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Business Environment in Jordan

This paper seeks to explore new market opportunities of a UK based company, which aims at expanding its business in overseas countries. The country selected is Jordan, which located in the Middle East. The report analyzes various business environments such as business cultures, political and social environment, values and norms of the business people in Jordan. In addition, necessary recommendations are required to aid the UK company managers in making decisions. The sample of the data used was collected from the capital city Amman on the basis of the Jordan Business Sector (Simonis, 2000).


The main objective of the research is to provide an overview of the various business environments that affect the trade between Jordan and other over 81 countries it is trading with. The information will be vital for orientation of the expatriate managers, who will be sent in the country to operate the business. The information collected will assist in preparing them for the various legal, political, and cultural challenges they are likely to face in the new country. The study will also help them in identifying in advance various business opportunities that attracted many investors worldwide to Jordan since last year. All the information will ensure they make necessary financial forecasts and explore the market fully. Lastly, the study was carried out to help the expatriate managers find solutions to various economic and political problems they will face in the country as they will be harnessing the new business opportunities (Weaver, 2000).

Business Environment

Business environments are various factors identified to influence the performance of a given business in a given area. Usually, business environment is categorized into microenvironment and macro- environment. Micro-environment factors are internal factors such as finance, business culture, and other factors that affect business performance internally. On the other hand, the macro-environments are external factors such as political, legal, government, cultural, social, and technological factors that influence the performance of the business from outside. In Jordan, the factors were found to influence business as follows:

1. Political and legal system

The political system of Jordan was found to influence greatly the business environment. According to the research, 50.1% of the Jordanian businesspersons reveal that the political governance of the country is favorable for the good performance of the business. In addition to that, 30.4% conclude that the legal system is on average, while 13.9% suggests that government needs to be reshuffled since it makes the business environment unsuitable. This information concludes that it is lucrative to expand the market to Amman in Jordan because the political and legal system is favorable for business operations. However, various challenges in the political system emanate from continuous government reshuffle, terrorism, and conflicts in Middle East (Weaver, 2000).

2. Business culture in Jordan

According to the study carried out, in 2011, Jordan ranked as the fourth Middle East country that enjoys highest investment freedom, fiscal growth, and high financial competitive environment. Secondly, the Economist Intelligence Unit ranked it as the 38th best economic performer worldwide. Last year economic analysis revealed that the country should expect inflation of around 5.2% from 2011-15, meaning it forms a good business environment to invest in. According to economic researches, this has been caused by good business culture created over the past years by the Jordanian Business Leaders in collaboration with government (Simonis, 2000).

3. Values and norms

The research reveals that Muslim communities dominate the country, and they are not so much strict to other denominations that pursue investments in the country. The main aim of the country is to create over 60,000 jobs for the rising population, hence attracting investors. However, it is very vital for managers to understand the social and cultural elements of the different people in the country, which was found to host over 42 different ethnic communities. Lastly, the country’s business environment was found to be less influenced by Muslim culture, which makes Jordan a good investment environment. The research reveals that 29.3% of the business people believe that values and norms in the country influence the business environment, while 25.3% believes that they do not affect the business environment. This means that culture in the country has little to do with the business.

Cultural Dimension Model – Hofstede

In 1965, Hofstede came up with a framework model that helps researchers in analyzing different cultures and values of different nations and organizations worldwide. This model can be used by the company to analyze the culture and norms of the Jordanian people in relation to the business environment. The results of the model will help the company managers make decisions that will help the company in future expansion to Jordan market.


The above analysis of the business environment of Jordan can greatly help the managers in tapping the market environment if followed and implemented to the letter. It is advisable for managers to explore the political, social, and business structure of this Middle East country before deciding to invest resources. This will help the company avoid future losses and, thus, avoid a conflict between shareholders and managers.


Concisely, it was found that the managers should carry out an adequate overview of the business environment of the new market. The factors to be taken into consideration include business culture of Jordan, where it was found that the country enjoys a great investment freedom and possesses good inflation rates for investment. Secondly, it was found that the country possesses a good political and legal environment that opens up good business opportunities for investors. Moreover, it was found that the cultural and social norms of this Muslim dominated country have little influence on investments and business sector at large. Thus in short, the managers should make a decision to expand the business to Amman, Jordan.

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