Jordan’s economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources, underlying the government's heavy reliance on foreign assistance. Other economic challenges for the government include chronic high rates of unemployment, budget and current account deficits, and government debt. King ABDALLAH, during the first decade of the 2000s, implemented significant economic reforms, such as expanding foreign trade and privatizing state-owned companies that attracted foreign investment and contributed to average annual economic growth of 8% for 2004 through 2008. The global economic slowdown and regional turmoil contributed to slower growth from 2010 to 2017 - with growth averaging about 2.5% per year - and hurt export-oriented sectors, construction/real estate, and tourism. Since the onset of the civil war in Syria and resulting refugee crisis

Jordan is nearly completely dependent on imported energy—mostly natural gas—and energy consistently makes up 25-30% of Jordan’s imports. To diversify its energy mix, Jordan has secured several contracts for liquefied and pipeline natural gas, developed several major renewable projects, and is currently exploring nuclear power generation and exploitation of abundant oil shale reserves. In August 2016, Jordan and the IMF agreed to a $723 million Extended Fund Facility that aims to build on the three-year, $2.1 billion IMF program that ended in August 2015 with the goal of helping Jordan correct budgetary and balance of payments imbalances.

Historically, the Jordanian economy has benefited from massive investment by the Gulf countries, which continued to skyrocket until 2006. However, since then FDI has declined due to the international economic crisis, followed by geopolitical instability, andhave since remained stable. However, in 2016, Jordan secured substantial loans and financial assistance from several international donors (including the IMF and the World Bank) and partners. Thus, the United States decided to raise the amount of their annual aid to USD 1,275 billion. These funds aim to support Jordan in its reception of Syrian refugees. In 2017, FDI inflows totaled USD 1.6 billion. Estimated at USD 33.8 billion, the total stock of FDI represents 83.7% of the country's GDP (UNCTAD 2018 World Investment Report).

In 2014, Jordan enacted an investment law, which strengthens in particular the Jordan Investment Commission, whose purpose is to support investors. However, some observers criticized the focus on tax exemptions, instead of trying to improve the overall business climate. In addition, the World Bank continues to assess negatively the national business climate in Jordan. Thus, the country had lost several places in the Ease of Doing Business ranking, but it has recently regained a slightly better place on the 2018 Doing Business report, ranking 103rd out of 190 countries.

In order to boost FDI flows, the Government has planned large-scale infrastructure projects (water, transportation, nuclear energy) for which it needs foreign and private funds. A project linking the Dead Sea to the Red Sea is expected to start in 2018 and will require FDI. Jordan is trying to become a regional logistics hub, notably for electric and transport networks. Investments are mainly concentrated in the field of real estate (residential and commercial), financial services and large tourism projects. The country's attractiveness lies mainly in the quality of its infrastructure, its solid and dynamic banking system, as well as its level of economic openness, which has allowed the establishment of free trade zones and public-private partnerships. Problems linked to bureaucracy, corruption and investment protection are obstacles to FDI.

The Jordanian-Iraqi relations are historically close relations between the peoples and the two countries. Since 2003, Jordan has become a place for Iraqis in all their sectarian and political affiliations. It is noted that Jordanian-Iraqi relations are advancing at an excellent speed. Iraq represents a strategic and historical depth for Jordan.