another important factor for project development. While foreign ownership of land is allowed under certain conditions, many investors prefer long-term lease arrangements. The Ministry of Investment supports this process by facilitating leases of public desert land for periods ranging from 25 to 49 years, often aligned with power purchase agreement durations. These measures, combined with investor-friendly regulations and bankable contract structures, are helping strengthen international confidence in Jordan’s clean energy transition.
