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Overview:
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The Jordanian economy is a market oriented economy. The economic system is
based on free enterprise and personal initiative. Since 1989, and with the help of international organizations, efforts
have been under way to restructure and revitalize the economy. The results have been more than satisfying.
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King Abdullah II has been working hard to further develop the economy, and
strengthen the environment attractive to foreign investors. Upon His Majesty�s directives, the government has undertaken
wide range major changes and adjustments to financial and economic legislation in order to improve the competitiveness of
the economy and integrate Jordan with the global economy. |
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These efforts have yielded steadily improving results. For example,
the GDP grew by 7% between 1992-1997. Over the last few years the steady growth rate in GDP has continued. The real GDP
grew by 4.8%, 4.7%, 4.9%, 3.8% and 7% (estimated) in 2000, 2001, 2002, 2003 and 2004 respectively.
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The competitiveness of Jordan is helped by its geographical location at the
heart of the Levant. It also enjoys free trade accessibility to major international markets, such as the USA and Europe,
as well as to the Arab world. |
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In December 1999, Jordan joined the World Trade Organization (WTO) as the
organization�s 136th member. It is believed that the accession to the WTO will assist Jordan in gaining the
opportunity for entering the global market, promoting its trade and improving its economy.
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In November 1997, Jordan signed a Partnership agreement with the European
Union. The agreement entered into force on May 1st, 2002. The main objective of the agreement is the establishment of a
free trade area between Jordan and the EU over twelve years. The agreement encourages more direct European investment,
provides free access to Jordan�s agricultural and industrial products and facilitates the transfer of state-of-the art
technology. |
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In addition to benefits in the political, social and cultural fields, the
agreement promises distinct economic yields for Jordan�s development. |
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On
October 24th, 2000 Jordan and United States have signed �Jordan-US
Free Trade Agreement�. The agreement has entered into force in
December 2001. The agreement will phase out virtually all tariffs on two
way trade in goods and services. Furthermore, it will help Jordan�s
economy to prosper, attract foreign investments and facilitate the
transfer of technology. It is worth mentioning that Jordan is one of four
countries in the world who have such an agreement with the United States
and it is the first with an Arab country.
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Strategic location:
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Jordan�s
strategic location at the meeting point of Asia, Europe and Africa, make it a link between the three continents. The
Kingdom represents an ideal gateway to Middle East and North African countries (MENA). A region which has over US$ 350
million consumers whose purchasing power exceeds US$ 500 billion.
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Investment in Jordan:
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It is said that Jordan offers a wide-range of opportunities. Many leading businessmen see Jordan as offering an
ideal base for investment in the region. The Investment Promotion Law of 1995 affords equal treatment to Jordanian and
non Jordanian investors and it introduces guarantees against expropriation. It allows the investor to own any project in
full or in part, with the exception of some trade and contracting services which require a Jordanian partner. The law,
also, offers generous and attractive incentives to investors, such as freedom from customs duties, exemption from taxes
and tax holidays, as well as unrestricted transfer of capital and profits. Excellent incentives are, also, provided for
export oriented industries, whereby all earnings from export are totally exempted from income tax.
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Jordan
Investment Board
is charged with promoting investment in Jordan. From the reception at the airport to the opening of the
factory. Businessmen and investors could receive free services and facilities upon arrival at the airport.
Investors Services Office at Queen Alia International Airport could be contacted at the following numbers:
Tel +962 6 4452 799 Fax +962 6 4452 788.
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The Qualifying Industrial Zones:
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The Qualifying Industrial Zones
(QIZ) have attracted many foreign investments. It represents an unprecedented opportunity to duty free, no quota, access
to the US market for the goods produced within the zone. Currently, there are ten designated industrial parks in Jordan as
QIZ's: the Gateway QIZ on the northern Jordan-Israel border; the Al-Hassan Industrial Estate in Irbid; the Al-Tajamouat
Industrial Estate in Amman; the Ad-Dulayl Industrial Park near Zarka, the Kerak Industrial Estate, Aqaba Industrial
Estate, Jordan Cyber City in Irbid, Al-Qastal Industrial Zone in Amman, Mushatta International Complexin Amman, and El-Zai
Readywear Manufacturing Co. in Zarqa.
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Aqaba Special Economic Zone:
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ASEZ represents an ideal opportunity for doing business in a competitive location. The zone is
located at the crossroads of four countries and three continents. For more details, please
click here.
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Privatization: |
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Since the
Jordanian economy is private-sector oriented, the state ownership is relatively small, except for the mining and public
utilities sectors. Recognizing the importance of the private sector role, a series of privatization initiatives have been
implemented to downsize public shares in the productive sectors. To this end, an Executive Privatization Unit has been
established. Currently, the program concentrate on the power sector, Royal Jordanian Airlines, National Petroleum
Corporation, Arab Potash Company and Jordan Phosphate Mines company.
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Competitively Priced human resources:
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Jordan has
one of the highest literacy rates in the region, 89%. With its large pool of high caliber intellectual and professional
expertise, Jordan became a major supplier of brainpower to neighboring countries. Jordan�s manufacturing labor cost per
hour is significantly lower than that of other nations. It is equivalent to 5% of Japan�s labor cost, 7.4% of the US labor
cost and 9,4% to the UK labor cost. |
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You are cordially invited to discover why Jordan is
today's top business location in the region |
