FDI Performance Indicators (UNCTAD)

Year

Under Performers

Below Potential

Above Potential

Front Runners

1988 – 1990

Jordan

1993 – 1995

Jordan

2000 – 2002

Jordan

2002 – 2004

Jordan

2005 – 2006

Jordan

The Globalization Index 2007

• Issued by FOREIGN POLICY magazine in partnership with A.T. Kearney.
• Measures countries on their economic, personal, technological and political integration.
• The 2007 Index draws on data from 2005.
• 72 Countries took part in the Index 2007.

Countries of the Globalization Index, ranked by foreign direct investment as a share of GDP (sum of FDI inflows and outflows divided by GDP)

Rank

Country

FDI 2005

10

Jordan

12.05%

Doing Business 2008 (World Bank Group)

Arab Countries

Ranking out of 17

Jordan

5

Global Competitiveness Report 2007 – 2008 (World Economic Forum)

·         Prevention of Organized Crime: Jordan ranks (9) out of (131) countries.

·         Business costs of crime and violence: Jordan ranks (13) out of (131) countries.  

·         Reliability of Police Services: Jordan ranks (14) out of (131) countries.  

Jordan Investment Board – Investment Promotion Law Incentives

1.       Income tax exemptions.
2.       Tax breaks for 10 years, the percentage of which depends on the project's location.
3.       Development areas are exempted for 20 years.
4.       Customs and sale tax exempted for 20 years.
5.       Customs and sale tax exemptions on all fixed assets.
6.          Capital and production goods are exempted from customs duties and sales tax.

Investment Volume of Projects that Benefited from the investment Law 2002 - 2007

Year

Million USD

2002

424

2003

370

2004

590

2005

1,058

2006

2,586

2007

3,080

Human Resources

·         Well educated population.
·         Over 91% literacy rate.
·         192,000 students currently enrolled in universities.
·         17% of the population receives higher education.
·         24 universities (14 private and 10 Public).
·         60 community colleges.
·         35 vocational training centers, training over 10,000 people each year.
·         Competitive wage structure. 

International Gateway

·         Member of WTO.
·         Jordan – US Free Trade Agreement (FTA).
·         Qualifying Industrial Zone (QIZ) Agreement.
·         Greater Arab Free Trade Agreement.
·         Euro-Jordanian Association Agreement.
·         Aghadir Agreement.
·         Jordan – EFTA FTA. 

Enabling Platforms

·         Aqaba Special Economic Zone

·         Development Zones:
1.       King Hussein Bin Talal Economic Zone
2.       Irbid Economic Development Zone
3.       Ma'an Economic Development Zone

Exemptions Offered in Development Zones

·         Income Tax:
1.       Flat rate of 5% income tax on all economic activities.
2.       No income tax on profits from exports.

·         Sales Tax:
1.       No sales tax on procurement for projects.
2.       7% tax rate on sales of services to the local market.
3.       16% tax rate on sale of goods to the local market. 

·         Customs:
1.       No Customs duties on production inputs.
2.       Customs duties are due on sale to local market. 

Major Development Projects:

·         Red Sea – Dead Sea Canal.
·         Red Sea – Dead Sea Water Transfer.
·         Aqaba Port Relocation & Development.
·         Upgrading & Expansion of Jordan Petroleum Refinery.
·         Four New Electricity Plants.
·         Aqaba Railway Project.
·         Expansion of Queen Alia Airport.
·         Light Railway from Zarqa to Amman.
·         Disi Water Conveyance Project. 

Engines of Growth & Cooperation

                                                     Electronics and Home Appliances: 

·         Exports grew by more than 200% between 1998 and 2005, reaching $600 million in 2005, with Iraq and Syria being the largest markets. 

·         Home appliances, insulated wire and general purpose machinery are the main products. 

·         Jordan adopted the International Electro- technical Commission (IEC) standards in August 2005. 

 Automotive Industry: 

·         2 operating companies engaged in the assembly of transport vehicles and four-wheel drive cars (mainly for military use). 

·         8 companies operate in the production of automotive parts, radiators, batteries, glass and filters. 

·         75% of the production is exported.

                                                                 Garments & Textiles: 

·         Employs over 50,000 people and generates about $1.3 billion worth of exports. 

·         Achieved a net growth of over 200% in export levels, and over 20 % in employment levels in the past several years. 

·         Major international buyers sourcing from Jordan include: JC Penney, Levi’s, Liz Claiborne, Gap, Gloria Vanderbilt, Victoria’s Secret, Jones Apparel, Perry Ellis, PVH, Sara Lee, banana republic, Wal-Mart, Target. 

·         Products have duty-free access to major markets. 

                                                                     Pharmaceuticals: 

·         Investment volume of $700 million. 

·         Exports in 2006 $300 million, 2010 target $1 billion. 

·         Largest Arab exporter. 

·         17 major investments employing 8,000 high caliber employees.          

·         Compliant with intellectual property rights protection.        

·         Available supporting infrastructure: 8 pharmaceutical colleges, 4 clinical research organizations, and 97 hospitals. 

·         Increased investment in R&D (Clinical Trial Law). 

Tourism: 

•        In 2006:
•        Over 3.0 million overnight tourists.
•        $ 1.5 billion revenues. 

•        A rich mix of history, archaeology, nature, religious and adventure and health tourism.
 

•        27,000 historical sites, of which 4 are globally renowned: Wadi Rum, Dead Sea, Petra, Baptism Site.  

•        Potential for expansion in health and conference tourism.

                                                                         Health Care: 

•        According to the Arab World Competitiveness Report 2005, Jordan is the top ranking Arab country in terms of health care. 

•        97 hospitals and 22.4 physicians per 1000 population. 

•        More than 100,000 medical tourists annually. 

•        Annual revenues of $860 million. 

•        Medical Tourism Center for the region.  

•        Unique spas and health resorts: Dead Sea and natural hot springs in Ma’in, Himme and Zara.  

                                     Information and Communication Technology: 

•         220 private companies employing 16,000 high caliber employees. 

•         Rapidly growing sector in FDI, more than $1.5 billion since 2000. 

•         Exports of IT Products exceeded $100 million in 2005. 

•         In the 2003-2004 Global Competitiveness Report, Jordan ranked 11th out of 102 countries in terms of government commitment to ICT. 

•         Huge potential for investment in: 

•         Call Centers.

•         Education platforms/E-Learning.

•         Arabic language content.

•         Animation. 

                                                         Banking and Finance: 

•        Well developed banking system. 

•        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 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 represented 46.4% of ASE capitalization, 35.4% of which are owned by Arab investors and 11.0% by non-Arabs. 

                                                                                 Minerals: 

•        The mineral industries contribute about 3% of Jordan’s GDP. 

•        The main mineral production industries in Jordan are phosphates, potash, fertilizers, cement, and petroleum products. 

•        Jordan is the world's sixth largest potash producer, with 96% of sales being for export markets.  

•        Jordan phosphate reserves, estimated at 4% of total world reserves, are predicted to last about 300 years at current extraction levels. 

•        Only about a fifth of cement production in Jordan is exported, in large part due to the booming construction market in Jordan.  

What does Jordan Offer Investors?

•        Political stability and security.

•        Appropriateness of investment law. 

•        Fiscal policy and economic stability. 

•        Freedom to repatriate invested money, salaries and profits. 

•        Infrastructure. 

•        The availability and costs of an adequate workforce. 

•        The stability of laws and systems. 

•        Size and potential for expansion of the market. 

•        Ease of Government procedures.