The new Investment Law allows for equal treatment of all investors, eliminates the need for cabinet approval for foreign investment, specifies clearly the sectors open to 100 percent foreign ownership, provides firm guarantees against nationalization and expropriation, specifies the sectors eligible for tax incentives, eliminating discretionary judgment, opens the financial market to all foreign investors, and provides for third-party dispute settlement consistent with international practice.

This new law is to be complemented by another law governing the operations of the Amman Financial Market (AFM). The latter aims to improve and restructure the operations of the AFM, increase the number of instruments traded, and establish transparent rules and uniform treatment for all foreign investors.

Amendments to the Income Tax Law were also passed by parliament. Elements under the amendment to the Corporate Income Tax Law include (1) the reduction of the number of tax rates and of the maximum tax rates of corporate income taxes; (2) the rationalization of corporate income tax rates, treating all sectors equally; (3) the simplification of exemptions; and (4) a withholding tax of 10 percent on distributed profits, encouraging capital accumulation.

Consistent with its private sector and outward-oriented growth strategy, Jordan has also taken steps to further liberalize its exchange and payments system, eliminating restrictions on current account transactions. Furthermore, a draft law on the Regulation of Foreign Exchange Transactions submitted for parliamentary approval guarantees complete current account convertibility for residents and nonresidents, and capital account convertibility for nonresidents, including lifting all restrictions on the repatriation of profits and dividends for foreign investors. It also allows residents to engage in a number of capital account transactions and to take out any funds originally brought into Jordan through the banking system.