Investment Climate & Business Opportunities in

Jordan

Jordan at a Glance

Jordan – Turkey Economic Relations

Why Invest In Jordan?

Table of Contents

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2

3

4

5

Development & Free Zones in Jordan4

Jordan Industrial Estates Company5

Jordan at a Glance1

Official name The Hashemite Kingdom Of Jordan

Capital city Amman

Population 6,665,000

Official Language Arabic

Government

UnitaryParliamentary Constitutional Monarchy

King Abdullah II

Area 89,342 km2

Neighboring Countries

Syria , Iraq , Saudi Arabia , Palestine , Israel

Currency Jordanian Dinar

GDP per Capita 4,674 $

Time Zone GMT +2

Jordan at a Glance

Jordan–Turkey Economic Relations2

Double Taxation Prevention Treatment ( 1985 )

Bilateral Investment Promotion and Protection Agreement ( 1993 )

The Association Agreement Establishing a Free Trade Area between the Republic of Turkey and Jordan ( 2009 )

Turkish-Jordanian Business Council strengthened commercial and economic relations between the two countries ( 1994 )

BILATERAL AGREEMENTS

Top Imported Commodities from turkey2011-2012

Top Exported Commodities to Turkey2011-2012

Description Trade Value Description Trade Value

Raw petroleum materials, iron and steel

(52 million $) Crude fertilizers (47 million $ )

Textile yarn, fabrics (47million $) Inorganic chemicals ( 21 million $ )

Manufactures of metals (31 million $) Fertilizers ( 13 million $ )

Electrical machinery and apparatus

(40 million $) Textile yarn, fabrics (4,2 million $)

Other unclassified goods and money and other

commodities

( 601 million $ )Other unclassified goods and

money and other commodities( 9.8 million $ )

Total ( 771 million $ ) Total ( 95 million $ )

Trade Relations with the Republic of Turkey

Why Invest In Jordan?3

ADVANTAGES OF INVESTING IN JORDAN

Liberalized Market

Cheap oil ,gas , and electricity

Free Trade agreements ( access to more than one billion

customer )

Domestic Market of over 8 Million People

Proximity to the Huge Markets

Gateway to the Gulf region

High-skilled, Competitive Labor

Low Labor Cost ( min wage 230 $ per month )

Strong Ties With G20 countries

Guarantee of Transfers

Reliable Investment Environment

The Point of Access to the MENA Region

350.3 million is the 2011 estimate of the population of Arab countries*

$2,761 billion is the total MENA GDP in 2011**

2.3% is MENA’s population growth rate vs.. 1.2% the growth of the world population in the same period***

15.6% is MENA’s GDP growth for the period 2005–2011 compared to world average of 8%***

* Arab Monitory Fund Report** IMF World Economic Outlook Database*** IMF & UN World Population Perspectives Database

Beyond MENAJordan’s virtual hub allows free market access to over one billion

consumers through its trade and investment agreements

• Turkey FTA

• Singapore FTA

• Canada FTA

• Aghadir Agreement

• Greater Arab Free Trade

Agreement (GAFTA)

• US FTA

•EU Association Agreement

• Qualified Industrial Zones

Agreement (QIZ)

• Jordan-EFTA

Growing, robust & stable economy

Favorable business

environment

Modern & well connected

infrastructure

Skilled & talented human

capital

Political stability, security & rule of

law

Jordan presents clear enablers to help your business grow

Jordan traditionally enjoys theposition of one of the morestable countries in the MiddleEast. According to GloablIntakeJordan holds an excellent ranking( 12 ) which is considered anelevated risk ranking.

Very good anti-corruption policy( according to Transparency Intl. )

Independent and neutral judicialsystem , whereas Jordanians andnon Jordanians are equal in frontof the law

Ranked the third least corruptamong middle eastern inTransparency International’s 2012Corruption Perception Index afterQatar & UAE

All industrial projects located inside the (Development Zones) enjoy numerous of incentives & exemptions as follow:

5% (Flat Rate) on income generated from activities with the

development zone (Industrial Estate)

Income Tax

0% on goods and services purchased into or imported for use in

economic activities

Sales Tax

0% on all materials, instruments, machines, and appliances used for

establishing, construction and equipping and furnishing all kind of projects

Customs Duties

0% on all income accrued with zone (Industrial Estate)Social Services tax

0% on all income accrued with zone (Industrial Estate)Dividends Tax

Investment Incentives

Economic Freedom (2012) - Index of Economic Freedom - Heritage Foundation

32 Most Free Economy in the World3rd Most Free Economy in the Region

Scored 70.0 on Investment Freedom World Av. 59.5 Scored 69.9 on Economic Freedom World Av. 59.5

rank country overall scorechange from previous

1 Bahrain 75.2 -2.5

2 Qatar 71.3 0.8

3 Jordan 69.9 1.0

4United Arab Emirates

69.3 1.5

5 Oman 67.9 -1.9

6 Israel 67.8 -0.7

7 Kuwait 62.5 -2.4

8 Saudi Arabia 62.5 -3.7

9 Morocco 60.2 0.6

10 Lebanon 60.1 0.0

Regional Ranking

Development & Free Zones in Jordan4

Development Zones designed to leverage the unique investment characteristics of every region

Jordan Development

Area (Jabal Ajloun – Dead

Sea)

Amman Development Area

Irbid Development Area

5%Income Tax

0%Income Tax on Exports

0%Sales Tax

0%Import Duties

0%Social

Services Tax

0%Dividends

Tax

Aqaba Special

Economic Zone(Free

Zone)Ma’an

Development Area

Mafraq Development Area

Business Park Development

Area(Dabouq)

King Hussein Bin Talal Development Area ( Mafraq)KHBTDA

• Stretched across 21 Km2

• Light & Medium Industry Sectors ( Food , Beverage , Pharmaceutical , Medical Supplies , Light Chemical , and Other…..)

• Logistic Sector • Residential ,Community Services ,and

Commercial Sectors .

Ma’an Development Area

• Industrial Park • Residential Community• Skill Development Center• Hajj Oasis

IRBID DEVELOPMENT AREA IDA

• Service Industry ( Information and Communication Technology )

• Health Care• Research and Development• Residential and Multi Use Commercial

Facilities

Dead Sea Development Zone• Located 55 km from the capital Amman

• on the shores of one of the most spectacular and historical landscapes on earth

• Investment opportunities are focused on tourism and hospitality sectors

• Residential developments and community services

• Recreational facilities , spas , Restaurants and other attractions

Business Park Development Area ( Dabouq )

• Located in outstanding city location inside Amman

• O / NGO ‘s

• Medical and health centers

• Safety , Security , and Compliances

• Media

• Residential Sectors

Jordan Industrial Estates Company5

Jordan Industrial Estates Company

Why the Industrial Estates

• Enhancing the investment environment

• Generating job opportunities

• Assembling industries within specific area

• Technology settling

• Enhancing the products’ accessibility

• Environmental issues

Industrial Estates : a specific areas zoned for industrial activity in

which infrastructure such as roads, power, and other utility services is

provided to facilitate the growth of industries and

to minimize impacts on the environment

JIEC ACT …. DOES NOT ONLY REACT

WHY JORDAN INDUSTRIAL ESTATES COMPANY?

Industrial Sectors

Industrial EstatesDesigned to Leverage the Unique Investment Characteristics of Every Region

Zarka Industrial Estate

Al Hussein Industrial Estate / Karak

Al Hassan Industrial Estate / Irbid

Al MuwaqarIndustrial Estate

Aqaba International Industrial Estate / Aqaba

Abdullah II Industrial Estate / Sahab

Madaba Industrial Estate

Al Mafraq Industrial Estate

Projects in The Pipeline

Zarqa’a Industrial Estate

Madaba Industrial Estate

Al Mafraq Industrial Estate

Jerash Industrial Estate

Salt Industrial Estate

Tafilah Industrial Estate

Success Stories Take advantage. Turn to Jordan.

Thank You