Libya, Iraq, Turkey and Syria, with plans to include the Palestinian Authority, the GCC, Lebanon and Pakistan. Jordan is a member of the Greater Arab Free Trade Agreement, the Euro-Mediterranean free trade area agreement, and the Agadir Agreement. Increased investment and exports are the main sources of Jordan's growth. Continued close integration into the European Union and GCC markets will reap vast economic rewards for the Kingdom in the coming years. However, the main obstacles to Jordan's economy are scarce water supplies, complete reliance on oil imports for energy, and regional instability.
Rapid privatization of previously state-controlled industries and liberalization of the economy is spurring unprecedented growth in Amman and Aqaba. Jordan has six special economic zones that attract significant amount of investment amounting in the billions: Aqaba, Mafraq, Ma'an, Ajloun, the Dead Sea, and Irbid. Jordan also has a plethora of industrial zones producing goods in the textile, aerospace, defense, ICT, pharmaceutical, and cosmetic sectors.
The Free Trade Agreement (FTA) with the United States that went into effect in December 2001 will phase out duties on nearly all goods and services by 2010. The agreement also provides for more open markets in communications, construction, finance, health, transportation, and services, as well as strict application of international standards for the protection of intellectual property. In 1996, Jordan and the United States signed a civil aviation agreement that provides for open skies between the two countries, and a U.S.-Jordan treaty for the protection and encouragement of bilateral investment entered into force in 2003. Jordan has been a member of the World Trade Organization since 2000.
In the 2000 Competitive Industrial Performance (CIP) Index, Jordan ranked as the third most industrialized economy in the Middle East and North Africa, behind Turkey and Kuwait. Jordan was in the upper bracket of