2019 EDITION VOL. 4 ’S ANNUAL INVESTMENT GUIDE

THE JORDAN INVESTMENT COMMISSION REASONS TO INVEST IN JORDAN JORDAN’S BUSINESS REFORMS ADDED VALUE SECTORS Letter from JIC Land of opportunities 2010 to 2019 WHY JORDAN?

Jordan is a country with vast business growth potential and many competitive advantages. Jordan’s stability and strategic location have been reinforced with sound economic policies and a vision that ensures that Jordan will become a key market in the MENA region and an active partner in development of neighboring markets. Laws and policies are changing to enable a dynamic and successful investment and business climate. Jordan has taken concrete steps to drive economic growth, assist Syrian refugees, and project itself as a reliable partner internationally and in the region. Over the past decade, Jordan has focused on reforming its investment and business policies, improving its reputation as an attractive destination for investment, diversifying its economy, and stimulating business. The Investment Law No. 30 was passed and implemented in 2014 to ensure that the Jordanian business environment enjoys an ever-improving legal framework and business conditions. Numerous specialized development zones across Jordan have been established to host multinational businesses with complimentary business partners and communities that beneft from very strong incentives and exemptions. Investors will have the potential of serving over a billion customers, thanks to the numerous free trade agreements that Jordan maintains with trade partners across the globe. Moreover, Jordan’s fnancial market is one of the most stable in the Middle East and North Africa region.

AN AMBITIOUS THE WEF 2019 THE MINISTRY OF TRANSFORMATION Top startups PLANNING AND EIB pledges USD 1 billion in Jordan to INTERNATIONAL of new investments and invest in COOPERATION grants to Jordan by 2020 Towards Jordan’s sustain- able growth

| 1 JORDAN INVESTMENT COMMISSION

LETTER FROM JIC Established under the direction of His Majesty King Abdullah II, the Jordan Investment Commission (JIC) is at the forefront of serving current and prospect investors in Jordan to ensure a high ease of doing business and strong investor protection regulation. Since its establishment, business-related regulations have been simplified. These efforts among many others are intensifying as Jordan continues to strengthen its development agenda by attracting investment and improving business opportunities. Muhannad Shehadeh, Minister of State for Investment Affairs and JIC President

The Hashemite Kingdom of Jordan is committed and legal framework governing the investment the unification of all authorities concerned to the promotion of investments for the purpose process in order to take advantage of the with investments via the establishment of a of achieving comprehensive and sustainable available opportunities to increase economic single reference point- the Jordan Investment economic development, access to global markets, growth and promote economic development in Commission. The new legislation also empowered increased competition and availability of high the various governorates across the Kingdom. the Investment Window to further simplify the value-added job opportunities, and last but Today, Jordan stands on the threshold of the new procedures of setting up investment projects not least, funding of development projects. In phase of legislative frameworks for investments -an undertaking which allows the Commission furtherance of said direction, Jordan offers through its recent enactment of the Jordanian to keep afloat with best practices and adhere to a comprehensive range of incentives and Investment Law no. (30) for the year 2014. The the highest international standards related to the facilitations to potential investors, including an Investment Law demonstrates a qualitative simplification of investment procedures. optimum climate for investments. The Jordanian leap in the development of the investment Government has, across its successive terms, environment in the Kingdom. Having removed undertaken numerous serious measures to the various obstacles surrounding investments Minister of State for Investment Affairs review and enhance the economic, financial, in Jordan, the Investment Law allows for Muhannad Shehadeh REASONS TO INVEST IN JORDAN 1. SKILLED HUMAN CAPITAL Asia, and Sub-Saharan Africa. The Kingdom enjoys estate suits any business activity. Rents for industrial Jordan’s key strength lies in its highly qualified, strong economic ties with the EU, US, and GCC, as well and office space are the most reasonably priced across flexible, and cost-competitive workforce. A country as with international financial institutions, enhancing the region, with average annual rents of $33.60/m2 with limited natural resources, Jordan recognized the its position as a privileged strategic location. The and $130.40/m2 respectively. importance of investing in its human resources and competitiveness of Jordan’s strategic location is also becoming more talent-driven. The Kingdom is now driven by its qualitative and cost-effective logistics 5. INCENTIVES PACKAGE ready to reap this benefit, capitalizing on the excellent platform, which turns Jordan into the ideal regional The Government of Jordan is committed to create a workforce to accommodate a multitude of technology- gateway. In Jordan, the time and cost related to the win-win situation by helping businesses get started based industries. Jordan’s young and dynamic labor logistical process of exporting and importing goods is and expand through generous incentives in a variety force is one of the most skilled, competitive, and tremendously low in comparison with its neighboring of zones, including Free Zones, Development Zones, productive in the region. The Kingdom’s advantages countries according to the Doing Business Report and the Special Economic Zone. Each zone are driven by relatively low redundancy costs, measurements. comes with a unique incentives package catering to cooperative relations between employees and sector-specific needs, making Jordan the ideal location employers, flexibility in wage determination, and 3. COST EFFICIENCY to set-up, nurture, and grow your business. efficient hiring and firing practices, making it easy to Jordan is well-known for its balanced business attract and retain suitable staff. environment. 6. CENTER FOR VENTURE CAPITAL & INNOVATION 2. STRATEGIC LOCATION 4. EASE OF DOING BUSINESS Jordan offers one of the region’s most vibrant Jordan is strategically situated in the heart of the Jordan offers a predictable business environment environments for innovation, research, and Levant in the eastern Mediterranean. With seven FTAs where quick and transparent procedures for starting development. This is mainly to the result of the high and 48 active BITs, no other country in the region is a business, getting electricity, registering property, availability of venture capital and Jordan’s globalized, as tightly interconnected as Jordan, positioning the paying taxes, and trading across borders reduce start- liberal, and forward-thinking society, providing access Kingdom as the epicenter for business and commerce up costs and help your business become operational. to state-of-the-art technologies and fresh ideas. Jordan’s at the crossroads of the MENA region, Europe, East REAL ESTATE: Jordan’s ample and affordable real innovation ecosystem is driven by a world-class and

2 | modern ICT infrastructure with reliable international similar to the quality of port infrastructure in Cyprus, property rights protection. Jordan’s stability is tied to telecommunications connectivity. Moreover, Jordan’s , Saudi Arabia, and Turkey, even though these its high degree of safety and security. strong scientific and research community - critical for nations have a much longer tradition with ports 14. INVESTMENT LAW any efficient innovation ecosystem is well-developed development, given their marine orientation. The Jordan's Investment Law No. 30 of 2014 reorganized compared to its regional peers, fostering the creation, Government of Jordan is committed to continuously the previously investment-related entities (i.e. the transfer, and diffusion of innovative knowledge and investing in its logistics platform. The Government’s Jordan Investment Board, Development and Free Zones technologies. Jordan is a young nation where creativity initiative to develop and implement the Jordanian Commission, and Export Promotion Department) into and new ideas are fostered. Jordan’s innovative trait has National Railway Project (a 900 km long proposed the Jordan Investment Commission (JIC). The JIC is now transformed the Kingdom into the region’s hotbed for north-south and east-west railway network) will the sole entity exclusively responsible for investment and creativity, and it is now a frontrunner in creative goods & connect various production centers and cities trade promotion of the Kingdom. The JIC has established services and online creativity, which is further supported within the Kingdom, and will complement Jordan’s a more effective institutional framework to attract and by various incubators and accelerators. Incubators, accessibility and logistics solution in the nearby retain investment, support export growth and oversee VC firms and accelerators have been established to future, transforming the Kingdom into a true logistics development and free zones in the Kingdom. Furthermore, nurture and facilitate the making of a vibrant local powerhouse. The Investment Law created the Investment Council, entrepreneurial scene. which is chaired by the Prime Minister together with equal 10. ACCESS TO REGIONAL & representation from the public and private sectors. The Law 7. FINANCIAL ECOSYSTEM INTERNATIONAL MARKETS specifies several privileges, protections, and guarantees that Jordan provides a transparent and a sound base of Jordan’s accessibility is not only strong due to its high foreign investors enjoy, including: financial services with high levels of access to loans connectivity and strategic location. The seven FTAs and venture capital. The country’s financial ecosystem (GAFTA, US, EU, EFTA, Singapore, Canada and the • Equal treatment and non-discrimination of is based on accredited macroeconomic and legal Agadir Agreement) that Jordan, which is a member domestic and foreign investors fundamentals paving the way for sustained economic of the World Trade Organization (WTO), signed and • Foreigners can invest in almost all sectors of the growth. In fact, the banking and insurance sector is one which are currently in force, provide direct access to Jordanian economy (with minimal exceptions) of Jordan’s growth drivers as this sector alone grew 4.3% nearly 1.5 billion consumers in some of the world’s • No restrictions on capital transfers and in the first half of 2017. The maturity of the financial largest and most rapidly expanding consumer repatriation of profits ecosystem and its integration in the world economy markets. • Foreign residents may open accounts in local and is reflected by Jordan’s monetary freedom, which is foreign currency and may repatriate capital in ranked the highest in the MENA region and 4th highest 11. REGIONAL LOGISTICS & (RE) convertible currency worldwide. Jordan’s diverse financial system offers CONSTRUCTION HUB • If investment disputes arise and cannot be a network of specialized equity, funding, investment, Jordan’s logistics platform is liberalized, highly resolved within a period of six months, parties wealth, asset, and other banking services for any accessible, timely, and business-friendly, thereby may settle the dispute through arbitration type of business looking to access specific financing enabling private operators and investors to tap into in accordance with provisions of the Jordan opportunities. The Stock Exchange (ASE) is a the potential of domestic and regional markets. Arbitration Law or refer the dispute to an modern stock exchange that services the regional market Transport demand, both for passengers and freight, international center for settlement of investment and that enjoys no taxes on capital gains and cash is growing rapidly, resulting in consistent and stable • A framework for incentives and benefits available dividends, a free repatriation of investment and income, growth figures. It is expected that trade and logistics for investors and investment projects, based on and no ceiling on foreign equity ownership. demand will further benefit from the opening of the geographical locations border with . Rapid and cost-effective logistics 8. LIFESTYLE solutions make Jordan an ideal location to support Jordan's Investment Law also empowers the JIC's Investing and doing business in Jordan is simple and the reconstruction of Iraq and . Jordan is a safe Investment Window representatives to register and straightforward. But life is more than just work. The and secure gateway to both countries, and many issue permits and licenses directly. This considerably ease of doing business is complemented by a vibrant international organizations are already locating in simplifies the registration and licensing procedures and diverse cultural climate and a good quality of Jordan to supply donor aid, goods, products, and required for investment projects across Jordan. This life: Jordan offers a pluralist, tolerant, family-friendly, services necessary to rebuild Iraq and Syria. The Window comprises of "Authorized Representatives" and internationally open environment with all the country’s logistics platform benefits from a number from relevant, specified licensing bodies with authority conveniences of the 21st century, together with a of competitive advantages. A strategic location, strong to register and issue licenses within set time frames and number of unique leisure destinations and breathtaking connectivity, and proximity to large regional feeder a clear strategy for inter-governmental communication. world heritage sites. Such pleasures make Jordan markets, major air hubs (e.g. Istanbul and Dubai), and The JIC's services include, but are not limited to: a comfortable and opportunity-filled place making high-volume cargo destinations within the GCC are people with diverse lifestyles all feeling at home. just a few of Jordan’s key competitive advantages in • Providing comprehensive information about Jordan’s extremely diverse population, liberal culture, the logistics sector. investing in the Kingdom. and high standard of living has attracted a large expat • Providing provisional feasibility studies for community, further demonstrating the attractiveness of potential projects. Jordan and its pleasant atmosphere. Jordan’s welcoming 12. DESTINATION FOR LEISURE & • Providing registration, licensing, and other services and hospitable culture is also reflected in the unique MEDICAL TOURISM through an accessible Investment Window. treatment of investors. Jordan’s open, tolerant, and Jordan is an attractive destination and appeals to many • Regulating incentives and privileges in globalized society is unique in the region and not only different types of global tourism. The country’s diverse accordance with the Investment Law. attracts foreign businesses and expats. The number scenery, landscapes, climates, and distinct cultural, • Providing after-care services. of foreign students in Jordan equals 12.9% of the total religious and faith heritage, combined with outdoor • Supporting exports and promoting them to gain tertiary enrollment in Jordan – the highest percentage in and adventure tourism experiences, support Jordan’s bigger shares in global markets. the world and 2nd in the region. popularity for tourism. Jordan features a well-developed and welcoming workforce to cater to the needs of 15. INVESTMENT INCENTIVES REGIME 9. INFRASTRUCTURE international tourists, including hospitality, a friendly The Kingdom of Jordan has a comprehensive regime of Jordan’s strategic geographical location is culture, and high levels of English proficiency. Tourism fiscal, financial, and customs incentives catering to the complemented by its unparalleled network of air, in Jordan is expected to grow. Citizens, visitors, and specific needs and requirements of investors for a variety sea, and land connectivity, and its state-of-the- tourists enjoy the quality of life in Jordan with high of sectors and locations. The investment incentives regime art infrastructure. Jordan’s main airport is Queen levels of personal freedom, security, and safety. Jordan is legally enshrined in Investment Law No. 30 of 2014, Alia International Airport near Amman, handling is generally perceived safer than most destinations the Investment Incentives Regulation No. 33 of 2015, the most passengers (over 7.9 million in 2017) into in the MENA region. Jordan’s safety perception is Sales Tax Law No. 29 of 2009, the Income Tax Law No. 34 the Kingdom with routes to over 70 international similar to that of Cyprus and far ahead of other highly of 2014, and the Decision of the Investment Council No. destinations. Two other airports serve downtown travelled destinations. Tourism-orientated Development 1/1/2016, dated January 25, 2016. Altogether, this legal Amman and southern Aqaba. The Kingdom of Zones are located in various parts of Jordan, offering framework specifies the eligibility criteria, the awarding Jordan’s highway network covers more than 2,700 a conducive environment for tourism activities process, and appeal procedures. Investment incentives km, connecting all corners of the Kingdom and complemented by attractive incentive packages. available for investors are dependent upon the sector providing rapid access to every corner of the country. in which they operate. Several incentives are available Jordan offers a competitive multimodal array of 13. POLITICAL STABILITY & RULE for all sectors, and these are complemented in turn by logistic options for distributing products and goods OF LAW sector-specific incentive packages. Sectors for which the throughout the country, the wider MENA region, and Jordan has a long and recognized legacy of political Government of Jordan offers customized incentive packages the world. These high-quality and complete logistical stability, which builds on the country’s strong include Industry & Handicraft, ICT, and Renewable Energy solutions provide very reasonable total supply chain adherence to the rule of law (ranking second in the & Energy Efficiency. The latter is specifically stipulated in costs. Despite its limited coastline on the Gulf of MENA region). Jordan’s stability is built on high levels the Renewable Energy & Energy Efficiency Law No. 13 of Aqaba, the quality of Jordan’s major port in Aqaba is of Government integrity, judicial effectiveness, and 2012.

2 | | 3 COUNTRY PROFILE JORDAN AT A GLANCE BY JIC

REGIONAL DESTINATION ACCESS TO MANAGING DIRECTOR BUSINESS FOR LEISURE REGIONAL & Qais Elias OPERATIONS & MEDICAL INTERNATIONAL HUB TOURISM MARKETS Jordan offers a vibrant, innovative, The Kingdom’s widely recognized Jordan’s comprehensive network PRINCIPAL ASSOCIATE and globalized business welcoming and hospitable lifestyle of free trade and bilateral Yousef Baarah environment with a high ease in combination with its diverse investment agreements features of doing business at stable, scenery, appealing landscapes, and privileged access to over 1.5 billion competitive, and predictable comfortable climates, make Jordan consumers in the largest markets costs, positioning Jordan as the a popular destination for all around the world. EDITOR region’s prime hub for business kinds of tourism. Haya Issa operations requiring a highly skilled talent pool. ART DIRECTOR REGIONAL CENTER FOR Farah Haj Tas LOGISTICS & (RE) VENTURE CONSTRUCTION CAPITAL & HUB INNOVATION ACKNOWLEDGMENT: A strategic location, together The combination of an abundance Jordan Investment Commission, with safety and stability, an of venture capital, innovative Ministry of Planning & International unparalleled connectivity, and a pool of tech talent, and a sound Cooperation, World Economic Forum competitive logistics platform financial sector turn Jordan into on Middle East and North Africa render Jordan the right place an innovative ecosystem ready for for regional logistics and (re) investors and start-ups. construction. ADVERTISING Source: Jordan Investment Commission Al-Faridah for Specialized 1 Publications DEVELOPMENT ZONES 2 1. Development Zone 5 3 4 2. Al-Hasan Industrial Zone SOCIAL MEDIA 3. Al-Hussain Bin Talal Industrial Zone () 6 7 4. Al-Thuraia Development Zone 8 9 5. Ajloun Development Zone COMMENTS AND QUESTIONS 6. King Hussein Business Park ARE WELCOME Development Zone 10 [email protected] 7. King Abdullah II [email protected] Development Zone (Sahab) WEBSITE 8. Development www.venturemagazine.me Zone 9. Al-Muwaqqar Development PRINTING Zone National Press 11 10. Al-Hussain Bin Abdullah II PUBLISHED BY Development Zone (Karak) 12 11. Al-Muhammadiyah Development Zone (Maan) 12. Maan Development Zone

QUICK FACTS

Free Trade Direct Market Development Connectivity Economic Total GDP Agreements Radius Zones 12 seaports, Freedom US$40.07 7 1.5 billion 12 across airports, and 4th across MENA billion consumers Jordan land ports region (2018) (2017

GDP per Capita Annual GDP No. of No. of Engineers No. of Doctors US$4,129.8 Growth Universities per 10,000 per 10,000

Source: Jordan Investment Commission Investment Jordan Source: (2017) 2.0% (2017) 36 151.0 (2017) 28.6 (2017)

4 | 4 | | 5 BUSINESS REFORM

2019 Getting Credit 2011 Jordan improved access to credit Getting Credit information by reporting data on Jordan improved its credit information credit payments from a retailer. system by setting up a regulatory Protecting Minority Investors framework for establishing a private Jordan strengthened minority investor credit bureau as well as lowering the protections by extending access to threshold for loans to be reported to evidence before trial, increasing the public credit registry. shareholders’ rights and role in Paying Taxes major corporate decisions, clarifying Jordan abolished certain taxes and ownership and control structures made it possible to file income and and requiring greater corporate sales tax returns electronically.Jordan transparency. made trading across borders faster Paying Taxes by introducing X-ray scanners for risk Jordan made paying taxes easier by management systems. implementing an online system for filing and payment of general sales tax Enforcing Contracts 2010 Jordan made enforcing contracts Starting a Business easier by introducing a system Jordan made starting a business S that allows users to pay court fees easier by offering a single reception IT XE electronically. service for company registration at D TA the company registrar. E Dealing with Construction R G 2018 IN Getting Credit Permits Jordan made dealing with C Y Jordan improved access to credit construction permits easier by A information by establishing a new G P extending the services of the one-stop credit bureau. I shop in Greater Amman to midsize N I commercial construction projects. T S R 2017 Registering Property T E Paying Taxes Jordan made registering property E D easier by reducing the property Jordan made paying taxes less costly R transfer fees. G by increasing the depreciation rates O for some fixed assets. Paying Taxes

B I Jordan made paying taxes easier Trading across Borders

S for companies by introducing an Jordan made exporting and importing

S online filing and payment system and

S easier by streamlining customs

O simplifying tax

BUSINESS REFORMS S clearance processes, advancing the

R forms. E use of a single window and improving

C infrastructure at the Aqaba customs Trading across Borders A

N and port. Jordan reduced the time for exporting I

G and importing by implementing a risk-

S

N based inspection system with post

IN JORDAN I U destination clearance for preapproved

D 2015 traders, reducing the number of B A

R Trading across Borders containers subject to physical

T

A Jordan made trading across borders inspection and allowing online

In the past year, Doing easier by improving infrastructure at submission of customs declarations

Business observed a G the port of Aqaba. by fully implementing the ASYCUDA

World electronic data interchange N

peaking of reform activity I system.

worldwide. From June 2, T

R 2012 Enforcing Contracts

2017, to May 1, 2018, 128 A Jordan improved its contract

T Starting a Business enforcement system by setting up a economies implemented a S Jordan made starting a business easier specialized commercial court division, record 314 regulatory reforms by reducing the minimum capital equipping its courts with a computer- improving the business requirement from 1,000 Jordanian aided case management system and dinars to 1 dinar, of which only half raising the ceiling for cases heard climate. Reforms inspired by must be deposited before company by the lower court to improve the Doing Business have been registration. distribution of the caseload. implemented by economies in Trading across Borders Jordan made trading across borders all regions. The following are faster by introducing X-ray scanners reforms implemented since for risk management systems. Doing Business 2010.

6 | | 7 ENTREPRENEURSHIP TOP STARTUPS IN JORDAN TO

The WEF Fourth Industrial INVEST IN Revolution Startups The World Economic Forum, in partnership with the International Finance Corporation, have selected the top 100 Arab world startups that are transforming the MENA region and reshaping the future in the context of the Fourth Industrial Revolution (4IR). These 4IRStartups were selected in collaboration with the region’s leading authorities on the entrepreneurship ecosystem, including Wamda, Flat6Labs, Kawar Investments and Leap Ventures. “You can see the impact and ingenuity of Arab start-ups everywhere in the Arab world. We see impressive momentum and – with sovereign wealth funds and traditional family businesses – the emergence of a whole new type of venture capitalist. For me, this is the biggest underreported story in the region” - Mirek Dusek, Head of Middle East and North Africa of the World Economic Forum. Here are the Jordanian startups to keep an eye out for:

LIWWA ARABIA WEATHER TARJAMA SAMER ATIANI & AHMED MOOR MOHAMMED AL-SHAKER NOUR AL HASSAN Liwwa is an online lender which improves access to Arabia Weather is the first and largest weather site Tarjama is a certified translation agency with offices capital for Small and Medium Enterprises (SMEs) in for all Arab countries. across the Middle East. Jordan and the UAE.

HYPERPAY HELLOWORLDKIDS JAMALON MUHANNAD EBWINI HANAN KHADER ALA’ ALSALLAL HyperPay is the fastest growing payment gateway Hello World Kids (HWK) is a local native coding Jamalon is the largest online bookstore in the MENA in the MENA region. It caters to every online curriculum for children offering native programming region selling English and books in the Arab merchant’s personal needs with a guarantee for courses for kids at the young age of 8 as a main World with home delivery and localized payment ease-of-use and top security against fraud. stream class. methods.

MADFOOATCOM AUMETINC LUMINUS NASSER SALEH YAHYA AQEL IBRAHIM SAFADI MadfooatCom operates ‘eFawateerCom’, the Central Aumet is the first online service to link medical suppliers, Luminus Education provides equal education Bank’s national electronic bill presentment and manufacturers and distrubutors. The platform enables opportunities for all. The platform offers short payment service (EBPPS) enabling clients to inquire medical suppliers and distributors access to local market courses, one and two year accredited diploma and pay securely online, 24/7. news and tenders in remote markets based on supplier’s programs, a three year degree program, and specialty; and access to verified details about distributors’ professional training for organizations and financial capacity, experience, customer services, etc. individuals.

8 | | 9 TAMATEM INC CASHBASHA KHARABEESH HUSSAM HAMMO SINAN TAIFOUR & FOUAD JERYES WAEL ATTILI, MOHAMMAD ASFOUR Tamatem is the leading mobile game developer CashBasha is an online e-commerce platform & WAFA NABULSI and publisher in the MENA region. The company enabling users to shop from international online Kharabeesh is a digital creators platform specializing localizes globally published mobile games and shopping sites including Amazon, ebay and in the production of Arabic-language animated develops their own games for Arabic speakers. AliExpress and pay in cash. cartoons, music videos and talk shows that generally tackle political issues in the Arab world.

ALTIBBI LITTLE THINKING MINDS THE ONLINE PROJECT JALIL ALLABADI & AYMAN SHARAIHA LAMIA TABBAA & RAMA KAYYALI ZAFER YOUNIS & RAMZI HALABY AlTibbi is the largest digital health platform in the Little Thinking produces educational digital Arabic The Online Project is a a social media agency and Arab World, including 1.5M pages of medical content content for primary age children with the aim of digital agency working with leading local and and a 24/7 telehealth service. enhancing children’s skills and learning outcomes, and multinational brands in UAE, Saudi Arabia and Jordan. increase their connectedness to the Arabic identity.

OPENSOOQ.COM JAWAKER ABJJAD SALAH SHARIF & ADEY SALAMIN YOUSEF SHAMOUN & MOHAMAD HAJ HASAN EMAN HYLOOZ OpenSooq.com is a marketplace that allows users Jawaker is the first Middle Eastern card gaming Abjjad is an online Arabic social network for readers, to buy and sell products and services across a wide network. The platform hosts games including writers, and publishers to rate, review, publish and range of categories that includes automotive, real Jackaroo, Banakil, Baloot, Tarneeb, Trix and Hand. sell eBooks. estate, jobs, electronics, home, and fashion.

AKHTABOOT MAWDOO3 YOUSEF SHAMOUN MOHAMMAD JABER & RAMI AL QAWASMI Akhtaboot is a leading online career network in the Mawdoo3 is a comprehensive online Arabic content region. The HR software solutions provider caters publisher that provides premium quality Arabic to the full HR value chain from the “acquire” stage content. Mawdoo3.com created more than 130 to the “retire” stage. All the software solutions thousand unique articles to fill the gap in Arabic provided are cloud based, easy to use, and content online. Today is has more than 36 Million customizable. unique users who visit the website monthly.

8 | | 9 INVESTMENT

BUILDING ECONOMIC EIB: RESILIENCE IN JORDAN

ver four decades, the EIB has been supporting the Jordanian economy by investing in projects that make a difference in people’s life. The Bank financed overall 77 operations including investments like Tafila windfarm, the first commercial utility-scale wind power in the Middle East, the Amman Ring Road, whichO improved traffic management in the capital, and the Arab Potash company, the eighth largest potash producer worldwide. The Bank has been supporting vital socio-economic infrastructure as well as private sector development.

During the Jordan Growth and Opportunity conference organised in London last February, the President of the European Investment Bank announced a package of USD 1 billion of additional funding to support the Jordanian economy. To spot more light on EIB’s commitment to Jordan Flavia Palanza, Director of Operations in EU Neighbourhood Countries spoke to The Journal about the Bank’s plans and initiatives.

WE PLAN TO EXTEND USD 1 BILLION OF LOANS AND GRANTS DURING 2019-2020 IN FAVOUR OF PRIORITY PROJECTS IN A VARIETY OF SECTORS INCLUDING WATER, ENERGY EFFICIENCY, SUPPORT TO MSMES, AND STARTUPS

Can you tell us more about your plans in Jordan? The EIB is fully committed to support the Jordanian ambitious agenda for sustainable development and vision for reforms and economic transformation, providing finance for vital infrastructure and economic opportunities, in particular for the youth. As part of the EU and international response to supporting Jordan, we plan to extend USD 1 billion of loans and grants during 2019-2020 in favour of priority projects in a variety of sectors including water, energy efficiency, support to MSMEs, and startups. This constitutes a significant scaling-up of our financing, already started in 2016, which we intend to continue further after 2020 in order to strengthen stability, resilience, and growth.

Can you give us some recent examples of EIB financed projects? At the end of February, we signed the Deir Alla Water Flavia Palanza, Director of operations in EU Neighbourhood countries

10 | Supply and Sanitation project. The project will while enhancing its future developmental impact. The improve water supply and sanitation services for grant used for the assistance was provided by the EIB- more than 85,000 people in the Jordan Valley ,with managed initiative on the Climate Action in the Middle a positive impact on agriculture, environment and East and North Africa (CAMENA). tourism in the Jordan Valley Region. How important is supporting SMEs for an economy The EIB has signed the EUR 65 million financing like Jordan’s? agreement with the Jordanian government for the In Jordan, as well as elsewhere, the development improvement of water supply systems in the “Deir Alla of a vibrant private sector is essential to fire up the and Al-Karamah” districts in the Jordan valley, as well engines of economic growth to meet the needs and as the construction of a centralised sewage collection aspirations of people. Fast-growing, small and medium- and treatment network in Deir Alla district. The EIB’s sized companies play an incredibly important role in support is part of its Economic Resilience Initiative (ERI) triggering innovation, boosting growth and creating designed to strengthen the EU Southern Neighbourhood employment. Supporting them to foster economic countries’ ability to withstand shocks. The project will opportunities and building economic resilience is one benefit from an additional investment grant of EUR of the EIB’s top priorities. For this, we work with our 16.3 million from the Economic Resilience Initiative local partners in Jordan to channel credit lines to SMEs. Fund (ERIF), through a special endowment by the UK We also invest in equity funds that finance start-ups. For Department for International Development (DFID). example we invested USD 8 million (JD6.7 million) in an In addition to our lending activity, we also provide early stage high-tech fund (Badia Impact Fund). technical assistance and advisory services. For Furthermore, we support microfinance. Under the example, we provided a grant of up to EUR 500,000 new Southern Neighbourhood Microfinance Facility, (JD 417,000) for advisory and technical assistance we already provided USD 5 million of financing to the to the Deir Alla and Al Karameh water supply and Microfund for Women and we are partnering with sanitation project. The assistance aims to increase the the Open Society Foundation and the International effectiveness, quality and sustainability of the project Finance Corporation among others in the preparatory

DEIR ALLA WATER SUPPLY AND SANITATION PROJECT WILL IMPROVE WATER SUPPLY AND SANITATION SERVICES FOR MORE THAN 85,000 PEOPLE IN THE JORDAN VALLEY, WITH A POSITIVE IMPACT ON AGRICULTURE, ENVIRONMENT AND TOURISM IN THE JORDAN VALLEY REGION

10 | | 11 INVESTMENT

EIB FINANCING IN JORDAN 2008-2018 FAST-GROWING, Industry SMALL AND MEDIUM- SIZED COMPANIES PLAY AN SMEs Support

Private Sector Support INCREDIBLY IMPORTANT ROLE

Water & Wewerage IN TRIGGERING INNOVATION, BOOSTING GROWTH AND Energy CREATING EMPLOYMENT

Transport Socio-Economic Development

0 50 100 150 200 250 300

work of the Catalyst Fund initiative, a new venture conflict continues to weigh on investor sentiment, aiming to develop and mobilise additional funding tourism, transportation costs and exports. Hosting to launch a new initiative in Jordan cateriong to the more than 1 million refugees has also strained the growth needs of Jordanian small and medium-sized Kingdom’s limited resources. In this context, enterprises in various sectors. I would like to praise the great efforts of the Jordanian government in addressing fiscal constraints while What are the most pressing challenges you face in implementing a large set of reforms. Those efforts were the region and Jordan in particular? unanimously acknowledged in London, as a solid basis The region needs to achieve higher growth rates, for the mobilisation of the international community. create more jobs, especially for the youth, and at the same time implement budgetary policies In these times of economic and social challenges, the sustainable in the long term. In Jordan, the EIB is committed to building resilience, supporting economic performance largely reflects the impact of investment and increasing the finance needed in adverse external shocks. These include protracted the region. We have an excellent relation with the conflicts in Syria and Iraq, which were Jordan’s government of Jordan and we work closely together to main traditional export markets. The Syrian provide the government’s investment needs.

12 | The global leader in integrated transportation solutions

| 13 GOVERNMENT

TOWARDS JORDAN’S SUSTAINABLE GROWTH The Ministry of Planning and International Cooperation tackles issues relating to Jordan’s economic reform, sustainable growth and the Syrian refugee crisis

Mary Kawar, Minister of Planning and International Cooperation

he Ministry of Planning and International development partners to identify the key reforms that In your opinion, how can you describe the current Cooperation (MoPIC) is tackling issues in will generate growth and jobs. investment climate in Jordan? various fields including economic growth, Jordan’s economy has remained remarkably resilient despite education, and improving the standards of The implementation of the reforms within the Matrix being hit by several external shocks over the past decade due living of the population in Jordan. HE Dr. has already started with many more reforms to come. to regional instability and the Syrian refugee crisis. These TMary Kawar, the Minister of Planning and International Over the last twelve months, Jordan has made significant shocks hampered trade and exports with Syria and Iraq at Cooperation, elucidates the ministry’s active role in progress in implementing these reforms, including the time; including trade through these countries to Europe, achieving sustainable growth, improving Jordan’s those that will unlock new opportunities for business Turkey and Central Asia. Jordan had to also face major investment climate, as well as women’s political and generate investments. Examples of these reforms disruptions in gas supply from Egypt since 2011, which participation and empowerment, and the mitigation of the include: the adoption of the Regulatory Predictability powered 90% of electricity generation in Jordan. impacts of the Syrian refugee crisis. Framework, which makes it mandatory for all business- related regulations to go through a Public-Private Dialogue Despite all of this, Jordan responded well with several One of the ministry’s goals is to create an attractive process; streamlining and unifying all monitoring and initiatives. Jordan worked with the international investment environment in Jordan. What are the inspection procedures on economic activities to minimize community, including the UN and the World Bank to ministry’s plans towards achieving sustainable uncertainty for businesses, reduce costs and improve channel more funding and support to refugees and host growth and ensuring a decent standard of living for all productivity; and the adoption of a new Venture Capital communities and to allow Syrian refugees to participate Jordanian citizens? Bylaw that regulates the establishments and registration in the Jordanian formal labor market. Jordan also The MoPIC is playing a key role in the design and of such funds and offer tax exemptions based on implemented a national economic and fiscal reform implementation of the Growth and Reform Matrix. international best practice. program in coordination with the IMF to reduce debt This is a five-year program that was developed in close levels, improve fiscal management and better utilize coordination with Jordan’s development partners Many other reforms are in the pipeline including revenues to stimulate growth. It is worth mentioning that and covers cross-cutting as well as vertical themes the revision of the Public-Private Partnership Law between 2011-2018 Jordan implemented fiscal measures with the aim to improve the efficiency of the private and Governance Framework; easing work permit in excess of 14% of GDP. Finally, and as discussed earlier, sector, reduce business costs, promote exports and requirements for highly specialized foreign labor, Jordan is currently implementing the Five-Year Growth investments, and create jobs. MoPIC’s has been especially in technical sectors such as ICT and engineering; and Reform Matrix, which will create a highly competitive working with other Government of Jordan ministries, revising FDI regulations to open further sectors to non- investment environment and create employment. departments and agencies, as well as with our Jordanian investments. International reports show positive development in

14 | | 15 Jordan’s overall investment environments. The Kingdom and prosperity. On the other hand, the international the importance of the role of women as key actors in has advanced 14 points from 118 to 104 on the World business community recognized the opportunities that preventing and combating extremism and violence. Bank’s “Doing Business Report” and is expected to further Jordan offers, and the government efforts to increase Recently, Jordan adopted a 5 year Women’s Economic improve for the 2020 report. Moreover, Jordan ranked efficiency and transparency. Empowerment Action Plan which aims to increase 69th best economy worldwide in Forbes 2018 annual women’s labor force participation rates to 24% by 2025. survey of the Best Countries for Business, and 57th on the According to the Global Gender GAP Report 2018, This will be done through enhancing the capacity of the Global Talent Competitiveness Index. Jordan ranks 129 out of 149 countries in terms government to identify and address constraints to women Jordan has major trade agreements with a significant of women’s political empowerment. What is the economic participation; supporting the creation of family- number of countries which investors can utilize to ministry’s role in regards to this issue and what are friendly and non-discriminatory work environment; enter new markets. It has trade agreements with two the efforts being put forward to improve women’s enhancing the employment of women in the private of the largest markets in the world: the US and the EU, political participation? sector; as well as increasing the number of female-led in addition to 18 Arab countries. The US-Jordan Free In order to strengthen and stabilize the foundations MSMEs and cooperatives. Trade Agreement entered into force late 2001 providing of Jordan’s economy, making it self-reliant; the The most recent achievement is the draft amended Jordanian exports with a comparative advantage in the government and The Jordanian National Commission Jordanian Labor Law, which introduced adding clear large US market. The simplified Rules of Origin (RoO) for Women (JNCW) are working closely to integrate definitions on “wage discrimination” and “flexible agreement with the EU allows free access for most the women and gender issues in all the sectors of the work”. This is considered a step towards pay equity Jordan’s industrial exports to the EU market with the Jordan Vision 2025. This initiative will be considered and non-discriminatory practices between women condition to employ a certain number of Syrian refugees. a pioneering attempt at the level of the Arab countries and men in the workplace. Additionally, the amended and the region. The optimistic approach includes law included an article that entitled fathers to a paid As stated by His Excellency PM Omar Razzaz at having various development sectors adopt the principle paternity leave of three days. the conference “Jordan’s immediate focus is to of gender integration. stimulate economic growth in order to provide In recent years, Jordan has succeeded in closing the gender In light of the current Syrian refugee crisis, what greater opportunities to our citizens, now and for gap in health and education, according to Jordan performance are the ministry’s efforts towards reducing the the future”, what is your evaluation of the outcome on the Gender Gap index. But, we did not succeed in impact of the crisis on Jordan? of the Growth and Opportunity conference in reducing the gap on economic participation and political We are inclusive in our planning and response; The Jordan London last February? empowerment. The participation rate in the labor force is Response Plan (JRP), led by the MoPIC, with its three pillars This London Conference was a successful event only 17.3% as of 2017 percent for women. This is despite (Budget Support, Refugee and Resilience), is a holistic that brought together senior government officials, high education attainment among women. Today, women approach towards managing crises and contributing for members of multilateral development and financial representation in the senior management category within development of the kingdom and welfare of both refugees organizations, civil society and high-level investors and the government stands at 7.38%. This percentage covers and vulnerable Jordanians. The Government of Jordan (GoJ) business people from over 60 countries to help support all government ministries except for Ministry of Education is working towards the inclusion of the private sector and Jordan’s transition to a more productive, competitive and Ministry of Health where women representation in enhancing the partnership between private and public economy. The Conference is not intended to be an end leadership positions was relatively high, 55.97% and 52.88% sectors, where private sector can take a role in improving by itself, but rather the launch of the London Initiative: respectively. Therefore, more efforts are needed to enhance the lives and livelihoods of refugees by addressing the crisis a five-year pathway to unlocking growth, investment the status and involvement of women in our country, and to through hiring refugees (Livelihoods) and investing in and jobs for Jordan. allow for their active and fruitful Economic Participation and refugees (Education) and delivering services to refugees political empowerment. (supply chains, connectivity). We used the Conference as a platform to showcase The JRP includes educational programs covering early all the current and future market reforms being To counter this and improve women’s participation, education, school years, tertiary and higher education implemented which will stimulate the economy and several initiatives are being put in place. Firstly, the for Syrian refugee children. We have also partnered create investments. We also explained to our global Ministry of Planning and International Cooperation is with generous support from donors international partners our growth strategy going forward including chairing the Inter-Ministerial Committee for Women’s organization and Jordanian Universities to provide the expected impact, and the support that Jordan needs Empowerment (IMC). The IMC was established in 2015 scholarships for refugee students. to successfully implement this growth strategy. to provide leadership, coordination and accountability Furthermore, by equipping refugees with skills and for action across the government on achieving facilitating their access to labor market, this is also Three main pillars were covered during the London commitments related to women’s human rights. among our commitments within the Jordan Compact. Initiative where Jordan and the international GoJ developed policies and framework to enhance community can partner together in support of refugees’ access to livelihoods and enforce partnership sound implementation principles and a follow-up through: A) Facilitating work permits process. B) Cash mechanism to ensure commitments are fulfilled. First, THE MOST RECENT for work programs. C) Easing access to SMEs and home the government communicated the implementation of ACHIEVEMENT IS THE DRAFT based businesses. These are some of the achievements serious and robust reforms to improve the efficiency of we are proud of. the private sector, reduce business costs and promote AMENDED JORDANIAN LABOR exports and investments. Second, the government LAW, WHICH INTRODUCED The private sector has been a key player in our presented a comprehensive medium-term financing humanitarian response. Some of the most notable strategy that moves its debt to a sustainable footing. ADDING CLEAR DEFINITIONS examples are the Industrial Zones offering employment Third, the government presented private sector ON “WAGE DISCRIMINATION” opportunities for refugees; the green energy electricity investment opportunities and announced the creation project which was performed with support of private of a new Projects Pipeline Development Facility with a AND “FLEXIBLE WORK sector, where refugees were hired as well, and contributed pipeline of 123 investment opportunities in strategic in building an electric network serving them and saving growth sectors over the coming 20 years. environment; Zain Connectivity which launched in 2016 and backed by Zain Group, UNHCR and Facebook The London Initiative marks the start of a new Moreover, the government adopted the Jordanian providing unlimited, 24/7 outdoor and indoor Wi-Fi partnership approach between Jordan and the National Action Plan (JONAP) for advancing the access points through Zain Jordan’s high-speed 4G mobile international community in pursuit of Jordan’s implementation of UN Security Council resolution 1325 network in identified least privileged locations as the sustainable growth and self-reliance. The international on Women, Peace and Security (UNSCR 1325). The Princess Basma Center in Sahab, Tafileh, and Karak; and community reiterated the strength of its partnership JONAP was developed in line with the government’s the Zain Syria-Sim service, which provides unlimited with Jordan and declared that it is determined to commitment towards promoting and respecting minutes for calls between refugees which leads to an do all it can to support Jordan’s long-term stability human rights, justice, and equality. It also reiterated improvement in refugees access to information.

14 | | 15 16 | TRANSPORTATION AND LOGISTICS MAKING JORDAN THE TERMINAL The Public-Private Partnership that’s OF CHOICE revamping transport for Jordan he Aqaba Container Terminal (ACT) foreign investors that Jordan is a great country research center as our neighbor, are just a few indicators is Jordan’s only container port. With a to invest in. We also believe that investors take of our commitment to preserving the environment. capacity of 1.2 million TEUs (twenty-foot comfort when knowing that APMT is the operator equivalent unit), and 1km of berthing, of ACT, as APMT is a brand with a global reputation What implications does the reopening of the Iraq capable of servicing ultra-large container of integrity and service excellence and they know border have on Jordan as a trade hub? T ships, it plays a crucial role in the they can expect to receive in Jordan the same level The reopening of the Iraq -and Syrian - borders is Jordanian economy, enabling growth and development of service they receive elsewhere in the world excellent news for the Jordanian export industries. regionally. It is the second busiest facility on the from any other APMT operated terminals. ACT is These exports move by road directly into Iraq and . CEO of ACT, Steven Yoogalingam, explains the strategic gateway giving Jordanian businesses Syria instead of through Aqaba. While we will not see the importance of the Public-Private Partnership access to global markets. As Professor Yossi Sheffi these containers at Aqaba anymore, a strong export between ACT and APM Terminals, how it contributes of MIT and Wolfgang Lehmacher of World Economic industry will need more imported input goods and to Jordan’s economic growth as well as making Jordan Forum indicated during the 15th Trans Middle East material which come in containers from overseas. A a trade hub in the region. Conference which took place in Aqaba a few months strong export industry will also support employment ago, the development of integrated transport and and thereby local consumption which also translate Deemed the most successful Public-Private logistics infrastructure enable logistics clusters to into higher container volumes. Thus, the reopening Partnerships (PPP) of its category by the form in the country. These so-called logistics clusters of the borders should translate into higher container Jordanian government. How can a well-structured give companies located nearby an interesting cost volumes for Jordan within the months to come if partnership between the Aqaba Container advantage so you will see industrial clusters forming Jordanian exports products are competitive enough to Terminal (ACT) and the APM Terminals (APMT) quickly around the logistics clusters. This vibrant regain the market share they used to enjoy before the help governments meet their critical challenges? business activity creates sustainable jobs which then closing of the borders. Following a government report of 2015, Aqaba Container support consumption, spurring a virtuous feedback Terminal was deemed a model privatization venture loop delivering strong economic growth. Memphis, If a modern integrated multi-modal transport within its category i.e. ventures based on a buy/operate/ Chicago, Zaragoza, Rotterdam, Tangiers, Panama Canal infrastructure had been developed while the borders transfer (BOT) structure. Such models of PPP maintain Zone are just a few examples. were closed, the industries of Jordan would be today the ownership of strategic assets to the kingdom, while in a stronger position to recapture its export business capitalizing on the private sector expertise in operations APMT has investments in about 60 different countries and become a trading hub for the Levant. and administrations of such assets. Partnering with and a proven track record for supporting the nations As to becoming a logistics hub for the Levant, Aqaba global leading port operator APM Terminals has enabled in developing strategic multi-modal integrated should be able to act again as a competitive alternative Aqaba to receive best-in-class equipment, IT systems, container gateway for Iraq as soon as the containers processes and standard operating procedures which will be able to cross the border without the complex, delivered immediate improvement in terms of safety, APM TERMINALS GIVES ACT expensive and time-consuming cross-stuffing operations productivity and efficiency. ACCESS TO WHAT IS PROBABLY still required today. Aqaba will be competitive when the THE WIDEST AND DEEPEST container movement will not be impeded at the border. Operating a geographically balanced portfolio of 72 terminals and more than 100 dry-ports in the world, POOL OF PORT OPERATIONS APM Terminals gives ACT access to what is probably BEST PRACTICES IN THE WORLD the widest and deepest pool of port operations best practices in the world.

Ultimately, it is the country’s logistics index which transport and logistics infrastructure. moves up the global ranking, making Jordan a more When it comes to the Lloyd’s List Terminal attractive place for investors to develop business. Operator Award, which was received by Aqaba A recent report from Boston-based Sustainability Container Terminal in November 2018, what are Excellence consultant, showed the true impact that a the key milestones that lead to this win in your PPP like ACT had had over the past 10 years. In terms opinion? Can you briefly describe the best-in-class of employment, we have 1,040 employees but the total practices deployed by APMT that contribute to its contribution to employment is actually 1.4 times this success and efficiency? number when we include subcontractors, suppliers We believe that The Terminal Operator Award we and employees’ expenditure. In terms of community received in Dubai from Lloyd’s List for the South Asia, development, ACT’s average salary for blue collar Middle East and Africa region is the result of our long workers is about 2.5 times higher than the national drive on the never ending journey towards excellence. average of the private sector and ACT’s gross value Over the years, ACT has consistently been a nominated added per worker is 4.4 times higher than the national finalist for several awards relating to Safety and Security, GDP per worker. This has enabled a stronger stable Environment, Training, and Operations. We also received middle class to develop in Aqaba. other awards before such as APMT Global Safety Award in 2015, the “Most Sustainable Port Development Award” What is the role of the APMT in creating a positive from Transport Arabia Excellence, and the Jordan Social investment climate for Jordan? Security Workplace Award, to name a few. Being the first The strapline of APM Terminals is “lifting global eco-port labelled terminal outside of Europe, certified trade”. APM Terminals’ successful venture in Jordan ISO 14001:2015 and operating for more than 10 years is one which we hope will show other local and next to a beautiful coral reef with the national marine Steven Yoogalingam, CEO at ACT

| 17 TRANSPORTATION AND LOGISTICS

irport International Group (AIG) is in order to boost their job prospects. a prime example of a positive PPP, working closely with the public Kjeld Binger, CEO of Airport International Group, sector since its inception in order to commented, “The program is yet another example of allow for maximum productivity that our determination to empower the local community in benefits both stakeholders and the which QAIA operates. By equipping youth in Al Jizah AKingdom at large. AIG is a consortium of regional with professional qualifications and experiences, we and international partners with proven experience in are improving their career readiness and enabling airport rehabilitation, enhancement, operation and them on their paths to finding jobs. This step also management. corresponds with our efforts to support government strategies aimed at nurturing the intellectual and

GROUP- In 2007, the Hashemite Kingdom of Jordan awarded creative capacities of young people, as they are our

a 25-year ‘Build-Operate-Transfer’ (BOT) concession most valuable asset for economic development.” agreement based on a Public-Private Partnership (PPP) scheme to AIG to rehabilitate, expand and In acknowledgement of its positive performance operate Queen Alia International Airport (QAIA) across its operations throughout the years, QAIA was following an intensive international tendering process. recognized several times by the Airports Council International (ACI) Airport Service Quality (ASQ) March 2013 marked a new era in Jordan’s air transport Awards. In 2018, QAIA achieved the highest level of sector with the inauguration of the state-of-the-art new the Airport Carbon Accreditation (ACA) Program - terminal by Their Royal Majesties King Abdullah II and Level 3+ ‘Neutrality’ - making it the first airport in the Queen Rania Al Abdullah. The new terminal inauguration Middle East to become carbon neutral. In March 2019, was followed by the completion of the second phase for the second time, QAIA claimed the title of ‘Best of the Queen Alia International Airport new terminal Airport by Size and Region: Middle East’ for airports project, inaugurated by HRH Crown Prince Al Hussein that serve five to 15 million passengers. bin Abdullah II in September 2016.

AIG has financed an estimated USD 1 billion on the QAIA WAS RECOGNIZED construction of the QAIA New Terminal. More importantly, SEVERAL TIMES BY THE AIG keeps the organization true to its Jordanian identity Jordan’s by providing employment opportunities for Jordanian AIRPORTS COUNCIL Airport nationals, evidenced by the number of employed expats, INTERNATIONAL (ACI) Rewarded which is only three out of 440. Queen Alia International AIRPORT SERVICE QUALITY Airport encompasses over 14,000 employees. Moreover, (ASQ) AWARDS. IN 2018, QAIA ‘Best emphasizing its commitment to empowering the local Airport community in which Queen Alia International Airport ACHIEVED THE HIGHEST LEVEL by Size’ in (QAIA) operates, AIG has partnered with the Ministry of OF THE AIRPORT CARBON the Region Labour to launch the ‘Training for Hiring’ program. The ACCREDITATION (ACA) PROGRAM AIRPORT INTERNATIONAL PPP ROLE MODELS program will operate for one year and will offer fresh graduates from Al Jizah job training in various AIG divisions

18 | | 19 INDUSTRY AQABA INTERNATIONAL INDUSTRIAL ESTATE- The Premium Business Development Partner The Aqaba International Industrial Estate, managed by PBI Aqaba, is eyeing $1b of investment by 2023 on the back of large hi-tech manufacturing deals

nown as the hub for logistics, tourism and luxury lifestyle projects in Jordan, the Red Sea city of Aqaba is becoming an industrial domain for the kingdom. The Aqaba International Industrial Estate (AIIE), located 1 kilometer from Aqaba Airport and 15 kilometers from Jordan’s only sea port, has become a major center for manufacturing,K logistics, and storage services. Most of the activity is export-orientated; demonstrating the importance of Aqaba as a gateway for neighboring markets.

With Aqaba being the safest and most secure base of operations in the Middle East, AIIE, in partnership with PBI Aqaba, is building a word-class base for metal engineering, construction material, renewable energy & energy efficiency systems, food & beverage processing, Plastic Products, logistics & services, and LED technology.

PBI Aqaba International Industrial Estate, with its US and Turkish partners, develops and manages AIIE under a Concession Contract. The site of 1,700,000m2 has almost reached capacity in just over a decade. Total investment to date exceeds $600 million USD and is expected to reach $1 Billion USD by 2023. PBI’s investment flow began in 2016 following an agreement with the Shenzhen Chamber of Investment and Aqaba Special Economic Zone Authority (ASEZA) to market, encourage and support investment. In 2017, under the agreement, a factory to produce LED lights in hi-tech and a large garment industry based in Hong Kong were launched. Investors located at AIIE benefit from a Special Legal Regime and Investment Incentives applicable under the Aqaba Special Economic Zone Law and are subject to only 5% tax + no tax on dividends. Furthermore, foreign investors may own a 100% interest in companies and in land at AIIE. Notably, PBI Aqaba provides support and assistance to investors with government agencies and the local community before and after commencement of operations.

TOTAL INVESTMENT TO DATE EXCEEDS $600 MILLION USD AND IS EXPECTED TO REACH $1 BILLION USD BY 2023

As of January 2019, the first investor was signed for the expansion of AIIE activities to the north of Aqaba on a site of up to 2,000,000m2 , as well as an additional site of about 950,000m2near the new south port area. Plans are underway to expand into aluminum smelting, manufacturing, and processing, agro-industry projects, a pipe factory, float glass industry, LED light agricultural applications, and infrastructure projects.

“When current construction for PBI Aqaba is completed, we will have 200 to 250 companies, generating employment for 7,500 people by 2022,” Sheldon Fink, the American CEO and Chairman of PBI Aqaba reports.

18 | | 19 20 | AGRICULTURE

WHY JORDAN FOR AGRICULTURE Jordan’s agriculture sector is one of the Kingdom’s most competitive sectors that is experiencing strong growth and has doubled its contribution to Jordan’s national GDP from 2.0% to 4.0% in the past five years. The significant growth is primarily driven by domestic demand and demand in the Middle East and North Africa (MENA) region, to which Jordan enjoys direct market access. With its modern production technology, multiplicity and diversity of products with high technical specifications, and quality standards offered in local and international markets, a variety of lucrative investment opportunities are present in Jordan’s Agriculture sector.

WHY JORDAN FOR AGRICULTURE: Jordan’s fertile soil and favorable temperatures enable year-round agriculture production. There are multiple compelling reasons that agricultural business will succeed in Jordan.

1. TRANSPORT CAPABILITIES & CLIMATE 2. TRADE DEMAND AND EFFICIENCY test for compliance with applicable standards. ADVANTAGE Because many different crops can thrive in Jordan, the The agriculture production in Jordan is distinguished country is self-sufficient in a number of vegetables 4. AGRICULTURE CREDIT CORPORATION from countries with similar climate and nature including vegetables, citrus, goat meats, poultry, olives, The Agriculture Credit Corporation is a Governmental because of its land transport capabilities with both olive oil, table eggs and fresh milk. The Jordanian entity that provides loans for agriculture projects European and GCC markets. These capabilities give agriculture exports represented approximately 16.9% at a reduced interest rate and aims at achieving Jordanian products a preferential advantage over the of Jordan’s exports in 2017. There are no major the integrated agriculture development in terms of rest of the neighboring countries. Numerous crop obstacles for Jordanian exports to regional and foreign production and productivity. opportunities are available during the off-season in markets. Europe for high-quality exports, including fruits (e.g. 5. HIGH QUALITY AGRICULTURAL strawberries, seedless table grapes, melons, cherry 3. GOVERNMENT COMMITMENT & STRONG INFRASTRUCTURE tomatoes, and dates) and vegetables. The climate of REGULATORY SYSTEM Jordan’s Free Zones and Development Zones offer Jordan varies following the diversity of its landscape. Jordan’s general agriculture sector policy is perceived high quality infrastructure and a streamlined The three geographical agricultural regions, the as one of the most business-friendly in the region business operating environment boosted by Jordan Valley, the Highlands, and the Eastern Bada as it balances the interests of consumers, producers attractive incentive packages, offering agri-business Desert, are characterized by different climates and and taxpayers well compared to its regional peers. investors corporate income tax exemptions and support the growth of a vast array of goods. Just over The Agriculture sector plays a significant role in the reductions on profits generated through exports 12% of Jordan’s territory is used as agriculture land Government of Jordan’s initiatives to contribute to in combination with the exemption of customs of which rain-fed agriculture represents a share of environmental, economic, and social development to duties and general sales tax. According to the Global 87%, which is a relatively high share compared to create sustainable agricultural sector enhancements. Food Index, extremely low volatility of agricultural other MENA countries. This can be related to the Jordan’s agriculture market system is supervised and production, existence of adequate crop storage variety of Jordan’s agro- ecological and bioclimatic regulated by the Jordan Food and Drug Administration facilities, and agriculture infrastructure are among zones, which includes favorable conditions such as (JFDA), which has the mandate to accept or reset Jordan’s Agriculture Sector key strengths. Public the Mediterranean climate in Jordan’s west as well as imported food consignments, and the Jordan Expenditure of Agriculture R&D is 22.5% above the tropical climate and availability of irrigation water in Standards and Meteorology Organization (JSMO). global average, indicating the competitiveness of the Rift Valley. JSMO has already licensed various local laboratories to the sector on a global scale.

INVESTMENT OPPORTUNITIES The MENA region’s agriculture is characterized by the need to feed fast growing populations. The investment opportunities present in Jordan’s Agriculture sector can be divided into the five following opportunities: 1. Extraction & Commodity Production 3. Agri-Business & Agro-Processing 5. Water 2. Livestock 4. Agriculture Extension & Services

| 21 HEALTHCARE WHY JORDAN FOR HEALTHCARE The Jordanian healthcare sector is known for its high-quality services, both regionally and internationally. Jordan’s world-class internationally qualified workforce, state-of-the-art medical machinery and equipment, and high-quality medical facilities are all contributing factors making Jordan’s healthcare sector one of the fastest growing sectors in the country. There is a multitude of promising investment opportunities within Jordan’s growing healthcare sector.

WHY JORDAN FOR HEALTHCARE: The healthcare sector in Jordan is featured with sound policies and enables regulations for business operators and investors alike. The infrastructure is solid and the national policies customized to healthcare operations and cutting-edge technologies both empower Jordan’s business environment for guaranteeing a prosperous healthcare sector. The sector is highly sophisticated compared to the rest of the MENA region. Rising health expenditures elsewhere together with Jordan’s position as the MENA’s premier and preferred destination for quality, world-class healthcare seekers are helping to drive the need for expanding and investing in the Kingdom’s healthcare sector

1. HEALTHCARE-MINDED HUMAN research, and development. This is treatment facilities worldwide. CAPITAL FORCE mainly a result of the high availability The competitiveness of Jordan’s of venture capital and Jordan’s 5. HUB FOR MEDICAL TOURISM healthcare sector specifically globalized, liberal, and forward- Jordan is considered a regional revolves around the highly skilled thinking society, providing access to leader in medical tourism and a workforce as the sector benefits state-of-the-art technologies and fresh regional medical treatment hub as from the availability of over 57,000 ideas. Nationwide, more than 30,000 110 hospitals serve both its domestic well-trained medical staff (high- students are currently undertaking population and over 250,000 foreign density, relative to population), in courses in para- medical sciences, patients per year. Jordan is ranked combination with comparatively medicine, pharmacy, and physical first in the MENA region as a best low treatment fees (which are education, underpinning a well- healthcare service provider and a lower than those in Europe and the educated and experienced workforce top destination for medical tourism, US). Jordan has the largest pool of in healthcare. according to the World Bank. physicians, dentists, and nurses per capita compared to the region. 4. ADVANCED FACILITIES 6. REGULATION AND MEDICAL Healthcare facilities in Jordan ACCOUNTABILITY LAW 2. HIGH-QUALITY HUMAN are highly advanced. One of the The Jordanian Government has CAPITAL MARKET largest private hospitals in the recently endorsed a medical A country with limited natural Kingdom was the first general accountability law that will establish resources, Jordan recognized the specialty hospital to receive the Joint an insurance fund affiliated with importance of investing in its human Commission on Accreditation of the Higher Medical Council. resources and becoming more talent- Healthcare Organizations’ (JCAHO’s) This insurance fund will cover driven. The Kingdom is now ready to international accreditation in medical malpractice, obliging reap this benefit, capitalizing on the 2007, while another nine hospitals “establishments licensed to present excellent workforce to accommodate and cancer centers are currently medical and health services”. The a multitude of technology-based accredited by the Joint Commission bill also requires the Health Ministry industries. Jordan’s young and International (JCI). The International to compile a database for licensed dynamic labor force is one of the most Pharmaceutical Research Center medical and health staff, creating a skilled, competitive, and productive (IPRC) is one Clinical Research classification system by professional in the region. The Kingdom’s Organization in Jordan that is level in coordination with respective advantages are driven by relatively approved by the Jordan Food and associations. low redundancy costs, cooperative Drug Administration as well as by Finally, the King Hussein Business relations between employees the Gulf Cooperation Council. With Park (in Amman) and Irbid and employers, flexibility in wage more than 100 professionals, IPRC Development Area, two of Jordan’s determination, and efficient hiring has conducted more than 2000 Development Zones, focus on and firing practices, making it easy to bioequivalence, bioavailability and attracting healthcare opportunities attract and retain suitable staff. pharmacokinetics studies catered to and services, offering high quality US, EU, AU, India and MENA markets. infrastructure and a streamlined 3. INNOVATION, RESEARCH, AND Moreover, the King Hussein Cancer business operating environment, DEVELOPMENT Center is the only specialized cancer boosted by attractive incentive Jordan offers one of the region’s most treatment center in the MENA region packages for businesses operating vibrant environments for innovation, and ranks among the top cancer within these zones.

INVESTMENT OPPORTUNITIES Jordan’s healthcare industry totals about US$ 3.58 billion, representing approximately10% of GDP (as spent on this sector), which is among the highest in the Middle East and North Africa (MENA) region. Given the country’s existing competitiveness in terms of medical tourism; a healthcare-minded workforce; renowned hospitals and facilities; reforms on the private hospitals’ regulatory framework; and a growing market with increasing demand for world-class healthcare services in the region; a number of investment opportunities exist across a variety of healthcare niches. 1. Hospitalization 3. Medical Education & Services 5. E- Healthcare 2. Pharmaceuticals & Medical Devices 4. Medical Tourism & Cosmetics

22 | | 23 ICT

WHY JORDAN FOR ICT Jordan has succeeded in creating and developing a highly-competitive information and communications technology (ICT) sector which is considered one of the pioneering sectors in the Middle East and North Africa (MENA) region. Jordan’s ICT sector attracts an average of USD $150 million in annual investment. The ICT sector in Jordan serves larger markets in the region in the age of technology and innovation and contributes significantly to the county’s increasing globalization.

WHY JORDAN FOR ICT: ICT Thrives in Jordan: Jordan is a pioneer in the MENA region with regards to fully liberalizing its ICT market. Jordan’s Enabling Digitalization Index (EDI) ranking is an indication that the ICT sector in Jordan is strengthening at a rate that outpaces its neighboring countries. Between 2017 and 2018, Jordan is one of the few countries that improved its EDI ranking.

1. COMPETITIVE COSTS AND HIGH TALENT of industrial property patents, trademarks, copyright, connected infrastructure for hosting a wide variety The pool of the ICT-related workforce in Jordan and industrial designs. It became a signatory of the of ICT and ICT-enabled businesses. It has reliable is growing annually, with a steady inflow of 5,000 World Trade Organization’s (WTO’s) Trade-Related international connectivity with the outside world. to 6,000 graduates from universities. It ranks first Aspects of Intellectual Property Rights (TRIPS) Critical to ICT business operations, Jordan offers within the region for the availability of scientists and Agreement in 2000. The Government of Jordan (GoJ) high-end electricity and telecommunications engineers per capita. Jordan’s training investments recognizes the vital importance of the ICT sector infrastructure. Reliable logistics structures, such as in high-tech, manufacturing, and service sectors to the country’s economy and has developed and efficient transportation or strong cellular connectivity, add value to the economy, while labor cost remains implemented the Jordanian National ICT Strategy contribute to the ease of doing business in Jordan for the most competitive in the region. Jordan’s key 2013-2017. ICT businesses. Jordan’s Connectivity Rating is based strength lies in its highly qualified, flexible, and cost- on four indicators: internet user’s ratio, mobile phone competitive workforce. Jordan’s young and dynamic 3. COMPETITIVE INCENTIVES and fixed phones lines subscriptions (per 100 people), workforce is one of the most skilled, competitive, The ICT/BPO-orientated Development Zones offer and the number of secure servers (per 100 people). and productive in the region. The Kingdom’s high quality infrastructure and a streamlined business advantages are driven by relatively low redundancy operating environment boosted by attractive incentive 5. START-UP ENTHUSIASM costs, cooperative relations between employees and packages. Such incentives include: A) Reduced With 300 out of the 600 technology companies employers, flexibility in wage determination, and corporate income tax of 5%. B) Exemption of customs qualifying as startups, Jordan’s ICT sector creates a efficient hiring and firing practices, making it easy to duties and sales tax for businesses operating inside technology ecosystem that is conducive to startup attract and retain suitable staff. The combination of those zones including the King Hussein Business operations. Support and enthusiasm for start-up high public investment in industry-specific education, Park in Amman and the Irbid Development Zone in ecosystems creates a universally business-friendly and institutions that are strongly committed to Irbid, which offer a business park environment for atmosphere. The country’s high global ranking in vocational and on-the-job training, results in a multi- financial IT services and design studios for gaming business and innovation environment is indicative of talented and bilingual labor force. and animation. the start-up ready environment in Jordan. Moreover, Jordan is a host to various incubators and accelerators, 2. SOUND REGULATORY SYSTEM 4. CONNECTIVITY and is one of the region’s largest magnets of venture Jordan possesses strong legislation for the protection Jordan boasts a world-class modern and well- capital and equity funds.

INVESTMENT OPPORTUNITIES Jordan’s ICT market has undergone a rapid shift towards data service usage over traditional voice and SMS services, supported by equally swift mobile broadband network expansion which has had a significant position impact. From the early 2000s, incubators, venture capital firms, startup accelerators and co-working spaces like Oaesis500, iPark and V Business Center have been steadily establishing presence in Jordan. More than 600 active ICT companies call Jordan home, directly employing about 16,000 employees and an overall contribution to about 84,000 jobs in the wider economy. The ICT sector can be classified into eight sub-sectors, for which considerable investment opportunities exist. 1. Telecom 4. IT Software 7. Gaming 2. Digital Services 5. Online & Mobile 8. IT-Enabled Business Process Outsourcing (BPO) 3. IT Infrastructure 6. Outsourcing

22 | | 23 INDUSTRY

WHY JORDAN FOR INDUSTRIAL The industrial sector in Jordan is considered the most economically significant sector in terms of value-added to the national economy, availability of labor, linkages to other sectors, and the level of technical competence. The Jordanian industrial sector consists mainly of “manufacturing industries” sector, “extractive industries” sector and “electricity and water” sector. These activities are linked backward and forward with sectors such as transportation, insurance, agriculture and trade. The industrial sector is a high contributor to Jordan’s GDP as it constitutes about 25% in 2017, employing more than 240,000 people, most of them Jordanians, in some 18,000 industrial facilities across the Kingdom.

WHY JORDAN FOR INDUSTRIAL: Regionally Competitive: Jordan’s attractiveness in industry is further supported by the research and development (R&D) centers and technology-focused universities, such as the in Amman and the Jordan University of Science and Technology in Irbid. Both universities have research centers and institutes that are active in advanced engineering, including the Higher Council for Science and Technology. Al Urdonia Lil Ebda’- also known as (BIC) was launched by the Jordan Industrial Estates Company (JIEC) in cooperation with the Jordan Enterprise Development Corporation (JEDCO), Jordan Engineers Association, and the King Abdullah II Fund for Development. The main goal of BIC is to stimulate innovation by bringing the scientific and industrial environments together. Jordan offers a regionally competitive environment for innovation, research, and development, which further supports the country’s strong proposition for the industrial sector. Jordan’s global ranking in quality of education, on-the-job-training, and availability of scientists and engineers is competitive with neighboring countries and showcases the high quality of some economic factors that are relevant to the Industry sector.

1. EASE OF TRADE 2. SOPHISTICATED 3. GOVERNMENT OF JORDAN’S Jordan’s total exports reached PRODUCTION PROCESS COMMITMENT TO INDUSTRY US$ 7.6 billion in 2017, of which Jordan’s sophisticated SECTOR GROWTH apparel, potash, phosphates, fruits production process contributes Continuous efforts have been and vegetables, medical supplies, to the ease of doing business. made to ensure easy access pharmaceutical products, and Industry sector businesses of Jordanian products to fertilizers were the main export are dependent on the ability international markets. The latest products and goods. Industrial to produce goods efficiently. has been the agreement between exports totalled US $3.6 billion in Jordan’s sophistication in Jordan and the EU with regards to 2017, constituting 91% of total production process indicates the Relaxation of Rules of Origin exports. Countries mostly exported its progress and forecasted over the next ten years as per July to include the United States, growth for the industry sector. 2016. The agreement covers most Saudi Arabia, Iraq, India, United Jordan exceeds standards for industrial products, which are Arab Emirates, and Indonesia. many manufacturing aspects expected to have greater access On the other hand, Jordan’s total relied upon by industry sector to the EU market, such as textiles, imports totalled US$ 20.70 billion businesses. For example, apparel, electrical and home in 2017. The main imports were the quality of electricity appliances, chemical products, transportation equipment, spare supply outranks many of its plastic products, and furniture. parts, petroleum products, crude oil, neighboring regions. The Special incentives are offered textile yarn, fabrics, and make-up dependability of these process for industrial investments in a articles, primarily imported from aspects contributes to Jordan’s variety of Development Zones countries such as Saudi Arabia, overall desirability for industry and industrial estates distributed China, the United States, and Italy sector business and investment. across the Kingdom.

INVESTMENT OPPORTUNITIES Jordan’s industrial sector comprises an array of essential sub-sectors that exhibit sophistication and dynamism which are characterized by reciprocity and complementarity among the constituent sub-sectors as some of their products serve as the input to the production of others. The manufacturing of various products in Jordan is a significant contribution to the activity in the Country’s industry sector. Jordan’s industrial sector can thus be classified into eleven sub-sectors, for which considerable investment opportunities exist.

1. Pharmaceuticals & Medical Supplies 6. Wood & Furniture Construction systems 2. Chemicals and fertilizers 7. Agro-industry and food products, 11. Garments & Leather 3. Cosmetics 8. Glass and other silica based products’ 12. Extraction 4. Plastics & Rubber 9. Metals engineering and fabrication, 13. Crafts 5. Engineering & Electronics 10. Renewable energy and energy saving

24 | | 25 ENERGY

WHY JORDAN FOR ENERGY Domestic demand for is growing. This growth in the energy sector is a result of industrialization, population growth, and a growing economy. Jordan is looking at medium and long-term initiatives across a wide range of energy sub-sectors to diversify its energy sources. These include importing LNG, exploring for oil and gas, implementing an energy efficiency program, importing electricity from neighboring countries and diversifying the types of fuel it uses for power generation. In combination with its favorable climatological conditions, technically skilled labor force, strong grid connectivity, and high insulation and irradiation levels, Jordan is emerging as an ideal location for investment in renewable energy and clean technology. Investments in Jordan’s energy sector will offer a starting point for international companies with the intention of regional or global expansion.

WHY JORDAN FOR ENERGY: an ideal place for energy-sector business. Economic Growth Plan 2018-2022. GOJ has decided to create and invest with USD 150 to 200 million 1. INCREASING DEMAND 4. URANIUM RESOURCES in a “Green Corridor” that will enhance Jordan’s Energy demand in Jordan is expected to increase With 33,800 metric tons of uranium reserves, Jordan grid capacity and facilitate foreign investments in by at least 50 percent over the next 20 years. The has potential to be at the forefront of nuclear energy renewable energy projects. increases in industrial and commercial activities have development. It is expected that the rate of production also contributed to the overall increase in demand of uranium from the mines in central Jordan will 7. ENERGY INFRASTRUCTURE DEVELOPMENT for energy in Jordan. All of these factors indicate the be about 2,000 tons annually. Due to the unknown Jordan is exploring the construction of a pipeline from growth of the energy sector, making it a high-potential long-term availability of fossil fuels and the impacts Iraq’s Basra to Haditha and onward to Jordan’s Aqaba area of the Jordanian economy.119 on climate change, nuclear energy development is port in collaboration with the Government of Iraq. becoming paramount to the future of the energy As part of Jordan’s energy infrastructure, the Aqaba 2. A GATEWAY TO THE MIDDLE EAST sector and Jordan is positioned with the ideal Development Corporation (ADC) had been tasked with Positioned as a gateway to the Middle East, Jordan resources to be at the frontline of those developments. constructing a Liquefied Natural Gas (LNG) terminal is emerging as an ideal location for investment in in Aqaba, which commenced operations in July 2015 renewable energy and clean technology. Jordan is the 5. OIL SHALE RESERVES and is expected to be supplied by Royal Dutch Shell second most attractive environment for renewable Jordan has the world’s eighth largest reserves of oil under a five-year agreement with Jordan’s National energy and energy efficiency investments in the shares. Total deposits are estimated at 70 billion Electric Power Company. region. With only 1.3 millions of tons of Carbon tons, containing more than seven billion tons of oils. Dioxide per terawatt hours (MtCO2/TWh) in CO2 These deposits cover more than 60% of the Kingdom’s 8. CAPABLE HUMAN CAPITAL emissions from fuel combustion/electricity output, territory. Jordanian oil shale is high quality with the Investments in Jordan’s renewable energy sector the country is doing relatively well in the energy majority being shallow, a characteristic that makes the have exceeded USD 1.4 billion, prompting the country sector despite a lack of natural resources. Jordan is oil shale suitable for open-cast mining. The resource to achieve its desired goal of supporting renewable preparing for its second National Energy Efficiency can provide the Kingdom with a long term supply of energy sources in the total energy mix by 10 percent Action Plan (NEEAP) (2017-2020) with an expected cheap, reliable and abundant energy that can cater to by 2020. Jordan’s annual growth rate in electricity total saving of 1,975 GWh saved from its first NEEAP. a significant percentage of Jordan’s domestic energy demand is 3%. The contribution of the renewable Thus, achieving its 20% energy reduction target by requirements. energy sector to the total energy mix has grown from 2020.The energy market is now poised to become a 0% to 6% since 2015 while conventional energy leading regional example of non-oil dominated energy 6. GOVERNMENT OF JORDAN (GOJ) COMMITMENT resources still generate 4.3 GW. The country has mix and diversified energy sources. TO ENERGY DEVELOPMENT made significant progress on offering investment The government has created a policy and legal opportunities in oil shale and in expressing interest 3. ABUNDANCE OF SUN & WIND framework that provides investors with a high degree in peaceful nuclear power plants as additional means Located within the solar belt, Jordan has one of the of predictability, low transaction costs and fair rates to diversifying the country’s energy mix, through highest solar irradiance levels in the world, ranging of return. GOJ has implemented its straightforward which it aims to become a net energy exporter in between 5 and 7 kWh/m2. Jordan has significant wind National Energy Strategy (NES), which runs from 2030. Implementing the NES requires an investment energy resources that could be exploited for power 2007 to 2020, underpinning the Kingdom’s energy of US$ 18 billion in the energy sector by 2020.The NES generation as wind speeds reach an average of 7 m/s transition. This policy will not only lower Jordan’s highlights the need for private sector development in several locations across the country’s northern and energy costs but will also make more affordable in new energy projects through Public Private western regions (with up to 11.5 m/s in hilly areas). energy solutions available to local sectors, allowing Partnerships (PPP) through “build-operate-transfer” The abundance of solar and wind in Jordan makes it them to continue to thrive in line with the Jordan (BOT) and “build-own- operate” (BOO) models.

INVESTMENT OPPORTUNITIES Investments in Jordan’s renewable energy sector have exceeded USD 1.4 billion, prompting the country to achieve its desired goal of supporting renewable energy sources in the total energy mix by 10 percent by 2020. Jordan’s annual growth rate in electricity demand is 3%. The contribution of the renewable energy sector to the total energy mix has grown from 0% to 6% since 2015, while conventional energy resources still generate 4.3 GW. The country has made significant progress on offering investment opportunities in oil shale and in expressing interest in peaceful nuclear power plants as additional means to diversifying the country’s energy mix, through which it aims to become a net energy exporter in 2030. Implementing the National Energy Strategy (NES) requires an investment of US$ 18 billion in the energy sector by 2020. The NES highlights the need for private sector development in new energy projects through Public Private Partnerships (PPP) through “build-operate-transfer” (BOT) and “build-own- operate” (BOO) models.

1. Wind Energy 3. Hydro Energy 5. Oil Shale 7. Nuclear Energy 2. Solar Energy 4. Clean Technology 6. Waste Energy 8. Biogas

24 | | 25 TOURISM

WHY JORDAN FOR TOURISM Jordan’s fast-growing tourism sector involves many promising niches and high- potential investment opportunities. Travel and Tourism continues to be a vitally important pillar of Jordan’s economy. Jordan features some of the world’s most unique and iconic assets such as; - one of the seven world wonders, the Dead Sea - the lowest point on earth, the Baptism site, and Wadi Rum desert, turning the country into a rich destination with a wide range of tourist attractions.

WHY JORDAN FOR national carrier, the Royal Board (JTB) has launched several TOURISM Jordanian Airlines – based at marketing campaigns in major Amman’s Queen Alia International tourism markets to contribute 1. INCREASING DEMAND Airport - is a member of the to a positive image of Jordan and Indeed, Jordan’s tourism demand globally renowned OneWorld is committed to continuing that forecast is favorable. Leisure travel Alliance. What’s more, the Jordan momentum. spending is expected and business Tourism Board (JTB) has signed travel spending are expected Memorandums of Understanding 6. TOURISM-ORIENTED to grow by 8.8%. On the other with Etihad Airways and Emirates DEVELOPMENT ZONES hand, capital investment in Travel Airlines to diversify traveling Tourism-orientated Development & Tourism is expected to grow options to Jordan’s visitors. With Zones are located in various by 4.8%, and domestic visitors’ two airports in Amman and one touristic areas offering high travel spending is expected to airport specifically serving Aqaba, quality infrastructure, streamlined grow by 6.4% this indicates that the quality of Jordan’s air transport business operating environment, the tourism sector in Jordan is infrastructure and connectivity is and a conducive business forecasted to grow significantly. among the highest in the region. environment, which is further This increase in demand will reveal boosted by attractive incentive a host of lucrative investment 4. HUB FOR SPECIAL-INTEREST packages for tourism businesses opportunities. TOURISM operating inside Development The country offers experiences Zones. The most relevant 2. CULTURAL HERITAGE that fit the fast-growing niche Development Zones for the tourism Jordan encompasses a wealth of special interest tourism (e.g. sector include: of historical, archeological, and medical & wellness tourism, faith • Aqaba Special Economic Zone natural attractions for tourists based tourism, adventure tourism, Authority (ASEZA), located seeking a cultural experience. film-tourism and MICE tourism). in Aqaba, which is Jordan’s The Dead Sea, Petra the ancient Therefore many special interest coastal city located at the Red rock-cut city, and the ancient ruins tourist activities that Jordan offer Sea. in the capital are only a few of incorporate a variety of other • Dead Sea Development the many deep-seeded historical economic sectors in the country. Zone, where a number experiences one can find in Jordan. These special interest tourism of large tourism and real The Kingdom provides tourists markets present a large spectrum estate development projects with the unique opportunity to of investment opportunities. are under construction, tour and learn about the Middle particularly in the Corniche East while feeling safe and secure 5. COMPETENCE TO FACILITATE District and the North in their travels. Citizens, visitors, GROWTH Eastern shore of the Dead and tourists enjoy the good life The Government of Jordan (GoJ) is Sea. Investment opportunities in Jordan with much personal committed to further developing in this Development Zone freedom and safety. and investing in the tourism sector, vary considerably in terms which is demonstrated by its high of investment size and 3. HIGH-QUALITY TOURISM policy prioritization and relatively type, thereby depending on INFRASTRUCTURE high budget spending (10.7% of the investor’s preference, Proximity to the large regional total budget) on the tourism sector. expertise, and appetite. feeder markets, major air hubs Jordan’s Vision 2025 reflects the • Ajloun Development Zone, (e.g. Istanbul and Dubai), and GoJ’s commitment to tourism located north of Amman high volume destinations within sector growth as it puts specific the area is famous for its the GCC is one of Jordan’s key emphasis on the development of vegetation, forests, traditional competitive advantages. Jordan’s the tourism clusters present in village landscapes and ancient the country. The Jordan Tourism sites.

INVESTMENT OPPORTUNITIES Tourism is a key pillar of Jordan’s economy therefore there has been tremendous efforts to better promote the kingdom and further develop niche tourism segments. Jordan’s tourism proposition and experiences also hold potential to attract tourists in other emerging and promising niches. Eight of the most prominent investment opportunities are detailed below:

1. Leisure Tourism 5. Sports City Camps – Aqaba 9. Meetings, Incentives, Conferences, and 2. Aqaba’s High Lake Resort 6. Faith Based Tourism Events Tourism (MICE) 3. Medical & Wellness Tourism 7. Adventure Tourism 4. ECO and Nature Tourism 8. Educational Tourism

26 | | 27 TRANSPORTATION & LOGISTICS

WHY JORDAN FOR TRANSPORTATION & LOGISTICS

Jordan’s transportation and logistics sector plays a key role in Jordan’s economy, contributing to over 8.2% of GDP. It is growing at an annual rate of 6% and employs nearly 7.6% of the Jordanian human capital market, resulting in around 126,000 jobs. A total of 325 licensed transportation and logistics companies are currently operating in Jordan. Moreover, the estimated annual growth in demand for transportation and logistics ranges from 5% to 6% until 2030; this is partially due to the increase in population which makes the sector a promising prospect for substantial investment opportunities.

WHY JORDAN FOR TRANSPORTATION & is a growing and reliable component of the country’s development agreement to continuously further LOGISTICS : Transportation and logistics sector. develop and improve the efficiency, capacity, and the operational performance of all terminals in Aqaba’s 1. TRANSPORTATION & LOGISTICS IS GROWING 3. COMPETITIVE COST OF TRADE port. Accordingly, the ADC is currently implementing The past decade has shown considerable growth Jordan’s strong value proposition for the a comprehensive long- term master plan to develop all of Jordan’s transportation and logistics sector with Transportation and Logistics sector is reflected in port terminals and expansion programs for the next aircraft movement increasing by over 30%, while its cost-effective logistics and international trade. 30 years to: the number of passengers has more than doubled. Importing and exporting procedures (such as border • Ensure that ports start their expansion programs Transport demand, both for passengers and freight, and documentary compliance) are among the most based on trigger points with this master plan. is growing rapidly, resulting in consistent and efficient and least costly across the region. Border and • Ensure that the Aqaba Port always has sufficient stable growth in recent years. The upward trend in documentary compliance of exporting from Jordan capacity ahead of demand and to respond to the growth reveals a variety of promising investment requires 38 hours and costs approximately US$ 131, increase in cargo volume. opportunities. while clearing imports requires roughly 17 days, • Secure the Kingdom’s external trade and cargo costing US$ 30. flow via the Aqaba Port. 2. AIR TRANSPORT CONNECTIVITY • Upgrade the Aqaba Port’s level of management Jordan’s three major airports create an ease of 4. PORT EFFICIENCY & DEVELOPMENT and operations to international best practices and mobility both domestically and internationally. Air Jordan’s main port in Aqaba, which connects the standards. is playing a major role in turning nation to trade routes through the Arabian Gulf is a • Enhance the socio-economic contribution of the the Aqaba Special Economic Zone (ASEZA0 into a multi-use Aqaba port covers three separate areas, Aqaba Port to the ASEZA’s communities and the logistics and transport hub. The International Airport including the main port located outside the city wider national economy. Council awarded Jordan’s Queen Alia International center of Aqaba, the container port, and the industrial • Attract potential transit cargo to neighboring Airport (QAIA) the accolade of best and most port. Aqaba’s port currently features 22 specialized countries in the MENA region. improved airport in the MENA region. The airport berths and container handling facilities, facilitating was recently expanded to ultimately reach an annual general cargo of a wide variety of goods such as Ro-Ro, 5. REBUILDING OF SYRIA AND IRAQ capacity of 12 million passengers. King Hussein grain, liquid oil, chemicals, phosphate, potash, crude Jordan is constantly looking for opportunities to International Airport (KHIA) is a key point-of-entry oil, and refined oil products. The government has support economic growth in the Kingdom to help serving ASEZA and its multi-modal transportation recently streamlined customs clearance processes, overcome the challenges and repercussions resulting network, contributing to Aqaba’s tourism sector. advancing the use of a (electronic) single window, from hosting Syrian refugees. The establishment of a KHIA is a 24-hour, all-weather airport with a 3,000m and improved infrastructure at the Port of Aqaba, logistics center in Jordan to serve parties involved in x 45m runway and has been declared an “open skies” thereby considerably reducing border compliance the reconstruction of Iraq and Syria is one opportunity facility with landing rights that are not restricted by and optimizing importing and exporting procedures.6 in which the GoJ intends on pursuing. To benefit from conventional bilateral agreements. The quality of air The development of Jordan’s ports will increase the longstanding enterprises in areas of vocational and transport in Jordan outranks neighboring countries country’s international competitiveness and open technical training, youth rehabilitation in refugee- by a substantial margin. Jordan’s air transport promising opportunities for outside investors. hosting communities as well as training Syrian connectivity globally recognized as a leader in the The Aqaba Development Company (ADC), the zone’s refugees in professions that would contribute to the MENA region. With more departures (per 1,000 master developer, is mandated by the Aqaba Special reconstruction and development of Syria once the people), than most of its neighbors, Jordan’s air transit Economic Zone Authority (ASEZA) through a main situation is secure and ready for such involvement.

INVESTMENT OPPORTUNITIES The Transportation and Logistics sector can be classified into five sub- sectors, for which considerable investment opportunities exist:

1. Ma’an Dry Port 3. King Hussein International Airport 5. Amman Civil Airport 2. The Jordanian National Railway Project 4. Marka Airport

26 | | 27