Economic Forum sees strategic opportunity for Jordan in shifting global trade routes
Accelerating geopolitical disruptions across key maritime corridors are creating a strategic opening for Jordan to strengthen its role as a regional trade and logistics hub, according to a new policy paper issued by the Jordan Economic Forum.
The paper said global trade patterns have undergone major shifts since 2023 amid rising risks in vital shipping routes, including the Red Sea and the Strait of Hormuz, prompting international companies and governments to search for safer and more flexible logistics alternatives.
Published under the title 'Positioning Jordan as a Supporting Hub for Trade and Services: Opportunities and Challenges Amid Geopolitical Shifts,' the study argued that Jordan is well positioned to benefit from the restructuring of global supply chains due to its geographic location, political stability, and access to regional markets through Aqaba Port and land transport networks.
According to the paper, disruptions in the Red Sea since late 2023 have directly affected shipping through the Bab Al-Mandeb Strait, which carries between 10 and 12 percent of global maritime trade, forcing many shipping companies to reroute vessels around the Cape of Good Hope.
The report added that geopolitical tensions surrounding the Strait of Hormuz intensified during early 2026, heightening concerns over the vulnerability of global trade flows as nearly one-quarter of global seaborne oil trade passes through the strategic waterway.
The paper estimated total global trade in goods and services at around $35 trillion in 2025, up from $32.5 trillion in 2024, while maritime transport continued to account for more than 80 percent of international trade volumes annually.
It also highlighted the growing adoption of 'friendshoring' and 'nearshoring' strategies, under which companies increasingly relocate supply chains toward politically stable or geographically closer markets to reduce exposure to geopolitical risks.
The study said Jordan possesses several advantages supporting its transformation into a regional logistics and trade support center, including its strategic location linking Gulf markets with the Levant and its relatively stable political and security environment.
Jordan’s total trade exchange rose by around 20 percent between 2023 and 2025 to reach approximately JD32.5 billion in 2025, compared with JD27.2 billion in 2023, while trade volume during the first quarter of 2026 reached JD4.7 billion, according to the paper.
The report also highlighted growing activity at Port of Aqaba, where transit container traffic increased by 137 percent during the first quarter of 2026 compared with the same period a year earlier, reflecting Aqaba’s expanding role in regional redistribution and logistics operations.
The paper identified railway infrastructure projects as a key component of Jordan’s future logistics strategy, particularly the Aqaba-mining railway project linking phosphate and potash production centers with Aqaba’s industrial port through a 360-kilometer rail line expected to handle up to 16 million tons annually by 2030.
It also pointed to proposed regional railway connections linking Saudi Arabia, Jordan, Syria, and Türkiye as potential alternative trade corridors connecting Gulf markets with Europe through Jordan.
The forum concluded that turning these geopolitical shifts into sustainable economic gains will require accelerating logistics and transport projects, improving investment readiness, and strengthening integration between maritime, land, and railway transport systems.
Accelerating geopolitical disruptions across key maritime corridors are creating a strategic opening for Jordan to strengthen its role as a regional trade and logistics hub, according to a new policy paper issued by the Jordan Economic Forum.
The paper said global trade patterns have undergone major shifts since 2023 amid rising risks in vital shipping routes, including the Red Sea and the Strait of Hormuz, prompting international companies and governments to search for safer and more flexible logistics alternatives.
Published under the title 'Positioning Jordan as a Supporting Hub for Trade and Services: Opportunities and Challenges Amid Geopolitical Shifts,' the study argued that Jordan is well positioned to benefit from the restructuring of global supply chains due to its geographic location, political stability, and access to regional markets through Aqaba Port and land transport networks.
According to the paper, disruptions in the Red Sea since late 2023 have directly affected shipping through the Bab Al-Mandeb Strait, which carries between 10 and 12 percent of global maritime trade, forcing many shipping companies to reroute vessels around the Cape of Good Hope.
The report added that geopolitical tensions surrounding the Strait of Hormuz intensified during early 2026, heightening concerns over the vulnerability of global trade flows as nearly one-quarter of global seaborne oil trade passes through the strategic waterway.
The paper estimated total global trade in goods and services at around $35 trillion in 2025, up from $32.5 trillion in 2024, while maritime transport continued to account for more than 80 percent of international trade volumes annually.
It also highlighted the growing adoption of 'friendshoring' and 'nearshoring' strategies, under which companies increasingly relocate supply chains toward politically stable or geographically closer markets to reduce exposure to geopolitical risks.
The study said Jordan possesses several advantages supporting its transformation into a regional logistics and trade support center, including its strategic location linking Gulf markets with the Levant and its relatively stable political and security environment.
Jordan’s total trade exchange rose by around 20 percent between 2023 and 2025 to reach approximately JD32.5 billion in 2025, compared with JD27.2 billion in 2023, while trade volume during the first quarter of 2026 reached JD4.7 billion, according to the paper.
The report also highlighted growing activity at Port of Aqaba, where transit container traffic increased by 137 percent during the first quarter of 2026 compared with the same period a year earlier, reflecting Aqaba’s expanding role in regional redistribution and logistics operations.
The paper identified railway infrastructure projects as a key component of Jordan’s future logistics strategy, particularly the Aqaba-mining railway project linking phosphate and potash production centers with Aqaba’s industrial port through a 360-kilometer rail line expected to handle up to 16 million tons annually by 2030.
It also pointed to proposed regional railway connections linking Saudi Arabia, Jordan, Syria, and Türkiye as potential alternative trade corridors connecting Gulf markets with Europe through Jordan.
The forum concluded that turning these geopolitical shifts into sustainable economic gains will require accelerating logistics and transport projects, improving investment readiness, and strengthening integration between maritime, land, and railway transport systems.
Accelerating geopolitical disruptions across key maritime corridors are creating a strategic opening for Jordan to strengthen its role as a regional trade and logistics hub, according to a new policy paper issued by the Jordan Economic Forum.
The paper said global trade patterns have undergone major shifts since 2023 amid rising risks in vital shipping routes, including the Red Sea and the Strait of Hormuz, prompting international companies and governments to search for safer and more flexible logistics alternatives.
Published under the title 'Positioning Jordan as a Supporting Hub for Trade and Services: Opportunities and Challenges Amid Geopolitical Shifts,' the study argued that Jordan is well positioned to benefit from the restructuring of global supply chains due to its geographic location, political stability, and access to regional markets through Aqaba Port and land transport networks.
According to the paper, disruptions in the Red Sea since late 2023 have directly affected shipping through the Bab Al-Mandeb Strait, which carries between 10 and 12 percent of global maritime trade, forcing many shipping companies to reroute vessels around the Cape of Good Hope.
The report added that geopolitical tensions surrounding the Strait of Hormuz intensified during early 2026, heightening concerns over the vulnerability of global trade flows as nearly one-quarter of global seaborne oil trade passes through the strategic waterway.
The paper estimated total global trade in goods and services at around $35 trillion in 2025, up from $32.5 trillion in 2024, while maritime transport continued to account for more than 80 percent of international trade volumes annually.
It also highlighted the growing adoption of 'friendshoring' and 'nearshoring' strategies, under which companies increasingly relocate supply chains toward politically stable or geographically closer markets to reduce exposure to geopolitical risks.
The study said Jordan possesses several advantages supporting its transformation into a regional logistics and trade support center, including its strategic location linking Gulf markets with the Levant and its relatively stable political and security environment.
Jordan’s total trade exchange rose by around 20 percent between 2023 and 2025 to reach approximately JD32.5 billion in 2025, compared with JD27.2 billion in 2023, while trade volume during the first quarter of 2026 reached JD4.7 billion, according to the paper.
The report also highlighted growing activity at Port of Aqaba, where transit container traffic increased by 137 percent during the first quarter of 2026 compared with the same period a year earlier, reflecting Aqaba’s expanding role in regional redistribution and logistics operations.
The paper identified railway infrastructure projects as a key component of Jordan’s future logistics strategy, particularly the Aqaba-mining railway project linking phosphate and potash production centers with Aqaba’s industrial port through a 360-kilometer rail line expected to handle up to 16 million tons annually by 2030.
It also pointed to proposed regional railway connections linking Saudi Arabia, Jordan, Syria, and Türkiye as potential alternative trade corridors connecting Gulf markets with Europe through Jordan.
The forum concluded that turning these geopolitical shifts into sustainable economic gains will require accelerating logistics and transport projects, improving investment readiness, and strengthening integration between maritime, land, and railway transport systems.
comments
Economic Forum sees strategic opportunity for Jordan in shifting global trade routes
comments