From Insight to Action: Dutch Perspectives on Jordan’s Business Climate

Overview of respondents

The survey was sent to 15 Dutch companies and was filled out by 7, giving a 47% respondence rate. The survey responses provide a snapshot of Dutch businesses currently operating in or collaborating with Jordan, offering insight into their structure, activities, and general outlook. The participating companies represent a mix of agricultural sectors, underscoring the strategic importance of agriculture in the Netherlands’ engagement with Jordan.

The respondents cover diverse industries within the agricultural sector, including vegetable seeds, agro seeds, fertilizers, poultry farming, and canned meat products. This range highlights the Netherlands’ strength in providing agricultural inputs, solutions, and expertise tailored to Jordan’s agricultural needs.

Most companies have a long-standing presence in Jordan, with five having operated for more than a decade and only one reporting a shorter tenure of 1-4 years. This longevity reflects a commitment to the Jordanian market and suggests a degree of resilience despite the challenges businesses may face.

Structurally, these companies operate either through direct legal entities such as limited liability companies or representative offices, or by partnering with Jordanian businesses. The majority are small-scale operations, with fewer than 10 employees, emphasizing a cautious and focused approach to market engagement.

Results

The results of the Jordan Business Climate Survey offer an interesting glimpse into how Dutch agricultural companies perceive the business environment in Jordan. Figure 1 give the feedback on the favourability of key aspects for doing business. While the findings highlight several favourable conditions that make Jordan an attractive destination for some, they also reveal key challenges that could hinder growth and expansion for these businesses. By analysing these insights, we can better understand the opportunities and constraints within the Jordanian market.

Neutral Ground: Where Perceptions Are Mixed

Many aspects of Jordan’s business climate received neutral ratings, indicating areas that require improvement but are not yet viewed as significant barriers. Access to finance, for example, was rated as neutral by six of the seven respondents, suggesting that while financing may not be a direct obstacle, it is also not a strong enabler for business growth.

Similarly, the size of the local market was viewed as neutral by four respondents and unfavourable by two, highlighting the limited scalability within Jordan itself. Foreign investment incentives also fell into this neutral zone, with five companies seeing them as neither particularly beneficial nor harmful to their operations.

Another key area of neutrality was the stability of the economic environment, with three respondents rating it as neutral and three as favourable. This suggests cautious optimism among businesses, tempered by Jordan’s broader macroeconomic challenges.

Challenges in the Business Climate

Despite these positive aspects, the survey also uncovered significant challenges. The most crucial negative factor – raised by seed breeders – is the limited (if any) protection of breeders’ rights. This aspect of the regulatory and legal environment is seen in this sector as dominant in any strategic decision by the company. Other than this legal domain, bureaucracy was also flagged as a significant challenge, with three respondents deeming it unfavourable.

Resource availability, particularly access to natural resources (like water), was rated as unfavourable by four respondents, reflecting constraints that could impact agricultural productivity and operational efficiency.

Operational costs remain a third critical concern. Both the cost of labour and the cost of production or delivery of services were predominantly rated as neutral or unfavourable, indicating that businesses struggle with maintaining competitive cost structures in Jordan.

Public-private dialogue (PPD) in Jordan is perceived as underdeveloped. While one respondent noted improvements over time, another described it as weak, and five found it difficult to assess. This suggests that existing dialogue mechanisms may lack visibility or impact. Four respondents expressed interest in more structured dialogue, with specific suggestions including simplifying legal frameworks and enhancing facilities for private-sector growth.

The Core Takeaways

The survey results reveal a business climate in Jordan that offers potential but is marked by much variation in how it is experienced by Dutch companies in the agricultural sector. While certain factors—such as political stability, skilled labour, and regional connectivity—provide a compelling foundation for investment, other aspects like regulatory hurdles, resource constraints, and operational costs present considerable challenges.

The operational strategies of the respondents reflect varied approaches to leveraging Jordan’s market and regional position. While some utilize Jordan as a regional hub, others maintain a presence to seize potential opportunities or collaborate closely with distributors. When considering Jordan as a business destination, opinions are split. While three companies recommended Jordan as a good location for investment, two expressed uncertainty, and another two would not recommend it at present. This divided stance reflects both the opportunities and challenges associated with doing business in Jordan—a theme that will be explored further in the subsequent chapter. This diversity in operational models underscores the different ways businesses perceive and engage with Jordan as a market.

Looking ahead, the companies show a cautious, optimistic outlook. Most respondents aim to maintain their current level of operations, while a smaller number express ambitions to expand or invest further. Importantly, none of the surveyed companies indicated plans to downsize or exit the market, suggesting a baseline level of confidence in Jordan’s business environment.