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Jordan

Investment

Environment and

Opportunities

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The Five Pillars Strategy

• Regional hub for International Companies

• Regional base for IT services

• Strategic location for Res-construction efforts in Iraq and Syria

• A new destination for movie production

• New export markets

Foreign Investment in Jordan / Investment Law (30)

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Foreign Investments in Jordan / Investment Law (30)

• Foreign Investments enjoy incentives and benefits offered by the investment law, including exemptions from custom duties, general sales Tax and in some cases reduction on income Tax.

• No restriction on foreign ownership except in a limited number of economic activities. Investments in Development and Free Zones can be wholly owned by foreign investors.

• No Minimum Capital required.

• Foreign investors enjoy privileges and guarantees, including national treatment, free movement of capital, no restriction on repatriation of profits, and options to resort to alternative dispute settlement mechanisms.

• Foreign investors also enjoy facilitated registration and licensing services by the “Investment Window”, in addition to support in obtaining visas and residency permits for investors, their families and employees.

Jordan’s Business Environment

10 Reasons to Invest In Jordan

8

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JORDAN IN THE WORLD

The country has one of the most dynamic and diversified economies in the MENA region, and is uniquely positioned to provide regional and global access to businesses.

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STRATEGIC MARKET ACCESS TO OVER 1 BILLION CONSUMER

Regional Free Trade Areas

Bilateral Free Trade Agreements

1. Greater Arab Free Trade Agreement (18 Arab countries )

2. EU-Jordan Association Agreement. ❖ Jordan EU Compact Agreement

3. European Free Trade Association - EFTA (Norway, Switzerland, Iceland and Liechtenstein).

1. USA2. Singapore3. Canada

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

Targeted Sectors

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

Expected Value of Investments

500Billion USD

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DEVELOPMENT ZONES AS A GATEWAY TO INCENTIVIZED TRADE AND BUSINESS5% Income Tax

(Industrial activity in the zone)

10% Income Tax(Other activity in the

zone)

0% Customs Tax(Production inputs and

requirements)

7% Sales Tax(service in the zone)

0% Sales Tax (input goods and

services in the zone)

Value Added Sectors

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Jordan Promising Sectors

Agriculture

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

ICT

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

Energy & Renewable Energy

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

Transportation & Logistics

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

Tourism

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

HealthCare

The Jordanian healthcare sector is known for its high-quality services, bothregionally and internationally, world-class qualified medical workforce andaccredited hospitals and facilities.

Industry

The Jordanian industrial sector consists mainly of manufacturing,extractive industries, electricity and water. These sectors are linkedbackward and forward with sectors such as transportation, insuranceand trade.

Jordan in Numbers

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In 2019:

• Top 20 reformers in Doing Business

• Moved 3 places in the Global Competitiveness Index 73 to 70

• Exports increased 5.1%

• Trade defect decreased 10.2%

• Tourists increased 5.6%

• Tourism income increased 8.3%

Jordan – Italian Trade and Investment

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Jordan – Italian Trade and Investment

Economic Trade Agreements:

• Association Agreement with the European Union (Signed,Nov.1997)

• Investment Promotion and Protection Agreement (Signed,July.1996)

Exports/imports Commodities:

Top Imported Commodities from Italy to Jordan Top Exported Commodities from Jordan to Italy

Machinery and mechanical appliances Precious Metals

Articles of jewelry and parts thereof Fertilizers

Mineral oils and products Aluminum and articles thereof

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Jordan – Italian Trade and Investment

Italian Investments in Jordan:

Trade Balance Jordan & Italy (Source: UN Comtrade)

Trade Balance 2014-2018, $ million

JORDAN - ITALY

YEAR JORDAN IMPORTS JORDAN EXPORTS BALANCE

2018 628.3 36.7 -591.7

2017 808.3 25.8 -782.5

2016 835.8 39.0 -796.8

2015 805.0 54.2 -750.8

2014 697.4 57.1 -640.3

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

Opportunities: Investment Map / Mega Projects

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Opportunities: Investment Map

54 Projects – INDUSTRIAL SECTOR

23 Projects – SERVICES SECTOR

21 Projects – TOURISM SECTOR

14 Projects – AGRICUTLURE SECTOR

8 Projects – HEALTHCARE SECTOR

10 PROJECTS PER

GOVERNORATE

302 MILLION JOD

EXPECTED

INVESTMENT SIZE

3800 JOB

OPPORTUNITIES

Projects range

between (50,000-

28,000,000 million

JOD)

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Opportunities: Mega Projects

Sector Project name Description/notes Investmentsize (JD Million)

1 Logistics and

Transportation Marka Airport

The project consists of the expansion of Marka Civil Airport as well as the rehabilitation of its existing terminals. The project

will serve regular low-cost flights, commercial flights in addition to charter flights and offer aviation training. The expansion

will increase the airport’s capacity to host up to 2 million passengers in the future

114-119

King Hussein Bridge crossing terminal and

truck yard

A Regional master plan is being prepared in parallel with the feasibility study, The World Bank Infrastructure Development

fund ($1.5 m) is co-funding the project development with the GoJ ($500,000). Studies with IFC and CC are underway. IFC

was chosen as the transaction advisor. IFC has indicated it is ready to market soon.

100-150

Madounah Dry Port/ Logistic Center 2020 100

Amman-Zarqa Bus Rapid Transport 2020 188

2 Water and

Wastewater

Aqaba-Amman National Water Conveyance

Project (AAWDC Project) (National Project)

The objective of the project is to construct a water conveyance system to enhance the Kingdom’s national water security by

producing potable water through desalination at the Gulf of Aqaba and transferring 150 MCM/year of additional water to

Amman. These flows will be obtained from the identified two Project Components – Rum/ Disi Wellfield and a Reverse

Osmosis Plant to the south of Aqaba the Red Sea.

1,100.00

As Samra treatment plant (third phase/

second expansion )

The objective of the project is to expand the capacity of the As-Samra treatment plant from 365,000 CM to 465,000 CM per

day (i.e. additional treatment capacity of 100,000 CM per day). Additionally, the project will establish a solar power plant

with 10 MW capacity and will serve the adjacent unsaved communities with wastewater networks.

200

Non-Revenue Water (NRW) Reduction

Project

The project aims to develop appropriate techniques to reduce physical and commercial water losses in Amman through

the preparation and implementation of a performance based NRW contract under a hybrid financing modality including

grants and Private investment. This approach will start in Amman Governorate but will be rolled out to other

governorates.

47

3 Tourism Infrastructure projects in the Dead Sea 2020 1,840

Al Qastal resorts and recreational facilities 2020 50.33

4 Education Supporting the Jordan Schools Program.

Build 15 schools using PPP model

The aim of the project is to support the Jordan Schools Program, which entails building up to 300 new schools over the

next decade under a PPP scheme.75-100

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Opportunities: Mega Projects

Sector Project name Description/notes Investmentsize (JD Million)

5 Energy

Pumped-Storage Hydropower

The project is aimed at utilizing the water dams in Jordan in order to generate and store electricity. Three locations of high

potential have been identified: Wadi Al Arab Dam, Wadi Al Mujib and King Talal Dam.)142

Oil and Gas exploration in the open

exploration blocks (Azraq, West Safawi, Jafr,

Serhan, Dead Sea, Rum, Petra and Northern

Highlands)

The Project aims to explore the open Blocks for conventional and unconventional resources of oil and gas through signing

Production Sharing Agreements “PSA” with the qualified Company.250

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

Oil Shale deposit in Karak governorate through the extraction, exploitation and surface retort processing technology to

produce a suite of refined petroleum products. The project is a Private-Private Partnership and GoJ is not obligated to

purchase any of the refined petroleum products.

1,420.00

Generation of electric power by direct burning

of waste

2020 120-130

Expand the development of renewable

energy projects for power generation (wind &

solar)

2020 300

Use of 'energy storage through batteries' to

reinforce the electrical grid and maintain its

suitability.

2020 50

Develop Jordan-Iraq-Egypt Oil Pipeline 2020 1,600.00

Developing and enhancing the production of

existing wells and drilling new wells.

2020 100

Exploration and exploitation of gold in Wadi

Araba

2020 100

Thank You

www.jic.gov.jo