Invest in Jordan 2009. JIB

INVEST IN JORDAN

Jordan Investment Board

P.O. Box 893 Amman 11821 Jordan

info@jib.com.jo

www.jordaninvestment.com

Table of Contents Dear Investor,

I. Message from the CEO

II. Jordan Fact Sheet

III. Why Invest in Jordan?

· Political Stability and Security · High Quality of Life · Strategic Location and Market Access · Growing and Robust Economy · Skilled and Talented Human Capital · Modern and Well Connected Infrastructure · Favorable Business Environment · Enabling Platforms

IV. Which Sectors? A. Industries

12 13 14 16 18 20 22 23 24

· · · · · · ·

Information and Communication Technology (ICT) Tourism Healthcare and Medical Services Education and Training Banking and Financial Services Media and Press Legal, Engineering, and Consultancy Services

25 27 31 33 35 37 38

· Water · Energy · Transportation

V. Where to Invest?

King Hussein Business Park (KHBP) King Hussein Bin Talal Development Area (KHBTDA), Mafraq Irbid Development Area (IDA) Ma’an Development Area (MDA) Aqaba Special Economic Zone (ASEZ) Industrial Estates Free Zones King Abdullah II Design and Development Bureau (KADDB) Industrial Park

Jordan’s welcoming culture and its mild climate have made it a popular Middle East based destination for residents and visitors alike. Whatever one’s investment interests are, Jordan leads the way within the region. The Kingdom claims this end by providing excellent networks, state-of-the-art infrastructural developments, and modern technologies across all sectors.

8-11

Mining and Processing Textiles and Apparel Pharmaceuticals Electrical and Engineering Goods Building Materials and Construction Agro-Industries Automotive Chemicals Dead Sea Cosmetics

C. Infrastructure and Utilities

· · · · · · · ·

4 4 4 5 5 6 6 7

· · · · · · · · ·

B. Services

Strategically positioned at the crossroads of the MENA region, and in close proximity of Europe, Asia, and Africa, Jordan is the gateway for foreign investors seeking to do business in the Middle East. Its peaceful political environment and stable economy allow it to enjoy friendly and cooperative relations with both its neighbors and the international business community at large. With a reputation for secure, reliable, and competitive business practices and a young, dynamic, and talented workforce, the Kingdom is sure to offer a prime investment environment for eager investors. Such an environment is positioned to help businesses ﬂourish and grow.

Numerous Free Trade Agreements have been signed between Jordan and other global market players. These agreements are supported by a strong network of industries, services, utilities, transport, and logistics. Together, these facilities have placed Jordan at the forefront of investment locations, enabling it to work effectively within the international business community. Jordan is well-served by vigorous policies that address various economic, social, and political issues which are crucial in driving the country forward. These policies cater to a set of issues aimed at improving Jordan’s commercial climate. They have made premium standards of performance, quality, and efﬁciency the norm, attracting foreign direct investment to the Kingdom, enhancing existing sectors, and enabling Jordan to enjoy comparative and competitive advantages.

39 40 44

Establishing a business in Jordan could not be simpler, as the authorities in Jordan have worked hard to make life easier for investors. All necessary investment related information is readily available, and the process of registering and starting up a business has been streamlined to promote an efﬁcient and competitive business environment. This deﬁnitive guide aims to answer all potential questions posed by investors, responding to questions such as, ‘Why Jordan?’ to ‘Which sectors are most promising?’ to ‘Where to establish your business?’

Welcome to Jordan, where we look forward to doing business with you!

47 49 52 54 57 59 61

Maen Nsour, Ph.D. CEO

VI. Map of Jordan

64-65

VII. Reference: Investment Promotion Law

VIII. Investment Incentives Matrix

67-68 Prepared by: Nour Hmoud

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Hashemite Kingdom of Jordan Constitutional Monarchy His Majesty King Abdullah II 12 Governorates: Amman (Capital), Ajloun, Balqa, Karak, TaďŹ leh, Mafraq, Aqaba, Zarqa, Irbid, Jerash, Ma'an, and Madaba 5.9 million; 2.3% average annual growth rate; 20.3 median age 1.3 million JD 150 (USD 210) per month 13% JD 14,189.5 million (USD 19,985.2 million) JD 2,426 (USD 3,416.9) 5.6% JD 5,523 million (USD 7,890 million) Chemicals and allied products, textiles and garments, pharmaceuticals, potash, phosphate, fertilizers, machinery and equipment, metals, food and beverages, furniture, plastic products, and jewelry Arab Countries (44%), EU (3%), Americas (28%), Asia (21%), other (3%) JD 10,640.1 million (USD 15,200 million) Crude oil, textiles and garments, transport equipment, machinery, and vegetable products Arab Countries (33%), EU (30%), Americas (8%), Asia (28%), other (1%) Greater Arab Free Trade Agreement (GAFTA), Jordan-US Free Trade Agreement, Agadir Agreement, Jordan-EU Association Agreement, Jordan-European Free Trade Association, and Jordan-Singapore Free Trade Agreement More than 15, including agreements with Canada, Turkey, and Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay) Austria, Azerbaijan, Bahrain, Belarus, Bulgaria, Croatia, Czech Republic, Egypt, Finland, France, Germany, Greece, Holland, India, Indonesia, Italy, Kazakhstan, Korea, Kuwait, Lithuania, Malaysia, Morocco, Oman, Poland, Romania, Russia, Singapore, Slovakia, Spain, Sudan, Switzerland, Thailand, Tunisia, Turkey, Yemen, Ukraine, the United Kingdom, and the United States of America Algeria, Bahrain, Bulgaria, Canada, Croatia, Czech Republic, Egypt, France, Holland, India, Indonesia, Korea, Kuwait, Lebanon, Malaysia, Poland, Qatar, Romania, Syria, Tunisia, Turkey, Ukraine, United Kingdom, and Yemen Jordanian Dinar (JD 1= USD 1.41) GMT +2

All ďŹ gures are from 2008

Why Invest in Jordan? Because... Decades of political stability and security have earned Jordan a rank among the most secure countries worldwide High quality of life Strategic and central location with market access to more than one billion consumers Growing and robust economy Skilled and talented human capital Modern infrastructure and global connectivity Favorable business environment with: • Strong banking system • Competitive costs of doing business • Attractive tax incentives and custom duty exemptions • Reformed and liberal legislation • Streamlined procedures • Comprehensive international investor protection measures Enabling platforms: • Development Areas (King Hussein Business Park, King Hussein Bin Talal Development Area, Mafraq, Irbid Development Area, and Ma’an Development Area) • Aqaba Special Economic Zone • Industrial Estates • Free Zones • King Abdullah Design and Development Bureau (KADDB) Industrial Park

Political Stability and Security

Growing and Robust Economy

Jordan enjoys good relations with all of its neighbors. It has maintained lasting stability, moderation, and security within a region prone to potential volatility. Jordan is a fourth generation monarchy, ruled by the Royal Hashemite family since 1921. It is home to consistent and transparent long-term foreign and domestic policies, an elected parliament, and a visionary leader dedicated to the progressive reform of political, economic, ﬁscal, legal, and social signiﬁcance. His Majesty King Abdullah II is regarded today as a moderator and advocate of peace and stability in the region.

Jordan’s signiﬁcant macroeconomic development has led to its notable economic growth in 2008, namely by the fact that:

Investors have great conﬁdence in the Kingdom's economy, its political stability, its excellent international relations, and its cost-competitiveness. These attributes have enabled Jordan to entice a groundswell of investment from around the world. All these investments contribute to maintaining a momentum of growth and development in the Kingdom. Moving forward with its prudent macroeconomic policy and its commitment to introducing further reform, Jordan has liberalized the economy, streamlining business practices across all sectors. The Kingdom has attracted innovation and capital. Led by the Monarch's vision, Jordan’s economy has seen signiﬁcant boom and has developed into one that is productive, innovative, and knowledge-based.

High Quality of Life Jordan offers a diverse, tolerant, and family friendly environment, infused with all the comforts of 21st century living amenities. In Jordan, one can enjoy a moderate climate, a secure environment, a multitude of cultural and recreational pastimes, and world-class educational services offered via renowned institutions.

With Jordan’s central location in the heart of the Middle East and its secure environment, it takes advantage of signiﬁcant foreign trade agreements. These policies are founded on the norms of openness and integration. With aims to enforce liberalization and to nurture economic ties with Arab countries, Jordan signed the Greater Arab Free Trade Agreement (GAFTA) in 1999. This Agreement was signed by Jordan and 16 other Arab countries namely the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, Morocco, Syria, Lebanon, Iraq, Egypt, Palestine, Kuwait, Tunisia, Libya, Sudan, and Yemen. Free access to the market of the United States also was granted to Jordan upon its signing of the US-Jordan Free Trade Agreement. Forged in 2001, this agreement is positioned to further encourage Jordanian exports to the United States of America. Jordan also established Qualiﬁed Industrial Zones (QIZ) in 1996. Jordan signed an association agreement with the European Union in 1997 and with the European Free Trade Association (EFTA) in 2001. Furthermore, Jordan has access to the Singapore market through a signed Free Trade Agreement. Other free trade deals are currently being negotiated with Canada, South America, and Turkey. In 2008, Jordan signed a framework agreement with the Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay) to launch free trade negotiations. Membership in the World Trade Organization since 2000 has paved the way for Jordanian exports to access even more markets, thereby generating sales, creating more jobs, and boosting economic growth. These agreements opened up markets in which more than 1 billion consumers reside.

• Foreign investments in Jordan have increased. This growth is seen as a direct outcome of liberalization, careful planning, policy reforms, a strong economy, and ideal conditions for conducting business. • The five-year average annual growth rate of Jordan’s GDP is 7.4% and the economy is developing rapidly. Jordan’s GDP growth performance has proven capable of delivering tangible outcomes, positively affecting the lifestyles of the Kingdom’s inhabitants. • Exports grew by a total of 150%, as calculated between the years 2001 and 2007. These readings are constantly increasing due to industries being affected by foreign investment, privatization, and the increased value of Jordanian products abroad. • External debt, as a percentage of GDP, has gone down from 189% in 1990 to 25.7% in 2008. • Foreign exchange reserves increased substantially, reaching from USD 2.8 billion (JD 1.98 billion) in 2000 to USD 7.74 billion (JD 5.4 billion) in 2008. • Sound government policies have driven the inflation rate downwards from 26% in 1990 to 4.7% in 2007. • Jordan’s investment environment has seen notable success within domestic based investment projects. These projects benefit from the Investment Promotion Law, enforced in various economic sectors. In the last three years, these investments, worth USD 7 billion (JD 4.97 billion), benefited from the law.

Macroeconomic Indicators

1999

2004

2005

2006

2007

2008

0.6

3.4

3.5

6.25

4.7

14*

Ext. Debt (% of GDP)

95.5

66.1

56.5

49.3

44.8

25.7

Foreign Res. (USD bn)

1.99

4.82

4.8

6.1

6.9

7.74

Exports (USD bn)

1.83

3.88

4.3

5.2

5.73

7.73

Market Cap. (USD bn)

5.8

18.25

37.33

29.51

40.9

35.57

Real GDP Growth (%)

3.4

8.6

8.1

8.0

6.6

5.6

2,117

2,290

2,630

2,867

3,396

Inﬂation (%)

Strategic Location and Market Access to More than One Billion Consumers

Origins of GDP 2007 (% Total)

GDP Per Capita (USD) 1,734

* Increase due to global rise in crude oil prices and is estimated to drop to 4% in 2009 Source: Central Bank of Jordan and Amman Stock Exchange

3% 17%

2% 4% 52% 9%

13%

Services (8,171.9 million) Industry (2,671.6 million) Transport, Storage, and Communications (2,043.0 million) Wholesale, Trade, Restaurants, and Hotels (1,414.4 million) Construction (628.6 million) Agriculture (471.6 million) Electricity, Gas, and Water (314.3 million) Source: Department of Statistics

Skilled and Talented Human Capital Jordan’s cost of labor remains amongst the most competitive in the Middle East. The Kingdom’s work force consists of skilled, educated, and well-trained calibers. It has the qualities to catapult investment prospects to new heights and more proﬁtability. Jordan has a young population of 5.9 million, 70% of which are under the age of 30. It enjoys a yearly population growth rate of 2.3%, literacy rates are among the highest in the Middle East (rising from 89.9% in 2004 to 91.1% in 2007). Over 200,000 students are enrolled across Jordan’s 25 world-class universities and 20,000 Jordanians are earning degrees abroad. The Kingdom also has 60 vocational training centers. These centers graduate over 10,000 skilled technicians annually. Hence, the Jordanian human capital is young, well-educated, and English-literate. It is an ideal workforce for incoming and existing businesses and potential investment ventures.

Modern and Well-Connected Infrastructure Jordan’s infrastructure is designed to serve people, their investment ventures, their trade needs, and their ideas. The Kingdom’s modern transportation network enables businesses to navigate the world with ease, speed, and comfort. Jordan also has one of the most liberalized and competitive telecommunication markets in the Middle East. Its road, rail, sea, and air infrastructures are amongst the most well-developed in the region. The public transportation network, Queen Alia International Airport, and the Port of Aqaba are all undergoing notable upgrades. These upgrades are designed based upon well-studied master plans and the implementation of these plans is set to improve and enhance the transportation framework of Jordan. (See page 44 for Transportation Sector)

Telecommunications Capacity 2007 Number of Mobile Subscribers

4.34 million (78% penetration)

Number of Fixed Line Subscribers

614,000

Number of Internet Users

796,900 (2007) 14.8% according to ITU

Source: Telecommunications Regulatory Network 2006; International Telecommunications Union (ITU); Department of Statistics 2007

Favorable Business Environment • Strong Banking System and Financial Services The Jordanian banking sector is highly diversiﬁed, including 23 banks (soon to be 24). The banking sector is open to foreign investors; bank equity owned by non-Jordanians represented 58.7% of bank capitalization as of September 2008. Jordan's banking sector provides comprehensive banking services, including: retail, corporate, Islamic, e-banking, and others. • Modern and Established Amman Stock Exchange The Jordanian government adopted a comprehensive capital markets reform policy, which aimed at building on the previous 20 years' experience, boosting the private sector, expanding and diversifying the national economy, and improving regulation of the securities market to reach international standards. Among the most important features of the new orientation are institutional changes in the capital markets, use of international electronic trading, settlement and clearance systems, elimination of obstacles to investment, and strengthening capital market supervision to reach optimal transparency and safe trading in securities, in line with globalization and openness to the external world. Market Capitalization in USD (Billion) 40

37.33

40.9 29.51

35.57

25 20 10 5

24.2%

12.4% 16.3%

Cost of Labor Tax Starting a and Business Contribution (% GNI per capita)

31.1% 36.4%

Total Tax Rate (% proﬁt)

3.6% 4.1%

9.0% 14.1%

Other Taxes

Cost of Closing a Business (% of state)

Enabling Platforms Jordan offers several attractive business and investment platforms tailored to investment, as listed below: • Development Areas (King Hussein Business Park, King Hussein Bin Talal Development Area, Irbid Development Area, and Ma’an Development Area) • Aqaba Special Economic Zone (ASEZ) • Industrial Estates • Free Zones • King Abdullah II Design and Development Bureau (KADDB) Industrial Park

7.23

2001

2002

2003

2004

2005

2006

2007

2008

Source: Amman Stock Exchange (ASE)

Percentage of Non-Jordanian Ownership of Market Capitalization 60 50 40 30

38.5

37.4

38.8

41.3

45.0

45.5

48.9

49.2

10 0 2001

2002

2003

2004

Source: Amman Stock Exchange (ASE)

Jordan Region

331.4%

Investment disputes between foreign investors and Jordanian governmental agencies should be settled amicably. If no amicable settlement can be reached within a period not exceeding six months, either party may resort to litigation or may refer the dispute to the International Center for the Settlement of Investment Disputes (ICSID).

10.96 6.34

Cost of Doing Business

• Streamlined Regulations and Procedures Setting up a business in Jordan is streamlined by the One Stop Shop (OSS) service hosted by the Jordan Investment Board (JIB). The distinctive one window approach is aimed at making the investor’s experience in registering and licensing projects hassle free. The One Stop Shop (OSS) offers a full service assistance package that gets a business up and running in Jordan. Representatives from governmental agencies see to licensing and registering projects within 14 working days only. One window services and streamlined regulations also are applied within Development Areas, the Aqaba Special Economic Zone, and Industrial Estates.

• Comprehensive Investor Protection on Par with International Standards Jordan has also signed several Promotion and Reciprocal Protection of Investments Agreements with the following countries: Austria, Azerbaijan, Bahrain, Belarus, Bulgaria, China, Croatia, Czech Republic, Egypt, Finland, France, Germany, Greece, Holland, Hungary, India, Indonesia, Italy, Kazakhstan, Korea, Kuwait, Lithuania, Malaysia, Morocco, Oman, Poland, Romania, Russia, Singapore, Slovakia, Spain, Sudan, Switzerland, Thailand, Tunisia, Turkey, Yemen, Ukraine, the United Kingdom, and the United States of America. Jordan is also in the process of signing approximately 15 new agreements with Belgium, Canada, Cyprus, Qatar, South Africa, and the United Arab Emirates.

Source: World Bank, Cost of Doing Business 2009

18.25

• Competitive Cost for Doing Business According to the Doing Business Report published by the World Bank and the International Finance Corporation (IFC) in 2009, the cost for doing business in the Kingdom is comparatively lower than that incurred in other parts of the region.

needed to guarantee both a healthy investment environment and the protection of their rights. The different laws governing investment ventures in Jordan offer equal treatment to both Jordanian and non-Jordanian investors, thus allowing non-Jordanian investors to own any project in full or in part. These laws also allow non-Jordanian investors to engage in any economic activity in the Kingdom, with the exception of some trade and contracting services, where a Jordanian partner is required. Non-Jordanian investors also have the right to manage a project in the manner they deem appropriate. They can run ventures in Jordan seeking parties seen most ﬁt for the job. They are also entitled to remit abroad without any delay, and to do so with a convertible currency, invested capital, and any returns and proﬁts reaped. This also applies to proceeds of liquidation, investments, and sales from all, or part of, the business.

2005

2006

2007

2008

• Attractive Tax Incentives and Customs Duty Exemptions The Jordanian Investment Promotion Law offers tax exemptions for industries related to agriculture, hotels, hospitals, convention and exhibition centers, maritime transport, railways, and others. Industrial estates are granted two years exemption from both income and social affairs taxes. Similarly, exemption from custom duties and sales tax are made on all imports entering the Kingdom through Aqaba Special Economic Zone (ASEZ). • Reformed and Liberal Legislation Jordan enjoys an advanced legal system. The system has been undergoing substantial revision and modernization in recent years. The Jordanian legal framework provides investors with the tools 7

A. Industries

Which Sectors? A.i Mining and Processing

A.vi Agro-Industries

Jordan is rich with internationally signiﬁcant mineral resources that are viable for upstream and downstream industries. It holds 40 billion tons of oil shale reserves, the third largest reserve in the world. Other valuable deposits include phosphate, potash, silica, uranium, granite, copper, tin, zircon, travertine, mineral ores, basalt, bentonite, zeolite, diatomite, feldspar, kaolin, gypsum, pure limestone, zeolitic tuff, among others. These advantages position Jordan’s thriving mineral and processing sector as a highly proﬁtable investment opportunity.

Jordan’s uniquely favorable climate sets it apart from the rest of the Middle East region. The Jordan Valley, which is several degrees warmer than the rest of the Levant region, has rich and fertile soil that is relatively untapped. Furthermore, Jordan is the eighth largest olive oil exporter in the world. In addition to these natural advantages, the Jordanian Government has made commitments to further support the agriculture industry.

A.ii Textiles and Apparel

A.vii Automotive

Free Trade Agreements (FTA) with the Arab markets, the European Union, and Singapore, coupled with FTA and Qualifying Industrial Zones (QIZs) agreements with the United States, allow for mutually beneﬁcial partnerships between Jordan and potential international investors. The domestic market’s low costs and high standards have attracted global brands including JCPenny, Levi’s, GAP, and Walmart. Thus, Jordan and its central location in the Middle East region has made it an ideal place to invest in textile and apparel related ventures.

With a growing demand for vehicles across the Middle East and North Africa region, Jordan presents itself as a practical and potentially proﬁtable investment hub for auto-related industries. Production costs remain relatively competitive when compared to those of Jordan’s neighboring countries. At present, there are 17 Jordan-based companies that manufacture vehicles and their parts, exporting 75% of their product offerings. With easy to reach target markets (namely Iraq and the GCC), the growing demand still leaves room for more such endeavors.

A.iii Pharmaceuticals

A.viii Chemicals

The Jordanian pharmaceutical industry has been flourishing for over four decades now. Jordan acts as a popular manufacturing and sales hub for the industry due to its rigorous academic focus in the areas of pharmacy and paramedics, cost-competitive production and labor, and its far-reaching exports to more than 66 countries worldwide. More than 50 patents are registered in Europe, the United States, and Japan. Jordanian pharmaceutical firms have succeeded on an international level, one of which recently became the first in the region to be listed on the London Stock Exchange. With low drug trial costs and strict adherence to Intellectual Property and pharmaceutical laws, Jordan is a competitive international player in the pharmaceutical sector.

Jordan’s thriving chemical industry offers a dynamic platform for manufacturing, processing, and exporting many varying chemical products, from pharmaceuticals and fertilizers to inorganic/organic chemicals and chemical derivatives. With expanding export markets and increased inward investment, production is set to grow in the coming years, potentially positioning Jordan as a center point for scientiﬁc research and chemical production.

A.iv Electrical and Engineering Goods

A.ix Dead Sea Cosmetics

Haier, Samsung, and LG are among the electronics giants that have selected Jordan as their regional headquarters for assembly lines and parts manufacturing. Foreign Trade Agreements (FTA) have allowed for duty free exports into the United States, European Union, and Arab markets. With among the highest number of engineers per capita in the world, Jordan is primed for investment in the areas of electrical and engineering goods.

As the natural cosmetics industry continues to boom around the world, Jordan’s possession of one of the most ancient beautifying and therapeutic resources, the Dead Sea, places it as a potentially strong player in the industry. The Dead Sea famously provides an abundance of natural minerals with both cosmetic and therapeutic value, including calcium, magnesium, potassium, and bromine. Used for medical purposes (i.e. psoriasis, arthritis, rheumatism, and eczema), health tourism, and cosmetics, the Dead Sea is an attractive site for tourists and investors alike. Currently exporting to more than 65 countries including the United States, Japan, Canada, and European countries, and being one of only two countries that supply Dead Sea minerals, the opportunities for proﬁtable investment in a burgeoning, unique industry continue to grow.

A.v Building Materials and Construction The wide availability of natural, raw materials in conjunction with the increasing demand for both residential and commercial construction and infrastructural projects makes Jordan’s construction industry one of the lucrative investment opportunities available. Jordan possesses a plethora of mineral resources and building stones, including marble, sand, gravel, and ample amounts of limestone for Portland cement. Thus, Jordan is prepared to utilize its large number of competitive engineers to take on the rapidly developing construction industry.

B.i Information and Communication Technology (ICT)

B.vi Media and Press

Jordan boasts an all-digital network, a highly skilled labor force, and strong governmental backing in its ICT sector. Growth in this market has been rapid (expanding by 30% per year) due to adherence to International Property Laws, market oriented regulations, foreign direct investment, a highly competitive wage structure, and incumbent Jordanian entrepreneurs interested in expanding into the region. In fact, Jordan ranks in the top 5 amongst all Arab countries, as stipulated in the Network Readiness Index of 2007-2008. Companies such as Microsoft, France Telecom, and Cisco operate from Jordan, taking advantage of the modern and reliable ICT infrastructure. With a sizeable labor force and a higher proportion of university graduates in technological ﬁelds than any other country in the region, Jordan’s ICT industry has become a force with which to be reckoned, both regionally and internationally.

With three specialized media colleges (including the acclaimed Australian SAE institute) graduating a high percentage of skilled media professionals, the Kingdom is becoming recognized for its talented media and press workforce. The advertising sector has witnessed a 30% annual growth since 2000, as media channels continue to increase. Steady liberalizations and guarantees of freedom of press, speech, opinion, and media differentiate Jordan’s media and press industry from the rest of the region’s.

B.ii Tourism

B.vii Legal, Engineering, and Consultancy Services According to studies carried out by several industry analysts, the Jordanian legal environment and the trend of offshore outsourcing in the country is in full force and will be in place for at least the next 20 years. According to the AT Kearney Global Index of Attractive Locations for 2007, Jordan ranked 14th out of 50 in the Business Process Outsourcing industry. With laws in place to protect the rights of both local and foreign investors and incentives to promote investment, there are many possibilities for those seeking to launch new business ventures in legal, engineering, and consultancy services.

B.iii Healthcare and Medical Services

C.i Water

C.ii Energy

C.iii Transportation

The Arab World Competitiveness Report 2008/2009 ranks Jordan amongst the top countries for healthcare, and life expectancy continues to increase due to the rising standards of medical services. Jordan’s healthcare labor pool remains amongst the most skilled in the region and hospitals are equipped and run in accordance with international standards of excellence. At present, many patients choose Jordan as their preferred location for medical treatments and surgery for its quality and competitiveness. With such attributes and growing joint venture partnerships between the public and private sectors, Jordan is easily utilized to serve as the medical services and health tourism hub of the Middle East and North Africa region.

The water sector forms an integral part of the Kingdom’s overall investment landscape, as it is a high priority for the Government and investors alike. An increasing population and growing agro-industry both increase the need for water treatment and preservation projects that alleviate the effects of water shortage Jordanians experience. Some projects have already begun to take shape, such as the Dead Sea-Read Sea Water Conveyance Project that will desalinate water and generate electricity, as well as water networks rehabilitation and restructuring projects. Because decentralization of the water industry has been a priority in Jordan, opportunities for investment in the industry are immense.

As Jordan’s demand for energy increases, the country’s resources for alternative forms of energy, including wind, solar, nuclear, and oil shale, need to be discovered and utilized. In fact, Jordan holds an estimated 40 billion tons of oil shale, the 3rd largest reserve in the world, 70,000 tons of uranium, and is in the process of establishing its ﬁrst nuclear plant by 2015 with France. As a Kyoto Protocol signee and with an Energy Master Plan in place through 2020, Jordan’s increasingly environmentally conscious population is ready for signiﬁcant changes in the way they use and save energy.

With a full-fledged transportation network being upgraded, transporting goods and people in Jordan has become a clear priority. Jordan has three high-traffic airports, the largest of which is currently under a multi-million-dollar renovation to accommodate the increasing number of passengers and cargo. As of 2007, a Master Plan has been put in place to improve Jordan’s public transportation and railway systems. Jordan’s Railway Master Plan will connect North-South and East-West together, as well as integrating its network to neighboring countries. These projects, along with the developing seaport in Aqaba, reflect Jordan’s evolving domestic and regional reputation as the most modern, central, and stable business hub in the region.

B.iv Education and Training With more than 70% of the population under the age of 30 and increasing annual number of new students entering the education system every year, Jordan’s renowned education and training industry provides ample investment opportunities. Foreign students continue to choose Jordan for Arabic-language instruction and students and expatriates from around the world come to enjoy Jordan’s superior educational system. The Jordanian Government spends a substantial amount on training programs, and GDP expenditure on education and training exceed 10%. With more than 25 public and private universities already in place and international universities showing a great deal of interest in bringing their institutions here, Jordan is quickly becoming known for its quality educational services, making investment in this industry promising to say the least.

B.v Banking and Financial Services

C. Infrastructure and Utilities

B. Services

A historic land with an endless list of majestic sites, Jordan is truly a traveler’s paradise. Its central location, political stability, comfortable climate, and accessibility through a developing transport system make it a safe and smart destination for cultural, leisure, business, medical, and religious travelers alike. Hosting six UNESCO World Heritage Sites, Petra (one of the New Seven Wonders of the World), a number of holy sites (including the Baptism Site), and therapeutic landmarks (including the Dead Sea and Ma’in), it is no wonder Jordan attracts millions of visitors a year and the tourism sector contributes 14% to the GDP. Still, tourism is predicted to remain the fastest growing sector globally for the next two decades, and Jordan sustains a 10%-12% annual growth in the industry. As the Ministry of Tourism and Antiquities and the Jordan Tourism Board continue to support the tourism industry with development plans in the working through many vocational training centers to provide locals with the know-how necessary for the success of tourism-related investments, the potential for proliﬁc investment continues to grow.

The Kingdom’s highly developed financial infrastructure is characterized by adequate capitalization, improved financial results, and an enhanced regulatory environment, all of which have helped it weather the global financial crisis of 2008/2009. With several international banks and an average annual growth rate of 11% over the past 10 years, Jordan’s banking sector proves to be strong and growing. The sector adheres to international banking standards, including the Basel Accords. Jordan has an established, modern, and secure Amman Stock Exchange, of which non-Jordanian investors own around 49.2%. Jordan’s healthy banking sector provides a robust platform for investments.

Industries MINING AND PROCESSING Rich in high demand mineral resources, Jordan has among the largest deposits of uranium in the world, as well as the highest world concentration of phosphate and potash.

• Companies are free to assign their interests and assets in projects for ﬁnancing purposes and to market the products mined without restriction. • Companies are free to conduct commercial operations according to development plans. These plans are subject only to normal environmental and safety regulations. • Environmental regulations are consistent with international best practices.

GDP Contribution

Exports

Competitive Advantages

Exports from this sector are valued at USD 647.5 million (JD 459.7 million). This ﬁgure translates into an annual growth rate of 7%.

Abundance of Natural Resources

Major Players

• Mineral extraction industries include calcium carbonate (for cement manufacturing), building stones (e.g. travertine), ornamental stones (e.g. granite and marble), silica (for glass making etc.), and many others. Numerous minerals are abundant in Jordan (e.g. oil shale and basalt), while others hold signiﬁcant potential for commercial reserves. • Mineral manufacturing industries include fertilizers, chemical acids, cement, ceramics, cosmetics, rock wool, and lime and silicate bricks. • Many other deposits possess potential warranting evaluation for exploitation that are viable for upstream and downstream industries such as copper, gold, zircon, silica, travertine, mineral ores, basalt, bentonite, zeolite, diatomite, feldspar, kaolin, gypsum, pure limestone, zeolitic tuff, and others. • Oil shale is one of the most abundant resources in Jordan (over 40 billion tons of geological reserves). Several of the mineral deposits have high levels of purity that facilitate processing to high value added products.

Cost-Competitive Location for Investment in Mineral Extraction and Mineral-Related Manufacturing Arenas Mineral extraction areas are close to markets, especially those in Asia and the GCC.

Strong and Rapidly Developing Sector Total sales estimates generated from this sector were valued at USD 883.5 million (JD 627.3 million) in 2007.

Skilled Labor Pool • 7,000 employees working in mining and quarrying • 75,000 registered engineers in various sectors • 4,300 engineering and 1,300 natural science graduates, as calculated in 2007

Strong Regulatory Environment • Foreign parties can invest in mineral resources under special agreements, and they can own up to 100% of mining projects. Investors can also receive legal titles and rights for exploration, mining, and commercial exploitation for the duration of their projects. 12

TEXTILES AND APPAREL In the last six years, Jordan has succeeded in creating a thriving apparel and textile industry; in 2007 total textile and apparel exports reached USD 1.3 billion, representing a 20% growth rate over five years. Jordan has attracted well-known or higher profile buyers such as GAP, Walmart, Tommy Hilfiger, New York Laundry, Liz Claiborne, Calvin Klein, and many others.

Extraction and production companies include Canpotex (Canada), International Potash Co. (Russia), Arab Potash Company (Jordan), Shell (the United Kingdom), Lafarge (France), and others.

Supportive Structures • Ministry of Energy and Mineral Resources (www.memr.gov.jo) • Natural Resources Authority (www.nra.gov.jo)

• 47,500 employees • A low cost, skilled workforce ready to produce and meet rising demand trends • Diversity of skill levels and market demand • Many employment agencies providing relevant skills, with few restrictions on foreign labor • A vocational training center

Exports USD 1.3 billion (JD 0.94 billion), which translates into a 20% growth rate over the past ﬁve years.

Major Players American Jordanian Company for Apparel (Jordache), Casual Wear Apparel LLC, Central Clothing Company, EAM Maliban Textiles, El Zay Ready Wear Manufacturing Co., Sterling Apparel Classic Fashion, Camel, Century Miracle, and many others.

International Buyers GAP, JCPenney, Levi’s, Liz Claiborne, Calvin Klein, Tommy Hilﬁger, Walmart, Kmart, Limited, Sears, Columbia, New York Laundry, and Victoria’s Secret.

Opportunities • Joint ventures with Jordanian companies for technology transfer and expansion • Further processing of already established mineral extraction products • Glass and silicon manufacturing from silica • Processes for high value metals • Phosphate use for making fertilizers • Oil shale extraction for direct combustion power plants • Copper mining and processing • Basalt ﬁber extraction for insulating wool • Zeolite mining for specialized lightweight cement • Magnesium plant restructuring • Silica production expansion • Glass production • Silicon production

Skilled Labor Pool

Opportunities

Competitive Advantages Access and Proximity to Markets • The Jordan-US Free Trade Agreement and Qualifying Industrial Zones (QIZs) agreements allow duty-free and quota-free entry of Jordanian products into the markets of the United States. • Investors in Jordan also have access to the European Union, Arab, and Singapore markets through FTAs signed with Jordan.

• Greater diversity in the supply chain, deepening it by adding front and back end services to the garment industry, from design to marketing • Large scale apparel fabricators • Expansion into a full range of shoes, sportswear, and formal wear • A chance to expand to the clothing accessories industry • ICT suppliers and textile companies, ready to develop and apply Enterprise Resource Planning (ERP) • Expansion into non-woven and geo-textiles • Modernization of factories • Local and international fashion design schools • Design training centers and incubators • Large scale water treatment, membrane applications, and water reuse plants

Supportive Structures • Jordan Garments, Accessories, and Textile Exporters Association (www.jgate.org.jo)

Cost-Competitive Location for Manufacturing and Exporting Salaries paid to employees working in this sector are 50% lower than those paid to their counterparts working in the GCC region, and they are less than one quarter of those paid in Ireland and Singapore (OCO Global/Watson Wyatt 2006).

Skilled Labor Pool

PHARMACEUTICALS

• There are around 5,300 people directly working in the pharmaceutical sector. This ﬁgure is projected to increase to 7,000 by 2012. • The sector offers 8,000 indirect jobs in packaging, raw materials, distribution, and pharmacies. • There is a growing pool of more than 2,000 graduates holding pharmaceutical and paramedical degrees, with 7,300 students enrolled in pharmacy programs in Jordanian universities (as recorded in the year 2007). • There are 11 universities offering paramedical programs, eight pharmacy colleges, six clinical research centers, and 101 hospitals. • The pharmaceutical sector spends 4% of its sales on research and development within six clinical research centers accredited by the European Medicines Agency (EMA) and the Food and Drug Administration (FDA). • There are nearly 200 research and development personnel in Jordan.

Four decades of manufacturing and developing Jordanian pharmaceutical products that are exported to more than 66 countries around the world. Jordan also has developed high quality products, technical and scientiﬁc capabilities, strong intellectual property rights, and international accreditations.

Access and Proximity to Markets

Rating from 1 to 6

Cost-Competitive Location for Manufacturing and Clinical Trials

4 3 2 1 Egypt

Morocco

Costa Rica

Jordan

United Arab Emirates

Ireland

Singapore

• Jordan is a member of the World Trade Organization (WTO), a signatory to the Trade-Related Aspects of the Intellectual Property Rights Agreement (TRIPs), and it strictly adheres to intellectual property rights laws. • Jordan follows the Patent Law, protecting product and process patents for 20 years from ﬁling date, with Bolar provision in Jordan. • cGMP, GLP, GCP compliance • JFDA, EUGMP, US FDA accreditation • Support of ﬁve contract research organizations • Well-established pharmacy and drug law • Copyright and trademark protection

• Jordan is a low cost regional manufacturing/sales hub. • Salaries in the sector are 50% lower than those paid in the United Arab Emirates and less than one quarter of those paid in Ireland and Singapore (OCO Global/Watson Wyatt 2006). • Drug trials in Jordan cost 50% less than their counterparts in Europe or the United States. Costs for setting up such a center may reach an average of USD 20,000 (JD 14,200) to USD 30,000 (JD 21,300) (OCO Global/Watson Wyatt 2006).

• • • •

Research and development for natural products Development of new drug delivery systems Biotechnology research and development Joint venture with existing industries Production in scarce therapeutic treatment areas, such as cancer speciﬁc drugs, hormones, and new generation drugs

• Jordan Food and Drug Administration (www.jfda.jo) • Jordan Pharmaceuticals Manufacturers Association (www.japm.com) • Private Hospitals Association (www.pha-jo.com) • International Pharma Research Center (www.iprc.com.jo)

USD 442.85 million from 2006 to 2007 Exports growing at 20% annually 80% of the production is exported to 66 countries Top export markets include: the United States, Saudi Arabia, Iraq, Algeria, Libya, United Arab Emirates, and the European Union

Major Players • Arab Pharmaceutical Manufacturing Co. Ltd. (APM) • Dar Al Dawa Development & Investment Co. (DAD) • Hikma Pharmaceuticals (listed on the London Stock Exchange) • Jordanian Pharmaceutical Manufacturing Medical Equipment Co. Ltd. • Middle East Pharmaceutical and Chemical Industries and Medical Appliances Co. (Mid Pharma) • Pharma International

Job Functions

Jordan

Egypt

Morocco

Singapore

Costa Rica

United Arab Emirates

Ireland

Head of Research and Development Laboratory Manager Laboratory Specialist Laboratory Technician Research Manager Scientist

50,271 19,479 13,065 7,002 27,033 8,722

94,248 35,233 20,773 11,136 48,564 13,042

136,721 61,920 36,725 20,084 75,106 23,704

127,580 67,681 42,746 29,931 94,515 30,757

284,861 87,059 42,626 13,534 119,147 20,563

141,834 81,217 53,131 32,983 100,641 38,072

206,815 107,408 81,006 55,154 127,266 64,459

(JD 1,000)

Employee Salaries

• • • • •

Total Export Value

Source: WEF Global Competitiveness Report, LocoAssess

Source: OCO Global/Watson Wyatt 2006 (all in USD)

Opportunities

Exports

Strong and Rapidly Developing Sector • Jordanian pharmaceutical products are registered in more than 66 countries worldwide. • The health tourism sector in Jordan is rapidly growing. • Growing market share locally and internationally.

Intellectual Property Protection 6

• Jordan’s domestic market growth is valued to be 8%, and the compounded annual growth volume is estimated to translate into a ﬁnancial value of around USD 300 million (JD 213 million) by the end of 2009, expected to reach nearly twice that amount by 2016.

Aventis, Glaxo Smith Kline, Takeda, Fujisawa, Organon, Novartis, Pﬁzer, Roche, and many more

Supportive Structures

Strong Regulatory Environment

Competitive Advantages • This sector offers duty-free and quota-free access to the US and the EU markets where 63% of world consumption is concentrated. • More than 50 patents are registered in Europe, the United States, and Japan within many ﬁelds, such as new product patents, formulation patents, controlled drug delivery systems, and quick diagnostic tests.

International Players

500 450 400 350 300 250 200 150 100 50 0

50% 40% 30% 20% 10% 0% -10% -20% -30% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Total Export Value in USD millions

% Change

Source: Department of Statistics 2008, JIB 2008

Favorable Business Environment

ELECTRICAL AND ENGINEERING GOODS Haier and LG are among the global electronics leaders who have selected Jordan as their regional site for assembly lines and parts manufacturing.

Sum of Electronics and Machinery Output %

• Jordan has a favorable economy with GDP growth rates exceeding regional averages and rising living standards. • The Kingdom enjoys duty-free and quota-free export-orientated production for the United States, European Union, and Arab markets through Foreign Trade Association (FTA) agreements.

State-of-the-art temperature control equipment produced by Petra Engineering Industries is installed in the renovated Empire State Building in New York City, amongst other places.

Culus Listed, ETL listed, Lloyds Quality Assurance ISO 9001, Lloyds Quality Assurance ISO1400, King Abdullah II Award for Excellence, ARI Standard 410. Economic Activity: Domestic Appliances

Electronic Appliances and Machinery Exports

Electricity Distribution and Control Apparatus

60% 50% 40% 30% 20% 10% 0% -10% -20%

800 700 600 500 400 300 200 100 0 Total Export

2001

2002

2003

2004

2005

2006

Production costs are relatively low in Jordan due to advantageous investment laws and relatively low cost of recruiting skilled human capital to run such ventures.

Source: Department of Statistics 2008, JIB 2008

Products

Employee Salaries Jordan

Tunisia

Egypt

Morocco

United Arab Emirates

Head of Manufacturing

50,271

94,248

136,721

Production Operative (Highly Skilled)

5,844

10,086

10,272

Production Operative (Unskilled)

4,253

7,887

7,101

Electric Motors, Generators, and Transformers

Medical and Surgical Equipment, and Orthopedic Appliances Other general purpose machinery Other special purpose machinery

Major Players

Annual Growth %

Job Functions

Electric Lamps and Lighting Equipment

2007

Electrical fittings and components (transformers, switchboards, cables, and wires) electrical home appliances (televisions, refrigerators, washing machines, and light fixtures), pumps, and industrial units (filters, water filtration, fire extinguishers, lifts, and elevators).

Cost-Competitive Location

28%

Electronic appliance exports were valued at USD 720 million in 2007, a 51% increase over the previous year. The industry has experienced an average annual increase of 30% over the past ﬁve years.

2000

• 50,000 employees in this sector • Jordan boasts one of the highest percentages of engineers in the work force in the world • 75,000 registered engineers in various ﬁelds • 28,379 engineers in universities for 2007/2008

Chinese appliances manufacturer Haier has ofﬁcially inaugurated a 50,000 m² assembly plant in Amman. The plant’s output will meet the increasing demand for consumer electronics and digital technologies in the Middle East and Africa. During an opening ceremony held under the patronage of His Majesty King Abdullah II, representatives from Haier Group and its local partner, Southern Electronics Company, expressed their visions for making the plant's primary objective as supplying the markets of Jordan, Iraq, Kuwait, Sudan, Egypt, and Lebanon.

13%

(JD 1,000)

Skilled Labor Pool

30% 8%

Industry on Par with International Standards, such as:

Exports

Competitive Advantages

12%

Success Story

Israel

Turkey

U141,835

163,616

235,775

16,652

28,320

30,200

52,308

12,514

22,157

23,882

36,204

Haier, LG, Petra Engineering Industries Co. Ltd., Arab European Co. for Engineering Industries, Rum-Aladdin Industries Co. Plc., National Refrigeration Co., Middle East Environment Technology/Aquatreat Co., Electrical Lifts Establishment, Arab Electrical Industries, and others

Opportunities • Assembly plants • Research and product development • Partnership opportunities with local companies to access niche technologies

Supportive Structures • Royal Scientiﬁc Society (www.rss.gov.jo) • Jordan Engineers Association (www.jea.org.jo)

Source: OCO Global/Watson Wyatt (2006), all in USD

BUILDING MATERIALS AND CONSTRUCTION With the demand on construction services on the rise and a high availability of natural resources, Jordan presents itself as the ideal investment spot for this sector. With 75,000 registered engineers working in various related sectors, Jordan has an abundant labor force.

Naturally Available Raw Materials • Signiﬁcant Mineral Resources: Used in the construction industry, which include marble, cement raw materials, sand, gravel, crushed stone, and natural sand. • Building Stones: Extensive production is focused on limestone. It possesses desirable properties of good quality dimension stone: uniform in color and texture, free from pyrite, iron oxides, chert and quartz, low porosity and permeability, and adequate strength. • Cement Raw Materials: Limestone for Portland cement is widely available in Jordan, with virtually unlimited reserves.

Critical Mass in the Sector • High quality delivery of service for the construction sector at large across the region • 288 companies registered for 2007

Cost-Competitive Location • A low cost manufacturing platform and quick delivery of building materials, serving a regional construction market • Tax and duty exemption beneﬁts for entry to MENA markets through free trade agreements • Low overall labor costs compared to regional competitors

Skilled Labor Pool

Competitive Advantages Rising Demand • A large number of infrastructures and industrial development projects are currently underway in the Middle East region, with an estimated value of USD 1 trillion (JD 710 billion). • Both residential (75%) and commercial (25%) markets are growing within Jordan’s construction sector, with growth rates in the next ﬁve years forecast to exceed 20% per annum due to growing population and commercial development. • Expansion and upgrade of infrastructure across the Kingdom, including mega real estate projects, transport (rail, airports, and port), municipality developments (Amman Master Plan and Salt Master Plan), Red Sea–Dead Sea water conveyence project, and many more. • Jordan has an excellent regional reputation for producing metal structures for various construction purposes. Metal manufacturing production increased by 173% between 2000 and 2006, with value added in Jordan increasing by 162% for the same period. • Exports reached USD 485.5 million (JD 347.5 million) in 2006, contributing 1.7% to the GDP. • Major exports were made to Iraq and Saudi Arabia including pipes, tubes, plates, wires, iron, steel, aluminum, copper, tin, lead, nickel/chrome coating, metal structures, welding, pipe ﬁttings, painting assemblies, installation, maintenance, design, engineering, and quality control. 18

• Large number of skilled laborers and technicians, in addition to more than 75,000 registered engineers • 28,379 students enrolled in engineering faculties in Jordanian universities for the year 2007/2008, with 2,400 in architecture • 5,000 graduating engineers per year • Number of engineers expected to reach 1 engineer per 83 inhabitants in 2020 and 1 engineer per 50 inhabitants in 2040 • Tradition of good craftsmanship

Policy and Regulatory Environment • The policy and regulatory environment around the Jordanian construction industry is relatively relaxed. • Few licenses are required speciﬁcally for trade and support.

GDP Contribution

5.3%

Products

Major Players

Stone is quarried locally, cement is produced locally, and steel reinforcement bars are available locally, as well. Jordan also produces its own ceramic tiles, sanitary ﬁxtures, kitchen cabinets, timber joinery, air conditioning and heating equipment, electrical items, elevators, pipes, and wires.

The 202 local companies that produce building materials include: Al Rajihi Cement Co., Al Faqeer Industrial Company, Petra Engineering, Petra Aluminum, Ready Mix Concrete & Construction Supplies, Jordan Ceramic Industries, International Ceramic Industries, Baton for Blocks & Interlocking Tiles, Manaseer Group Corporation, Arab Group for Chemical Products Co. Ltd, Al Quds Ready Mix Concrete Company, Al-Mazar Inc. Engineering, and United for Metal Industries Ltd.

Exports Sector exports reached USD 22.4 million (JD 15.9 million) in 2006 (primarily to Saudi Arabia, Iraq, and the United Arab Emirates).

Investments • Major projects currently underway include the USD 1 billion (JD 710 million) Abdali Urban Regeneration Project, Jordan Gateway, Royal Village, and Saraya Aqaba. • Future projects include the Aqaba Port Relocation Project, Red Sea–Dead Sea Water Conveyence project, Amman City Development Master Plan Projects, and many more.

Opportunities • • • • • • • • • • • • • •

Concrete transport company Plumbing materials supplier Dry mix mortar supplier Construction cost tracking Site level IT management ﬁrms Safety consultancy Cost consultancy Concrete steel reinforcement Gypsum board producer High density insulation Insulated building panel manufacturer Steel structure supplier Modular building materials Steel structure supplier

Supportive Structures • • • •

Natural Resources Authority (www.nra.gov.jo) Jordan Contractors Association (www.jcca.gov.jo) Jordan Stone and Tile Exporters Association (www.jostone.com) Jordan Furniture Exporters and Manufacturers Association (www.jfema.org) 19

AGRO-INDUSTRIES The agriculture sector has achieved a high growth rate due to unique geography and climate, as well as the expansion of irrigated farm areas. Modern production technology, the provision of favorable environment for investments in the sector, the establishment of commercial-scale projects, and the absence of major obstacles for Jordanian exports to traditional and foreign markets all have played a major role in increasing agriculture production.

• Improvements in products led to Jordan’s comparative advantages where farmers and suppliers of post harvest services have responded to international market forces (e.g. cut flowers, olive oil, and vegetables). • Favorable terms for access to neighboring countries’ markets and to the European Union through trade agreements. • Improvements in the standard of living and consequent demand for niche markets of special fruits and vegetables, including flowers all year round. • Improvements in organization and logistics of the supply chain, from farmer to final market.

Growing Demand • Absolute demand has been driven by rapid population growth in Jordan and the Middle East region. • The growing number of tourists is boosting demand within the food and beverage sector, making demand on produce especially high in hotels and restaurants.

Supportive Structures

Skilled Labor Pool • 31,000 employees in the food and beverage industry • 3,400 students currently enrolled in Jordanian universities within the agricultural sector • Highly competitive wages and existing talented workforce

GDP Contribution

2.8%

Annual Production Food and beverage production amounted to USD 1.7 billion in 2006 (13% increase from 2005; 12% average annual growth in the past ﬁve years).

Competitive Advantages Unique Geography and Climate • The Jordan Valley offers rich and fertile soil with unique climate to the Levant area, being several degrees warmer than the rest of the region. • The Jordan Valley is considered to be the food basket for the Kingdom, an untapped natural advantage. • The Jordan Valley is characterized by fertile soil, long sunshine hours, and relatively high temperatures that are best exploited by producing high quality cash crops (vegetables, cut ﬂowers, and herbs) for the off-season. • Highlands receive the highest rainfall in Jordan and are the most vegetated region in the country, suitable for olive trees and many stone-fruit trees. • The dry climate is particularly well-suited for production of crops such as tomatoes, which are susceptible to fungal diseases in more humid climates. • Jordan’s relatively successful fruit and vegetable exports are driven by the demand for high value horticultural products that can be produced year-round in the Jordan Valley. 20

• Development of best practice environmental options for agriculture by making use of bio-solids and wastewater ideal for farming less sensitive fodder crops for livestock • Development of post-harvest activities for fruit and vegetables, as well as working towards adopting an orchard-to-market approach that aggregates production and establishes economical packing, storage, and marketing functions • Fruit concentrate production • Cottage farming, livestock production, and processing of agricultural products • Production, processing, and export of fresh fruits and vegetables • Organic farming for the production of vegetables, as well as medical and aromatic plants • Expansion of ﬂowers and ornamental plants production for local and overseas markets • Expansion of protected horticulture (greenhouses) • Increased use of localized irrigation systems • Production of animal feed from farm byproducts • Utilization of date palm byproducts in the manufacturing of containers, ﬂoor mats, etc.

Exports • Tobacco, olive oil, other types of oil, bakery products, meat, and dairy products, chocolate, beverages, cut ﬂowers, fruits, and vegetables • 91.2% of agro-industry exports in 2006 were directed to the Middle East, followed by Asia and Western Europe.

Opportunities • Production of water-efficient crops • Production of food products for the Middle East and Gulf region which optimizes potential for recycling water • Marketing firms focusing on promoting agricultural products • Research and development for enhancing attributes of food and beverage products • Commercial sheep farming • Extraction of flavors and fragrances from local plants

• Ministry of Agriculture (www.moa.gov.jo) • Water Land Environmental Research and Study Center/University of Jordan (www.ju.edu.jo/wersc) • Jordan Exporters and Producers Association for Fruits and Vegetables (www.jepa.org.jo) • Jordan Olive Products Exporters Association (www.jopea.com) • Jordan Exporters Association (www.jordanexporters.org) • Ministry of Water and Irrigation (www.mwi.gov.jo) • Jordan Valley Authority (www.mwi.gov.jo) • Water Authority of Jordan (www.waj.gov.jo) • National Center for Agricultural Research and Extension (www.ncartt.gov.jo)

Government Commitment to Reform • Formation of agriculture production and marketing operatives of farmers for speciﬁc crops, such as citrus, dates, grapes, and vegetables • De-forestation programs • Approaches that consolidate fragmented farms (and/or production output) into economic parcel • Increased treated wastewater used for irrigation, which is expected to reach 177 MCM in 2010, and 219 MCM in 2020 • Advanced water saving techniques including drip systems, automatic low discharge sprayers, mini sprinklers, etc. • Availability of agricultural labor in rural areas, especially women • High value-added crops in the irrigation sector

AUTOMOTIVE Jordan serves as the fastest growing regional automotive market by offering low cost car assembly and car component platforms.

Attractive Regulation and Stable Economy Jordan offers a stable economy with GDP growth rates exceeding regional averages. It also enjoys rising living standards within the local population, which may translate into a rising demand on products from this sector. This rise in demand may create more investment venues, more employment opportunities, and long-term economic growth.

Opportunities • Assembly: Jordan has the advantage of producing and assembling vehicles using semi-automated production lines with high labor content (e.g. pickups, four wheel drives, ambulances, vans, and trucks).

Competitive Advantages Increasing local and regional demand and changing trends are both factors that account for the competitive advantages that this sector boasts. • Ofﬁcial ﬁgures indicate that there are 6 million vehicles in the GCC states and that most of the vehicle markets within the MENA region rely on imports. Japan accounts for 65-70% of vehicle sales, Europe accounts for 15-20%, and the United States accounts for 6.5%. • The spare parts market in the Gulf States generates over USD 12.6 billion (JD 0.95 billion) per year. • Jordan presents a cost-competitive location for manufacturing. Due to globally rising costs, international companies are relocating their plants closer to their target markets. This trend positions Jordan as a prime location, especially to cater to the Iraqi and Gulf market.

Exports Today, there are 17 companies that manufacture vehicles and their parts. These companies export at least 75% of their production.

Products The manufacturing of engines, spare parts, molds, foundries, systems, and components (e.g. ﬂat glass, air ﬁlters, batteries, and radiators), in addition to vehicle assembly, armoring, and re-manufacturing, all present venues for investment.

Cost-Competitive Location for Manufacturing Jordan offers a low cost manufacturing platform for car components/assembly. It is ideal for serving the rapidly growing Middle East automotive market.

• Components: The supply chain has undergone several developments over the past decade to include manufacturing of modern trailers, tankers, tippers, wire harnesses, radiators for cars and lorries, batteries, plastic components, suspension arms, safety belts, exhaust pipes and systems, carpets and internal body ﬁttings, air conditioning units for cars and buses, and seats for public transport vehicles. • Outsourcing Design and Styling: Tailored industrial and product design services • Regional Warehouses: This venue serves the regional demand for spare parts

Supportive Structures • King Abdullah II Design and Development Bureau (KADDB) (www.kaddb.com) • Jordan Exports Association, Auto Spare Parts Agent Syndicate (www.jordanexporters.org) • Jordan Institute for Standards and Metrology, (JISM) (www.jism.gov.jo)

CHEMICALS Jordan’s thriving chemical industry offers a dynamic platform for manufacturing, processing, and exporting varying chemical products, from pharmaceuticals and fertilizers to inorganic/organic chemicals and chemical derivatives. Production is set to grow in the coming years, with expanding export markets and increased inward investment.

Exports

USD 1,421 million

Employment

13,000 workers

Local Players • Arab Potash Company (APC) and the Jordan Phosphate Mines Company (JPMC), Jordan Arab Fertilizers and Chemicals Co. (JAFCCO), Arab Fertilizers & Chemicals Industries Ltd. (Kemapco), Manaseer Fertilizers & Chemicals, Vapco Manufacturing Co. Ltd., Mubidco, and many others • Jordan Carbornate Company, Allied Chemical Manufacturing, National Paints Factories Co., Munir Sukhtian Group Co. Ltd, Al Quds Chemical Industries Establishment, Ibn Hayyan Industries, Jordan English Paints Co., and many others • Spartan, HiGeen (Sukhtian Group), A.H. Abu Shakra Factory for Perfumes & Cosmetics, Jordan Chemical Industries , Al Rayyan Industries, Palmolive, and many more • Publicly listed companies: Jordan Industrial Resources, the Arab Pesticides and Veterinary Drug Mfg. Co., National Chlorine Industries, Industrial Commercial and Agricultural, Comprehensive Multiple Project Company, Industrial Industries and Match/JIMCO, Jordan Chemical Industries, Premier Business and Projects

Competitive Advantages

(See page 14 for Pharmaceutical Sector)

• Chemical product exports are the largest contributors of industrial commodities reaching USD 1.4 billion (JD 1 billion) in 2007 (25% of total exports). • Exports increased by 47% in 2007 compared to 2006. • Chemical products are exported to more than 70 countries due to the rising demand worldwide. • Ranked as third sector in terms of investment size. • Significant cluster of 400 chemical industrial establishments. • High added value for producing the main intermediate material for other industries. • Accessibility of crucial raw materials such as potash, phosphate, and many other essential components. • Research and development, as well as academic and commercial bodies, are developing viable world-class products to enhance excellence in the chemical sector. • The higher education strategy is geared towards scientific research aiming to become a scientific research hub for the Mediterranean. Chemical Exports Per Sub-Sector (2007) Pharmaceutical products Inorganic chemicals Miscellaneous chemical products Paints and dyeing derivatives Toiletries, perfumery, and cosmetics 2% 2% 2% 3% Detergents 1% Organic chemicals 14% Fertilizers

International Investments Indian Farmers Fertilizer Cooperative (IFFCO), Mitsubishi (Japan), KIMIRA (Finland), Dow Agro-Sciences (United States), Bayer (Germany), and Plant Prod (Canada)

Opportunities • Fertilizer manufacturing • Granular fertilizer plant • Fertilizer packaging material plant • Primary resources plants for manufacturing: potassium sulphate, potassium nitrate, phosphoric acid, nitrogen, urea, and ammonia • Chemical formulation plants • Chemical research and development center • Polycarbonate production facility • Disinfectants production • Zeolite cement factory • Magnesium restructuring • Natural ﬂavor and fragrances producer • Glass bottle production plant • Plate glass factory • High purity silicon production plant • Uranium oxide conversion plant

Supportive Structures

44%

• Jordan Institution for Standards and Metrology (www.jism.gov.jo) • Federation of Investment Association/Agro Products Manufacturers Syndicate (www.joifa.org) • Jordanian Chemicals Society (www.jorchem.org)

Skilled Labor Pool • Competitive and highly qualiﬁed manpower • Auto electronics engineering is introduced in Jordanian universities • Very competitive wage levels compared to Western Europe and the United States

32%

Source: Department of Statistics, 2008

Services DEAD SEA COSMETICS Offering a unique abundance of natural minerals, the Dead Sea area can provide a plethora of opportunities for investors seeking to utilize its natural treasures for medical purposes, health tourism, and cosmetic industries.

• The vast potential for Dead Sea end-products • The spread of health, spa, and beauty services at a rapid pace • The rising popular demand for medical and therapeutic tourism in Jordan • Increased living standards boosting demand for beauty and luxury products and services

Skilled Labor Pool • 5,200 employees in supporting industries, such as the pharmaceutical sector • Six clinical research centers

Cost-Competitive Location for Manufacturing and Clinical Trials • Jordan’s boasting of low cost manufacturing hubs • Jordan offers a cost-competitive workforce in this sector • Attractive tax breaks and customs duty exemptions

Critical Mass in the Sector There are 50 registered small and medium sized companies that have been established since the 1980s, 20 of which are engaged in the production of Dead Sea products.

Strong Regulatory Environment Jordan maintains the strongest intellectual property rights protection standards in the region. This means that investors in this sector would have all patent and production rights protected.

Exports Exports to more than 65 countries, including the United States, Japan, Canada, and European countries.

Major Players C-Products, Cell, Crystal, Kima, La Cure, Lisan, Murjan, Odalisque Al Zara, Rivage, Treasure, Zoar, and many more

Competitive Advantages The burgeoning demand for natural, mineral-rich cosmetics enables investors in this sector to enjoy many competitive advantages, namely: • Utilizing the Dead Sea as a natural resource with more than 35 vital minerals, including magnesium, sodium, potassium, calcium, selenium, chloride, sulphur, bromide, and manganese. • The rise in world market demand for cosmetics and toiletries, which has been estimated by ANIMA Investment Network to be valued at around USD 145.8 billion (JD 103.5 billion) and is growing at a rate of 3.5% annually. • The rise in consumer interest in beauty products from natural sources, where there is heightened demand for the therapeutic and cosmetic effects of Dead Sea products. Demand is not only high in local areas, but it is also growing awareness where it is highest in Europe, the United States, and Japan. 24

Opportunities A great opportunity for growth as Dead Sea products are sold in bulk as opposed to packaged products. Market trends show that the highest proﬁts are gained when selling end-user-ready products.

Supportive Structures • Dead Sea Products Manufacturers Association (www.deadseajordan.com)

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) Jordan's ICT landscape provides a case study in what it takes to succeed in the international marketplace; a combination of sound policy, strong telecom infrastructure, and growing talent. Jordan’s main strengths are in its all-digital network, skilled labor force, and strong government backing, including the personal support of HM King Abdullah II. Intellectual Property Laws are in force and are considered to be the model in terms of structure and compliance across the developing world. Jordan also fares well in terms of overall attractiveness as an outsourcing business process destination for the region and the world. Growth of the sector is due to market-oriented regulations, foreign direct investment, a highly competitive wage structure, and incumbent Jordanian entrepreneurs interested in expanding into the region. Jordan was the ﬁrst country in the Arab World to have a fully liberalized telecommunications market and has modernized its ICT related laws, thereby enhancing the business environment for local and international investors. Jordan also led the region by establishing the ﬁrst independent telecommunications regulatory body to create a fair, transparent, and competitive investment environment.

ICT sector revenues grew exponentially from around USD 300 million in 2003 to its current levels of USD 2.3 billion. Similar growth rates are forecasted for the coming ﬁve years.

Competitive Advantages ICT is a Booming Sector • This is the fastest growing sector in Jordan, expanding by 30% per year. • Small and medium sized companies in the IT market are now increasing expenditure on IT services, such as the global trend of offshore outsourcing. • The banking sector’s automation constitutes the increasing demand for ICT services.

Steady Flow of Bilingual, ICT-Savvy Graduates • With a current labor force of 16,000 and a steady ﬂow of 7,000 annual graduates, Jordan is emerging as a regional leader in the ICT sector. • Jordan ranked 39 out of 134 countries for the number of engineers and scientists (Global Competitiveness Report 2007). • Jordan has a higher proportion of university graduates in technological ﬁelds than any other country in the region. • Jordan has exemplary initiatives to bolster talents, connecting 1,000 public schools through broadband networks through the Jordan Educational Initiative. GDP Contribution

12%

Cost-Competitive Location • Low-cost regional development/sales platform to serve the market, which is set to reach USD 45 billion (JD 31.2 billion) by 2010. • Emerging Business Process Outsourcing (BPO) destination for ﬁnancial services, IT, insurance, healthcare, among other industries. • Highly competitive costs with average IT staff salaries only one ﬁfth of those in Ireland and around 75% lower than in the United Arab Emirates (Source: OCO Global/Watson Wyatt 2006).

Modern and Reliable ICT Infrastructure • Fiber-optic Link Around the Globe (FLAG) network, WAP, GPRS • Redundancy will be available by the end of 2009 • Strong public-private partnership and government support to advance infrastructure development • Jordan ranked 47 out of 127 countries in the ICT readiness index (2007-2008) • Compared to the MENA region, Jordan spends a high percentage of its GDP on ICT related research than any other country 25

Strong Government Backing • E-government initiatives aim at government reformation and process facilitation to enhance government services delivery and information access. • Jordan has strong policy and related security and privacy platforms. • Incentives are available through Jordan Investment Board (JIB), Development Zones, and the Aqaba Special Economic Zone.

Attractive Policies and Regulatory Environment • The ICT sector operates in liberalized market conditions • Intellectual property and copyright laws are in force, and they are considered to offer a model across the developing world in terms of structure and compliance • Competitive environment, led by the private sector, that contributes to economic and social development • Market liberalization to encourage investment and contribute to offering a wider variety of services • Higher Internet penetration rates

Major Players More than 1,500 ICT related companies in Jordan, including: Oracle (United States), Ericsson (Sweden), Motorola (United States), Microsoft (United States), Cisco (United States), Vodafone, Sun Microsystems (United States), Orange (France Telecom), Zain (Kuwait), Batelco (Bahrain), and Intracom (Greece).

Opportunities • Information Technology Outsourcing (ITO): Jordanian firms have established an international reputation for offering specialized products and services in e-learning, e-government, e-banking, and multimedia (content management, animation, and web design). • Business Process Outsourcing (BPO): Jordanian labor is proficient in many business areas, including: finance, payroll processing, accounting, telemarketing, document processing, IT support, as well as research and development. • Arabization and Localization Services: Jordan’s talented workforce, bilingual Arabic and English capabilities, cultural closeness to the region, strong regional relationships and time zone advantages are favorable to providing Arabization and localization services. - Target model e-commerce support to healthcare sector - Enterprise Resource Planning (ERP) products customized for hospitals - Customized search engines - Research and development programming - Expand set-up of “captives” (allowing investors to monitor assets, intellectual property, and management of core business activities) - Formation of certification centers (e.g. CMMi programs and other certificates) - Satellite Radio – increase WorldSpace, XM, and Sirius participation - Voice over Internet Protocol (VoIP) – increase number of players for residential and commercial markets - Wireless Local Loop (WLL)

Supportive Structures • Ministry of Information and Communication Technology (www.moict.gov.jo) • Information Technology Association of Jordan (www.intaj.net) • Telecommunications Regulatory Commission (www.trc.gov.jo)

iPARK

TOURISM

It is Jordan’s leading Technology Business Incubator and was established in 2003 by the Higher Council for Science and Technology. With the objective of supporting Jordanian entrepreneurs and start-ups in the ICT sector, iPARK helps increase their odds of success and establish and grow their businesses in a supportive and innovative environment.

Jordan hosts six UNESCO World Heritage Sites, one of the New Seven Wonders of the World, and many Biblical and Islamic holy sites, offering a lot to see and do.

iPARK is strategically located within El Hassan Science City in Amman, right next to the University of Jordan, Princess Sumaya University for Technology, and the Royal Scientiﬁc Society.

The Incubator provides its tenants with a wide range of services including: Logistical Support Services Ready-to-move-in office space units that are fully furnished, equipped, and networked. They also include office support services such as reception, secretarial services, meeting rooms, faxing and telephone facilities, and photocopiers. The Incubator also offers access to the Royal Scientific Society business and technology library, cafeteria and hospitality services, as well as leisure and sports facilities.

Competitive Advantages Nexus and Strategic Location At the crossroads of three continents, Jordan is a strategic nexus connecting Asia, Africa, and Europe, and therefore a vital conduit for trade and communications, connecting east to west and north to south. Jordan has kept pace with this signiﬁcant rile through modern advancements made in its transportation network and tourism policies.

Unique Destination with Unique Offerings A tourist survey showed that 87% of tourists cited cultural heritage among their top three reasons for visiting the Kingdom. Jordan has a wealth of archaeological and natural sites that are landmarks of human heritage, dating back to the prehistoric Paleolithic and Neolithic periods, with existing archaeological evidence of human settlement from the middle and late Bronze Ages, such as the Citadel of Amman. Most notably, Jordan is home to one of the world's New Seven Wonders – Petra, the Rose-Red City carved in stone. As noted by UNESCO, Petra is "one of the most precious cultural properties of man's cultural heritage." Jordan witnessed a series of civilizations and historical eras, from Hellenistic to Nabatean, Romans, Greek Christendom, and the Byzantines, along with the Islamic period formed by the Umayyad, Abbasid, Fatimid, Mamluk, and Ottoman dynasties. Jordan was also a major center of importance throughout the Crusades – a place where medieval European culture survived and thrived, leaving its mark upon the natives to this day.

Strategic Support Services Offer invaluable access to strategy and ﬁnancial planning services, product development, contacts and partnerships development, interim executive management, business development, sales, and marketing support, as well as legal and accounting advice and support.

Operational Support Services Through our network of professional services providers, iPARK facilitate access to qualiﬁed, cost efﬁcient, and industry level operational support services such as legal, accounting, marketing, web development, technical development, public relations, and other operational support services typically required by entrepreneurs and start-ups. To date, iPARK incubated 27 companies, 19 of them already graduated and operational. This led to the creation of over 500 high-value added jobs, over USD 1 million of revenue generated from the sale to over 100 clients worldwide.

In modern history, Jordan was home to the roots of the Great Arab Revolt led by the Hashemite Sharif Hussein Bin Ali, the Sharif of Mecca, and King of Arabs. With a view to diversifying the country’s tourism package, the government has launched a USD 70 million (JD 49.7 million) program to restore archeological sites in five cities of great cultural and historical value: Karak, Madaba, Salt, Jerash, and Ajloun. Holy Sites Jordan is blessed with a rich religious history sacred to each of the monotheistic religions. It offers the river of Baptism and the land of a multitude of prophets including Jesus, Moses, Aaron, Kadir, Jethro, Job, Joshua, and the Prophet Mohammad (PBUH). Many of these are known to have died and been buried in Jordan, including Moses (on Mount Nebo), Aaron (on Mount Hor, near Petra), Jethro (in Wadi Shu’ayb, near Salt), Joshua (in Salt) and John (in Makawer). Among Jordan’s many Islamic sites is the Cave of the Seven Sleepers. Adventure The country’s temperate climate, clear skies, low humidity, and diverse ecosystem are favorable for a multitude of outdoor activities. Hiking, camping, canoeing, trekking, mountain-biking, and scuba diving are on offer in magnificent areas such as Madaba, Petra, Karak, Wadi Rum, Aqaba, Dana, Feynan, and the Jordan Valley. The global market for alternative holidays and adventure tourism has grown in recent years and Jordan's capabilities have risen to the challenge. Health and Wellness Medical tourism is on the rise in Jordan, where visitors seeking treatment can benefit from world-class services. The availability of top-tier doctors, world class hospitals, and a wide clinical base allows for the expansion of services offered to patients throughout the region and around the world. Therapeutic Natural Wonders The Dead Sea is renowned for its restorative powers, as the high salinity and concentration of minerals possess curative properties. Other popular natural wellness destinations include the Ma’in Hot Springs and the thermal springs near Zarqa.

Tourists Over 7.1 million visitors enjoyed the cultural and recreational sites of Jordan in 2008, with an annual increase of approximately 8.8% in the number of tourists maintained from the previous year. Tourism sector income exceeded USD 2.9 billion (JD 2.1 billion) in the year 2007.

Skilled Labor Pool • 38.294 employees in the tourism and travel related labor force • 2.6% of employment is in the hotel and restaurant sector • 3,500 graduates per year in hotel management and related subjects • 20% of the population hold a degree or third level qualiﬁcation • 25 universities; one Swiss-Jordanian culinary academy

Service-Oriented Infrastructure • Extensive multi-modal transportation system includes three commercial airports (four airports in 2010), a deep water seaport, as well as an extensive network of highways and railway systems • 55 direct destinations served and 700 served by alliance airlines • Queen Alia International Airport (QAIA) expansion to serve 9 million passengers • Availability of private jet chartering services • Competitive telecom rates • Easy access to Internet • Low cost public transportation • More than 225 car rental companies • Booming urban development where restaurants, markets, malls, and upscale boutiques are bolstering and changing the face of Jordan’s cities

International Memberships • United Nations World Tourism Organization (UNWTO) • Agreement on Protection and Promotion of Cultural Heritage (2000) with the European Union to increase awareness and understanding of the country’s cultural heritage assets, improve protection of those assets, and develop the tourism sector

Opportunities • • • • • • • • • • • • • • • • • • • • •

Luxury hotels Boutique hotels Niche eco-tourism Private museum in Amman Commercial visitor services in Jerash, Ajloun, and Karak Motel chain Dead Sea resort and conference center operations Mixed retail developments in historic town centers Medium-scale craft production Exclusive lodges and resorts Multi-unit summer home resorts Ajloun Castle lodge and visitor center Amman Citadel commercial visitor services Dead Sea sanatorium Desert highway motel and mixed retail outlets Amusement parks International desert event company Iraq Gateway travel and retail outlet complex Jerash historic site, museum, and lodge Jerash site management project Karak Castle lodge and visitor center

Business Travel With its ideal geographic location, political stability and security, and favorable climate, Jordan is growing in importance as a Meetings, Incentives, Conferences, and Exhibition’s Center (MICE) destination. Film Production Many international ﬁlm producers have turned to Jordan as a ﬁlming site by virtue of the country’s unique geography and scenery, as well as its stable and secure environment.

Supportive Structures • • • • •

HEALTHCARE AND MEDICAL SERVICES

Ministry of Tourism and Antiquities (www.mota.gov.jo) Jordan Tourism Board (www.visitjordan.com) Jordan Hotels Association (www.johotels.org) Jordan Restaurant Association (www.jordanrestaurant.com) USAID - Jordan Tourism Development Project (www.siyaha.org)

GDP Contribution

14.7%

Types of Tourism per Area History and Culture

Eco and Nature

Amman Al Salt Madaba Um Al Rasas Mount Nebo Jordan Valley and the Dead Sea Karak Petra Aqaba Jerash Ajloun Um Al Jimal Pella Umm Qays Shawbak Desert Umayyad Castles Dana Wadi Mujib Wadi Rum Azraq and Shumari Dibeen Forest Hammet Ma’in Makawer Anjara Tall Mar Elias

Religion and Faith

Leisure and Wellness

Fun and Adventure

According to the Arab World Competitiveness Report 2008/2009, Jordan is amongst the top ranked Arab countries in terms of healthcare and primary education. The Jordanian government spends 6.1% of GDP on healthcare, with a commitment to the continuous reformation of regulations and requirements, fostering further privatization, and paving the way for greater modernization and development in the industry. Growing joint ventures between the public and private sectors are major stimulants to new investment in healthcare services and infrastructure.

Competitive Advantages Growing Demand for Medical Services Jordan’s population is growing at a rate of 2.3% annually. Life expectancy is higher in Jordan than in most developing countries, averaging at 71.3 years due to the rising standards of medical services and higher standards of living. An important demand generator in the Jordanian medical industry is medical tourism. The national economy is receiving signiﬁcant injections in revenue due to the widespread awareness of Jordan’s high quality healthcare services and competitive prices. In essence, Jordan is becoming an ever more popular destination for the provision of medical services outsourcing. As prices for medical care continue to rise meteorically worldwide, Jordan’s cost effectiveness in service provision strengthens the national position. Medical Tourists Number of Foreign Patients

2004

2005

2006

113,150

108,640

130,000*

443.8

434

455

Estimated Income from Foreign Patients (JD millions)

*Representing 48 different nationalities Source: Directorate of Health Tourism, Ministry of Health

Cost Advantage Hospitals in Jordan are capable of performing complicated and expensive surgeries at a low cost, compared to more developed countries with similar success rates and customer satisfaction ratings. The comparative price list is as follows: Average Price in USD Surgery Costs

USA

Jordan

Bone Marrow Transplant

400,000

20,000

Liver Transplant

500,000

30,000

Open Heart Surgery

50,000

3,700

Neurosurgery

29,000

7,000

Knee Surgery

16,000

4,000

Source: Private Hospitals Association

Source: Ministry of Tourism and Antiquities

Specialized Doctors Jordanian specialists perform over 120,000 major surgeries and another 250,000 non-major surgical procedures each year, including: cardio-thoracic, neurological, and oncology related surgeries, with success rates on par with international standards (e.g, non-rejection rates of 80% for bone marrow transplants and 95% for renal transplants).

Cumulative Employment

18,880 (2006)

Herbal-based treatment options Stem-cell research support Reproductive services Cancer treatment Geriatric care facilities and services Trauma center Medical waste management (incinerators and other equipment and service packages)

Supportive Structures

• This includes: doctors, paramedics, nurses, and lab technicians. This sector offers many opportunities for growth and investment, as healthcare services remain in high demand across the Kingdom. • There are more than 26,000 students registered in various medical ﬁelds. Undergraduate Students 2007-2008

Number

Para-Medical Science

14,116

Natural Science

10,557

Pharmacy

7,300

Medicine

3,609

Dentistry

1,641

Veterinary Medicine

• • • • • • •

• Ministry of Health (www.moh.gov.jo) • Private Hospitals Association (www.pha-jo.com) • Royal Medical Services (www.jrms.gov.jo)

EDUCATION AND TRAINING

Opportunities • • • • • • • • • • • • •

Healthcare delivery services Research and development Medical management consulting Medical logistics such as manufacturers, distributors, and ambulatory care Psychiatry with special emphasis on children’s psychological health Nutrition education and outreach Immunology Transplant medicine Record and data sharing among health delivery organizations Health maintenance organizations (HMOs) Bio-medical engineering (artiﬁcial body parts) Alcohol and substance addiction center Nursing capabilities center 32

GDP Expenditure

10%

Major Players

Opportunities • • • • • • •

Therapeutic Medical Tourism

Revenues are estimated at USD 2 billion (JD 1.4 billion) per year and growing at 6-7% per year (Source: PA research). Revenues from private hospitals and clinics have more than tripled from USD 300 million (JD 213 million) in 2000 to USD 1 billion (JD 700 million) in 2005. Similar growth rates are expected for the coming ﬁve years.

With many platforms for public and private ownership opportunities and the abundance of educational platforms, from colleges to training centers, this sector is ﬁlled with opportunities and is ready to be explored.

• 25 universities (15 private and 10 public), with around 43,000 graduate students per year • 60 community colleges and 60 vocational training centers that graduate 10,000 trained individuals per year • 3,360 public schools and 2,100 private institutions

Source: Ministry of Health

Sector Performance

Availability of Resources

Jordan’s high educational standards attract students from the Gulf States, Asia, the Far East, and the United States, making it a regional educational hub.

195

With natural therapeutic medical minerals found in the Dead Sea, Ma’in, and other areas, the Kingdom presents itself as a hub for therapeutic tourism. Theraputic tourism offers visiters a combination of wellness and healthcare combined with leisure and relaxation. People may also choose to come to the Kingdom from abroad for medical purposes, a choice they would make on account of the relatively competitive cost of service, the high-class hospitality facilities, and the skilled healthcare professionals Jordan encompasses. Together, these attributes create several opportunities for investors offered at relatively competitive costs. At present, many patients choose Jordan as their preferred location for medical treatments and surgery.

programs. These programs are aimed at catering to the increase in demand for well-trained and skilled labor to take on knowledge-based sectors, such as marketing, sales, business, and support.

ICT training International business school International school in Irbid Medical school and teaching hospital Teacher training college Fashion school Hospitality management school

Supportive Structures

Competitive Advantages Young and Growing Population

• • • •

Ministry of Education (www.moe.gov.jo) Ministry of Higher Education (www.mohe.gov.jo) Ministry of Labor (www.mol.gov.jo) National Employment Center (www.nec.jo)

With more than 70% of the population under the age of 30, the country’s rapidly expanding population brings around 130,000 new students into the education system and 70,000 new entrants into the labor markets every year. Jordan’s population grew to 5.6 million in 2006, with a growth rate of 2.2% over the previous year.

Knowledge Oriented Sectors • Booming services industry that absorb qualiﬁed graduates • As the market matures, it will become more knowledge intensive, it will focus on international standards, and will increase global connectedness. There will emerge a much greater role for private sector delivery to augment skills, from teaching to learning, from young students to mature students, and from national to international markets for higher education. • The Jordanian government is currently spending USD 500 million (JD 355 million) on training 33

Skilled Workforce • The primary education field employs 16,434 individuals. • The general secondary education field employs 11,565. • The higher education field employs 8,107 individuals. • Adult and other education fields employ 2,367 (2006). • The public universities in Jordan include the University of Jordan, Hashemite University, Yarmouk University, Ahl Al Bait University, Jordan University for Science and Technology, Al Balqa Applied University, Mu’tah University, Al Hussein Bin Talal University, Tafila Technical University, and the German Jordanian University. • The private universities include Applied Science University, Al Ahliya Amman University, and the Princess Sumaya University of Science and Technology, amongst others.

BANKING AND FINANCIAL SERVICES This sector’s strengths include adequate capitalization, improved financial profile, and enhanced regulatory environment, all of which have helped weather the recent global financial crises. According to Moody’s: “GDP growth continued to be mainly driven by booming domestic demand, with consumption and investment fueled by rapid credit growth, rising property prices, and inflows of private capital, mainly from the Gulf Region.”

Financial Markets From its inception in 1978, the Amman Financial Market served as both a stock exchange and regulatory body. As development of the Jordan capital market became the center of economic reform, major restructuring of the market and its regulations was carried out and new entities were established. Three new institutions emerged out of the Amman Financial Market: • Jordan Securities Commission • Amman Stock Exchange • Securities Depository Center Equipped with a legislative and technical framework in line with international standards, Jordan has developed one of the most up-to-date emerging markets in the world. Market capitalization reached USD 41.2 billion (JD 29.3 billion) at the end of 2007. In September 2008, the number of listed companies numbered 260, with around 49.8% of listed stocks owned by non-Jordanian investors. Of the total population, 10% hold stocks.

Insurance • Gross insurance premiums increased by over 10% in 2005 to reach USD 321 million (JD 227.9 million), translating to an average premium of USD 12.3 million (JD 8.7 million) per company. • 26 Jordanian insurance companies registered 133% net proﬁt increase in 2005 as compared to 2004. • International ﬁnancial services.

Competitive Advantages Cost-Competitive Location • Low cost regional platform for ﬁnancial services to access one of the most dynamic regions in the world. • Financial funds administration center with labor costs among the lowest in the region.

Fund Administration Center (Head Count: 200) OCO Location Matrix

Banking Total assets of the banking sector experienced an average annual growth rate of more than 11% during the past 10 years. They reached a total of USD 41.7 billion (JD 2.919 billion) at the end of November 2008. Both capitalization and proﬁtability of the Jordanian banking sector have improved substantially, with domestic banks reporting a combined net income after tax of over USD 800 million (JD 632 million) in 2007. 34

Quality Index (average of all locations = 100)

200

150

100

United Arab Emirates

Jordan

Egypt

Morocco

100

150

200

Cost Index (average of all locations = 100)

• OCO Assess shows that Jordan scores reasonably well as a location to establish a fund administration center, relative to some leading FDI locations globally. • One-third of the cost in the United Arab Emirates, with quality commensurate with Egypt and better qualitative performance than Morocco.

Skilled Labor Pool

Banks

• 19,284 employees (2006) • Over 44,000 graduates in administrative, banking, and ﬁnancial ﬁelds

Jordanian Banks Arab Bank

Attractive Regulatory Environment

Arab Banking Corp. – Jordan

• Banking structure protocol follows Structural Code of Conduct (SCC). • Laws reﬂect best practices for anti money laundering regulations. • Comprehensive legal infrastructure (Central Bank of Jordan Law, Banking Law and Anti-Money Laundering, and Combating Financing of Terrorism Law). • Compliance with international standards (Basel Core Principles, Basel II for Effective Banking Supervision). • Modern, well-established stock market infrastructure (no taxes on capital gains, no taxes on cash dividends, free repatriation of investment and income, no ceiling on foreign equity ownership and privatization). • Shares owned by non-Jordanians represent 46.4% of ASE capitalization, 35.4% of which are owned by Arab investors and 11.0% by non-Arabs.

GDP Contribution

21.8%

Supportive Structures • • • • • •

Ministry of Finance (www.mof.gov.jo) Jordan Securities Commission (www.jsc.gov.jo) Central Bank of Jordan (www.cbj.gov.jo) Association of Banks in Jordan (www.abj.org.jo) Amman Stock Exchange (www.ase.com.jo) Insurance Commission of Jordan (www.irc.gov.jo)

Bank of Jordan

MEDIA AND PRESS Jordan’s media landscape is a growing market that is undergoing steady liberalization.

Jordan Commercial Bank Jordan Kuwait Bank Jordan Ahli Bank The Housing Bank for Trade & Finance

$160

$144

$140

$122

$120 $100

$97

$80

Cairo Amman Bank Capital Bank

Total Media Expenditure in Jordan 2000-2008 in USD Millions

The advertising sector has witnessed sharp increases, with 30% average annual growth since 2000.

Arab Jordan Investment Bank

$70

$60 $40

$54 $31

$34

2000

2001

$42

$51

2003

2004

$20 $0 2002

2005

2006

2007 Jan-Jun2008

Based on ofﬁcial rate card

Jordan Investment & Finance Bank Union Bank for Savings & Investment International Islamic Arab Bank Jordan Islamic Bank Non-Jordanian Banks

Media Expenditure in Jordan by Type 2000-2008 in USD Millions

Société Générale – Jordan Standard Chartered

Cinema Magazine Radio Outdoor TV Newspaper

Egyptian Arab Land Bank HSBC

$300

Citibank Raﬁdain Bank

$250

National Bank of Kuwait

$200

BLOM Bank

$150

Audi Bank S.A.L. Regulator

$100

Central Bank of Jordan

$50 $0 2000

2001

2002

2003

2004

2005

2006

2007 Jan-Jun2008

Source: IAA Jordan Chapter

Competitive Advantages Attractive Regulation Jordan’s constitution guarantees freedom of opinion and speech, in addition to freedom of the press and media.

Skilled Workforce

Jordan’s Major Publications Several daily, weekly, and monthly publications are currently being published in Jordan. The most widely distributed of these are Al Rai, Addustour, Al Arab Al Yawm, Al Ghad, The Jordan Times, The Star Weekly, Living Well Magazine, Jordan Business, and Venture. Other active media outlets in Jordan include Fann FM, Rotana, Sawt Al Ghad, Amen FM, BBC, Hayat FM, Beat FM, Play 99.6, and Spin Jordan.

• 4,000 employees • Jordan’s two media colleges are located at Yarmouk University and Petra University

GDP Contribution

38% annual increase in 2006 over the previous year. 36

Infrastructure and Utilities LEGAL, ENGINEERING, AND CONSULTANCY SERVICES

WATER The increase in population, expanding cities, and growing agro-industry markets coupled with shortage of water supplies contribute to the crucial importance of the sector to the Kingdom and increased efforts to overcome this challenge.

Outsourcing practices have evolved in Jordan, and so has the local consultancy environment. Together, these attributes make investment procedures more ﬂexible, less time consuming, less bureaucratic, and more compliant with international standards of excellence.

Efforts to increase the sources of water and combat challenges are directed towards the development of renewable groundwater, developing reliable safe yield from its surface waters, and extraction of fossil groundwater. A mega-scheme of the Red Sea-Dead Sea Water Conveyance Project was commissioned to the World Bank in 2005 in agreement with Israel, Jordan, and the Palestinian Authorities to investigate the transfer of water from the Red Sea to the Dead Sea to stop the decline of the Dead Sea water levels and restore the unique culture and environment of the Dead Sea. The project will transfer around 1,900 MCM/yr from the Red Sea to the Dead Sea; it will produce both hydropower and fresh water at a capacity of 850 MCM/yr.

Jordan Business Process Outsourcing (BPO) Industry Types Jordan is currently in the process of building a robust BPO industry on both ends of the services value chain. Efforts and investments have been geared towards both the standardized back-ofﬁce outsourcing and the value-added knowledge process outsourcing. In pursuit of building a successful captive subsidiary model, Jordan is seeking large regional Gulf companies and international companies to set up captive BPO subsidiaries in Jordan, as well as branching out to third party providers to build comprehensive BPO operations in the region. The outsourcing practice has evolved as a business model that many multinationals are pursuing. The pressing questions now for most international companies are: which location, which model, and how to manage the risks and the operation to mitigate the risks and take on the challenges.

The World Bank prepared principles for the Terms of Reference (TOR) for the project’s feasibility study. The feasibility study and the environmental impact study started in March 2008 and will be completed in March 2010. Implementation is due to start in 2011. The project includes the following components: • • • • • • • • •

Red Sea water intake Sea water pump stations Sea water conveyance Hydropower energy generation Water treatment and desalination Desalinated water pumping from treatment to Amman Desalinated water conveyances Dead Sea discharge pipeline Control system

Attractive Regulation Decentralization is a major element of the reform process. To foster higher levels of efﬁciency in Jordan’s public service sector, the Government of Jordan embarked on a privatization program in 1997 aimed at moving Jordan’s economy towards private sector participation.

In the BPO Industry, according to the AT Kearney Global Index of Attractive Locations for 2007, Jordan ranked number 14 out of 50 compared to the United Arab Emirates, which ranked 20.

Opportunities • • • •

Wastewater generation and rescue Desalination Water resources development Municipal water reuse: design, treatment, and reuse of municipally treated water for agriculture, commercial, and industrial reuse applications

Supportive Structures • Ministry of Water and Irrigation (www.mwi.gov.jo) • Water Authority of Jordan (WAJ) (www.waj.gov.jo) • Jordan Valley Authority (JVA) (www.java.gov.jo)

ENERGY Due to the growth of population and an economic boom, demand for energy in Jordan is on the rise. Though the Kingdom lacks indigenous resources of energy, it is channeling its efforts to offset the dependence of imported energy by developing alternative and renewable resources, namely wind, solar, and nuclear. More so, Jordan has among the largest deposits of oil shale and uranium in the world. Oil shale is estimated to be at 40 billion tons, the third largest known deposit in the world, and around 70,000 tons of uranium that amount to 2% of the world’s total estimated reserves.

The Ministry of Energy and Mineral Resources (MEMR) launched the Energy Strategy (2007-2020) aiming to secure energy supply for the coming decades, as well as to increase the share of local energy resources and to diversify the energy mix. Key plank within the Government’s approach is a USD 3 billion, 20-year national energy development plan for privatization and elimination of fuel subsidies, coupled with sector liberalization and the encouragement of energy private sector development. Dependency on imported oil will be reduced by: • Enhancing renewable energy projects • Implementing intensive energy efficiency programs • Utilizing oil shale to generate electricity and produce oil • Generating electricity from nuclear energy • Developing local sources of natural gas The estimated size of needed investments in the energy sector amount to USD 1 billion per year which amounts to a total investment ranging between USD 13.628 billion to USD 17.335 billion between 2007 and 2020 in the fields of oil, electricity, natural gas, renewable energy, oil shale extraction, and energy consumption efficiency technologies. The Government of Jordan is also diligently working on reforming its energy policy and regulatory environment. It is working on a new package of legislative, administrative and technological innovations. Key policy objectives include: • Creation of a competitive environment, led by private sector, that contributes to the economic and social development • Market liberalization to encourage and attract investment to contribute in offering a wider variety of services • Reduction of the cost of delivered energy, especially to commercial and industrial sector • Improved end-use efficiency – promote climate friendly technologies and programs

ENERGY OPPORTUNITIES Electricity There are two primary companies responsible for generating electricity in Jordan in addition to two independent power projects. Central Electricity Generating Company (CEGCO), the incumbent generator has been privatized. It operates today with a total capacity of 1747MW. Majority shares are held by 51% by ENARA (consortium consisting of Jordan Dubai Capital, Malakoff, and Consolidated Contractors Company), 41% owned by the Social Security Corporation, and 9% directly held by the Government. The second being the gas ﬁred Samara Electric Power Generating Company (SEPPGO) with a capacity of 450 MW that is still government owned. The ﬁrst Independent Power Project (IPP) in the Kingdom, with an estimated investment of USD 300 million is being built by Mitsu and AES Oasis on a Build Operate and Own basis (BOO). The IPP has a capacity of 370 MW. Another IPP project is under tender with an expected capacity of 400 MW. According to the Master Energy Study conducted in 2007, the National Electric Power Company (NEPCO) has plans for eight IPP projects between 2010 and 2020, which will add approximately 2560 MW to the electric system, in addition to that 800 MW as peaking units will be added onto the system. Total investments in these projects and enforcement of the national electric network in Jordan are estimated at about USD 5.8 billion by 2020. Electricity distribution is conducted by two publicly owned companies: 40

Jordan Electric Power Company (JEPCO) which is responsible for distribution in central Jordan, including Amman, Irbid District Electricity Company (IDECO) which distributes to the northern region of Jordan, and Electric Distribution Company (EDCO) that is partly owned by government and National Electric Power Company (NEPCO) which provides to the remainder of the kingdom. NEPCO is also responsible for the transmission of the electricity to the Kingdom.

Oil Jordan has one oil refinery located at Zarqa, which is managed by the publicly listed Jordan Petroleum Refinery Company (JPRC). However, the structure of the Kingdom’s oil is set to change with the end of the 50 year monopoly by JPRC in 2008. As part of the liberalization and reform process to the oil sector, the Government plans on breaking down refinery operations and opening floor to private sector players, with an expected investment of USD 312 million. Liberalized fields: • Refining and importing oil to increase capacity and variety of oil derivatives. • The introduction of four distribution and marketing companies. • Establishing a logistics company for storing and transporting oil. JPRC is currently in negotiations with a strategic partner to expand the oil refinery in order to increase its capacity and efficiency.

• Phase III: The government ﬁnalized a mega-deal totally USD 20 billion with the Royal Dutch Shell Oil Company to tap the Kingdom’s vast amounts of oil shale resources. Shell will use its patented In-Situ Conversion Process, under which the ground is heated over several years. The project is expected to be completed in 15 to 20 years. There are 21 locations possessing oil shale near the Yarmouk River, Buweida, Beit Ras, Rweished, Karak, Madaba, and Ma’an districts.

Natural Gas Since 2003, a natural gas pipeline runs from Egypt to Jordan, Syria, and eventually Lebanon and Turkey. Jordan is ardent to develop its own natural gas. Current production in Jordan is located at Risha, where strategic partners are sought to increase production of the Risha plant. Additionally, plans for the distribution of natural gas in Amman and Zarqa Project are set in place to supply Amman with natural gas by 2012.

Oil Shale In view of the rising crude oil prices in the international markets the economics of investment in the ﬁeld of oil shale has become more viable. The estimated 40 billion tons of oil shale ranks Jordan as the third largest known deposit in the world. Strategies are set in place to use oil shale by 2015. To take advantage of the oil shale reserves, the MEMR is implementing a three phase plan: • Phase I: Jordan signed an agreement with Estonia for a build operate and transfer for a 600-900 MW plan to generate electricity through direct ﬁring. • Phase II: Mining oil using near surface retorting technologies is currently being studied in collaboration with four multi-national companies.

Master Plan for Energy Investments 2007 Imported Electricity 7% Natural Gas 26%

2015

Renewable Energy 1%

Renewable Energy 7%

2020

Imported Electricity 2%

Renewable Energy 10%

Oil Shale 11%

Nuclear Energy 6%

Oil Products 40%

Oil Shale 14%

Oil Products 66%

Natural Gas 29%

Imported Electricity 1%

Oil Products 51%

Natural Gas 29%

RENEWABLE SOURCES OF ENERGY Wind Energy According to the Global Wind Energy Council, wind energy is the fastest-growing renewable energy sector. Global wind power generation more than quadrupled between 2000-2006 with the wind market increasing by 32% in 2006 alone. Jordan retains a high potential of wind energy generation with ideal locations possessing wind speed of more than 7 mps, compared to the 4.5 mps for effective wind power generators. Wind energy in Jordan is mainly used for electricity generation. At present, there are two wind farms in Jordan, one with a capacity of 320 kW, constructed in 1987 in cooperation with a Danish Firm and considered as the first pilot project. It consists of four wind turbines 80 kW each. The second one has a capacity of 1.125 MW, constructed in 1996 in cooperation with the German Government under ELDORADO program. It consists of five wind turbines 225 kW each. Jordan has two pilot wind power energy projects in the northern and western regions with a capacity of 1.3 MW; Al Kamsha (30- 40 MW) and the second in Fujeiji. The Ministry of Energy expects to develop a fully operational commercial plant by 2010. More than six projects are expected to be under tender in the coming two to three years which will involve an investment of USD 645 to USD 934 million to build projects with a capacity of 430 MW and 660 MW. There are seven promising sites for wind energy in Jordan, by which we aim to set a paradigm for renewable energy sources in the region. Potential wind sites in Jordan for Wind Park establishment: • Fujiej/Shoubak, Ma’an (60-70 MW) • Ibrahymia/Hofa, Irbid (40-50 MW) • Al Harir, Tafila (100-150 MW) • Wadi Araba, Aqaba (40-50 MW) • Al-Hussein University Area, Ma’an (100-150 MW) • Tal-Hassan, Mafraq (100 MW)

Keen to develop the Kingdom’s energy sources, the Government is moving forward with plans for implementation of a program for national nuclear energy grid for peaceful purposes and utilizing the abundant and present resources of uranium for electricity generation and water desalination. In collaboration with the International Atomic Energy Agency (IAEA), nuclear energy planned plants will maintain environment friendliness. According to the National Energy Strategy, the planned nuclear development program is set to be functional by 2020 that will generate 6% of the Kingdom’s energy needs, and 30% in 2030. Jordan’s ﬁrst nuclear reactor, with a capacity of 400 MW is set to be operational by 2015, and more tenders are expected during the coming years.

The Ministry of Energy exempts renewable energy products from tax and customs.

Solar Energy Jordan has the sun, space, and willingness to develop the technology needed to improve the efficiency of solar thermal power. Jordan holds tremendous potential for solar thermal and photovoltaics. Blessed with an abundance of sunshine, an evident source of solar energy holding an one of the highest annual daily average solar irradiance on a horizontal surface ranges between 5-7 kWh/m² in the world. This corresponds to a total annual of 1600-2300 kWh/m². The average sunshine duration is more than 300 days per year. Jordan is a pioneer in the use of solar energy. Since the early 1970s the Jordanian Government has dedicated significant levels of finance and efforts to research and development of solar energy technologies and demonstration programs. Nationally, solar power has been harnessed through both photovoltaic modules and solar domestic hot water systems with the latter technology bringing Jordan to the forefront of global development.

Jordan signed several nuclear cooperation agreements with many countries such as France, Canada, Britain, China, South Korea, and Russia covering both power and desalination. In 2008, Jordan and France signed a nuclear cooperation accord to cover nuclear-generated electricity, extraction of uranium from mines in Jordan, training and arrangements for nuclear safety. Cooperation will focus on uranium mining and the building of a nuclear power generation plant. Jordan and Canada signed a nuclear power cooperative agreement to foster nuclear security, radiation and environmental protection. JAEC has also signed an agreement with Canadian reactor vendor Atomic Energy of Canada Ltd. (AECL) and SNC-Lavalin to conduct a feasibility of setting up a nuclear power program based on the Canadian-designed Candu reactor.

Jordan cooperates with international companies in the region in the ﬁeld of renewable energy sources. With Europe, especially Germany, Jordan is promoting a project named the Trans-Mediterranean Renewable Energy Cooperation (TREC), reaching a barter deal for “Technology for the Sun.”

Several French companies, especially AREVA, in addition to French universities and technical institutes will train Jordanian engineers, chemists, geologists and physicists on issues related to joint projects, mining, uranium, and building nuclear energy reactors in Jordan. Currently, there are three universities in Jordan offer a BSc in nuclear physics and one a BSc in medical physics at the MSc level and newly inaugurated MSc in nuclear power. Specialized programs in nuclear engineering and medical physics will be introduced to prepare human resources for the ﬁeld.

Feasibility studies regarding solar energy farms are being carried out, and a feasibility study to develop a pilot project with a capacity of 5-10 MW is expected to be implemented during (2009-2010) according to the Union for the Mediterranean Solar Plan.

ALTERNATIVE SOURCES OF ENERGY Nuclear power Jordan possesses an estimate of 70,000 tons of uranium and an additional 100,000 tons in its phosphate deposits amount to 2% of the world’s total estimated reserves. In 2009, Jordan signed a nuclear Memorandum of Understanding on uranium exploration with Rio Tinto group, and the British-Australian mining giant. The agreement permits 18 months to establish a general framework for exploration for uranium, thorium, zirconium, and other metals in the Kingdom. Earlier, in 2008, the French Fuel Cycle company Areva signed an agreement with Jordan Atomic Energy Commission (JAEC) to deﬁne and mine uranium resources in central Jordan, with mining at the rate of 2000 tons per year envisaged from 2012.

Investment Opportunities in the Energy Sector • • • • • •

Concentrated Solar Power Generation Project District Energy Company Turnkey Solar Equipment packager Quality solar water heating systems Thermochemical energy storage Wind powered electricity facility, Wadi Araba

• Small power (<20 MW) is a definitive trend that can benefit Jordan • High efficiency product line - lighting, building controls, windows, and building envelope • Process and energy service companies • Renewable energy technology companies, e.g., Vestas, Suzlon Energy • Advanced metering for water and electricity industry • Packaged Ultra Filtration membrane water systems for water reuse • R&D efforts in: oil shale – for fuel supply, refined products – new product ranges, and new membrane technologies • Investment in refining • Crude oil transportation sector • Development and distribution of gas networks • Oil and gas exploration • Development of Risha field and infrastructure • Investment in electricity generation plants • Investment in oil shale • Light Petroleum Gas (LPG) projects • Solar cell manufacturing • Energy waste plant • Energy efficiency and renewable energy fund • Electricity meters • System integrators

Supportive Structures • Ministry of Energy and Mineral Resources (www.memr.gov.jo) • Natural Resources Authority (www.nra.gov.jo) • Electricity Regulatory Commission (www.erc.gov.jo ) • National Energy Research Center (www.nerc.gov.jo) • National Electric Power Co. (www.nepco.com.jo) • Jordan Petrol Reﬁnery Company (www.jopetrol.jo) • National Petroleum Company Plc. (www.npc.com.jo) • Energy, Water, and Environment Productivity (www.edama.jo)

Energy Investment by Sub-Sector 2007-2015 in USD Millions Gas E&P Oil Shale Power Distribution (DSM+EE) Oil Storage Project Oil Pipeline (Iraq Border Project) Gas Grid (City) Gas Transmission to Rehab Power Transmission Oil Reﬁnery Upgrades Power Generation 0

100

200

300

400

500

600

700

800

900

1,000

TRANSPORTATION Jordan offers a fully integrated transportation framework encompassing air, maritime, and road networks. Plans are in place to develop transportation in order to capitalize on the Kingdom’s historical location as the transportation hub of the Middle East and to enforce its position as a major transit point for the region.

consortium gathers local, regional, and international investment and expertise that includes Aeroport de Paris Management (France), Abu Dhabi Investment Co. (UAE), Noor Financial Investments (Kuwait), Edgo Group (Jordan), Joannou & Parakebvaidas Overseas Ltd. (Cyprus), and J&P Avax SA (Greece). In Aqaba, the King Hussein International Airport (KHIA) was tendered to National Air Services of Kuwait on build, operate and transfer basis for 15 years. More than USD 15 million was invested in upgrades. KHIA has an Open Sky policy. Cargo terminal services at the KHIA serves sea-air linkages to Iraq and the rest of the region. Further plans are made to increase the number of airports in the Kingdom. The privatized national carrier, Royal Jordanian Airlines (RJ) serves more than 55 direct destinations and 700 others are served by alliance airlines and is also a member of the One World Alliance since 2007. RJ has recently made a multi-million dollar investment in upgrading the cargo terminal at the QAIA. Airlines Servicing Queen Alia International Airport Royal Jordanian Jordan Aviation Air Algérie (Algeria) Air Arabia (UAE) Air France Air Ukraine British Airways Cyprus Airways Delta Airlines (USA) Egypt Air Emirates Airlines (UAE) Etihad Airways (UAE) Gulf Air (Bahrain) Iraq Airways Israir Airlines (Israel)

Jazeera Airways (Kuwait) Kuwait Airways Libyan Airlines Lufthansa Airlines (Germany) Middle East Airlines (Lebanon) Oman Air Palestinian Airline Qatar Airways Sama Airlines (Saudi Arabia) Saudi Airlines Sudan Airways Tarom Airlines (Romanian) Tunis Air (Tunisia) Turkish Airlines Yemen Airway

Flight Duration times from Amman to various countries in the region:

The Ministry of Transport (MOT) has introduced the National Transport Strategy (2008-2010) that lays out work plans designed to press on the fast development. Also, MOT introduced several transport laws to liberalize and ease regulations on this sector. The Kingdom also is actively involved in regional and international transport councils and organizations signing agreements to secure operation enhancements.

Air Transport Queen Alia International Airport (QAIA) is undergoing a USD 550 million re-building to increase its passenger capacity from its current level of 3 million passengers to 9 million by 2011, in addition to increasing cargo capacity. The transformation of the airport was awarded by a 25 year concession to the Airport International Group (AIG) to manage and operate the new airport. The 44

Damascus, Syria: 1 hour Beirut, Lebanon: 1 hour Tel Aviv, Israel: 45 minutes Cairo, Egypt: 1 hour 20 minutes Riyadh, Saudi Arabia: 2 hours Baghdad, Iraq: 1 hour 30 minutes Kuwait City, Kuwait: 2 hours Doha, Qatar: 2 hour 30 minutes Dubai, UAE: 3 hours Muscat, Oman: 3 hours Athens, Greece: 2 hours 25 minutes

Paris, France: 5 hours 15 minutes Rome, Italy: 4 hours Frankfurt, Germany: 4 hours 45 minutes Sharm Il Sheikh, Egypt: 45 minutes Abu Dhabi, UAE: 3 hours 10 minutes Istanbul, Turkey: 2 hours 20 minutes Milan, Italy: 4 hours 10 minutes Tunis, Tunisia: 3 hours 55 minutes London, UK: 4 hours 30 minutes Jeddah, Saudi Arabia: 2 hours 10 minutes

On another level, the Ministry is forging a regional agreement to adopt a Multi-Modal Transport Agreement between Arab countries to enhance the services of Arab shipping agents and freight forwarders in the transportation.

Railway and Light Railway Systems To support to the growth of the Kingdom and the region, the Jordanian government prepared a Railway Master Plan to build an entirely new standard-gauge railway network by 2013. The new railway network will consist of North-South railway and the East-West railway. The railway project will lay the cornerstone for connecting and integrating Jordan to its neighboring countries. According to the feasibility study conducted by the Ministry of Transport, the total investment in the new railway network is expected to be USD 6.03 billion. The existing railway network in Jordan consists of 620 km of narrow-gauge tracks. One is the Jordan Hejaz Railway that is 217 km of operational lines. It runs two passenger trains per week between Amman and Damascus. Freight trains upon request. And the second is the Aqaba Railway Corporation which is 293 km of operational lines, transporting around 3 million tons of phosphate from the mines to Aqaba Port. Construction of the Amman-Zarqa Light Railway project will start by end of 2009 and is due to be completed in 2011, to build a 28 km double gauge electric-powered railway. The line will establish an effective daily passenger transport between Amman and Zarqa catering to 100,000 passengers daily with prompt, frequent, and fast service.

Maritime Transport Aqaba, as Jordan’s sole maritime gateway, will become the leading multi-modal logistical hub for the Levant region on the Red Sea, situated at the cross-road of Gulf Cooperation Council (GCC), North Africa and Levant. The deep water harbor is undergoing large developments to be transformed into a world-class transport hub. Currently, the port of Aqaba consists of the three parts: The Aqaba Container Terminal (ACT), the main port of Aqaba, and the Aqaba Industrial Terminal (close to Saudi border). To accommodate increased economic growth, Aqaba Development Corporation (ADC), a private company jointly owned by Aqaba Special Economic Zone Authority (ASEZA) and the Jordanian Government, has signed a 25 year BOT (Build, Operate, and Transfer) Development and Operating agreement with AP Moller-Maersk (APM) in 2007 to develop and run the operations of ACT, which enabled ACT to be chosen by Lloyds List 98 as one of the best 3 terminals in the Middle East and Indian Subcontinent in 2005 and 2006. To enable the Port of Aqaba to have a viable, productive and proﬁtable Marine Services, ADC has entered into a 15 year joint venture (JV) agreement with Lamnalco (UAE) as the winner of the of the international tender to operate the Marine Services at Aqaba Port.

The General Cargo and Ro-Ro Terminal will consist of a new multi-user, multi-purpose general cargo terminal with a capacity for 1.3 million tons of general cargo (break bulk) and 300,000 vehicles as well as 1.5 million head of livestock with future potential expansion for up to 2.0 million tons per annum of break bulk, 400,000 vehicles and 2 million livestock. The new Grain terminal will replace the existing grain facilities at the Main Port, which will consist of a new grain berth, storage terminal with truck loading facilities and a bagging plant. The new terminal will have an initial capacity of 2.3 million tons per annum with the capacity to handle 3 million tons per annum through the addition of a second grain elevator. The existing Ferry Terminal will be complemented by a new larger facility, which will provide a much needed upgrade, expansion, improvement of operations and enhanced services. The new terminal will have an annual capacity of 3 million passengers, 19,000 buses, 80,000 trucks and 95,000 cars.

Supportive Structures • Ministry of Transport (www.mot.gov.jo) • Jordan Maritime Authority (www.jma.gov.jo) • Public Transport Regulatory Commission (www.ptrc.gov.jo) • Civil Aviation Regulatory Commission (www.carc.jo) • Aqaba Railway Corporation (www.arc.gov.jo) • Jordan Hijaz Railway (www.jhr.gov.jo) • Municipality of Amman (www.ammancity.gov.jo) • Amman Plan (www.ammanplan.gov.jo)

The new port will comprise of three distinct terminals that will be located in a large basin created by dredging the foreshore, these include: the General Cargo and Ro-Ro terminal, the Grain Terminal, and the Ferry Terminal.

Land Transport Jordan has high-speed road connections linking the country from north to south, and east to west to neighboring countries. Several new plans are set in place for road, rail, and public transport networks to extend the easy navigation throughout the region. The Kingdom plans to connect their extending networks to those in the neighboring countries. There are more than 80,000 km of paved roads and highways. There are developments of city master plans to manage the large ﬂows of road freight trafﬁc on the national and international links. In Amman for example, to underpin the rapid development, the Greater Amman Municipality started the construction of nearly 120 km long ring road along the capital to welcome the expanding growth of the city.

Transportation 2007 Railway Highway (2005) Seaway Capacity Total Airports (8)

Runway Length(s) Aircraft Passengers (2007)

620 km 80,000 km2 21 m tons Civil Airports include: Queen Alia International Airport (Amman), Marka Airport (Amman), King Hussein International Airport (Aqaba) Most runways are longer than 2,400 meters 4.1 m

Source: Ministry of Transport, Ministry of Public Works and Housing, Civil Aviation Authority

Where to Invest?

DEVELOPMENT AREAS The new Development Areas Law of 2008 (DAL), as passed by Parliament, established a set of specialized rules to facilitate the creation of economic growth areas within certain zones. Its goals are to enhance the economic capabilities of the Kingdom and advance the investment environment for economic activities. The law provides a number of incentives for investment, with special allocations provided for each investment area, as listed in the pages to follow. Under the Development Areas Law Income Tax

On all taxable income from activities within the areas

Sales Tax

On goods sold into (or within) the development area for use in economic activities

Import Duties

Social Services Tax

On all materials, instruments, machines, etc. to be used in establishing, constructing, and equipping an enterprise in the area On all income accrued within the area or outside the Kingdom

Dividends Tax

On all income accrued within the area or outside the Kingdom

Note: All income generated from exports is fully exempt from income and sales tax.

KING HUSSEIN BUSINESS PARK (KHBP), AMMAN Amman’s Future Business Hub

A high quality development with more than 112,000 m² of ready-to-use ofﬁce space in the heart of the Capital.

Location Outstanding city location on Amman’s main corridor, with quick access to all city amenities.

Readiness for Business Ofﬁce buildings, communication networks, auditorium, sports complex, social support areas, and much more.

Opportunities Opportunities for regional cluster developments in healthcare, ICT, media, education and security business.

The First Business Complex of its Kind in Amman, the King Hussein Business Park Offers Unparalleled Location and Value. King Hussein Business Park (KHBP) combines an enviable location, excellent facilities, and state of the art communications networks, all in one place. With its advanced business facilities, it creates unmatched opportunities for investors seeking to enjoy the beneﬁts of working in a ﬁrst-class location. It is minutes away from Amman’s main entertainment centers and close to the direct highway linking Queen Alia International Airport (33 km south) to the City Center.

Outstanding Location

Jordan has made investments appealing by providing investors with a great deal of supportive infrastructure and attractive incentives. Several economic zones where set up to serve as enabling platforms, each offering different advantages that cater to investors’ needs. Such advantages include specialized business clusters, industry specific, world-class infrastructure, and distinctive tax and duty exemptions. The Government of Jordan has adopted several laws aimed at providing various benefits to investors. These laws reflect the country’s commitment to enhancing its business environment. They serve to further develop and streamline quality 46

of service, namely procedures pertaining to licensing, permits, and procedures necessary for the operations of manufacturing facilities and for exporters. Each area or estate has a number of distinctive advantages, locations, and incentives, including: development areas, industrial estates, free zones, and industrial parks: • Development Areas - King Hussein Business Park, Amman - King Hussein Bin Talal Development Area, Mafraq - Irbid Development Area, Irbid - Ma’an Development Area, Ma’an • Aqaba Special Economic Zone, Aqaba • Industrial Estates

KHBP is located on the King Abdullah II street along the busiest section of Jordan’s main transportation corridor. The site is adjacent to the King Hussein Medical City (Jordan’s largest and the region’s most advanced medical center), the King Hussein Mosque (Jordan’s largest architectural landmark), and the King Hussein Park (Amman’s newest and largest public park, which houses two of Amman’s most popular museums, the Royal Automobile Museum and the Children’s Museum).

• Free Zones • King Abdullah II Design and Development Bureau Industrial Park Various sectors and areas benefit from incentives offered by Investment Promotion Law. The incentives Jordan offers its investors, in tandem with the industry-specific advantages, it’s centrality in the region, and its comparatively low cost of labor, set it apart as a secure investment opportunity with the potential for significant profitability. With a number of lucrative areas in which to invest, each with its own benefits, Jordan stands out as an obvious choice for investors.

Two of Amman’s mega shopping malls are both less than a ﬁve-minute drive away, while the main shopping and entertainment districts of Sweiﬁeh and King Hussein Business Park P.O. Box 850633 Amman 11185 Jordan

www.kinghusseinzone.com

Abdoun are less than 10 minutes away.

Readiness for Business There are currently 32 buildings on site with multiple uses ranging from ofﬁce space to other support facility and logistics buildings. The total built-up area of all buildings combined is 112,650 m² with a total land area of 365,000 m² (including 80,000 m² fully serviced with infrastructure for further expansion).

T: +962 6 5510274 F: +962 6 5510329 47

KING HUSSEIN BIN TALAL DEVELOPMENT AREA (KHBTDA), MAFRAQ The Development Area of the 21st Century Location 60 km northeast of Amman, near a modern highway connecting Jordan, Syria, Iraq, and Saudi Arabia, King Hussein Bin Talal Development Area (KHBTDA) has an adjacent mixed use airport to be completed by 2010.

Readiness for Business

Opportunities

KHBTDA is an industrial and logistics hub with a total area of 21 km², with world-class infrastructure.

Mafraq Development Corporation (MDC) seeks to partner with financially and technically qualified industrial and logistics property development firms. KHBTDA is currently ready to host industrial and logistics tenants.

Mafraq Development Corporation

Buildings fall under the following categories: A. Offices: These include 13 “class A” office spaces with total built up area of 60,000 m². All offices have flexible open space design with raised flooring and IT communication infrastructure. B. Support Buildings: These include two buildings, one can be utilized to fit hospitality services with total built up area of 10,000 m², and the other can be utilized as a higher learning institution with gross built up area of 15,000 m². The two buildings are equipped with modern culinary facilities, which can be configured into a series of different resultants to serve the whole business park’s existing uses. C. Sports Complex: This 4,340 m² facility features a basketball and indoor semi-Olympic swimming pool, two squash courts, and more. D. Above Ground Surface Parking: The facility has a capability to host 850 cars and also includes small surface parking areas to serve each building. E. Underground Data Recovery Center: This 4,310 m² underground facility is uniquely constructed up to the highest standards of security and redundancy requirements. Its special features include an electromagnetic pulse (EMP) resistance, protection from earthquakes, fire, and all other natural and manmade hazards. This one-of-a-kind facility qualifies as a disaster recovery center ideal for corporate, national, and regional data purposes, storage for e-government, banking, insurance, airline industries, among other uses. 48

F. Internal Courtyard with Auditorium: The courtyard is ideal for social events and recreational uses with a total are of 4,300 m². This yard is adjacent to the Auditorium which can accommodate 500 people. G. Empty Service Plots: These are available and serviced with infrastructure to accommodate future expansions and further developments within the existing site. They take up an area of about 80,000 m². Other Technical Features: • Cutting-edge communications network and IT infrastructure • Core communications and IT systems suited for modiﬁcations, easily expandable by adding modules

• 7,700 points of connection • All fiber optics infrastructure • Multiple 10 GB network for each user • Five layers/levels of security • 6,000 fire sensors • Fully equipped offices with open space designs and raised floors, housing all connections underneath, in addition to a low current room on each floor of each building

Mafraq Development Corporation (MDC) was incorporated in late 2006 to become the master developer for the King Hussein Bin Talal Development Area (KHBTDA) with 80% of startup capital from Jordan’s Social Security Corporation Investment Unit (SSIU). The new Development Area Law formalizes MDC’s role and authority as a master developer.

Location KHBTDA is located in the city of Mafraq, situated 60 km northeast of the Capital, Amman. It is at the nexus of a modern highway network connecting Jordan, Syria, Iraq, and Saudi Arabia. The development area is strategically positioned to function as an industrial center and inland port stretching across 21 km². The area includes an adjacent functional airport and a future railway system. With regional markets exceeding 300 million inhabitants, the potential to connect overland routes with access to major regional ports, and the conversion of the adjacent King Hussein Airbase into a mixed use airport, the King Hussein Bin Talal site has the potential to become not only a leading location for industrial production, but also a regional transportation hub for the onward movement of goods throughout the region and the world at large. Mafraq is the closest populated area to Iraq, with a local population of 250,000 and access to a large and qualiﬁed labor pool.

Opportunities As the designated master developer, KHBTDA is run under the Development Areas Law. The Mafraq Development Corporation (MDC) is seeking to partner King Hussein Bin Talal Development Area P.O. Box 941435 Amman 11194 Jordan

civilian and commercial use. The MDC is similarly seeking development partners to implement the MDC development vision. This vision is to be realized in harmony with plans for KHBTDA.

with one or more world-class industrial property development firms. It aims to implement the vision for KHBTDA. Based on the robust analysis of potential investment and market demand, MDC is seeking to form partnerships with world-class industrial logistics property development firms. It aims to implement the expansive vision of KHBTDA. It is open to a range of partnership configurations ranging from a development contract to a joint venture relationship. Past experience should include: design, development, and operation of mixed use industrial and logistics zones, including community, commercial, and housing services. The MDC has also formed a partnership with the Royal Air Force. This partnership is aimed at monitoring the upgrade and redevelopment of the adjacent King Hussein Airbase for www.kinghusseinzone.com

Industrial Sectors The manufacturing sector comprises a great deal of the industrial activity that will drive investment demand into KHBTDA. The MDC vision for the site is to attract investment from a variety of light and medium industrial sectors, with the aim of serving major regional export markets as well as Jordanian domestic demand. Sectors with potential to drive development include: • • • •

Food and beverage Pharmaceuticals and medical supplies Light chemicals A wide range of manufactured products

T: +962 6 5510274 F: +962 6 5510329 49

Logistics and Logistical Hub With a revitalized and redeveloped King Hussein Airbase at its core, the KHBTDA is envisioned as a new, state-of-the-art, inter-modal logistics and transit hub serving the region. Reviving Mafraq’s long history as a transportation crossroads, it will serve not only the immediate transport needs of site manufacturers, but will also become a new focal point for third-party, value-added, and logistical activities. Development in the logistics and transport cluster is envisioned to include standard storage facilities and depots, robust loading and unloading infrastructure and rail/truck and air/truck transfer stations.

Palestinian National Authority

Transportation Infrastructure In addition to the clear advantage of its location at the crossroads of major transportation routes through Jordan, the KHBTDA will establish itself as a true inter-modal transport hub for the region.

Light and Medium Industry The manufacturing sector comprises a great deal of the industrial activity that will drive investment demand into KHBTDA. The MDC vision for the site to attract investment from a variety of light and medium industrial sectors, with the aim of serving major regional export markets as well as Jordanian domestic demand. Sectors with potential drive development include: Food and Beverage Jordan has already established itself as a serious exporter to regional markets, and its leading producers are already looking beyond to the EU and the US to export high quality foods. The Jordan Valley also emerges as a poised producer of world-class fruits and vegetables. Pharmaceutical and Medical Supplies

Jordan’s premier industries, surpassed only by the garments sector in terms of both total output and exports, with pharmaceuticals exports exceeding USD 442.4 million in 2007. Jordan is the MENA region’s largest Arab exporter, behind only Israel as the supplier of generic drugs and supplements, and a growing producer of consumable medical supplies. Light Chemicals These include downstream processed products with inputs as diverse as citrus fruits and basic petro chemicals. In its assessment of likely investment demand, the MDC focused on several key product niches in this industry such as: dyes, colorings and related material, essential oils and ﬂavorings; perfumery, cosmetics, and other consumer products, and household chemicals and cleaning supplies.

A Wide Range of Manufactured Products The demand analysis examines trade ﬂows in a wide range of manufacturing sectors under the broad heading of other manufacturing products, including: furniture and furniture components, electrical and machinery and electronics, fabricated plastic products, and packaging.

Following the planned conversion of the King Hussein Airbase into a mixed-use airport, the site will be integrated into the air transport infrastructure of the region, and a proposed modernization plan will upgrade overland transportation options going into Syria, Iraq, and Saudi Arabia. Finally, the planned Damascus-Amman railway link is expected to pass through Mafraq, and the Master Plan already includes a railway terminal with full transfer facilities and infrastructure. Community Services, Housing, and Amenities To compliment the planned industrial and logistics developments, the KHBTDA will host world-class community services, amenities, and housing as an integral part of the development vision for the site. Site developers will have the opportunity to provide for a wide range of facilities and amenities including hotels, shops, restaurants, and other commercial applications. The site will also feature key municipal services to ensure the safety and comfort of its workers and residents, from parks and a health clinic, to service stations and other basic services.

The pharmaceutical and medical supply sectors together represent one of 50

IRBID DEVELOPMENT AREA (IDA), IRBID Building for Knowledge Location Located 55 km north of the Capital Amman with four established and accredited universities offering world-class engineering programs of study, Irbid is viewed as a future regional leader for technological innovation within the ICT and healthcare sectors.

To manage the establishment, planning, and development of the area, the Government of Jordan established the Northern Development Corporation (NDC) with start-up capital from Jordan’s Social Security Investment Unit (SSIU). The new Development Areas Law formalizes NDC’s role as master developer of the Irbid Development Area (IDA). Based on a robust analysis of potential investment and market demand, the NDC has established a clear and compelling vision to guide the development of IDA, with the goal of establishing a cutting-edge ICT, healthcare, and research and development center, as well as a contemporary knowledge village in Irbid. By partnering with leading

Readiness for Business 3.2 km2 of development area ideally suited for: • IT outsourcing, healthcare, professional services, middle and back ofﬁces, research, and development

Opportunities Northern Development Corporation (NDC) seeks to partner with a ﬁnancially and technically qualiﬁed master developer to provide a wide range of facilities and amenities including hotels, shops, restaurants, and other commercial applications.

• World-class community services, amenities, and housing as an integral part of the development vision for the site

developers of high-end real estate and modern living environments, the NDC seeks to introduce an unprecedented level of quality and lifestyle, not only to Irbid, but also Jordan as a whole, all while realizing superior returns to NDC and its partners. NDC is seeking to contract with world-class real estate developers and operators, as well as multi-national IT healthcare players, to bring the vision to reality. NDC opens to a range of partnership conﬁgurations, from a development contract to a joint venture relationship. Past experience should include design, development, and operation of mixed-use educational and high-technology zones, including community, commercial, and housing elements.

Location IDA is located in Jordan’s fertile north, adjacent to the Kingdom’s leading scientiﬁc institution and one of the Middle East’s foremost ICT and healthcare universities – Jordan University of Science and Technology (JUST). It also encompasses the landmark King Abdullah University Hospital, which serves the one million inhabitants in the area and its surroundings. The 3.2 m² development area (located 20 km east of Irbid and 55 km north of Amman) is ideally suitable for IT outsourcing, healthcare, professional services, middle and back ofﬁces, and research and development.

Opportunities

Star Sectors

The IDA is now ready to receive prospective investors due to its ability to:

Information and Communication Technology

• Clear and present potential to build on the existing pool of resources in the area • Beneﬁt from the legal and regulatory framework underpinned by the progressive, robust Development Areas Law • Harness Jordan’s galloping IT and healthcare sectors, and reinvent a modern lifestyle for Irbid’s 50,000 students and one million residents. To complement the planned development, the IDA will host world-class community services, amenities, and housing as an integral part of the development vision for the site. Developers will have the opportunity to provide for a wide range of facilities and amenities, including hotels, shops, restaurants, and other commercial applications.

ICT’s growth in Jordan has surpassed the high rates witnessed in the region, with many ﬁrms’ headquarters in Jordan and maintaining project ofﬁces in regional markets. IDA is the perfect base to deliver service to local, regional, and international markets. Healthcare Jordan’s prominence in healthcare, based on advanced systems and highly regarded physicians, is attracting 100,000 international patients annually. Research and Development R&D growth, especially in telecommunications and hardware and software resale, is gaining momentum and regarded as the catalyst for future development.

Irbid: The Student City

Irbid Development Area P.O. Box 941435 Amman 11194 Jordan 52

www.kinghusseinzone.com

T: +962 6 5510274 F: +962 6 5510329

With four universities, two notable museums, and a leading 15-storey hospital that is impossible to miss from the main highway linking Irbid to Syria to the north, Jordan’s third densely populated city buzzes with student life and boasts a Guinness Book of World Records mention for the most internet cafes on one street. The city’s competitive labor pool comprises trained students-interns, qualiﬁed fresh graduates, and skilled workers in Jordan’s highest exporting Qualiﬁed Industrial Zone, a couple of minutes drive from IDA.

MA’AN DEVELOPMENT AREA (MDA), MA’AN A Southern Oasis Location

Readiness for Business

Ma’an is located 110 km from Aqaba, 125 km from Saudi Arabia, 200 km from Amman, and 400 km from Iraq, with direct access to a specialized cargo highway that directly connects Jordan to both Saudi Arabia and Iraq. It is also:

MDA spans over 8.75 km2 in the vicinity of the city of Ma’an and is comprised of four clusters:

• Rich in commercial quantities of natural resources such as silica (high quality), kaolin, zeolite, clay, and others • Local population of 28,000

• Industrial Park: 750,000 m2 of fully functional and equipped industrial park • Residential Community • Skills Development Center (in partnership with King Hussein Bin Talal University) • Hajj Oasis: 80,000 m2

• Home to King Hussein Bin Talal University with more than 7,000 students (2007)

To further establish Jordan as a premium investment destination and to capitalize on the regional economic growth and Ma’an’s unlimited potential, the Ma’an Development Area (MDA) was set up in the south of Jordan with the goal of serving as a regional hub for industrial activity, propelled by its competitive labor force and favorable legal, regulatory, and ﬁscal framework. MDA is managed and promoted by the Ma’an Development Company (MDC), a

partnership between the South Company for Construction and Development (SCCD), the Jordan Industrial Estate Corporation, and Al-Hussein Bin Talal University. MDA is expected to create over 20,000 job opportunities in the next 15 years.

Opportunities

Industrial Park Launched September 2008, and due for completion in 2030

The Ma’an Development Company (MDC) is looking for a strategic partner to complete the development and management of the four clusters over the coming 20 years.

Location: 7 km east of Downtown Ma’an; 109 km from the Port of Aqaba Size: 750,000 m²

Target Industries: • Exploitation of renewable energy potential (solar and wind) as well as research and development. • Minerals and marketing related manufacturing. • Reputable university for joint programs with King Hussein Bin Talal University.

among them and to leverage the unique attributes of each. Furthermore, they are tailored to the needs of local and regional markets, rendering MDA an all-inclusive and unique area offering some of the region’s most advantageous incentives to investors.

The four MDA clusters (Industrial Park, Residential Community, Hajj Oasis, and Skills Development Center) have been conceived in a way to create synergy

Industries: Focus on construction related industries Amenities: Housing and recreational facilities for workers

Company JV Remal & DTEC Crown Tobacco Hadeed Emirates

Value

Employment

USD 170 million (JD 134.3 million)

2,000

USD 40 million (JD 31.6 million)

150

N/A

200

ATM USA Dyna Crete

USD 3 million (JD 2.1 million)

Albert’s Leather Crafting

USD 4 million (JD 2.8 million)

120

Al-Badri Fiber Glass Factory AYLE International Communications and Engineering

N/A

USD 180 million (JD 127.8 million)

120

Residential Community Due for completion in 2030 Location: 8 km north of Downtown Ma’an; west of Al-Hussein University Size: 400,000 m² Target Population: Employees and executives from various businesses across MDA, as well as King Hussein Bin Talal University students, faculty, and administration

South Company for Construction and Development

P.O. Box 941024, Amman 11194 54

www.sccd.jo

T: +962 6 577 7077 F: +962 6 552 4173

Components: • Villas and apartments for residents and dormitory for students • Hotel, shops, and restaurants • Administration, police station, schools, hospital, post ofﬁce, and petrol station • Water, power, and telecommunications facilities • Parks and playground areas • Other community service facilities

AQABA SPECIAL ECONOMIC ZONE (ASEZ), AQABA A Booming Seaside Economy Skills Development Center

Location The Aqaba Special Economic Zone (ASEZ) is located at the crossroads of three continents and four countries. It covers the area of 375 km² towards the south of Jordan, 27 km off the shoreline. It also shares borders with Israel, the Kingdom of Saudi Arabia, and Egypt.

Location: East of Downtown Ma’an, near Industrial Park Size: 20,000 m² Partnership: King Hussein Bin Talal University Components: • Vocational training facilities • Dormitory • Catering facility

ASEZ was launched in 2001 as a duty-free, low tax, multi-sectoral development zone encompassing the entire Jordanian coastline (27 km), the seaports of Jordan, an international airport, and the historical city of Aqaba. The Aqaba Special Economic Zone Authority (ASEZA) is charged with managing, regulating, and providing municipal services within ASEZ.

Hajj Oasis Location: South of the Industrial Cluster, on the road leading to the Kingdom of Saudi Arabia. Size: 80,000 m² Rationale: Due to its geographic location, Jordan constitutes a necessary checkpoint for pilgrims traveling by land for the Hajj and Umrah pilgrimages.

The number of pilgrims traveling through the Hajj Oasis is anticipated to be 1.5 million/year.

Components: • Pilgrims’ accommodations (hotel and/or tents) • Grand Mosque • Restaurants • Hajj and Umrah boutiques • Parking • Other Hajj and Umrah related services

ASEZ is a private sector-driven development initiative that maximizes private sector participation in a duty-free, tax-advantaged, and ﬂexible regulatory operations environment providing a model approach to environmentally sustainable development and governance. It also serves as a unique tourist destination on the Red Sea with a duty free shopping oasis accompanied by a high quality of life. According to the 2001-2020 Strategic Plan, the zone targets 50% of investments in the tourism industry, 30% in a variety of services, 13% in heavy industry and 7% in light industry. In the quest to shore up development in the zone and separate the regulatory role from the development role, ASEZA and the government of Jordan established the Aqaba Development Corporation (ADC), a central development arm in the ASEZ mandated to implement the ASEZ Master Plan and develop both the infrastructure and superstructure. ADC was established in 2004 as a private shareholding company to drive development of the ASEZ. ADC is mandated to develop the ASEZ into a leading business and leisure hub on the Red Sea consistent with the ASEZ Master Plan. ADC owns the port, airport, signiﬁcant parcels of land, and certain utilities and retains development and management rights for other projects. Although empowered to directly develop projects, ADC typically partners with the private sector to realize key development priorities to the highest standards of international best practices on a sustainable, mutually rewarding basis. Aqaba Special Economic Zone (ASEZ) P.O. Box 2565 Aqaba 77110 Jordan

Readiness for Business

Opportunities • • • • • • • •

Aqaba is a regional power hub, hosting reliable electrical systems, cutting-edge technology, a natural gas pipeline originating in Egypt, and the ﬁrst privatized water company. The City is also a multi-modal transportation hub, linking businesses and visitors to the rest of the world via road, sea, and air. It also offers special tax exemptions.

Incentives for Investing in Aqaba • Flat 5% income tax on net profit • Exemption from annual land and building taxes on utilized property • Exemption from taxes on distributed dividends and profits • Duty-free import of goods in commercial quantities from the National Customs Territory and overseas • No foreign equity restrictions on investments • No foreign currency restrictions • Full repatriation of profits and capital • Streamlined labor and immigration procedures • 100% foreign ownership • Up to 70% foreign labor • Availability of land for lease or sale • Full guarantees on rights and ownership

Opportunities

Tourism Heavy industry Light industry Services Logistics/warehouses Transportation Education Health/environment

Location-based Services • • • •

Cargo handling Aircraft overhaul and conversions Equipment storage and auctions Freight forwarding and integrated logistics • Warehousing, cold storage, and trans-shipment Potential Industries

13% 7%

30%

50%

Tourism Investments Aqaba is home to several key factors that make it an attractive location for tourism investment, including low land and construction costs, an international airport, and a seaport. Ultimately, Aqaba's unique tourism advantages lie in its cultural, historical, and seaside attractions. Potential Projects • Three, four, and ﬁve-star hotels and resorts • Timeshare condominiums • Theme and leisure parks • Golf courses, marinas, and cruises • Duty-free shopping malls and souqs • Retirement villages • Exhibition and convention centers

www.aqabazone.com

Tourism Service Heavy Industry Other

Professional Services • Information Technology services including software development, data conversion, remote processing, CAD/GIS digitizing, and medical transcription • Call centers and claims processing. • Medical centers for long-term recovery and rehabilitation • Conversion and repair of small vessels • Printing and publishing: Arabic translation and offshore English production • Internet service providers • Engineering consulting

T: + 962 3 209 1000 F: + 962 3 203 0912 57

INDUSTRIAL ESTATES Industrial estates offer cost-effective, developed land and Standard Factory Buildings (SFBs). These boast reasonable utility costs (including power and water), a comprehensive network of roads, an infrastructure, a wide range of ancillary services, and an effective one stop shop service. Jordan Industrial Estates Corporation (JIEC) is a semi-governmental entity established in 1980 with public and private ownership. Its catalytic role is to contribute to the development of Small and Medium Enterprise (SMEs) by providing comprehensive and integrated industrial estates.

Infrastructure and Land Development • Real estate development includes industrial parks, technology parks, warehousing parks, business incubators, and residential complexes • Independent power providers • Water desalination Privatization Opportunities • Municipal services • Selected port and airport operations Industry Aqaba is a city boasting several advantages, all of which are important to the manufacturing industry. These include the availability of low-cost land and buildings, skilled and trainable labor, transportation infrastructure, and a stable microeconomics policy framework. Moreover, producers may be interested in exploiting the beneﬁts of the Qualiﬁed Industrial Zone (QIZ) program, the potential to make use of the duty-free access to imported input materials, and Jordan's Free Trade Agreements with the United States, the European Union, and several Arab countries.

Potential Investment Areas South Industrial Zone ADC intends to designate the entire South Zone, independent of the seaport, as an Industrial Estate. The Southern Industrial Zone (SIZ) offers one of the principal investment opportunities within ASEZ. It will be located on the 12 m² of available land surrounding the existing heavily industrial district and will be 58

directly adjacent to the site of the new Aqaba seaport, which is due to be fully constructed within the next five to seven years. Marine terminals are already in place for the import and export of both dry and liquid bulk commodities. The development concept for SIZ revolves around building an industrial area that provides for the expansion and improvement of existing industries in an orderly manner. Such a concept will facilitate the start of other novel related industries, creating a highly competitive world-class industrial park designed to allow for the possibility of hosting entirely new industries. Fertilizer Chemical Cluster ADC will be seeking technically and financially qualified joint venture partners. These partners will help in furthering land-to-land operations related to the development, marketing, and management of SIZ. ADC will also be looking for partners operating within the different business concepts. These concepts will include railways, technical-industrial colleges, and an environment research institute. The existing industries in SIZ are almost entirely involved in the fertilizer business. They represent an investment worth an excess of USD 1 billion. As an established operation, the Fertilizer Complex can act as a magnet for other associated industries, both upstream and downstream, as they are all interested in benefiting from the proximity of a potential customer for their product. Investors in such industries may also be interested in seeking sources of raw material for their own operations. The non-fertilizer related industries hosted in the area include the Red Sea Timber Factory, the Aqaba Thermal Power Station, East Gas

Co., among others. These ventures are products of substantial investments made by both private and public sectors. Therefore, great care must be taken to preserve their value and to provide them with room for expansion where necessary. Such expansions represent great viable investment opportunities. Due to the availability of raw materials, a competitive workforce, and new legislations encouraging investment in Aqaba and Jordan as a whole, research has shown that some new downstream industries, such as the chemical one, are highly viable. This is due to their connection with the existing main industries. Other industries, whether or not connected to the existing fertilizer complex and the new downstream industries, would be drawn to the South Zone in the long run. This effect would be by virtue of: • Available land • Access to marine transport • Educated workforce and liberalized foreign labor policies • Political stability • Developed service, and transport infrastructure • Access to markets (local, regional, and international) through a set of trade agreements • Electronics and electrical appliances • Engineering workshops • Pharmaceuticals. • Automotive assembly • Textiles and garments • Food-related industries

Incentives • Complete two-year exemption from income tax and social security as of the date of commencement of production. • Complete and permanent exemption from building and land tax. • Exemption or reduction of most municipality fees.

Ancillary Services • • • • • • • • • •

Target Industries

Customs center Vocational training center Labor ofﬁce Civil defense Banks and temporary bonded areas Free zone Gas station Maintenance workshop Customs clearance ofﬁces Clinics

• • • • • • • • • • •

Food manufacturing Metal modeling Pharmaceuticals Plastic products Furniture Cosmetics Food goods and juices Machinery Medical Engineering and electronics Construction and building materials

12 Industrial Estates in Jordan (6 owned by the public sector, and 6 by the private sector) Selected Public Industrial Estates: Opportunities Location / Description King Abdullah II Bin Al-Hussein Industrial Estate – Sahab: the premier industrial infrastructure of the region, catering to numerous manufacturing operations of large, medium, and small enterprises; 2,530 dunum. Al Hassan Industrial Estate – Irbid (QIZ): the first Qualified Industrial Zone (QIZ) worldwide. Established in 1991 on an area totaling 1,178 dunum, of which 1,005 dunum have been developed. It is the second project for the Industrial Estates Corporation and the second largest estate in terms of the size of investments. Al-Hussein Bin Abdullah II Qualified Industrial Estate – Karak (QIZ): established over a total area of 1,856 dunum, 786 dunum of which have been developed. It is located in the southern part of the Kingdom, covering all industrial activities. It is adjacent to the highway connecting the estates of the north and south. Aqaba Industrial International Estate – Aqaba (QIZ): established on an area of 2,750 dunum, of which 570 dunum were developed in the first stage. Preparations are currently underway to begin the execution of the second phase. This phase will be constructed on an area of 700 dunum. It reflects the first partnership between public and private sectors with respect to administration, development, and marketing.

Jordan Industrial Estates Corporation P.O. Box 17 Sahab 11512 Jordan

Developed lands Completed buildings Developed lands Completed buildings annual rent/m² sale price/m² sale price/m² annual rent/m²

JD2.5 (USD 3.5)

JD15 (USD 21.1)

JD50 (USD 70.5) JD85 – JD110 (USD 120 – USD 155)

JD2.5 (USD 3.5)

JD15 (USD 21.1)

JD50 (USD 70.5) JD85 – JD110 (USD 120 – USD 155)

JD2.5 (USD 3.5)

JD15 (USD 21.1)

JD25 (USD 35.2) JD70 (USD 98.6)

Land Plots up to 5 dunum Plots 5-19 dunum Plots 20-40 dunum Plots 40 dunum and above

www.jiec.com

Selling Price USD60-80/m² USD56-59/m² USD50-56/m² USD42-50/m² T: + 962 6 402 2101 F: + 962 6 402 1194 59

FREE ZONES Free Zones offer the necessary facilities, services, and infrastructure such as electricity, water, and modern telecommunication networks, in addition to modern networks of internal roads, yards, and storage facilities. There are branches of banks, insurance, and clearance companies inside the free zones. Companies can be registered inside the free zones rather than through the Ministry of Industry and Trade. In addition, certificates of origin (Free Zones) are issued for industrial products yielded inside the free zones with local input of less than 40%. Exemptions • Exemption for profits from income taxes for goods exported outside the Kingdom, for transit trade, and profits accruing from the sale or transfer of goods within the free zones. Profits accruing from goods placed for the domestic market shall be excluded from such exemption.

Future Projects

Public Free Zones Industrial Estates

Al-Muwaqar Industrial Estate This industrial estate is 24 km east of Abdullah II Industrial Estate. It comprises a total area of 2,500 dunum. The first phase of the project will occupy 1,000 dunum of the total area. The estate at large is distinguished for its proximity to the international road connecting Jordan with Iraq and the Kingdom of Saudi Arabia. Development plans are underway to introduce state-of-the-art designs for estate areas allocated for industry use. Other facilities for logistical services include a free zone, and a magnet for technology related industries. Al-Muwaqar has benefited from allowing the purchase and rent of industrial land and buildings with sizes ranging from 5,000 to over 20,000 m² at JD 32 to JD 38 (USD 45 to USD 54) per m². Its proximity to Sahab Industrial Estate makes it the second industrial estate to be set up in the Capital’s Governorate. It will also follow a development system based on clusters inside its bounds. Al-Zarqa Industrial Estate Al-Zarqa Industrial Estate is located 45 km northeast of Amman. It spreads over an area of more than 2,475 dunum. It is adjacent to the international road leading to Al-Zarqa area. This road connects the estate to the Jordanian-Iraqi border, and it is close to the free zone in Al-Zarqa. Al-Zarqa Governorate is densely populated and enjoys significant commercial activity. This activity will help 60

stimulate the estate and provide it with the human capital and expertise it needs to grow. Its first-phase will cover a total area of 850 dunum. Al-Tafila Industrial Estate The estate is set to be located at the entrance of the Al-Tafila Governorate. It is 200 km to the south and 24 km to the west of the main international road that runs north and south of the Kingdom. It will be established on a total area of 1,000 dunum, with an area of 500 dunum to be developed in the first phase. Madaba Industrial Estate Set to be located in the Madaba Governorate and with a total area of 500 dunum, this estate is to be constructed based on the 2008 agreement of building, developing, managing, and marketing forged between JIEC and Kuwaiti Soroh Investment Company. The cost of the infrastructure is expected to reach USD 20 million (JD 14.2 million), with investment volume expected to reach up to USD 250 million (JD 177.5 million). Industries targeted for this estate include IT, pharmaceuticals, cosmetics, and Dead Sea products.

Public Industrial Estates Jordan Industrial Estates Corporation (JIEC) www.jiec.com T: +962 6 402 2101 F: +962 6 402 1194 Private Industrial Estates Al Mushatta (QIZ) Amman www.al-mushatta.com T: +962 6 566 2327/8 F: +962 6 566 2398 Ad-Dulayl Industrial Park (QIZ) Zarqa www.ad-dulayl.com T: +962 4 624 290 F: +962 4 625 701 CyberCity (QIZ and Free Zone) Irbid www.cybercity.com T: +962 6 592 3891 F: +962 6 592 3895 Al Tajamouat Industrial City (QIZ) Amman www.altajamouat.com T: +962 6 402 7525 F: +962 6 402 7535 Hallabat Industrial Park (QIZ) Zarqa www.hallabat.com T: +962 6 566 9954 F: +962 6 566 7419

• Exempting salaries and allowances of non-Jordanian employees in projects established in the free zone from income and social service taxes.

• Exempting buildings and real estate constructions built in the free zones from licensing fees as well as building and land taxes.

• Exempting imported goods or goods exported to parties other than domestic market from import

Area

Location

fees, custom duties, and all taxes and fees accrued thereon (except services and rent charges).

Date of Establishment

Investment Activities

Zarqa Free Zone

Zarqa Governorate/ 35 km southeast

5200 dunum

1983