Introduction by Mrs. Badran: His Majesty is pushing strongly for investment into the Millennium, so we are working on a unique promotional campaign which will bring investments into Jordan. This campaign has various angles; a new logo that is attractive, a new name that might be attractive, a marketing and promotional campaign in various countries which are important for the promotion of investments into Jordan.
Recently, we have changed the logo, and we have changed the name. It is no longer "Investment Promotion Corporation" (IPC). It is going to be "Jordan Investment Board" (JIB). First of all, IPC did not have Jordan in the name, and what we do is more than just promotion, we provide service, we give exemptions, we support investors, we have information available. This is why "Jordan Investment Board" was a better name, focusing on Jordan, on Investments, and it is a Board, suggesting that we are a government institution.
Along with this we are preparing a full promotional campaign in various countries. Before we do the campaign, we have pinpointed the sectors which are important for Jordan, and in the next few months we will stress certain sectors for Jordan. These are the sectors that have the largest potential for people to come invest and expand, and the government is providing full information, infrastructure, to streamline and facilitate the process of doing business in these sectors.
The two main sectors in top priority are textiles, especially for the QIZ (Qualified Industrial Zones), and the IT business. Others are very important as well, such as tourism, mining and pharmaceuticals, but these first two sectors are a priority for us during the first half of the year. According to this, we have done market research to see where it is most feasible for us to do promotion internationally, to see what is the volume of import-export business, and we came up with a short list of countries to focus on. Now we are doing this promotional campaign accordingly.
We are in the process now of doing campaigns in the Gulf States and the Far East, inviting investors to look at opportunities. What we have seen so far is that, whenever we tell business people about the benefits of the QIZ, they are astonished and very interested in having more details.
So far we have been sending flyers to these selected countries where we think there is strong potential, and we have had positive feedback. We already have several companies established in Jordan's QIZ, about USD 46 million worth of investments, employing about 3000 people. We also have to keep in mind that the QIZ concept is still quite new; the agreement was signed in late 1997 but it was only implemented in late 1998, so it has only really been here for less than two years. Now we have about USD 130 million of investments in the pipeline, only through our agency. This does not include other investments channelled through Ministries, industrial states, or other areas. This is also without having a strong promotional campaign, so we expect investments to boom.
With the QIZ there are no quotas, and there are also no duties, which is also a plus. Right now we have four working QIZ in Jordan. The Al-Hassan Industrial Estate was the first one, then we have the Karak, then we have two others, one of them close to Sahab, and there is another one which is the fifth one, the Gateway, which is under construction and should be operation in the fall of this year. This is a unique QIZ because it is right on the border with Israel; three-quarters of it is on the Jordanian side, and one quarter on the Israeli side, so it is an added value because it is close to everywhere. We are also looking at a site in Aqaba for future expansion. When we started we had more demand than supply, so this is why now we have created more QIZ to satisfy the demand.
How does JIB help in the development of the QIZ?
Through promotion, mainly. We are in contact with the private and public sector every day. Once we have discussions with investors, we call the managers of these zones so that the private sector can go there, have a look and chose what is suitable for their needs. Each investor has a certain idea of where they would like to have their industry established.
What methods do you use to promote Jordan abroad?
Usually it is done through a contact person at the Embassy or Commercial office, then we hold a general seminar, a reception or dinner party to discuss the options we offer, then we have individual meetings in offices or factories in that country. This allows for comprehensive discussions instead of just providing them with information.
Is JIB looking at setting up satellite offices abroad?
Not at this point, although we would love to. Maybe in the long term.
The King is also looking at establishing an Information Technology (IT) Park in the northern area of Jordan. Is this another project which JIB would be promoting?
Yes, of course. We are really promoting Jordan as a national IT destination. One of the things that was established was opening up this sector 100% to foreign investors. We would like Jordanians to benefit from the experience of foreigners, and since we want to open up the sector, it was not feasible to have any kind of restrictions. Another recommendation was to have the IT sector included in the investment promotion law, meaning that it will benefit from exemptions, deductions in income tax and custom duties. Now we have drafted a new investment law which will include more sectors and different ways to attract investors to Jordan, and we hope that this new law will passed during the next parliament session.
| Our draft is also focusing on promoting the role of the private sector on the Board of JIB. This will ensure that our Board will be comprised of a majority of private sector representatives because , at the end of the day, promotion of investments is for the benefit of the private sector.
In this case, would the private sector begin to contribute financially to JIB?
We have not requested this. Most of the financing comes from the government, but the policy is going to be dictated by the private sector.
Another important issue, now that we are part of the WTO, is to encourage people to merge. We will support companies to merge, and there will be articles in the new law for this as well. This will include a simplification of procedures for start-up businesses. Basically its goal is to ensure more private sector participation, to ensure a greater focus on certain key sectors (like IT), to encourage merging and to give more power to the Jordan Investment Board.
What is the total budget of JIB?
For this year it is reasonably limited, but we have high hopes because investment is a priority now, and we are launching a strong promotional campaign. We also have an outlet from USAID and UNDP to do some work. On the government side, there are budget restrictions, and often we cannot do everything we would like to do. So right now, we are not doing excellent, but we are doing fairly good.
If I am a business person coming to invest in Jordan, what services can JIB offer me?
Once you arrive, we have an office at the airport, open 12 per day, from 8 to 8. We can also go to the airport to receive them, and we bring them here to JIB. If this investor knows where they would like to go, perhaps visit a QIZ, we plan the trip for them and we help them for their meetings and provide them with the right information. We also help them to obtain the 8% exemption from Israel.
If they are interested in setting up a business or factory, they fill an application here at JIB and we give them back the approvals from each relevant Ministry. We also provide the exemptions for the machines and deductions on income tax. If they need a visa or support for their employees, we provide it for them.
We literally help companies from A to Z. Those who start with us at the beginning really benefit from these services, and they have a promotional officer which works with them directly, so it is much easier once they start here.
Which are the markets you are concentrating on for your promotional campaign?
First we have the Emirates, Kuwait and Saudi Arabia, in the Far East we have Taiwan, Hong Kong, India and Pakistan. We did some work in Turkey, Tunisia and Egypt as well.
The second half of this year will be devoted to Europe, Italy, France, England and Spain, and Germany especially because of the Hanover conference.
In light of the numerous investment opportunities at present, what do you think will be the future of Jordan, perhaps ten years from now?
I hope it will be in Information Technology - we have a high education, excellent human resources, a developed infrastructure, and we have the political will to support this sector. We now have the support of His Majesty, which is excellent. Recently, in an Egyptian newspaper, it was written that Jordan will be the Singapore of the Middle east, in the sense of IT development. I hope this will be true.
What is your background, and how did you become Director General of JIB?
I worked in a commercial bank here in Jordan, as consultant for a while at the World bank in Washington D.C, I finished my bachelors degree here from Jordan University, and my masters from the U.S. at John Hopkins University. I did some work in different countries, mostly in the Far East.
When I returned to Jordan in 1995, I participated in the Amman-Minna summit, and it was very exciting. Since then it was very clear that Jordan is really in the direction of attracting major investments. Then I joined IPC, as an assistant, then a deputy, then Director General.
What would be your final message?
I would like people to know more about Jordan, and I think that there is a great opportunity to do business here. We have the political will and the infrastructure to help make any business here a success, and we believe that doing business here in Jordan is a successful venture for business people. |
Investment Promotion Corporation