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2019 EDITION VOL. 4 JORDAN’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 Aqaba 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 Egypt, 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