Jordan Economy Profile - Doing Business 2020
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Doing Business 2020 Jordan
Economy Profile
Jordan
Page 1
Doing Business 2020 Jordan
Economy Profile of Jordan
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
Page 2Doing Business 2020 Jordan
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
Page 3Doing Business 2020 Jordan
Ease of Doing Business in DB RANK DB SCORE
Region Middle East & North Africa
Jordan
Income Category Upper middle income
75
Population 9,956,011 69.0
City Covered Amman
Rankings on Doing Business topics - Jordan
4
62
69
78 75
105
110 112
120
138
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
84.5 60.3 80.5 66.4 95.0 50.0 78.7 79.0 55.6 39.7
Starting a Business (rank) 120 Getting Credit (rank) 4 Trading across Borders (rank) 75
Score of starting a business (0-100) 84.5 Score of getting credit (0-100) 95.0 Score of trading across borders (0-100) 79.0
Procedures (number) 7.5 Strength of legal rights index (0-12) 11 Time to export
Time (days) 12.5 Depth of credit information index (0-8) 8 Documentary compliance (hours) 6
Cost (number) 23.3 Credit registry coverage (% of adults) 5.0 Border compliance (hours) 53
Paid-in min. capital (% of income per capita) 0.1 Credit bureau coverage (% of adults) 22.9 Cost to export
Documentary compliance (USD) 100
Dealing with Construction Permits (rank) 138 Protecting Minority Investors (rank) 105 Border compliance (USD) 131
Score of dealing with construction permits (0-100) 60.3 Score of protecting minority investors (0-100) 50.0 Time to export
Procedures (number) 20 Extent of disclosure index (0-10) 4.0 Documentary compliance (hours) 55
Time (days) 66 Extent of director liability index (0-10) 4.0 Border compliance (hours) 79
Cost (% of warehouse value) 12.1 Ease of shareholder suits index (0-10) 3.0 Cost to export
Building quality control index (0-15) 11.0 Extent of shareholder rights index (0-6) 2.0 Documentary compliance (USD) 190
Extent of ownership and control index (0-7) 6.0 Border compliance (USD) 206
Getting Electricity (rank) 69 Extent of corporate transparency index (0-7) 6.0
Score of getting electricity (0-100) 80.5 Enforcing Contracts (rank) 110
Procedures (number) 5 Paying Taxes (rank) 62 Score of enforcing contracts (0-100) 55.6
Time (days) 55 Score of paying taxes (0-100) 78.7 Time (days) 642
Cost (% of income per capita) 285.3 Payments (number per year) 9 Cost (% of claim value) 31.2
Reliability of supply and transparency of tariff index (0-8) 6 Time (hours per year) 97 Quality of judicial processes index (0-18) 8.0
Total tax and contribution rate (% of profit) 28.6
Registering Property (rank) 78 Postfiling index (0-100) 35.7 Resolving Insolvency (rank) 112
Score of registering property (0-100) 66.4 Score of resolving insolvency (0-100) 39.7
Procedures (number) 6 Recovery rate (cents on the dollar) 27.3
Time (days) 17 Time (years) 3.0
Cost (% of property value) 9.0 Cost (% of estate) 20.0
Quality of the land administration index (0-30) 22.5 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 8.0
Page 4Doing Business 2020 Jordan
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)
polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is
received -Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per
-Leases the commercial plant or offices and is not a proprietor of real estate.
capita)
-Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice
The owners:
Paid-in minimum capital (% of income per capita)
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5Doing Business 2020 Jordan
Starting a Business - Jordan
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement JOD 2.5
City Covered Amman
Indicator Jordan Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 7 6.5 4.9 1 (2 Economies)
Time – Men (days) 12 19.7 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 23.3 16.7 3.0 0.0 (2 Economies)
Procedure – Women (number) 8 7.1 4.9 1 (2 Economies)
Time – Women (days) 13 20.3 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 23.3 16.7 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.1 8.9 7.6 0.0 (120 Economies)
Figure – Starting a Business in Jordan – Score
61.8 87.9 88.3 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Jordan and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
93.5: Oman (Rank: 32)
88.8: Turkey (Rank: 77)
87.8: Egypt, Arab Rep. (Rank: 90)
84.5: Jordan (Rank: 120)
84.0: Regional Average (Middle East & North Africa)
78.2: Lebanon (Rank: 151)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Page 6Doing Business 2020 Jordan
Figure – Starting a Business in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
16
12
14
Cost (% of income per capita)
10 12
Time (days)
8 10
8
6
6
4
4
2
2
0 0
1 2 3 *4 *5 6 *7 *8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 7Doing Business 2020 Jordan
Details – Starting a Business in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 APPLIES TO WOMEN ONLY: Obtain husband's permission to leave the home 1 day no charge
Agency : Domicile
According to articles 61 and 62 of Personal Status Law, a wife must obtain permission to leave the
home. If she doesn't, she is considered disobedient and will not be entitled to financial support.
2 Register at the Ministry of Industry and Trade and obtain a letter to open a bank account 1 day see procedure details
Agency : Ministry of Industry and Trade
To register, the entrepreneur must submit the following documents to the Companies Registry of
the Ministry of Trade and Industry:
1. Duly completed application for company registration
2. The memorandum and articles of association (standard forms are often used)
3. Proof of 50% capital deposit from the Bank (submitted after opening the bank account and
depositing the capital)
4. Copy of the entrepreneur's ID card
Fees include:
(1) Registration fees of 0.002 (2/1000) of the capital of the company, or 250 JD, whichever is
greater;
(2) Stamp Fees of 0.003 (3/1000) of the capital of the company; and
(3) Fee for publication in the official gazette: JOD 15
(4) Fee for filing the first general assembly meeting and board of directors' meeting minutes: JOD
40
(5) Fee for obtaining the standard form of the memorandum and articles of association: JOD 10
(6) Fee for the Registration Certificate: JOD 10
(7) Filing fee: JOD 10
At the moment of submitting the documents for registration, an entrepreneur needs to request a
letter from the Ministry of Industry and Trade, in order to open a bank account. The letter shall
state the name of the company, the name of the shareholders (percentage of their shares) and the
capital amount.
3 Open a bank account and deposit 50% of the capital 1 day no charge
Agency : Bank
All new businesses must open a bank account and deposit at least 50 percent of their startup
capital. In order to open a bank account, the following documents are submitted:
1. National ID
2. Letter from the Companies Registry of the Ministry of Industry and Trade address to the
shareholders to open a bank account, deposit the capital and get a bank certificate to that effect.
4 Obtain a tax identification number and Register for VAT 1 day (simultaneous with no charge
Agency : Tax Office previous procedure)
The entrepreneur must apply for tax registration (including corporate tax, income tax, and VAT) by
completing the application form and submitting it to the relevant Tax Office. After registration, the
company obtains a unique tax identification number (TIN).
5 Register at the Chamber of Industry or the Chamber of Commerce 1 day (simultaneous with JOD 75 for registration at
Agency : Chamber of Industry or Chamber of Commerce previous procedure) the Chamber of
If the company conducts commercial activities, it must register with the Chamber of Commerce. If Commerce or JOD 200 for
the company conducts industrial activities, it must register with the Chamber of Industry. registration at the
Representatives of both Chambers are available at the Companies Registry office (in separate
Chamber of Industry
windows). In order to register, the following documents are required for submission:
• Certificate of Registration from the Ministry of Trade and Industry
• Memorandum and articles of incorporation
• Original lease agreement of workplace premises
• Copy of the identity cards (ID) of the company's authorized signatories
Registration fees vary as a function of the startup capital. If the company conducts industrial and
commercial activities, it is required to register with both chambers.
To register at the Chamber of Commerce, fees vary between JOD 50 and JOD 1,500.
To register at the Chamber of Industry, fees vary between JOD 100 and JOD 1,500.
Fees can be paid directly at the window where the registration documents are submitted.
Page 8Doing Business 2020 Jordan
6 Obtain a vocational license from the Greater Municipality of Amman (GAM) 8 days JOD 200
Agency : Greater Municipality of Amman (GAM)
The entrepreneur must submit a complete application form along with the following documents in
order to obtain a vocational license from the municipality:
• A planning location map issued by the Greater Amman Municipality (GAM) - obtained from
landlord if property is leased
• Occupancy permit issued by GAM - obtained from the landlord if property is leased
• A copy of the property deed or lease agreement
Once the GAM officer verifies that the location is situated in the right zoning area and that no
property taxes or fees are due, a municipal officer sets a date for inspection of the company
premises. If the conducted inspection is deemed satisfactory, the entrepreneur must submit the
following documents to the competent vocational licenses division of the municipality:
• The company’s certificate of registration
• A certificate of the company’s authorized signatories
• Memorandum and articles association
• Certificate of registration with either the Chamber of Commerce or the Chamber of Industry
• The lease contract (stamped by GAM once received)
• The planning location map issued by GAM
• The occupation permit issued by the GAM
If the company premises is 150 square meters or more (or for certain businesses requiring civil
defense measures), GAM sends a letter to the Civil Defense Directorate. If the company meets
the requirements of the Civil Defense Directorate inspection but does not undergo inspection by
the Directorate within 4 days of the letter receipt, GAM grants the applicant a conditional
vocational license which may be revoked in the subsequent year if the Civil Defense Department
does not grant its approval.
7 Receive the Civil Defense inspection by the Greater Municipality of Amman (GAM) 1 day (simultaneous with no charge
Agency : Greater Municipality of Amman (GAM) previous procedure)
In addition to the Civil Defense inspection, from certain businesses (e.g., the food industry, gas
stations), a representative of the Ministry of Health will conduct a health inspection of the company
premises.
8 Register for social security 1 day (simultaneous with no charge
Agency : Social Security Office previous procedure)
Every business must register for social security. In order to register for the Social Security, the
company must submit a complete application form along with the following documents:
1. Vocational License
2. Registration Certificate
3. Power of Attorney authorizing a person to represent the company before the social security, if
needed.
The company must submit the social security contributions for its employees on a monthly basis
(total contributions are at 14.25% from the employer and 7.5% from the employee).
Applies to women only.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2020 Jordan
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:
• Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery.
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2)
The water and sewerage connections:
• Quality control before construction (0-1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
• Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Page 10Doing Business 2020 Jordan
Dealing with Construction Permits - Jordan
Standardized Warehouse
Estimated value of warehouse JOD 149,939.80
City Covered Amman
Indicator Jordan Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 20 15.7 12.7 None in 2018/19
Time (days) 66 123.6 152.3 None in 2018/19
Cost (% of warehouse value) 12.1 4.4 1.5 None in 2018/19
Building quality control index (0-15) 11.0 12.5 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Jordan – Score
40.0 88.5 39.5 73.3
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Jordan and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
75.2: Oman (Rank: 47)
73.8: Turkey (Rank: 53)
71.2: Egypt, Arab Rep. (Rank: 74)
61.7: Regional Average (Middle East & North Africa)
60.3: Jordan (Rank: 138)
53.7: Lebanon (Rank: 164)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 11Doing Business 2020 Jordan
Figure – Dealing with Construction Permits in Jordan – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
4.5
60
4
Cost (% of warehouse value)
3.5
50
3
Time (days)
40
2.5
30 2
1.5
20
1
10
0.5
0 0
1 *2 3 4 5 *6 *7 *8 *9 10 11 12 13 14 15 16 17 18 19 20
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 12Doing Business 2020 Jordan
Figure – Dealing with Construction Permits in Jordan and comparator economies – Measure of Quality
16 14.0 14.0
14 13.0 12.5
Index score
12 11.0 11.0
10
8
6
4
2
0
Jordan Egypt, Lebanon Oman Turkey Middle
Arab East
Rep. &
North
Africa
Details – Dealing with Construction Permits in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a topographic survey of the land plot 5 days JOD 186
Agency : Private Licensed Company
BuildCo must obtain a topographic survey of the land plot before submitting or even starting the
design. The surveyor is a private company that must be licensed by the Department of Land and
Surveys.
2 Receive soil examination by licensed engineering office 4 days JOD 600
Agency : Licensed Engineering Office
A soil examination is required before construction work can begin.
3 Obtain approval of project design drawings by the Engineering Association 3 days JOD 6,342
Agency : Engineering Association
To obtain approval of project design drawings, BuildCo submits the blueprints to the Engineering
Association. The contract with the architect who performed the design should be attached. The
application and attachments are then referred to the appropriate departments within the
Engineering Association for review, and after maximum 7 days, the blueprints are approved by the
association, subject to the payment of a security deposit for the appointment an engineer to
supervise the execution of the project and to settle the fees due the association when the area to
be built exceeds 200 square meters.
4 Apply for building permit 1 day no charge
Agency : Greater Amman Municipality
All drawings must be submitted to the Greater Amman Municipality. Drawings should be
compatible with the regulations and instructions. Architecture designs, civil engineering designs,
and mechanical designs, including heating, conditioning, and water pipes, must also be submitted.
The plans are verified and sent to the local building committee to be discussed. After the approval
is issued, the plan is sent to the inspectors for examination. The inspectors have the right to
object.
5 Obtain project clearance on fire safety 2 days no charge
Agency : Civil Defense Directorate
BuildCo must obtain a white book from the Municipality and get it stamped by the Civil Defense
Directorate. BuildCo must submit the project drawings and the land deed to the agency, which
stamps the white book if there are no objections.
6 Obtain project clearance from water authorities 1 day no charge
Agency : Water Authority of Jordan (WAJ)
BuildCo must obtain a white book from the Municipality and get it stamped by the Water Authority
of Jordan (WAJ). BuildCo must submit the project drawings and the land deed to the agency,
which stamps the white book if there are no objections.
7 Obtain project clearance from electricity authorities 1 day no charge
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
BuildCo must obtain a white book from the Municipality and get it stamped by the The Jordanian
Electric Power Co., Ltd. (JEPCO). BuildCo must submit the project drawings and the land deed to
the agency, which stamps the white book if there are no objections.
8 Obtain project clearance from the Department of Antiquates 1 day no charge
Agency : Department of Antiquates
BuildCo must obtain a white book from the Municipality and get it stamped by the Department of
Antiquates. BuildCo must submit the project drawings and the land deed to the agency, which
stamps the white book if there are no objections.
9 Obtain project clearance from the Jordan Telecom Group 1 day no charge
Agency : Jordan Telecom Group
BuildCo must obtain a white book from the Municipality and get it stamped by the Jordan Telecom
Group. BuildCo must submit the project drawings and the land deed to the agency, which stamps
the white book if there are no objections.
Page 13Doing Business 2020 Jordan
10 Receive inspection by the City Development Department of the Greater Amman 1 day no charge
Municipality
Agency : Greater Amman Municipality
GAM will inspect the land plot to check that the drawings, plans, topography and soil examination
correspond to the actual plot space and make sure there are no existing structures on the land
and that no falsified information were provided.
11 Obtain building permit 14 days JOD 3,902
Agency : Greater Amman Municipality
A one-stop shop for building permits for certain categories of buildings became operational at the
Greater Amman Municipality (GAM) in 2008. In 2009, the GAM one-stop show also began
accepting building permit application for simpler commercial construction projects for commercial
zones. As a result, builders in Amman have another option for obtaining building approvals.
Builders can either apply through local or district municipalities (where the one-stop shop system
has yet to be implemented) or through the GAM one-stop shop which affords them a more
streamlined process.
Most recently, the Jordan Water Authority and Jordan Electricity Company have committed to
faster approval times for building plans. The internal deadlines also helped to shorten the overall
time to obtain a building permit from the GAM one-stop shop from 28 days on average to 14 days
Before a building permit is issued, a lump-sum refundable fee of JOD 1,000.00 must be paid for
the removal of any debris (JOD 990.00 will be refunded). The building permit is valid for 2 years.
12 Hire an authorized engineering office for inspections of the construction site 1 day JOD 4,747
Agency : Authorized independent engineer
An engineering office is in charge of supervising the project. The municipality does not send
inspectors to examine the construction. However, inspectors are sent to the site to ensure that
there are no violations of the building permit. There is no limit on the number of visits, but they
may not occur at all.
13 Apply for occupancy permit 1 day JOD 10
Agency : Greater Amman Municipality
After completing construction, BuildCo must submit an application to the municipality of Amman
(GAM) to obtain an occupancy permit. A representative of the municipality conducts an inspection
to verify surrounding areas and the parking situation. There is a fine of JOD 30.00 for buildings
with irregularities. Upon receiving the request for an occupancy permit, GAM forwards a
notification to the Civil Defense Directorate to inspect and give their approval.
14 Receive inspection of completed works from Civil Defense Directorate 1 day no charge
Agency : Civil Defense Directorate
After the completion of construction, the owner, engineering office, or contractor, as agreed,
notifies the Civil Defense Directorate that the work has been completed, and requests examination
and granting of all the necessary approvals. The Civil Defense Directorate inspects the premises
and grants an approval, which is required for obtaining an occupancy permit.
15 Receive final approval from Civil Defense Directorate 2 days no charge
Agency : Civil Defense Directorate
16 Receive inspection of completed works from Greater Amman Municipality 1 day no charge
Agency : Greater Amman Municipality
GAM inspects the building and checks whether it complies with the drawings and plans submitted
in the permit.
17 Obtain occupancy permit 14 days JOD 15
Agency : Greater Amman Municipality
Once the inspection is done, and the building is found to be in compliance with the approved
plans, the occupancy permit will be issued.
18 Apply for water and sewage connections 1 day no charge
Agency : Water Authority of Jordan (WAJ)
An application form is submitted to Jordan Water Authority (WAJ). The following documents are
attached to the application:
• Registration certificate of the company and a certificate naming the persons authorized to sign
on behalf of the company
• Planning location map (issued by the GAM)
• Property deed
• Occupancy permit
The exact address of the premises is given to the WAJ, along with the number of a water meter
situated in the same street/area (or a copy of a water bill) in order to enable them to identify the
closest connection point. The WAJ conducts an inspection within 14 days and then charges the
fees and makes the connection.
19 Receive water and sewerage inspection 1 day no charge
Agency : Water Authority of Jordan (WAJ)
The Water Authority of Jordan (WAJ) will conduct an inspection and prepare an estimate for the
water and sewage connection.
Page 14Doing Business 2020 Jordan
20 Obtain water and sewerage connection 15 days JOD 2,337
Agency : Water Authority of Jordan (WAJ)
The cost of water and sewerage connections depends on the contractor and does not include the
connections and pipes inside the warehouse. In addition to what the contractor charges, the cost
also includes a stamp duty of JOD 10.00, a JOD 275.00 connection fee (for all buildings larger
than 100 square meters), and the price of the water meter.
Takes place simultaneously with previous procedure.
Page 15Doing Business 2020 Jordan
Details – Dealing with Construction Permits in Jordan – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by 1.0
external engineer or
firm; Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency;
Yes, external
engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Professional in 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 0.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0
or drawings are in compliance with existing building regulations? (0-2) architecture or
engineering; Being a
registered architect or
engineer.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 1.0
2) engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 16Doing Business 2020 Jordan
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits
The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final
- Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
• Tools to monitor power outages (0–1) (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
• Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case
study
*Note: Doing Business measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 17Doing Business 2020 Jordan
Getting Electricity - Jordan
Standardized Connection
Name of utility The Jordanian Electric Power Co., Ltd. (JEPCO)
Price of electricity (US cents per kWh) 24.6
City Covered Amman
Indicator Jordan Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 5 4.4 4.4 3 (28 Economies)
Time (days) 55 63.5 74.8 18 (3 Economies)
Cost (% of income per capita) 285.3 419.6 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 6 4.4 7.4 8 (26 Economies)
Figure – Getting Electricity in Jordan – Score
66.7 83.9 96.5 75.0
Reliability of supply and transparency of
Procedures Time Cost
tariff index
Figure – Getting Electricity in Jordan and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
87.1: Oman (Rank: 35)
84.5: Turkey (Rank: 41)
80.5: Jordan (Rank: 69)
77.9: Egypt, Arab Rep. (Rank: 77)
72.4: Regional Average (Middle East & North Africa)
62.7: Lebanon (Rank: 127)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
200
50
Cost (% of income per capita)
150
40
Time (days)
30
100
20
50
10
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
Page 18Doing Business 2020 Jordan
reflected here, see the summary below.
Figure – Getting Electricity in Jordan and comparator economies – Measure of Quality
8 7
7 6
Index score
6 5 5
5 4.4
4
3
2
1 0
0
Jordan Egypt, Lebanon Oman Turkey Middle
Arab East
Rep. &
North
Africa
Page 19Doing Business 2020 Jordan
Details – Getting Electricity in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to JEPCO and await estimate 14 calendar days JOD 0
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
The documents needed along with the application are: professional license from the Ministry of
Trade and Commerce, property map, organizational map, lands map, and a description of the
electrical loads.
2 Receive external inspection by JEPCO 1 calendar day JOD 0
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
An inspection by The Jordanian Electric Power Co. Ltd. (JEPCO) is necessary to determine the
details of the external connection.
3 Hire registered electrical contractor to carry out external works 20 calendar days JOD 5,310
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
Payment of the connection fees can be made through one of the utility’s collection offices (17
offices and 21 sub collection offices), through post offices, or through any bank that the utility has
an agreement with.
In a case like this, the client hires an entrepreneur registered with the utility to do the external
works or design the substation (if one is needed).
External works start after the client has paid the estimate for the connection fees and signed the
contract.
There are two options for the works, and the choice between them is an economic one: 1. Layout
of cables to a central transformer: this consists of a connection to the existing distribution
transformer via underground cable, if the existing substation can still service the additional
capacity, and 2. Construction of a new substation.
4 Obtain excavation permit from municipality 7 calendar days JOD 50
Agency : Amman municipality
An excavation permit from the municipality is required for the external works. The client can
however, apply for an electricity connection first and then submit the permit to the electricity
company when they have obtained it.
5 Obtain meter installation and final connection from JEPCO 14 calendar days JOD 3,196.6
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
The utility installs the meter few days after the end of the works.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2020 Jordan
Details – Getting Electricity in Jordan – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 2.4
System average interruption frequency index (SAIFI) 1.6
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.emrc.gov.jo/ind
ex.php/en/electrical-tariff
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2020 Jordan
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information
The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures
- Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
• Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22Doing Business 2020 Jordan
Registering Property - Jordan
Indicator Jordan Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 6 5.4 4.7 1 (5 Economies)
Time (days) 17 26.6 23.6 1 (2 Economies)
Cost (% of property value) 9.0 5.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 22.5 14.6 23.2 None in 2018/19
Figure – Registering Property in Jordan – Score
58.3 92.3 39.9 75.0
Procedures Time Cost
Quality of the land administration index
Figure – Registering Property in Jordan and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
81.6: Turkey (Rank: 27)
73.0: Oman (Rank: 52)
66.4: Jordan (Rank: 78)
63.4: Regional Average (Middle East & North Africa)
59.4: Lebanon (Rank: 110)
55.0: Egypt, Arab Rep. (Rank: 130)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Page 23Doing Business 2020 Jordan
Figure – Registering Property in Jordan – Procedure, Time and Cost
Time (days) Cost (% of property value)
10
16
14
Cost (% of property value)
8
12
Time (days)
10 6
8
4
6
4
2
2
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 24Doing Business 2020 Jordan
Figure – Registering Property in Jordan and comparator economies – Measure of Quality
30 27.0
25 22.5
Index score
20 17.0
16.0 14.6
15
9.0
10
5
0
Jordan Egypt, Lebanon Oman Turkey Middle
Arab East
Rep. &
North
Africa
Details – Registering Property in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a sale form, certificate of ownership and a cadastral map from the Land and Survey 1 day JOD 5; (JOD 1.5 for
Directorate property deed JOD 3.5 for
Agency : Land and Survey Directorate land map)
Prior to proceeding with the sale, the buyer (being a corporate entity) must first obtain certain
approvals/non-objections from the relevant authorities. A standard form purchase application is
completed by the person duly authorized by the buyer. The sale form is completed according to
the information provided by the parties concerned including names and property information. This
application form, which is a form of sale agreement, is then submitted to the Investment
Department at the Department of Land and Survey. This form will be checked and stamped. At the
same time, a certified copy of the certificate of ownership and the cadastral map will be given as
well.
2 Obtain the Zoning map and certification of the official sale form 3 days JOD 10
Agency : Greater Amman Municipality
The official form of sale previously obtained from the Land and Survey Directorate must also be
stamped by the Municipality of Greater Amman. By stamping this official sale form, this meant that
the property being sold is not in contravention of any relevant law or regulation. In case the
property was in contravention, a fine must be paid and the contravention removed. The
documentation shall include: • The company’s statute Certificate of Property and the Cadastral
map (obtained in Procedure 1) • The stamped Official Sale Form (obtained in Procedure 1).
The zoning map is also obtained at the same time.
3 Obtain building tax clearance from the relevant Municipality 1 day no charge
Agency : Greater Amman Municipality
Once the Sale form has been stamped by the Municipality and the Zoning map obtained, the
parties must now obtain a tax clearance certificate stating that there are no outstanding taxes. In
case the building has unpaid taxes, they should be paid or else the sale cannot continue. This tax
clearance is obtained from another department within the Municipality.
4 Submit the file to the Land Department to request the transfer of ownership of the property 10 days no charge
to the buyer
Agency : Land Registration Department
The duly stamped sale form is filed for registration at the competent Land Department. The Land
department does not take the mentioned price of sale on its face value, but forwards the whole file
to the division of “area statistics”, which assesses the true value of the property. The sales fees
are paid on the assessment of the value if the declared sale price is less than the assessment. If
the declared sale price is higher, then the sale fees would be paid on the declared sale price.
The Land and Survey Directorate requests a non-objection from the Minister of Finance soliciting
his approval on the sale. The application should be accompanied by the (i) property deed, (ii)
cadastral map, (iii) zoning map, (iv) tax clearance letter, and (v) the authorized signatories and
registration certificates authorizing the representatives to sign on behalf of the parties; (vi) The
Company’s statute must clearly state that the company can own lands, even if owning lands is not
the company’s main objective and even if the company tends to own land to achieve other stated
objectives in its founding statutes. Many lawyers always include, when drafting the company’s
statutes, the right to own land. In case the company does not have this objective clearly stated in
its statutes, an extraordinary session of shareholders should be invited to amend the company’s
regime for this purpose. The new statutes had to be taken to the Ministry of Trade and Industry to
obtain the final clearance (simple administrative Procedure), but according to recent practice, this
is no longer required by the Land Registry.
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