Business Corruption

Companies wishing to invest in Jordan should note that obtaining licences is not particularly burdensome. Although facilitation payments may be required when obtaining licences and permits, it is less widespread than in other countries in the region.

According to the OECD National Investment Reform Agenda - Jordan 2006, a bribery case was referred to the court in 2002 involving owners of contracting companies who attempted to bribe an employee at the Jordan Electric Power Company in order to have the company’s electricity bills reduced.

Frequency

The World Bank & IFC: Doing Business 2011:
- Starting a company requires the entrepreneur to go through 8 procedures, taking 13 days at a cost of 44.6% of income per capita.

- It takes 19 procedures, 87 days at 634.1% of the income per capita to obtain the necessary licences and permits, notifications and inspections and public utility connections to build a warehouse.

- It takes an average of 4.3 years to close a business at a cost of 9% of the estate.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give government administrative requirements (permits, regulations, reporting) in Jordan a score of 3,5 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all'), constituting a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2006:
- Senior management can expect to spend an average of nearly 7% of its time dealing with the requirements of government regulations.

- A little more than 9% of companies surveyed identify business licensing and permits as a major business constraint.

- 18% of companies surveyed report that they expect to make informal payments to public officials to get things done.

- 2.5% of companies are expected to give gifts to get an operating licence.

- 7% of companies expect to give gifts to obtain a telephone connection, while 4.5% expect to do so to obtain a water connection and 9% for an electrical connection.

- 12% of companies expect to give gifts to obtain a construction permit.

- 6 days are required to obtain an operating licence and 44 days are required to obtain a construction-related permit.