Jordan Investment Board

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Investment Climate and Business Opportunities in
Jordan
Jordan Investment Board
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Spanish- Jordanian Trade Relations
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Main Exports to Spain
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Main Imports From Spain
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Investment volume (Millions US) for Spanish
projects benefited from the Investment law, From
1996 to 2005 (7.3 Millions US)
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Issues taken into consideration by the investor
when taking the decision to invest

• Political stability and security
• Appropriateness of investment law
• Fiscal policy and economic stability
• Freedom to exchange invested money and the
  interest thereon
• Infrastructure
• The availability and costs of an adequate
  workforce
• The stability of laws and systems
• Size and potential for expansion of the market
• Ease of Government procedures

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Stability of Overall Economic Policy
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GDP Growth Rate
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GDP Per Capita
US
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Inflation Rate ()
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Foreign Reserves
Million US
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External Debt as ( of GDP)
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Enabling Investment Environment
Legislative reform efforts are aimed at enhancing
the overall business investment climate by
Over 200 laws regulations, including

• Customs
• ASEZA
• Anti Trust
• Patents
• Trademark
• Competition
• Securities

• Investment Promotion
• Privatization
• Standards Specifications
• Intellectual Property
• Import Export
• Financial Leasing
• Companies

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A strong privatization drive

• Regional success story
• 64 transactions successfully completed
• US 1.3 billion in privatization proceeds
• US 850 million in associated investments

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Privatization Major projects in the Pipeline
(2005-2007)
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Top 20 rankings by inward FDI Performance Index,
1995, 2004 and 2005 World Investment Report,
2006.
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Increasing Economic Freedom
Heritage Foundation Index of Economic Freedom,
2004
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Performing Competitively in the International
Arena
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Value Of Shares Traded In Amman Stock Exchange
(billion US)
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Small Country...with a Market of One Billion
Customers

• WTO Member
• Euro Jordanian Association Agreement
• Jordan EFTA States FTA
• Aghadir Agreement
• GAFTA, Great Arab Free Trade Agreement
• Jordan US Free Trade Agreement
• QIZ Qualifying Industrial Zone
• Jordan Singapore FTA
• And 120 other bilateral trade agreements

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FDI Performance Indicators during the period
1988-2002
Source UNCTAD
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Competitive Human Resources

• Well educated population
• Over 91 literacy rate
• 150,000 students currently enrolled in
  universities
• 17 of Population receives higher education
• 24 Universities (14 private, 10 public)
• 60 Community Colleges
• 35 Vocational Training Centers training over
  10,000 people each year
• Competitive wage structure

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Jordan Investment Board

• Incentives
• Facilitation
• Promotion
• Information

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JIB Incentives

• Benefiting Sectors
• Industry
• Agriculture
• Hotels
• Hospitals
• Maritime transport
• Railways
• Leisure and Recreational Compounds

• Convention and Exhibition Centers
• Pipeline Transportation
• Distribution Services for Water
• Gas and Petroleum Derivatives

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JIB Incentives

• Exemptions from Customs Duties
• Fixed assets of the Projects are exempted from
  Customs duties and Sales Tax
• Deductions on Income and Social Services Taxes
• Exemption ranges from 25 -75 according to the
  development area
• Additional Exemptions
• Extra incentives are granted to special projects
  with a development impact on the economy

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One-Stop-Shop-Service

• Began on 16 May 2004 by direction from HM the
  King
• provides the following services
• Registration of projects according to The
  Companies Law
• Issuing preliminary licensing approvals for the
  start-up of projects
• Issuing visas and permanent residency approvals
  for investors and foreign labor needed for the
  project
• Follow up services.

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Investment volume (Millions US) for projects
benefited from the Investment law, 1996-2005
broken- down by Sector
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Investment volume (M US) of projects benefited
from the Investment law 1996- 2005 broken- down
by Nationality
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Investment volume (Million US) of projects
benefited from the Investment law
January-November 2004 2005
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Investment volume (Million US) of projects
benefited from the Investment law 2002-November
2005
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Investment volume (Million US) of projects
benefited from the Investment law January-March
2004, 2005, 2006
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Future plans for JIB

• Focused foreign market research and strategies to
  attract foreign investments.
• Permanent representation of overseas offices In
  The Arabian Gulf Countries, Spain, China, Italy,
  and Turkey
• Concentrate on value added investment projects

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Strategic Sectors and Opportunities
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Pharmaceuticals Exports
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Information Technology Exports
IT exports are directed at 23 different markets
with 80 concentrated in the Gulf
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Dead Sea Cosmetics

• Exports to more than 65 markets worldwide, such
  as Europe, USA, Japan, Canada, South America and
  others.
• Europe is the largest recipient group

Exports vs. Domestic Sales
Geographical Distribution of Exports
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Major Development Projects
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Expansion of Queen Alia International Airport

• Estimated Cost US 300-500 million.
• Objective Expand and rehabilitate the existing
  terminals (currently 60,000 sq. meters).
• Description improve airport operating and
  investment efficiency, service quality and
  reliability, expand airport capacity and upgrade
  airport infrastructure and passengers terminals
  to meet the best international practices.
  (Additional 90,000 sq. meters to cater for 6
  million passengers).
• Timeframe 2006-2009 (TOR is under preparation
  by IFC).

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Light Railway from Zarqa to Amman

• Estimated Cost US150 million.
• Objective Establishing an effective mean of
  passenger transportation between Amman and Zarqa
• Description (i) electrically operated 1435 mm
  wide rail in two directions, total distance 29
  km (ii) Build, Operate and Transfer scheme for
  30 years, 1st stage include 36 carriages and
  (iii) maximum speed 90km/hour.
• Timeframe 2006-2007.

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Disi Water Conveyance Project

• Estimated Cost US500-600 million.
• Objective provide additional water supply from
  Disi aquifer to greater Amman area
• Description project components include (a)
  well fields consisting of 58 new boreholes (b)
  78 km well fields collectors of various
  diameters (c) One collector reservoir and
  pumping station in Disi Area (d) 325 km conveyor
  with 1.6 m diameter and regulating tank (e) One
  regulating tank and one reservoir in Abu Alanda
  near Amman (f) Booster station to Dabouq
  reservoir (g) Main reservoir in Abu Alanda Area
  and (h) Operation and maintenance facilities and
  infrastructure.

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Port Relocation and Development

• Estimated Cost US830 million.
• Objective Providing an effective and efficient
  port services.
• Description relocation of the current main port
  area, including the phosphate terminal to the
  southern industrial zone of Aqaba, followed by
  the development of the cleared-up main port area
  into commercial use and construction of a new
  multi-purpose general cargo terminal in the
  southern industrial zone, as well as constructing
  the required infrastructure.
• Timeframe 2006-2022 (Aqaba Development
  Corporation (ADC) will segment projects
  components into packages for interested
  developers).

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Upgrading Expansion of Jordan Petroleum Refinery

• Estimated Cost US700 million.
• Objective Expand the existing refinery to meet
  the projected demand for light and intermediate
  oil products after 2006 in accordance with the
  world wide move to cleaner fuels. Long-term
  concession ends February 2008.
• Description (i) increasing crude distillation
  capacity to increase production of petroleum
  (ii) new reformer and isomerisation units to
  enable unleaded gasoline production (iii)
  increasing storage capacity and (iv) adding
  sulphur plant, hydrogen plant and solvent
  deasphalter units.
• Timeframe 2006-2008.

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Red Sea-Dead Sea Project

• Estimated Cost US4-5 billion
• Objective Addressing the immediate environmental
  jeopardy facing the Dead Sea (as its level of
  water has been decreasing by approximately one
  meter per year and its existence is thus
  threatened) through pumping water from the Red
  Sea to the Dead Sea. The project also seeks to
  generate energy (capitalizing on the 400 meter
  difference in elevation between the two bodies of
  water ) that will, in turn, be used to power a
  desalination plant that could produce enough
  fresh water to solve the water scarcity problem
  faced by Israel, Jordan, and Palestine.
• Description The project involves three phases
  (1) Red Sea water conveyed to the Dead Sea via a
  Peace Conduit (2) a desalination facility to
  be built close to the Dead Sea to produce potable
  water from a part of the water transferred and to
  provide energy and (3) potable water
  distribution via pipelines to municipalities in
  Jordan, the Palestinian National Authority (PNA),
  and Israel.

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Why Invest in Jordan ?

• The Stability of Overall Economic Policy
• The Proper Institutional Framework
• A Supporting FDI Promotion and Sustenance Network
• Great Potential of High Returns on Invested
  Capital.

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Nothing else in this world is as powerful as an
idea whose time has come.

Victor Hugo 1802-1885Investing
in Jordan is a powerful idea because time for it
has REALLY come.
Jordan The Natural Place For Investment