Zero per cent tax rate threatened as civil unrest spreads to Jordan

AS civil unrest spread to Jordan yesterday, markets reacted to the news that a change of government could affect the country’s zero per cent export tax – and the companies that rely on it.

Early yesterday Jordan’s King Abdullah dismissed his government and announced his intention to bring about “genuine political reform”.

Jordan-based Hikma Pharmaceuticals, which has close links to the incumbent government and makes significant exports to the US and across the Middle East, has already been highlighted as a potentional loser in the shake-up.

Peel Hunt downgraded the company to to “sell” and lowered its target price to 720p, with shares in the group having already fallen 4.7 per cent the previous day.