Jordan Investment Board

1
Investment Climate and Business Opportunities in
Jordan ?pe?d?t??? ???µa ?a? ep??e???µat????
e??a???e? st?? ???da??a
Jordan Investment Board S?µß????? epe?d?se?? t??
???da??a? The Hashemite Kingdom of Jordan May
2007
2
Jordan
3
Greek - Jordanian Trade Relations?µp??????
s??se?? ????da? ???da??a?(Million USD)
4
Greek Investments in Jordan

• Volume of Greek Investments in Jordan is
  1.5 Million USD
• Mining Information Technology

5
Bilateral Agreements

• The Promotion and Reciprocal Protection of
  Investment Agreement Between Jordan and Greece
  Signed on 21 December 2005
• ??????s? ?a? aµ??ßa?a p??stas?at?? s?µf???a?
  epe?d?se?? p?? ?p????f??e st?? 21 ?e?eµß????
  2005µeta?? ???da??a? ?a? ????da?

6
International Reports
7

• Index of Economic Freedom 2007 Heritage
  Foundation
• Doing Business 2007
• Global Competitiveness Report 2006-2007
• World Investment Report 2006 (UNCTAD)

8
???a??µe?? ??????µ??? e?e??e??a Increasing
Economic Freedom
Heritage Foundation Index of Economic Freedom,
2007
9
Economic Freedom 2006 Heritage Foundation
10
Doing Business 2007
Overall Ranking
11
Doing Business 2007
Tax Environment
12
Global Competitiveness Report 2006-2007

• Prevention of Organized Crime Jordan rank (5)
  out of (125) countries.
• Reliability of Police Services Jordan rank (10)
  out of (125) countries.

13
FDI Performance Indicators (UNCTAD)?e??te?
ep?d?s?? ?µes?? ????? epe?d?se??
14
Top 20 rankings by Inward FDI Performance Index,
1995, 2004 and 2005 World Investment Report,
2006.
15
Investment Volume of Projects that Benefited from
the Investment Law ?pe?d?se?? (se e?at. d?????a
???) ??a ???a p?? ep?fe?????a? ap? t? ??µ??es?a
pe?? epe?d?se??
Million USD
1st quarter of 2007
16
Investment Volume of Projects that Benefitedfrom
the Investment Law 2006-1996 (According to
Nationality) ?pe?d?se?? (se e?at. d?????a ???)
??a ???a p?? ep?fe????ta? ap? t? ??µ??es?a pe??
epe?d?se?? ??a t?? pe???d? 1996-2006, a??
e?????t?ta
17
Competitive Human Resources ??ta????st???
e??at??? d??aµ???

• ??a??p???t??? µ??f?t??? ep?ped? p????sµ??
• ??s?st? a?faß?t?sµ?? µe?a??te?? t?? 91
• 150.000 f??t?t?? e??e??aµµ???? sta pa?ep?st?µ?a
• ??s?st? 17 t?? p????sµ?? µe sp??d?? a??tat??
  e?pa?de?s??
• 24 ?a?ep?st?µ?a (14 ?d??t???, 10 d?µ?s?a)
• 60 ??????a
• 35 ???t?a epa??e?µat???? ?at??t?s?? p??
  e??p??et??? pe??ss?te?a ap? 10.000 ?t?µa et?s???
• ??ta????st??? d??????s? µ?s???

• 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 BoardS?µß????? ?pe?d?se?? t??
???da??a?

• Incentives / ????t?a
• Facilitation / ??e??????s?
• Promotion / ??????s?
• Information / ???µ???s?

19
Benefiting Sectors ???d?? p?? ep?fe????ta?

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

• ???µ??a??a
• Ge????a
• ?e??d??e?a
• ??s???µe?a
• Ta??ss?e? s?????????e?
• S?d???d??µ??
• ???atast?se?? d?as??das?? ?a? a?a?????

20
JIB Incentives????t?a ap? t? ?S?

• ?asµ??????? apa??a??
• ?asµ??????? apa??a?? ?a? apa??a?? ap? t?? f???
  ep? t?? p???se?? ??a ta p???a st???e?a
  e?e???t???? t?? ?????
• ??af???se?? st? f???????a e?s?d?µat?? ?a?
  ?????????? ?p??es???
• ??pt?se?? 25 75 a?????a µe t?? a?apt???a??
  pe?????
• ?p?p??s?ete? e?af???se??
• ?e?a?t??? ????t?a pa?????ta? ??a e?d??? ???a p??
  e?????? t?? a??pt??? t?? ??????µ?a?

• 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

21
One-Stop-Shop Service

• ???a????st??e st?? 16 ?a??? 2004 µe e?t??? t??
  ßas???? ?a? pa???e? t?? a??????e? ?p??es?e?
• ????af? t?? ????? s?µf??a µe t? eta????? d??a??
• ??d?s? p???ata??t???? ade??? ??a t?? ??a??? ?????
• ??d?s? ?e???se?? ?a? ade??? µ???µ?? d?aµ???? ??a
  t??? epe?d?t?? ?a? t? ???? e??at??? d??aµ??? p??
  apa?te?ta? ??a t? e??st?te ????
• ?p??es?e? pa?a???????s??

• 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.

22
Future plans for JIB?e????t??? s??d?a t??
S?µß?????? ?pe?d?se?? t?? ???da??a?

• ?p??e?t??µ??? ??e??a ????? a????? ?a? st?at??????
  p??s????s?? ????? epe?d?se??.
• ????µ? a?t?p??s?pe?a se ??afe?a st?? ???e? t??
  a?aß???? ???p??, st?? ?spa??a, t?? ???a, t??
  ?ta??a ?a? t?? ??????a
• ?p????t??s? se epe?d?se?? p??st???µe??? a??a?

• 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

St?at?????? ???d?? ?a? e??a???e?
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Pharmaceuticals

• Investment volume of 400 million.
• Exports in 2005 300 million, 2010 target 1
  billion.
• Largest Arab exporter.
• 16 major investments employing 5,200 high caliber
  employees.
• Compliant with intellectual property rights
  protection.
• Efficient and advanced modes of production.
• Available supporting infrastructure 8
  pharmaceutical colleges, 4 clinical research
  organizations, and 96 hospitals.
• Increased investment in RD (Clinical Trial Law).

25
Pharmaceuticals Exports??a????? fa?µa?e?t????
p?????t??
26
Information and Communication Technology

• 220 private companies employing 16,000 high
  caliber employees.
• Rapidly growing sector in FDI, more than 1.5
  billion since 2000.
• Exports of IT Products exceeded 100 million in
  2005.
• In the 2003-2004 Global Competitiveness Report,
  Jordan ranked 11th out of 102 countries in terms
  of government commitment to ICT.
• Telecom sector was fully liberalized in 2004.
• Huge potential for investment in
• Call Centres.
• Education platforms/E-Learning.
• Arabization/Arabic language content.
• Animation.

27
Jordans ICT Industry

• Fastest growing sector in Jordan's economy (50
  growth rate)
• A contribution of 10 to GDP (6telecom, 4IT)
• More than 16000 employee (directly in the ICT
  firms or in ICT divisions in firms)
• 15 new laws were enacted including Labor,
  Telecom, Intellectual Property, and Private
  Shareholding laws.
• Many leading companies operate or manufacture
  products in Jordan
• A recent survey by int_at_j the vast majority of
  investors feel that their investments are
  successful.

28
Information Technology Exports ??a????? te????.
t?? p????f?????
IT exports are directed at 23 different markets
with 80 concentrated in the Gulf ??a?????
te???????a? p????f????? se 23 d?af??et????
a?????, 80 e? t?? ?p???? e?t?p????ta? st?? ???p?
29
Dead Sea Cosmetics/ ???µ??a??a ?a????t???? ap? t?
?e??? ???assa

• ??a????? se pe??ss?te?e? ap? 65 a?????
  pa???sµ??? ????p?, ???, ?ap???a, ?a?ad??, ??t?a
  ?µe???? ??p.
• ? ????p? e??a? ? µe?a??te??? e?sa????a?

Exports vs. Domestic Sales S??s? e?a?????
e??????? p???se??
Geographical Distribution of Exports Ge???af???
?ata??µ? e?a?????
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Electronics and Household Appliances

• Exports grew by more than 200 between 1998 and
  2005, reaching 600 million in 2005, with Iraq
  and Syria being the largest markets.
• Home appliances, insulated wire and general
  purpose machinery are the main products.
• Jordan adopted the International Electrotechnical
  Commission (IEC) standards in August 2005.

31
Automotive Industry

• 2 operating companies engaged in the assembly of
  transport vehicles and four-wheel drive cars
  (mainly for military use).
• 8 companies operate in the production of
  automotive parts, radiators, batteries, glass and
  filters.
• 75 of the production is exported.

32
Garments Textiles

• One of the major industrial sectors in Jordan and
  is growing rapidly.
• Employs over 50,000 people and generates about
  1.3 billion worth of exports.
• Achieved a net growth of over 200 in export
  levels, and over 20 in employment levels in the
  past several years.
• Major international buyers sourcing from Jordan
  include JC Penney, Levis, Liz Claiborne, Gap,
  Gloria Vanderbilt, Victorias Secret, Jones
  Apparel, Perry Ellis, PVH, Sara Lee, Banana
  Republic, Wal-Mart, Target.
• Products have duty-free access to major markets.

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Tourism

• In 2005
• 3.0 million tourists.
• 1.5 billion revenues.
• A rich mix of history, archaeology, nature,
  religious and adventure tourism as well as the
  therapeutic nature of the Dead Sea.
• 27,000 historical sites, of which 4 are globally
  renowned Wadi Rum, Dead Sea, Petra, Baptism
  Site.
• Potential for expansion in health and conference
  tourism.

34
Health Care

• According to the Arab World Competitiveness
  Report 2005, Jordan is the top ranking Arab
  country in terms of health care.
• A leader in open heart surgery, kidney
  transplants, and optical surgery.
• 97 hospitals and 22.4 physicians per 1000
  population.
• More than 150,000 medical tourists annually.
• Annual revenues of 860 million.
• Medical Tourism Center for the region.
• Unique Spas and health resorts Dead Sea and
  natural hot springs in Maiin, Himme and Zara.

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Major Development Projects
?e????a ???a a??pt????
36
Expansion of Queen Alia International
Airport?p??tas? t?? d?e????? ae????µ??a

• ??t?µ?µe?? ??st?? 300-500 e?at. d?????a ???.
• St???? ?p??tas? ?a? ap??at?stas? t??
  ?f?st?µe??? te?µat???? sta?µ?? (s?µe???? ??tas?
  60.000 tet?a?????? µ?t?a).
• ??????? p?a?s?? 2006-2009 (?? ???? a?af????
  ß??s???ta? ?p? epe?e??as?a ap? t?? ??e???
  ???a??sµ? ???µat?d?t?s?? (IFC)).c

• Estimated Cost US 300-500 million.
• Objective Expand and rehabilitate the existing
  terminals (currently 60,000 sq. meters).
• Timeframe 2006-2009 (TOR is under preparation
  by IFC).

37
Light Railway from Zarqa to Amman??af???
s?d???d??µ?? ap? t? ????a ??? t? ?µµ??

• ??t?µ?µe?? ??st?? 150 e?at. d?????a ???.
• St???? ?a?????s? e??? ap?te?esµat???? µ?s??
  µetaf???? ep?ßat?? µeta?? ?µµ?? ?a? ????a
• ??????? p?a?s?? 2006-2007.

• Estimated Cost US150 million.
• Objective Establishing an effective mean of
  passenger transportation between Amman and Zarqa
• Timeframe 2006-2007.

38
Disi Water Conveyance Project???? ?d?e?s?? Disi

• ??t?µ?µe?? ??st?? 500-600 e?at. d?????a ???.
• St???? ep?p??s?et? ?d??d?t?s? t?? e???te???
  pe?????? t?? ?µµ?? ap? t?? ?d??f??? ??????ta Disi

• Estimated Cost US500-600 million.
• Objective provide additional water supply from
  Disi aquifer to greater Amman area

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Disi Water Conveyance Project
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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.

41
Port Relocation and Development?ete??at?stas?
?a? a??pt??? t?? ??µ??a

• Estimated Cost US830 million.
• Objective Providing an effective and efficient
  port services.
• Timeframe 2006-2022 (Aqaba Development
  Corporation (ADC) will segment projects
  components into packages for interested
  developers).

• ??t?µ?µe?? ??st?? 830 e?at. d?????a ???.
• St???? ? pa???? ap?te?esµat???? ??µe?????
  ?p??es???.
• ??????? p?a?s?? 2006-2022 (? a?apt???a??
  eta??e?a t?? ??aµpa (ADC) p??t??eta? ?a
  ?ata?e?µe? t? ???? se µ??? ??a t???
  e?d?afe??µe???? epe?d?t??).

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Aqaba Port Relocation Development
Main Port
Used for transport of general cargo, light
traffic, grains and phosphate.
Container port
Used for rice, passengers, cement and containers.
Industrial port
Used for oil imports and exports, timber, Potash
and fertilizers.
43
Aqaba Port Relocation Development

• Estimated Cost 830 million.
• Objective Provide an effective and
  efficient port services.
• Description
• Relocation of the main port area, including the
  phosphate terminal to the southern industrial
  zone of Aqaba.
• Development of the cleared-up main port area for
  commercial use.
• Construction of a multi-purpose general cargo
  terminal in the southern industrial zone.
• Timeframe 2006-2022 (Aqaba Development
  Corporation (ADC) segmented the projects
  components into 9 packages for interested
  developers).

44
Upgrading Expansion of Jordan Petroleum
Refinery??aß??µ?s? ep??tas? t?? d????st?????
pet?e?a??? t?? ???da??a?

• 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.
• Timeframe 2006-2008.

• ??t?µ?µe?? ??st?? 700 e?at. d?????a ???.
• St???? ?p??tas? t?? ?f?st?µe??? d????st????? µe
  st??? t?? ??a??p???s? t?? p??ß?ep?µe??? ??t?s??
  ??a e?af?? ??a?a ?a? e?d??µesa p?????ta
  pet?e?a??? µet? t? 2006, s?µf??a µe t?? pa???sµ?a
  st??f? p??? t? ???s? ?a?a??te??? ?a?s?µ??. ?
  µa????????a e?????s? ???e? t?? Feß??????? t??
  2008.
• ??????? p?a?s?? 2006-2008.

45
Red Sea-Dead Sea Project???? ??????? ???assa?-
?e???? ???assa?

• 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.

• ??t?µ?µe?? ??st?? 4-5 d?se?. d?????a ???
• St???? ? a?t?µet?p?s? t?? ?µes?? pe??ßa????t????
  ???d???? p?? ape??e? t? ?e??? ???assa (? st??µ?
  t?? ?d?t?? µe???eta? ?at? ??a µ?t?? et?s???
  pe??p??, µe ap?t??esµa ?a ape??e?ta? ? ?pa???
  t??) µe t?? ??t??s? ?e??? ap? t?? ?????? p??? t?
  ?e??? ???assa.

46
Red Sea Dead Sea Canal
47
(No Transcript)
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Red Sea Dead Sea Water Transfer- Phases

• Phase 1 Water transfer from Red Sea to Dead Sea
• At a cost of US1 billion.
• Distance 180 km.
• Annual water transfer 1,900 mcm/yr.
• Alignment Wadi Araba.

• Phase 2 Hydropower and freshwater production
• At a cost of US1-1.5 billion.
• Hydroelectric generation capacity.
• Reverse osmosis desalination facility.
• Freshwater production capacity 850 mcm/yr.

• Phase 3 Freshwater and excess electricity
  distribution
• Cost to be determined.
• Freshwater distribution system to demand centers.
• Transmission system for sale of energy.

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Aqaba Railway Project

• Description Aqaba Railway Corporation (ARC), a
  public corporation presently operates railway
  services for the transport of phosphate rock from
  the various mines to Aqaba port for export
  purposes.
• Objective transport phosphate and other goods
  from Jordan Phosphate Mines Company (JPMC) to
  Aqaba port for export.
• Privatization Status
• Preparing a new law for the abolition of ARC.
• Evaluation of all ARC assets and liabilities.
• Prepare a Draft transport agreement between JPMC
  and the new company.
• Finalize necessary documentation required for the
  establishment and registration of the new
  company.

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G?at? ?a epe?d?sete st?? ???da??a

• Sta?e??t?ta t?? s???????? ??????µ???? p???t????
• ???s???? ?esµ??? p?a?s??
• ???t?? ??a t? st????? t?? p?????s?? ?a? t??
  d?at???s?? t?? ?µes?? ????? epe?d?se??
• ?e???e? d??at?t?te? ??a ????? ap?d?s? t??
  ?efa?a??? ep??d?s??

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Thank you for taking the time to view the
presentation.Please do not hesitate to contact
us for any further information or any
clarification.
Jordan Investment BoardP.O.Box893
Amman-11821-JordanTel 962 6 5608400Fax 962 6
5608427www.jordaninvestment.com