His Majesty King Abdullah II

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3 For foreign companies that enter emerging markets, there are valuable connections: to in-country markets and regional trading networks; to a competitive workforce; to important knowledge about regional cultures and customers. Such businesses find significant trade and investment opportunities - especially in economies like Jordan's, which are on a path of modernisation and growth... and which are regional gateways... in our case, to the 300-million people of the Arab World. On a strategic level, building business in emerging markets helps create a counter-balance against market shifts and slowdowns elsewhere. And that contributes to the global economic vitality and stability that we all seek. His Majesty King Abdullah II

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5 Table of contents Forward About JIC The Investment Environment in Jordan Benefits of the Investment Law Investment Window Foreign Investment in Jordan Development Areas Industrial Cities Free Zones Investment Opportunities in Priority Sectors: - Energy and Renewables Sector - Tourism Sector - Information and Communications Technology Sector - Healthcare Sector - Industrial Sector - Agricultural Sector

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7 A word from the Chief of the Investment Commission The Hashemite Kingdom of Jordan has embarked on a comprehensive economic reform program to champion free market principles, to ease business restrictions, and further liberalize the economy. At the heart of this reform is foreign direct investment, and the significant role it plays in boosting development, creating jobs, and increasing Jordan s competitiveness. Successive governments have continued to enhance the regulatory environment through issuing economic laws, the most important being the Public Private Partnership Law and the Investment law. The investment Law No (30) of 2014 aims to develop and improve the investment environment. All investment bodies have been unified under the umbrella of the Jordan Investment Commission (JIC); the single entity responsible for all issues pertaining to investment. The new law also provides for the creation of the Investment Window which offers one stop shop registration and licensing services. The Investment Window is staffed by authorized representatives from all government entities responsible for issuing approvals. This allows the JIC more authority to facilitate procedures and abide by the highest international standards. Furthermore, JIC will help investors identify the right opportunities that best suit their needs. Investors will feel welcome and at ease in Jordan. Finally, I would like to express my deepest gratitude to His Majesty King Abdullah II for championing investment as a tool for development and for creating the JIC to pursue this goal. The JIC will strive to implement His Majesty s royal vision of a modern, open and vibrant Jordan. Montaser Al-Oklah Chief of the Investment Commission 1

8 About jic An independent governmental entity created under the Investment Law No. 30 of It is the legal successor of the Jordan Investment Board, Development and Free Zones Commission and Jordan Export Development & Commercial Centers Corporation (JEDCO), established to unify legislation and investment bodies and reduce bureaucracy. The Commission aims to support the investment environment in Jordan by simplifying procedures and facilitating new investments through establishing the Investment Window. The Investment Window brings together representatives of different governmental entities in one place to provide investors with licensing and registration services. Moreover, the Commission aims to improve and develop the overall investment process and enhance incentives given to investors.

9 Vision To become a pioneering international commission in attracting and welcoming foreign investments, promoting local exports, and enabling local investments to achieve economic prosperity in Jordan. Mission The JIC is committed to attracting foreign investment, supporting local investment, and ensuring a stable and attractive investment environment. Goal Creating plans and programs to motivate local and foreign investments, as well as promoting and implementing them. Regulating, developing and monitoring the implementation of development and free zones in Jordan. Showcasing investment opportunities in Jordan, providing investors with information and data, publishing guides and preparing related studies. Developing national exports, establishing commercial centers and representation offices, holding exhibitions, opening markets and regulating trade missions to promote and market national products. 3

10 The Investment Environment in Jordan: Jordan is recognized for its attractive investment ecosystem that provides investors with the right tools for success. This ecosystem is bolstered by a stable political and economic climate, and boasts a modern regulatory infrastructure in line with the latest global market trends and practices. Investors in Jordan enjoy the following benefits: Unique and strategic location as well as secure and attractive economic, political and judicial environment, under the dedicated and stable leadership of the Hashemite monarchy. Stable political environment with controlled macroeconomic tools. Developed and modern investment legislation. Constant development of the investment environment by simplifying investment procedures. Access to major international markets with a consumer base of over 1 billion people, through Jordan s free-trade agreements (especially with the United States of America and the European Union) and membership of the World Trade Organization. Granting the private sector the chance to play a major part in the country s economic activity and development. Qualified and competent human resources. Jordanian manpower is considered one of the most competent, competitive and productive in the region. Advanced infrastructure of airports, ports and road networks, with the intention of creating a railroad network that connects Jordan to its neighboring countries. Advanced finance and banking sector. 4

11 Key Features of the Investment Law Customs and sales tax exemptions for fixed assets used for production Flat 5% income tax on income generated within development areas, 7% sales tax on goods and services, and total sales tax exemption on products and services acquired for use by registered companies within development areas Income tax reduction of around 30% in less developed areas. A 5% income tax on the institute s generated income within the development zone, including industrial projects. Total sales tax exemption on products and services acquired by the registered institution to operate within the development zone. Benefiting sectors: crafts and industrial, agriculture and livestock, hospitals and specialized medical centers, hotels and tourism facilities, amusement parks and recreational tourism, call centers, scientific labs and scientific research centers, media and art production, conference and exhibition centers, in addition to the transference, distribution and/ or extraction of water, gas and petroleum products. 5

12 Investment Window: The new investment window was established to provide a central location to serve investors. It is staffed by authorized representatives from all entities involved in issuing licenses and permits. Objectives: Building trust in the investment environment. Providing a central location for serving investors. Following up on current projects and solving any obstacles, if encountered. Reducing the time needed to license and register investment projects, and determining all required procedures the investor should be handling beforehand. Services: Handling all investment projects procedures, from the pre-licensing and registration phase to collecting required approvals. Licensing and registering investment projects. Registering the investment project s economic activities according to the rules and regulations of the Jordanian Companies Law. Labor affairs services, including granting work permits and approvals for recruiting non- Jordanian workers to perform the investment project s economic activities. Granting entry and residency visas for investors and workers of the investment project. Granting environmental approvals for the project s economic activities. Providing investors with information and technical consultancy related to the project s economic activity. Issuing the investor s card with its two categories (A and B), according to the rules and conditions of each category. 6

13 Foreign Investment in Jordan Foreign investments enjoy incentives and benefits provided under the Investment Law, including exemption from payment of custom duties, general sales tax and in some cases reduction on income tax. No restrictions on percentage of foreign ownership except in a limited number of economic activities where a Jordanian partner is required. 50,000JDs Minimum Capital Requirement for foreign investment Minimum Capital Requirement for foreign investment is 50,000 JDs except for shares purchased in public shareholding companies. Investments in the Development Zones and the Free Zones can be wholly owned by foreign investors. Foreign investors enjoy privileges and guarantees, including national treatment, free movement of capital, protection against expropriation and the options to resort to alternative dispute settlement mechanisms. Foreign Investments enjoy facilitated registration and licensing services provided by the Investment Window. In addition to support in obtaining visas and residency permits for the Investor, his/her family and project employees as well as other services. 7

14 Development Areas: Development areas are established to promote specific economic activities by relaxing restrictions and offering further incentives. These areas are managed by Master Developers, entities designed to cater to all the needs of investors, and are regulated by the Investment Commission. The role of Master Developers include: Providing leased or purchased lands. Providing infrastructure services. Providing location and facilities to manage municipal services. Creating a partnership between public and private sectors. Providing an advanced environment for the duration of the project. 8

15 5% Income Tax 0% Income Tax on Exports 7% Sales Tax 0% Import Duties Social Services Tax Dividends Tax In The Development Areas, investments enjoy: A 5% income tax for income generated from all economic activities undertaken in the zones A 5% income tax for income generated from all manufacturing activities Enjoy export tax exemptions offered in the Kingdom on goods and services A reduction to (0%) on sales tax for goods and services used by the enterprise for business purposes within the zone with no guarantee needed A 7% sales tax on specific services offered by registered establishments in the zone when offered therein Customs duties exemption except on certain goods Investment Opportunities in Development Areas: Dead Sea Area: Tourism, eco tourism and MICE. Ajloun: Tourims and eco tourism. King Hussein Bin Talal Development Area (Mafraq): Residential and commercial service, industrial sector and logistics sector. Irbid Development Area: Information and communications technology services and health care. Business Park Development Area: Specialized and professional services, medical and health services, education, media, leisure and entertainment services. Ma an Development Area: Light, medium and heavy industry sectors, ceramics, plastic and electrical equipment. 9

16 INVESTMENT OPPORTUNITIES Investment Opportunities in Development Areas: Industrial cities provide developed lands and standard industrial buildings with competitive lease or purchase rates in Jordan. The convenient cost includes general facilities like electricity, water, infrastructure services, road networks and primary and secondary services, in addition to providing the investor with the ability to choose whether to own or purchase the property. Just like the development areas, the industrial cities are also eligible for incentives as well as tax and custom fees exemptions. Industrial Cities in Jordan: Current Industrial Cities Future Industrial Cities Abdullah II Ibn Al-Hussein Industrial Estate (Amman) Al-Hassan Industrial Estate (Irbid) Al-Hussein Bin Abdullah II Industrial Estate (Karak) Aqaba International Estate Muaqar Industrial Estate Al-Mafraq Industrial Estate Zarqa Industrial Estate Madaba Industrial Estate Al-Salt Industrial Estate 10

17 Investment Opportunities in Free Zones: Public Free Zones in Jordan and the Investment Opportunities in Each: Zarqa Free Zone: Industrial, commercial, services and tourism. Sahab Free Zone: Industrial, commercial, services and tourism. Queen Alia International Airport Free Zone: Industrial, commercial, services and tourism. Karak Free Zone Industrial, commercial, services and tourism. Sahab Free Zone: Industrial, commercial, services and tourism. Al-Karama Free Zone: Industrial, commercial, services and tourism. Muaqar Free Zone: Industrial, commercial, services and tourism. 11

18 Investment Opportunities in Priority Sectors Jordan holds a number of high added value sectors with potentially rewarding investment opportunities. Energy and Renewable Energy Sector: The investment benefits in Jordan make it a valuable investment destination in this vital sector. Its geographic location in the region provides a starting point for international companies with the intention of regional and/or international expansion. Jordan has a strategic reserve of shale and uranium, as well as renewable and alternative energy resources, such as wind and solar energy. Sunlight availability is 3000 hour/year and wind speed reaches 7 meters/second in some areas. Investment Opportunities in the Energy and Renewable Energy Sector: Manufacturing solar cells Manufacturing wind turbines and solar reflectors Participating in current projects Water desalination projects Generating electric power from solar energy Generating electric power from wind energy Generating electric power from geothermal energy Utilizing oil shale 12

19 Tourism Sector: The tourism sector in Jordan is fast-growing and involves many economic and social sectors. It contributed by 12.2% to Jordan s GDP in Jordan has become a safe destination for tourism due to its strategic central location in the region, moderate climate, safety and security. Jordan has many tourist attractions, like Petra (one of the new Seven Wonders of the World), the Dead Sea (the lowest point on Earth) and the Baptism site (of Jesus Christ). Investment Opportunities in the Tourism Sector: Three, four and five-star tourist hotels Amusement parks Convention and exhibition centers Three, four and five-star restaurants Natural and tourist resorts 13

20 Investment Opportunities in Priority Sectors Information and Communications Technology Sector: Jordan succeeded in creating and developing a highlycompetitive information and communications technology sector which is considered one of the pioneering sectors in the MENA region. The information and communications technology sector was the third highest contributor to Jordan s GDP in 2014; contributing over 14%. With more than 400 companies employing employees, and other workers directly and indirectly integrated in the process, this sector is considered the highest-growing local sector in Jordan. The information and communications technology sector provides a promising opportunity to enhance Jordan s competitive value in the region, which has led Jordan to take important steps to launch major activities to develop this sector. Today, Jordan is capable of providing all major elements required by international companies; becoming a new regional window that serves the region. Investment Opportunities in the Information and Communications Technology Sector/ Outsourcing Sector: Animation and video games design studios elearning with Arabic content Software development Investment funds directed towards information technology startup companies in Jordan Customer service call center Information technology solutions in the financial sector Outsourcing services: Call centers, financial, managerial and information services. 14

21 Healthcare Sector: A pioneer in the medical tourism sector, Jordan is ranked first in the MENA region and fifth internationally as a medical tourism destination, according to World Bank experts. Manpower is one of the most important components in the medical services sectors. With a ratio of 25.5 doctors per people, Jordan is ranked among the highest internationally. Moreover, most degrees acquired by doctors are either from the British or American medical boards. Another key factor that fortifies Jordan s status in this field is the competitive cost system which reduces potential risk of investments operated by medical services companies in the MENA markets, not to mention the outstanding capabilities these companies have in the medical research field. Investment Opportunities in the Healthcare Sector: Five-star medical centers and hotels Medical colleges Specialized medical centers Medical and therapeutic resorts 15

22 Investment Opportunities in Priority Sectors Industrial Sector: The industrial sector is one of the most promising sectors in Jordan. With a number of industrial cities and development zones which support small- and medium-scale industries, this sector contributed 22% to Jordan s GDP in This is in addition to the benefits industrial investments receive from Jordan s free trade agreements and treaties. Examples of industries operating in Jordan in the last few years: Extractive industries, including the extraction of calcium carbonate used in producing cement, construction stones (travertine), ornamental stones (marble and granite), shale, basalt, phosphate and silicates used in manufacturing glass amongst other things, in addition to other minerals. Mineral processing industries, including fertilizers, chemical acids, cement, ceramics, cosmetics, mineral wool, silica and bricks. Pharmaceutical industry sector: Jordanian pharmaceutical products are exported to more than 60 countries around the world. Jordan has 18 internationallyaccredited companies and more than 80 patents in Europe. Clinical trials in Jordan cost 30% less than they cost in Europe and the United States of America. Moreover, Jordan is recognized for protecting intellectual property and implementing intellectual property laws. In addition to that, Jordan provides a set of rules that regulate the clinical trials frame of work, as well as patent rules that grant a 20-year protection. Investment Opportunities in the Pharmaceutical Industry: Manufacturing medicine and sexual performance-enhancing drugs. Research and studies centers Bioequivalence tests Lab and clinical trials Herbal medicine 16

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24 Investment Opportunities in Priority Sectors Agricultural Sector: The agriculture sector continues to achieve a high growth rate owing to the expansion of irrigated farm areas. The modern production technology, the provision of a favourable environment for investments in the sector, the establishment of commercial-scale livestock projects and the absence of major obstacles for Jordanian exports to traditional and foreign markets all play a major role in increasing agriculture production. In addition, the Jordan Valley s fertile soil and warm temperature enables year-round agricultural production. Jordan is self-sufficient in a number of agriculture products such as olive oil but imports basic items such as cereals, dairy products, sugar, red meat and vegetables. The main industries within the sector are: rain-fed agriculture, irrigated agriculture, animal production and rangeland farming, support services (marketing and extension), horticulture (fruits and vegetables). Jordan s major agriculture exports are: tomatoes, hydrogenated oil and tobacco In 2014, the agriculture sector contributed 3.2% of the Jordanian GDP and employed 2.9% of the labour force. Total exports in 2014 reached $1.3 billion, a big portion of which was exported to Arab countries; mainly Iraq, UAE, Kuwait, Syria and Qatar. Numerous crop opportunities are available during the off-season in Europe for high quality exports: strawberries, seedless table grapes, galia melons, cherry tomatoes, asparagus, okra, green beans, snow/snap peas, cut flowers, dates. Business Opportunities Marketing firms focusing on promoting agricultural products Research and development for enhancing attributes of food and beverage products Extraction of flavors and fragrances from local plants 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, as well as the export of fresh fruits and vegetables Organic farming for the production of vegetables, as well as medical and aromatic plant production for local and overseas markets Production of animal feed from farm by-products Utilization of date palm by-products in the manufacturing of containers, floor mats and more. 18

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