Negotiations began in June last year, after His Majesty Abdullah II Bin Hussein accepted Prime MInister Goh Chok Tong's proposal for both countries to work on a FTA.

The agreements are part of a broader framework of closer economic partnership between the two countries, including a technical support agreement reached last October and a memorandum of understanding in tourism cooperation signed in February.

Under the FTA, Jordan will eliminate duties on 97.5 per cent of Singapore imports, while Singapore will eliminate all duties for Jordanian goods entering Singapore.

Both sides have also agreed to liberalise their service sectors beyond each country's WTO commitments.

This will not only benefit Singapore and Jordanian nationals, but also permanent residents and foreign MNCs with operations in both countries.

The investment deal will also help to foster a conducive investment climate in both countries. Already, more specific cooperation projects are being explored to promote bilateral trade and investment.

To be signed shortly, the FTA will be the first such deal Singapore has with a country in the Middle East, and should serve as an important catalyst for engagement with the region.