Skip to main content

Saudi Arabia, Jordan strengthen ties with energy, mining deals

Saudi Arabia is now a major investor in Jordan.
Jordan's King Abdullah II (L) and Saudi Crown Prince Mohammed bin Salman.

Saudi Arabian and Jordanian companies signed numerous cooperation agreements on June 21. 

The Federation of Saudi Chambers and the Amman Chamber of Commerce held a business convention in the Jordanian capital, Amman. Companies in the mining, construction, atomic energy, imports and exports, and other sectors signed cooperation deals, the state-owned Jordan Times reported. 

Jordan's and Saudi Arabia’s anti-corruption watchdogs also signed a memorandum of understanding on joint efforts to fight corruption, according to Jordan’s official news agency Petra

The deals came during Saudi Crown Prince Mohammed bin Salman’s visit to Amman. The de-facto Saudi leader also traveled to Egypt earlier this week. 

Why it matters: Saudi Arabia and Jordan have close economic relations. Trade between the two countries amounted to roughly $4.4 billion dollars in 2021, up from around $3.1 billion in 2020. Saudi investments in Jordan are worth $14 billion, making Saudi Arabia the largest investor in Jordan, according to the official Saudi Press Agency

The main Saudi export to Jordan is oil. The main Jordanian exports to Saudi Arabia are medicine and livestock, according to the Observatory of Economic Complexity

Earlier this month, Saudi Arabia’s sovereign wealth fund agreed to buy a stake in the Capital Bank of Jordan. 

The Jordanian economy is struggling at the moment. Specific problems include high unemployment, rising debt and weak investment levels, according to The World Bank. Youth unemployment is driving some young Jordanians toward drugs, Al-Monitor reported last month. Jordan’s harsh lockdowns aimed at mitigating the spread of COVID-19 in 2020 also hurt the economy

Jordan receives economic aid from several Gulf states, including Saudi Arabia. 

Jordan-Saudi relations remain strong despite allegations of Saudi Arabia’s involvement in Jordan’s royal feud last year. One of those arrested for the supposed plot against King Abdullah II is an adviser to the Saudi crown prince. Saudi Arabia publicly supported Abdullah at the time. 

Know more: The House of Saud and the Hashemite royal family both have historic claims dating back to custody of Islam's holy places, despite their close relations today. 

What’s next: Salman will next visit Turkey on his regional trip. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial