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Overview:
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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. |
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King
Abdullah II has been working hard to further develop the economy, and
strengthen the environment attractive to foreign investors. Upon His
Majesty’s 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. |
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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. |
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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. |
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In
December 1999, Jordan joined the World Trade Organization (WTO) as the
organization’s 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. |
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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 Jordan’s
agricultural and industrial products and facilitates the transfer of
state-of-the art technology. |
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In
addition to benefits in the political, social and cultural fields, the
agreement promises distinct economic yields for Jordan’s development. |
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On
October 24th, 2000 Jordan and United States have signed “Jordan-US
Free Trade Agreement”. 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 Jordan’s
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.
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Strategic
location:
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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.
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Investment
in Jordan: |
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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. |
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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.
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The
Qualifying Industrial Zones:
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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.
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Aqaba
Special Economic Zone:
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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.
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Privatization:
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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.
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Competitively
Priced human resources:
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| 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. Jordan’s
manufacturing labor cost per hour is significantly lower than that of
other nations. It is equivalent to 5% of Japan’s labor cost, 7.4% of the
US labor cost and 9,4% to the UK labor cost.
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You are cordially invited
to discover why Jordan is today's top business location in the region |
