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Overview
 
Strategic location
Jordan-EU Association Agreement
Investment in Jordan
Jordan's Agreements Website
The Qualifying Industrial Zones
Amman Trade Point
Aqaba Special Economic Zone  
Privatization
 
Competitively Priced Human Resources
 
 

 

Overview:

The Jordanian economy is a market oriented economy. The economic system is based on free enterprise and personal initiative. Since 1989, and with the help of international organizations, efforts have been under way to restructure and revitalize the economy. The results have been more than satisfying. 
King Abdullah II has been working hard to further develop the economy, and strengthen the environment attractive to foreign investors. Upon His Majestyís directives, the government has undertaken wide range major changes and adjustments to financial and economic legislation in order to improve the competitiveness of the economy and integrate Jordan with the global economy.
These efforts have yielded steadily improving results. For example, the GDP grew by 7% between 1992-1997. Over the last few years the steady growth rate in GDP has continued. The real GDP grew by 4.8%, 4.7%, 4.9%, 3.8% and 7% (estimated) in 2000, 2001, 2002, 2003 and 2004 respectively. 
The competitiveness of Jordan is helped by its geographical location at the heart of the Levant. It also enjoys free trade accessibility to major international markets, such as the USA and Europe, as well as to the Arab world.
In December 1999, Jordan joined the World Trade Organization (WTO) as the organizationís 136th member. It is believed that the accession to the WTO will assist Jordan in gaining the opportunity for entering the global market, promoting its trade and improving its economy.
In November 1997, Jordan signed a Partnership agreement with the European Union. The agreement entered into force on May 1st, 2002. The main objective of the agreement is the establishment of a free trade area between Jordan and the EU over twelve years. The agreement encourages more direct European investment, provides free access to Jordanís agricultural and industrial products and facilitates the transfer of state-of-the art technology.
In addition to benefits in the political, social and cultural fields, the agreement promises distinct economic yields for Jordanís development.
On October 24th, 2000 Jordan and United States have signed ďJordan-US Free Trade AgreementĒ. The agreement has entered into force in December 2001. The agreement will phase out virtually all tariffs on two way trade in goods and services. Furthermore, it will help Jordanís economy to prosper, attract foreign investments and facilitate the transfer of technology. It is worth mentioning that Jordan is one of four countries in the world who have such an agreement with the United States and it is the first with an Arab country.

 

Strategic location:

Jordanís strategic location at the meeting point of Asia, Europe and Africa, make it a link between the three continents. The Kingdom represents an ideal gateway to Middle East and North African countries (MENA). A region which has over US$ 350 million consumers whose purchasing power exceeds US$ 500 billion.

 

Investment in Jordan:
It is said that Jordan offers a wide-range of opportunities.  Many leading businessmen see Jordan as offering an ideal base for investment in the region. The Investment Promotion Law of 1995 affords equal treatment to Jordanian and non Jordanian investors and it introduces guarantees against expropriation. It allows the investor to own any project in full or in part, with the exception of some trade and contracting services which require a Jordanian partner. The law, also, offers generous and attractive incentives to investors, such as freedom from customs duties, exemption from taxes and tax holidays, as well as unrestricted transfer of capital and profits. Excellent incentives are, also, provided for export oriented industries, whereby all earnings from export are totally exempted from income tax.
Jordan Investment Board is charged with promoting investment in Jordan. From the reception at the airport to the opening of the factory. Businessmen and investors could receive free services and facilities upon arrival at the airport. Investors Services Office at Queen Alia International Airport could be contacted at the following numbers: Tel +962 6 4452 799 Fax +962 6 4452 788.

 

The Qualifying Industrial Zones:

The Qualifying Industrial Zones (QIZ) have attracted many foreign investments. It represents an unprecedented opportunity to duty free, no quota, access to the US market for the goods produced within the zone. Currently, there are ten designated industrial parks in Jordan as QIZ's: the Gateway QIZ on the northern Jordan-Israel border; the Al-Hassan Industrial Estate in Irbid; the Al-Tajamouat Industrial Estate in Amman; the Ad-Dulayl Industrial Park near Zarka, the Kerak Industrial Estate, Aqaba Industrial Estate, Jordan Cyber City in Irbid, Al-Qastal Industrial Zone in Amman, Mushatta International Complexin Amman, and El-Zai Readywear Manufacturing Co. in Zarqa.

 

Aqaba Special Economic Zone:

ASEZ represents an ideal opportunity for doing business in a competitive location. The zone is located at the crossroads of four countries and three continents. For more details, please click here.

 

Privatization:

Since the Jordanian economy is private-sector oriented, the state ownership is relatively small, except for the mining and public utilities sectors. Recognizing the importance of the private sector role, a series of privatization initiatives have been implemented to downsize public shares in the productive sectors. To this end, an Executive Privatization Unit has been established. Currently, the program concentrate on the power sector, Royal Jordanian Airlines, National Petroleum Corporation, Arab Potash Company and Jordan Phosphate Mines company.

 

Competitively Priced human resources:

Jordan has one of the highest literacy rates in the region, 89%. With its large pool of high caliber intellectual and professional expertise, Jordan became a major supplier of brainpower to neighboring countries. Jordanís manufacturing labor cost per hour is significantly lower than that of other nations. It is equivalent to 5% of Japanís labor cost, 7.4% of the US labor cost and 9,4% to the UK labor cost.

 

You are cordially invited to discover why Jordan is today's top business location in the region