Jordan is seeking to deepen trade ties with the UK by strengthening the existing Association Agreement between the two countries to make it easier to do business.
With exports to the UK totalling $22.32 million in the first 10 months of 2021, imports hit $165.4m, leaving “a huge trade deficit in favour of the UK”, Manar Dabbas, Jordan's Ambassador to the UK, told delegates attending a roundtable hosted by the Arab-British Chamber of Commerce (ABCC).
While a bilateral preferential trade agreement came into force on May 1, setting the framework for an expansion of business transactions, that pact has not advanced since then, Mr Dabbas said.
“I know there are other priorities for this government in terms of trade agreements,” he said, while noting that Jordan plays a key role in the political security of the wider region.
“For Jordan to continue to play that role, it has to be cushioned properly and one key element of that is through economic growth, which comes by increasing exports, and most importantly, attracting foreign direct investment.”
While Mr Dabbas said he understood that “due to the urgency” of the pandemic, “the UK has not had the chance to discuss individual agreements with countries”, he is now looking to move forward in those discussions at a meeting in April, with plans to focus on increasing the quota of Jordanian products entering Britain, such as dates, processed and halal meats, and fruits and vegetables.
“When you allow that to happen, this means that you have expanded new investments,” he said. “New investments mean there are new job opportunities, which means that you are reducing unemployment, reducing poverty and helping the economic growth numbers to reduce the percentage of debt to [Gross Domestic Product]."
Baroness Symons, chairwoman of the ABCC, said the trade relationship between the UK and Jordan had undoubtedly been affected by the coronavirus pandemic, which has thrown up multiple challenges for both countries.
“Now is the time to really move forward on this,” Ms Symonds told delegates at the roundtable event.
“We've got a trade agreement and we need to have more specific trade agreements in specific areas, but overall, we've got a framework within which to work now.”
Jordan, which has scarce natural resources and more than one million refugees from Syria and Iraq, relies on foreign aid and grants to finance its fiscal and current account needs. The government is trying to overhaul its economy and cut state subsidies as public debt and unemployment, already high before the Covid-19 pandemic, have increased further.
However, fiscal and monetary measures now in place — along with an accelerated vaccination programme — have set Jordan's economy on the road to recovery, according to the International Monetary Fund.
The country’s economy is expected to grow 2 per cent in 2021 and 2.7 per cent this year, the IMF said, with the Washington-based lender approving the disbursement of $335.2 million to Jordan earlier this month, bringing its total payout to the kingdom since the start of 2020 to about $1.23 billion.
“Despite the challenging circumstances brought on by the pandemic, sound policies have helped maintain macroeconomic stability,” the IMF said.
“The government is on track to narrow its fiscal deficit by 1 per cent of GDP in 2021, reflecting robust revenue collection on the back of a significant institutional effort to tackle tax evasion and improve tax compliance.”
It is this economic stability, along with the country's political stability, that Mr Dabbas was keen to promote to secure more trade and investment from the UK.
“The kingdom continues to be a sound destination for international investors,” he said, citing the country’s prudent reform programme and its free-market orientated economy and private-sector-led approach.
“The government's economic team continues to focus on economic and fiscal policy settings that boost the national economy’s competitiveness, making Jordan a more attractive investment destination for regional and global companies, and achieve the best possible balance to achieve better living standards for citizens and fight against poverty,” he added.
Mr Dabbas said Jordan is also a sound investment destination because of its location, positioned between Europe, Africa and Asia, making it “an ideal gateway to the Mena region and beyond”.
He cited the “historic trade agreement” signed with the US in 2001 as evidence of the need for a tighter trade agreement with the UK, which boosted the country’s trade to $1.8 billion currently from $100 million in the year the pact was signed.
Business owners attending the event flagged some of the bureaucratic challenges they have faced setting up and investing in Jordan, but Ms Symons said the two nations “should not be too depressed” about the progress made so far.
The UK and Jordan already have some specific trade agreements on education, aviation, retail, biometrics and technology, Ms Symons said, adding that now might be the time to consider other specific trade agreements.
“We only signed the Association Agreement in November 2019 and then it was confirmed by decree in 2021 in Jordan and virtually all that period has been dominated by Covid,” Ms Symons said.
“We must now get cracking and we hope that Covid is going to disappear completely. Even if it doesn't, we know we can control it. Now is the time for us to really go for it … and make some strong agreements in specific areas for the prosperity of both our countries.”
For British companies looking to invest into Jordan, Mr Dabbas highlighted manufacturing and ICT as two key areas ripe for fresh capital.
With 5,600 ICT graduates every year in the country, it offers potential investors “a pool of educated young people at an affordable cost” he said, with major companies such as Cisco, Microsoft and Expedia already benefiting.
Another area Mr Dabbas was keen to highlight was the manufacturing sector, as well as opportunities in the country's burgeoning healthcare and tourism sectors, and in clean energy as the government joins forces with the private sector to overcome shortages in oil and gas reserves.
Mr Dabbas stressed that more works need to be done to increase the flow of goods from Jordan to the UK.
“We are exporting and we have business agreements between some of the producers of Jordan and Tesco, Waitrose and Sainsbury's, but we need to export more and increase that quota,” he said.
“Sometimes officials argue that they want to protect the UK market but Jordan is a small market; it is not threatening the UK market by increasing our share of exports by 30 per cent or 40 per cent. The UK can absorb far more than that.”
The five pillars of Islam
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
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