Jordan's New Cooperatives Law 2025

Jordan's Cooperatives Law No. 13 of 2025 represents a landmark step in modernizing the legislative framework governing the cooperative movement. Beyond being a regulatory instrument, the law signals a broader commitment to economic inclusion and social development — particularly for the agricultural, commercial, and craft sectors.

The Legal Structure of the New Law

The law establishes cooperatives as independent legal entities under Article 2, defining a cooperative as any legal person registered pursuant to the law's provisions and established by natural or legal persons who voluntarily associate through shared ownership and elected management to achieve common cooperative objectives.

The law designates the Jordanian Cooperative Corporation as the central reference for registration and oversight, creating a clearer and more unified regulatory structure than previous legislation provided.

Key Innovations in the 2025 Law

The new law introduces two particularly significant mechanisms:

•        The Cooperative Development Fund (Article 10) — to provide financial support to cooperatives, enabling them to access capital for growth and operations.

•        The Cooperative Development Institute — to provide training and capacity-building support, recognizing that sustainable cooperatives require ongoing human development.

The law also aligns with international standards, notably the principles of the International Cooperative Alliance and ILO Recommendation No. 193 — strengthening the potential for Jordanian cooperatives to access international partnerships and funding.

Empowering Vulnerable Groups

A central objective of the law, articulated in Article 4(c), is the empowerment of productive groups including women, youth, and persons with disabilities. This is reflected in financing mechanisms, training programmes, and board representation requirements.

Challenges and Areas for Development

•        Centralization: Concentrating registration, oversight, and financing in the Cooperative Corporation may conflict with the international principle of cooperative autonomy.

•        Governance Gaps: The law does not sufficiently regulate internal governance procedures including election processes and conflict of interest rules.

•        Uniform Rules: Applying the same rules to all cooperatives regardless of size and sector may create interpretive difficulties.

Looking Ahead

The 2025 Cooperatives Law represents a genuine effort to modernize and strengthen the cooperative sector. Its success will depend on effective implementation of supporting regulations and adequate funding for the Development Fund and Institute.

At Shraideh Law Firm, we provide legal advisory services to cooperatives and organizations seeking to understand their rights and obligations under the new law.