Jordan's free zone areas were established to promote export-oriented industries and transit trade. Commodities and goods of various origins are deposited in the free zone areas for the purpose of storage and manufacturing, without having to pay the usual excise fees and other taxes, as they are treated like goods outside Jordan. There are currently two operating free zones in Jordan, at Aqaba and Zarqa, and they are operated by the Jordanian Free Zones Corporation, an autonomous government agency.

The Aqaba Free Zone covers one million square meters, although an additional 2.5 million square meters has been allocated for the purpose of establishing industrial projects, similar to the Jabal Ali Free Zone in Dubai. The Zarqa Free Zone lies 35 kilometers northeast of Amman, along a route which connects Jordan with neighboring countries. It covers 5.5 million square meters and houses about 65 licensed industrial companies and more than 175 warehouses. There are currently about 700 commercial trading and industrial projects based in Jordan's two free zone areas. They include storage, repackaging, mixing and manufacturing operations. Land and buildings in the free zone areas are available for rent at concessionary prices.

Currently, the new free zone project at Sahab covers a total area of 63,000 square meter at the Sahab Industrial Estate has been designated for serving the industrial investors in addition to aiding in the establishment of export-oriented industries. Meanwhile, the free zone project at Queen Alia International Airport covers an area of 120,000 square meter has been allocated for the purpose of serving transit trade and establishing light high-tech, pollution-free industries. In addition, plans are under consideration for promoting private free zones in Jordan, as well as for setting up a trilateral free zone including Jordan, the PNA territories and Israel.

Foreign and local companies established in free zones enjoy the following incentives and exemptions:

• The profits of projects operating in the free zones are exempt from income and social affairs taxes for a period of 12 years.
• Salaries and bonuses of non-Jordanian employees working in the free zones are exempt from income and social affairs taxes.
• All commodities imported or exported through the free zones and bound for external markets are exempt from customs, imports and all other taxes and fees.
• Constructions erected in the free zones are exempt from license fees, and land is exempt from property taxes.
• The transfer of capital invested in the free zones and the profits accrued from them is permitted to anywhere outside Jordan, without any constraints or restrictions.
• The products of free zone industries are exempt from customs fees in the case of offering them for consumption in the local market, limited by the cost of the local material and the expenses which go into their manufacture.