Policy and Society Institute Paper Calls for Transforming Jordan from a Transit Corridor into a Regional Trade and Manufacturing Hub
A policy paper published by the Politics and Society Institute has called for the adoption of a unified national strategy to transform Jordan from a transit corridor for goods into an integrated regional hub for trade, logistics, manufacturing, and re-export. The paper stresses that capitalizing on shifts in regional trade requires linking the movement of goods to productive activities that generate added value and employment opportunities within the Kingdom.
Titled Jordan on the New Regional Trade Routes, the paper draws on a specialized workshop convened by the Institute on 24 August 2026, as well as subsequent technical comments and feedback provided by researchers and experts in transport, trade, and logistics. It examines priority interventions for maximizing the domestic value generated by regional trade over the next three years, amid the reconfiguration of supply chains and the growing importance of trade-corridor security.
The paper argues that Jordan’s geographic location and stability provide important foundations for strengthening its regional economic role. Their ability to generate sustainable returns, however, depends on translating these advantages into services, infrastructure, and implementable projects. It emphasizes that success should be measured by more than the volume of transit cargo or exports; the decisive indicator is the share retained by the national economy in the form of wages, profits, tax revenues, and employment opportunities.
In its assessment of current shifts, the paper notes that disruptions affecting maritime corridors and changes in trade flows with Iraq and Syria are creating opportunities for the Kingdom. It cautions, however, against assuming that the increase in transit traffic will continue, as part of this growth is linked to regional crises and may decline once maritime shipping returns to its conventional routes. The paper therefore stresses the need to distinguish between temporary flows and opportunities that can be consolidated by enhancing the competitiveness of the Jordanian corridor and investing in the productive and service activities connected to it.
The paper examines Jordan’s position in relation to China’s Belt and Road Initiative, the India–Middle East–Europe Economic Corridor, Iraq’s Development Road project, and prospective connectivity linking the Gulf, Jordan, and Syria. It calls for assessing the economic returns and political and implementation risks associated with each route, while diversifying external options and partnerships and preserving strategic flexibility.
In this context, the paper highlights the importance of assessing the long-term implications of Israel’s growing role in the regional connectivity architecture for Jordan’s position and interests. It stresses the need for the Kingdom to engage at an early stage in shaping the technical and regulatory arrangements governing potential corridors and to develop economic capabilities that can benefit from multiple trade routes.
The paper also devotes attention to opportunities for economic cooperation with Syria, particularly in supplying reconstruction inputs such as cement and steel. It argues that converting these opportunities into actual exports will depend on security, financing, infrastructure readiness, and streamlined customs procedures. Bilateral trade can begin expanding through the removal of existing procedural barriers, without waiting for large-scale reconstruction projects to be completed.
At the implementation level, the paper places the diagnosis of bottlenecks at the Port of Aqaba and the Jaber border crossing at the top of the priority agenda. It calls for the precise identification of sources of delay, whether related to berths, storage and cargo-handling yards, customs-clearance procedures, or the movement of trucks out of these facilities. Since different causes of congestion require different interventions, decisions concerning major expansion projects should be based on documented assessments that establish the actual need for investment.
The paper further calls for modernizing inspection and clearance procedures, expanding the use of digital systems, reducing overlaps among the authorities responsible for overseeing cargo movements, and strengthening customs cooperation with Syria. These measures would reduce transit times and costs while improving the Kingdom’s competitiveness.
On the industrial front, the paper recommends connecting trade corridors to production zones and directing investment incentives toward activities that increase domestic value added. Proposed examples include producing fertilizers from phosphate and potash; developing packaging, quality-assurance, and certification services linked to the pharmaceutical industry; and strengthening manufacturing activities capable of capitalizing on access to external markets.
Its recommendations also include activating public–private partnerships in transport, ports, storage, and industrial zones; improving coordination across government institutions; and linking external agreements to clearly defined projects, responsibilities, and monitoring indicators. The paper also calls for building a more resilient supply-chain system tailored to the requirements of different commodities, diversifying import and export sources and routes, and improving the management of strategic inventories.
The paper proposes implementing these priorities in phases. During the first six months, transit times and costs at Aqaba and Jaber should be measured and the causes of delay documented. This should be followed by a package of measures to streamline customs-clearance and inspection procedures over a period of six to eighteen months. In the medium term, storage or manufacturing activities linked to specific commercial demand should be piloted. Port expansion and railway connectivity projects should then be evaluated in light of the results achieved during the preceding phases and their economic viability under a scenario in which transit traffic declines.
The paper concludes that Jordan’s priority is to build sustainable capacity to store, secure, process, and re-export goods, enabling the national economy to benefit from trade flows across multiple routes. As an initial step, it recommends assigning a single entity to measure actual transit times and costs at the Port of Aqaba and the Jaber border crossing, and to document sources of delay by procedure and responsible authority. This would establish a clear baseline against which the impact of subsequent reforms and investments could be measured.