Opportunities | 3 The Five Pillars Strategy Regional hub for - - PowerPoint PPT Presentation

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Jordan Investment Environment and Opportunities

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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

Foreign Investment in Jordan / Investment Law (30)

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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
• f 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.

Jordan’s Business Environment

10 Reasons to Invest In Jordan

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JORDAN IN THE WORLD

The country has

• ne of the most

dynamic and diversified economies in the MENA region, and is uniquely positioned to provide regional and global access to businesses.

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STRATEGIC MARKET ACCESS TO OVER 1 BILLION CONSUMER

Regional Free Trade Areas Bilateral Free Trade Agreements

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). 1. USA 2. Singapore 3. Canada

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JORDAN IS A GATEWAY AND A LAUNCHPAD FOR RECONSTRUCTION PROJECTS IN SYRIA AND IRAQ

Targeted Sectors

• Infrastructure
• Energy
• Healthcare
• Construction
• Education
• Real Estate
• Housing

Expected Value of Investments

500 Billion USD

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DEVELOPMENT ZONES AS A GATEWAY TO INCENTIVIZED TRADE AND BUSINESS

5% Income Tax

(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)

Value Added Sectors

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Jordan Promising Sectors

Agriculture

Jordan’s agriculture sector, with its modern production technology, multiplicity and diversity of products with high technical specifications and quality standards, is one of the Kingdom’s most competitive sectors.

ICT

Jordan’s information and communications technology (ICT) provides key elements required by international companies to set a foot in Jordan as well as to serve bigger markets in the region.

Energy & Renewable Energy

Jordan is emerging as an ideal location for investment in renewable energy and clean technology that offers a starting point for international companies with the intention of regional or global expansion.

Transportation & Logistics

Transportation infrastructure in Jordan is considered relatively well developed when compared to the Middle East and North Africa (MENA) region accounting for more than 8% of Jordan’s GDP.

Tourism

The tourism sector in Jordan is a fast-growing sector and involves many promising niches. It continues to be a vitally important pillar of Jordan’s economy, as it contributes 19.4% to Jordan’s GDP.

HealthCare

The Jordanian healthcare sector is known for its high-quality services, both regionally and internationally, world-class qualified medical workforce and 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.

Jordan in Numbers

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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%

Jordan – Italian Trade and Investment

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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

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Jordan – Italian Trade and Investment

Italian Investments in Jordan: Trade Balance Jordan & Italy (Source: UN Comtrade)

Trade Balance 2014-2018, $ million

JORDAN - ITALY YEAR JORDAN IMPORTS JORDAN EXPORTS BALANCE 2018 628.3 36.7

• 591.7

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

The total size of Italian investments in Jordan around USD 44 Million, up to 2018

Opportunities: Investment Map / Mega Projects

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Opportunities: Investment Map

54 Projects – INDUSTRIAL SECTOR 23 Projects – SERVICES SECTOR 21 Projects – TOURISM SECTOR 14 Projects – AGRICUTLURE SECTOR 8 Projects – HEALTHCARE SECTOR 10 PROJECTS PER GOVERNORATE 302 MILLION JOD EXPECTED INVESTMENT SIZE 3800 JOB OPPORTUNITIES Projects range between (50,000- 28,000,000 million JOD)

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Opportunities: Mega Projects

Sector Project name Description/notes Investment size (JD Million)

1 Logistics and Transportation Marka Airport

The project consists of the expansion of Marka Civil Airport as well as the rehabilitation of its existing terminals. The project will serve regular low-cost flights, commercial flights in addition to charter flights and offer aviation training. The expansion will increase the airport’s capacity to host up to 2 million passengers in the future

114-119 King Hussein Bridge crossing terminal and truck yard

A Regional master plan is being prepared in parallel with the feasibility study, The World Bank Infrastructure Development fund ($1.5 m) is co-funding the project development with the GoJ ($500,000). Studies with IFC and CC are underway. IFC was chosen as the transaction advisor. IFC has indicated it is ready to market soon.

100-150 Madounah Dry Port/ Logistic Center

2020

100 Amman-Zarqa Bus Rapid Transport

2020

188 2 Water and Wastewater Aqaba-Amman National Water Conveyance Project (AAWDC Project) (National Project)

The objective of the project is to construct a water conveyance system to enhance the Kingdom’s national water security by producing potable water through desalination at the Gulf of Aqaba and transferring 150 MCM/year of additional water to

• 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.

1,100.00 As Samra treatment plant (third phase/ second expansion )

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 day (i.e. additional treatment capacity of 100,000 CM per day). Additionally, the project will establish a solar power plant with 10 MW capacity and will serve the adjacent unsaved communities with wastewater networks.

200 Non-Revenue Water (NRW) Reduction Project

The project aims to develop appropriate techniques to reduce physical and commercial water losses in Amman through the preparation and implementation of a performance based NRW contract under a hybrid financing modality including grants and Private investment. This approach will start in Amman Governorate but will be rolled out to other governorates.

47 3 Tourism Infrastructure projects in the Dead Sea

2020

1,840 Al Qastal resorts and recreational facilities

2020

50.33 4 Education Supporting the Jordan Schools Program. Build 15 schools using PPP model

The aim of the project is to support the Jordan Schools Program, which entails building up to 300 new schools over the next decade under a PPP scheme.

75-100

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Opportunities: Mega Projects

Sector Project name Description/notes Investment size (JD Million)

5 Energy Pumped-Storage Hydropower

The project is aimed at utilizing the water dams in Jordan in order to generate and store electricity. Three locations of high potential have been identified: Wadi Al Arab Dam, Wadi Al Mujib and King Talal Dam.)

142 Oil and Gas exploration in the open exploration blocks (Azraq, West Safawi, Jafr, Serhan, Dead Sea, Rum, Petra and Northern Highlands)

The Project aims to explore the open Blocks for conventional and unconventional resources of oil and gas through signing Production Sharing Agreements “PSA” with the qualified Company.

250 Al Lajjun oil shale project- Karak Governorate The project aims for the development of

Oil Shale deposit in Karak governorate through the extraction, exploitation and surface retort processing technology to produce a suite of refined petroleum products. The project is a Private-Private Partnership and GoJ is not obligated to purchase any of the refined petroleum products.

1,420.00 Generation of electric power by direct burning

• f waste

2020

120-130 Expand the development of renewable energy projects for power generation (wind & solar)

2020

300 Use of 'energy storage through batteries' to reinforce the electrical grid and maintain its suitability.

2020

50 Develop Jordan-Iraq-Egypt Oil Pipeline

2020

1,600.00 Developing and enhancing the production of existing wells and drilling new wells.

2020

100 Exploration and exploitation of gold in Wadi Araba

2020

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Thank You

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