Jordan Renewable Energy Projects & investment Opportunities Take advantage. Turn to Jordan. Dr. Bashar Al-Zu bi, Senior Advisor to the CEO December 2010
and is the natural gateway into Iraq and its tremendous reconstructio n and growth potential. Jordan is considered an ideal base location for Iraq based businesses due to geographic proximity, security, and infrastructure With imports of 32.2 billion USD in 2008, Iraq presents a clear and large market potential for different goods & services. Jordanian exports to the Iraqi market have doubled between 2003 to 2008 to reach $1.3 billion* Iraq is projected to maintain a 7% growth rate into 2010, and increase in 2011 to 7.9%, driven primarily by oil revenues ** * Source: Central Bank ** Source: IMF www.jordaninvestment.com 2
Beyond MENA, Jordan is a virtual hub that provides access to a number of international markets through a series of free trade agreements Jordan s virtual hub allows free market access to over 1 billion consumers through its trade and investment agreements. Canada FTA US FTA EU Association Agreement Turkey FTA Aghadir Agreement Greater Arab Free Trade Agreement (GAFTA) Qualified Industrial Zones Agreement (QIZ) Singapore FTA www.jordaninvestment.com 3
and presents clear enablers to help your business grow. Regulatory environment committed to free markets principles Strong legal framework and intellectual property protection rights; ranked 30th globally in IP protection Political Stability & Rule of Law Ranked among the top ten countries globally in organized crime prevention(* 30 out of 130 countries surveyed, WEF Global Competitiveness Report 2009 2010) 4
and presents clear enablers to help your business grow. GDP reached almost $23 billion in 2009, averaging 7.1% real growth over the past 5 years * Stable currency that promotes trade and investment; has maintained a steady exchange rate to the US dollar since 1995 Economic Stability Outstanding external public debt reduced to 23% of GDP in 2009 (down from 66.2% in 2004) * - central bank of Jordan Solid and healthy banking sector 5
and presents clear enablers to help your business grow. Young population with almost 70% under the age of 30 The highest literacy rate in the region 92% Invests >20% of GDP on lifelong learning. Named top performer (1 st in Arab world) in education reform in MENA region. Skilled and Talented Human Capital Has one of most qualifiedcompetitive and productive talent pools in the region. with labor rates considerably lower than those in other countries in MENA 6
and presents clear enablers to help your business grow. Three international airports Aqaba Sea Port Five road-linked borders providing access to over 330 million consumers Reliable & Well Connected Infrastructure A modern telecommunications infrastructure Jordan scored 3.47 in the Networked Readiness Index of 2006 2007 rankings making it the 5th highest among Arab countries* - WEF 7
What do you see? We see a growing market. We see a highly educated workforce. We see strategically placed free zones. & We see 21 st century infrastructure. 8
So how can you take advantage www.jordaninvestment.com 9
Make the Most of Fresh Opportunities. Jordan s strategic investment focus is on key business sectors, with innovation at their heart. These sectors for future success are built on four cornerstones: a strong business environment; a worldclass skills base; a world-class infrastructure meeting the needs of business; and an economy embracing the opportunities arising from transition to renewable energy. Take advantage. Go Jordan. www.jordaninvestment.com Page 10
General Industries EWE & Clean Energy Tourism Healthcare & Pharmaceutic al ICT Mega Projects www.jordaninvestment.com 11
JIB has assessed fresh opportunity ideas in line with sector strategies in Jordan.
The invest Jordan EWE & clean energy advantage. The right place. The right time. www.jordaninvestment.com Page 13
Consider your home energy challenge No indigenous energy resources High dependency on imported energy 2020 Jordan s Energy Sourcing Mix 2020 2015 2008 0% 20% 40% 60% 80% 100% Oil Natural Gas Renewable Energy Imported Electricity Oil Shale Nuclear Power Our Challenge In Jordan 2015 2008 0% 50% 100% Imported Engery Domestic Resources Primary energy demand is expected to double between 2008 and 2020 High cost to the economy with energy imports accounting for more than 13% of GDP www.jordaninvestment.com 14
Features Jordan is considered as a hub and transit country and can play a major role linking oil, gas and electricity network among the region. The country has a huge potential of : energy resources (oil shale, uranium). renewable energy utilization (wind, solar). In regard of oil and gas, Jordan has not been explored yet.
Renewable Energy and Energy Efficiency Law Main Goals Provide a legal mandate for the government and a regulatory framework for RE and EE development. Encourage private-sector investment in RE. Diversify energy sources in Jordan. Reduce greenhouse gases. Develop in-country expertise related to RE and EE
1000 TOE Energy Demand Jordan witnesses high growth of energy demand Period Electricity Demand Growth (%) Primary Energy Demand Growth (%) (2008-2020) 7.4 5.5 Growth of Primary Energy Demand Med. Demand 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 2007 2009 2011 2013 2015 2017 2019 Year The expected demand for primary energy amounts is 15 million tons of oil equivalent in 2020 compared to 7.5 million tons of oil equivalent in 2008. www.jordaninvestment.com 17
Energy Strategy ( 2007-2020) MAIN GOALS : Diversifying the energy resources Increasing the share of local resources in the energy mix. Reducing the dependency on imported oil Enhancing environment protection This will be achieved through : Maximizing the utilization of domestic resources (oil shale, natural gas, etc.) Expanding the development of renewable energy projects Generating electricity from nuclear energy
As your investment opportunity at your own home. In order to achieve our transformational master energy plan, we are investing over $18bn in our energy sector Enegery Efficiency $150 $2 400 Natural Gas $6 000 $4 000 $2 000 Power Sector $5 800 $0 Oil Shale $3 800 Oil $3 400 Renewable Energy $2 100 Your opportunity to leverage our strategic focus on the top half of the green energy value chain covering opportunities in assembly, installation, integration, testing and support With a fast growing local market acting as your test bed and a strategic geographical location providing a launch pad to the region, Jordan is the natural home for your energy investment www.jordaninvestment.com 19
and to help you, JIB has identified several projects that offer attractive rates of return that are above deposit rates. Turnkey Solar Equipment Packager District Energy Company Concentrated Solar Power Generation Landfill Gas Power Plant Polysilicon Production Gas Station Chain High-Density Insulation Automated Solar PV Cell Production Line Wadiaraba Wind Farm Investment (m) 56.4 91.8 5.9 16.0 193.3 3.7 30.8 5.9 2.7 0,0% 5,0% 10,0% 15,0% 20,0% 25,0%
Establishing a Renewable Energy & Energy Efficiency Fund: provide good financial framework to support energy efficiency programs and renewable energy projects, to help achieve the targets set in the Energy Strategy; 10% renewable and 20% energy savings by 2020. Funding resources are annual Budget allocations and Foreign donation. Allows for Bylaws to be issued for EE measures in different sectors. www.jordaninvestment.com 21
Rethink market access and invest in new opportunities. Thank you. Take advantage. Turn to Jordan. www.jordaninvestment.com Page 22