Jordan Investment Environment and Opportunities | 3
The Five Pillars Strategy • Regional hub for International Companies • Regional base for IT services • Strategic location for Res-construction efforts in Iraq and Syria • A new destination for movie production • New export markets | 4
Foreign Investment in Jordan / Investment Law (30)
Foreign Investments in Jordan / Investment Law (30) • Foreign Investments enjoy incentives and benefits offered by the investment law, including exemptions from custom duties, general sales Tax and in some cases reduction on income Tax. • No restriction on foreign ownership except in a limited number of economic activities. Investments in Development and Free Zones can be wholly owned by foreign investors. • No Minimum Capital required. • Foreign investors enjoy privileges and guarantees, including national treatment, free movement of capital, no restriction on repatriation of profits, and options to resort to alternative dispute settlement mechanisms. • Foreign investors also enjoy facilitated registration and licensing services by the “ Investment Window ” , in addition to support in obtaining visas and residency permits for investors, their families and employees. | 6
Jordan’s Business Environment
10 Reasons to Invest In Jordan 8
JORDAN IN THE WORLD The country has one of the most dynamic and diversified economies in the MENA region, and is uniquely positioned to provide regional and global access to businesses. | 9
STRATEGIC MARKET ACCESS TO OVER 1 BILLION CONSUMER Regional Free Trade Areas 1. Greater Arab Free Trade Agreement (18 Arab countries ) 2. EU-Jordan Association Agreement. ❖ Jordan EU Compact Agreement 3. European Free Trade Association - EFTA (Norway, Switzerland, Iceland and Liechtenstein). Bilateral Free Trade Agreements 1. USA 2. Singapore 3. Canada | 10
JORDAN IS A GATEWAY AND A LAUNCHPAD FOR RECONSTRUCTION PROJECTS IN SYRIA AND IRAQ Expected Value of Investments 500 Billion USD Targeted Sectors Infrastructure • Energy • Healthcare • Construction • Education • Real Estate • Housing • 11
DEVELOPMENT ZONES AS A GATEWAY TO 5% Income Tax INCENTIVIZED TRADE AND BUSINESS (Industrial activity in the zone) 10% Income Tax (Other activity in the zone) 0% Customs Tax (Production inputs and requirements) 7% Sales Tax (service in the zone) 0% Sales Tax (input goods and services in the zone) | 12
Value Added Sectors
Jordan Promising Sectors Agriculture Energy & Renewable Energy ICT Jordan ’ s agriculture sector, with its modern production technology, Jordan is emerging as an ideal location for investment in renewable energy Jordan ’ s information and communications technology (ICT) provides key multiplicity and diversity of products with high technical specifications and clean technology that offers a starting point for international companies elements required by international companies to set a foot in Jordan as well and quality standards, is one of the Kingdom ’ s most competitive with the intention of regional or global expansion. as to serve bigger markets in the region. sectors. Transportation & Logistics HealthCare Tourism Transportation infrastructure in Jordan is considered relatively well The tourism sector in Jordan is a fast-growing sector and involves many The Jordanian healthcare sector is known for its high-quality services, both developed when compared to the Middle East and North Africa (MENA) promising niches. It continues to be a vitally important pillar of Jordan’s regionally and internationally, world-class qualified medical workforce and region accounting for more than 8% of Jordan’s GDP. economy, as it contributes 19.4% to Jordan’s GDP. accredited hospitals and facilities. Industry The Jordanian industrial sector consists mainly of manufacturing, extractive industries, electricity and water. These sectors are linked backward and forward with sectors such as transportation, insurance and trade. | 14
Jordan in Numbers
In 2019: • Top 20 reformers in Doing Business • Moved 3 places in the Global Competitiveness Index 73 to 70 • Exports increased 5.1% • Trade defect decreased 10.2% • Tourists increased 5.6% • Tourism income increased 8.3% | 16
Jordan – Italian Trade and Investment
Jordan – Italian Trade and Investment Economic Trade Agreements: • Association Agreement with the European Union (Signed,Nov.1997) • Investment Promotion and Protection Agreement (Signed,July.1996) Exports/imports Commodities: Top Imported Commodities from Italy to Jordan Top Exported Commodities from Jordan to Italy Machinery and mechanical appliances Precious Metals Articles of jewelry and parts thereof Fertilizers Mineral oils and products Aluminum and articles thereof | 18
Jordan – Italian Trade and Investment Italian Investments in Jordan: The total size of Italian investments in Jordan around USD 44 Million, up to 2018 Trade Balance Jordan & Italy (Source: UN Comtrade) Trade Balance 2014-2018, $ million JORDAN - ITALY YEAR JORDAN IMPORTS JORDAN EXPORTS BALANCE 2018 36.7 -591.7 628.3 2017 808.3 25.8 -782.5 2016 835.8 39.0 -796.8 2015 805.0 54.2 -750.8 2014 697.4 57.1 -640.3 | 19
Opportunities: Investment Map / Mega Projects
Opportunities: Investment Map 10 PROJECTS PER GOVERNORATE 54 Projects – INDUSTRIAL SECTOR 302 MILLION JOD EXPECTED 23 Projects – SERVICES SECTOR INVESTMENT SIZE 21 Projects – TOURISM SECTOR 3800 JOB OPPORTUNITIES 14 Projects – AGRICUTLURE SECTOR Projects range between (50,000- 28,000,000 million 8 Projects – HEALTHCARE SECTOR JOD) | 21
Opportunities: Mega Projects Sector Project name Description/notes Investment size (JD Million) The project consists of the expansion of Marka Civil Airport as well as the rehabilitation of its existing terminals. The project 1 Logistics and 114-119 will serve regular low-cost flights, commercial flights in addition to charter flights and offer aviation training. The expansion Transportation Marka Airport will increase the airport’s capacity to host up to 2 million passengers in the future A Regional master plan is being prepared in parallel with the feasibility study, The World Bank Infrastructure Development King Hussein Bridge crossing terminal and 100-150 fund ($1.5 m) is co-funding the project development with the GoJ ($500,000). Studies with IFC and CC are underway. IFC truck yard was chosen as the transaction advisor. IFC has indicated it is ready to market soon. 2020 Madounah Dry Port/ Logistic Center 100 2020 Amman-Zarqa Bus Rapid Transport 188 The objective of the project is to construct a water conveyance system to enhance the Kingdom ’ s national water security by Water and Aqaba-Amman National Water Conveyance 2 1,100.00 producing potable water through desalination at the Gulf of Aqaba and transferring 150 MCM/year of additional water to Wastewater Project (AAWDC Project) (National Project) Amman. These flows will be obtained from the identified two Project Components – Rum/ Disi Wellfield and a Reverse Osmosis Plant to the south of Aqaba the Red Sea. As Samra treatment plant (third phase/ The objective of the project is to expand the capacity of the As-Samra treatment plant from 365,000 CM to 465,000 CM per 200 day (i.e. additional treatment capacity of 100,000 CM per day). Additionally, the project will establish a solar power plant second expansion ) with 10 MW capacity and will serve the adjacent unsaved communities with wastewater networks. The project aims to develop appropriate techniques to reduce physical and commercial water losses in Amman through Non-Revenue Water (NRW) Reduction 47 the preparation and implementation of a performance based NRW contract under a hybrid financing modality including Project grants and Private investment. This approach will start in Amman Governorate but will be rolled out to other governorates. 2020 Tourism Infrastructure projects in the Dead Sea 3 1,840 Al Qastal resorts and recreational facilities 2020 50.33 The aim of the project is to support the Jordan Schools Program, which entails building up to 300 new schools over the Education Supporting the Jordan Schools Program. 4 75-100 next decade under a PPP scheme. Build 15 schools using PPP model | 22
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