Jordan Investment Commission Holistic Approach for Syrian Refugees Crisis- Jordan Compact

Main Pillars for the Holistic Approach – Jordan Compact The Holistic Approach – Jordan Compact is anchored on three interlinked pillars: First Turning the Syrian refugee crisis into a development opportunity that attracts new investments Second Rebuilding Jordanian host communities by adequate financing Third Mobilizing sufficient grants and concessionary financing to support the macroeconomic framework and address Jordan’s financing needs over the next three years Your Excellency Ladies and Gentlemen, Good afternoon I’m honored to be here and I want to thank you for this opportunity to address this esteemed gathering. We had the honor of receiving Mr. Kerber along with BDI delegation last week in Jordan . This follow up visit is to highlight Jordan’s investment readiness to receive new investments to help alleviate the Syrian Refugee crisis both in Jordan and in Germany.

Post London Conference 2016 Pledges made by the International Community in London: Financial Support & concessionary funding ( Grants & Soft Loans) to support the Host Communities and bridge the funding gap that Jordan is facing according to the adopted budget (2016-2018). Enabling Jordan to attract new investments to the development zones, providing them with full support and benefits, while the EU will adopt simplified rules of origin

Action Plan Components- Jordan Compact Improved Market Access to the EU Doing Business Reforms, Investment Reforms and Development Zones Approach IMF Extended Fund Facility Program Concessionary Financing-Grants As mentioned earlier Jordan has access to over 1 billion consumers globally through bilateral and multilateral trade agreements: EU Association Agreement ( 1997) European Free Trade Agreement Greater Arab Free Trade Agreement : (1981) US free Trade Agreement. (2001)

Investment Dimension – Jordan Compact Action Plan First Component: Improved Market Access to the EU : Task Hold a video conference with Brussels (DG Trade/DG Taxation and Customs Union) to agree on next steps; including timeframe for technical discussions on RoO with a target to conclude by Summer 2016 Evaluate the proposed development zones (pilot zones) and assess their readiness and needs. Select other zones/industries in light of the intention to request applying the simplified RoO to additional zones and industries Yes We do have a liberal economy where 117 nationalities own companies in Jordan. Unlike other countries in the region, the new investment law no. 30 grants 100% ownership of Foreign investments.

Investment Dimension – Jordan Compact Action Plan Second Component: Labor Market Reforms: Task Provide specific training programs for Syrians and Jordanians (subject to donors support and based on the outcomes of the assessment study expected to identify needed areas and the available demand gaps) Take necessary arrangements to allow Syrian refugees to apply for work permits both inside and outside of the development zones Take measures to allow Syrians to formalize their existing businesses and to set up new, tax-generating businesses, including access to investor residencies, in accordance with the existing laws and regulations

Investment Dimension – Jordan Compact Action Plan Third Component: Doing Business Reforms,Investment Reforms and Development Zones Approach Task Endorse the Residency, Work and Workers in Development Zones by-Law Endorse the by-laws under the new Investment Law Establish a Special Lane at the Investment Window at the Jordan Investment Commission to enable timely and smooth registrations and licensing in addition to issuance of needed approvals and permits Open offices for JIC (Investment Windows) at the designated development zones and outline their mandate with objective to enable timely and smooth registrations and licensing; issuance of approvals and permits

Investment Dimension – Jordan Compact Action Plan Third Component: Doing Business Reforms,Investment Reforms and Development Zones Approach Task Identify sectors and industries to be attracted to the zones as part of Jordan’s promotional plan Organize a private sector event in London in cooperation with EBRD Organize and mobilize investment outreach missions (e.g. to European capitals in 2nd half of 2016) According to the Heritage Foundation Jordan is ranked 4th out of 15 countries in the Middle East/North Africa

Investment Dimension – Jordan Compact Action Plan Third Component: Doing Business Reforms,Investment Reforms and Development Zones Approach Task Take necessary measures to improve investment climate, and develop a detailed plan on measures, regulation, structural reforms, investment strategy, investment promotion plan with timeline for implementation Start the implementation of the Deauville Transition Fund funded project “Jordan Economic Legislation Reform” aimed at modernizing critical laws and regulations governing business activities in line with international best practices

Investment Dimension – Jordan Compact Action Plan Targeted Sectors and the Designated Development Zones: The Following Labour -Intensive Sectors have been identified to support significant refugee employment: Garment Construction & Real Estate Agriculture Contact Centers Pharmaceuticals The new investment law no. 30 -2014 covers many sectors including: Industry, agriculture, hotels, hospitals, gas and oil derivatives and railways Which enjoy various automatic exemptions and incentives.

Investment Dimension – Jordan Compact Action Plan Identifying the needs of the 5 pilot Development Zones to ensure the readiness of those Zones to receive FDI, in terms of Infrastructure, as well as Vocational Training. Irbid Development Zone IT/BPO Services R&D and Healthcare Ma'an Development Zone Industrial Park for Light, Medium and Heavy Industries; Ceramics, Plastics, Electrical Appliances and Renewable Energy. KHBTDA (Mafraq) Industrial (Light And Medium) and Logistics Hub, Strategically Located Between Syria, Iraq, and Saudi Arabia Muwaqqar Industrial City Electronics, Pharmaceuticals, Food, Gramet AlHussein bin Abdullah II Industrial City- AlKarak Garment, Food, Chemicals The One Stop Shop offers a comprehensive set of Services including registration, licensing and the required approvals and permits necessary for economic activities

Investment Dimension – Jordan Compact Action Plan in order to ensure the creation of a significant number of Job opportunities for Syrian Refugees and Jordanians as well; additional zones were included : Al-Hassan Industrial City- Irbid Mafraq industrial City - Mafraq Al-Tajamouat Industrial City - Sahab King Abdullah II Bin AlHussein City - Sahab Al-Dulail Industrial City – Zarqa El-Hashmieh Industrial Area - Zarqa El- Ressaiefeh Industrial Areas - Zarqa El-Sukhneh Industrial Area- Zarqa Wadi El-Eisheh Industrial Area- Zarqa Alquwayrah Industrail Area - Aqaba, Alqastal Indusrial Area- Amman Marka Industrial Area - Amman Aljeezeh Industrial Area- Amman Providing Skilled and trained labour through specialized training programmes according to the Investment Project needs in the Designated Areas, in addition to establishing vocational training centers within the Development Areas Syrian Refugees account for 17% Jordan Population Which is equivalent to 13.8 M coming to Germany . This caused strain on the infrastructure, road network, water, education etc… the Refugees influx also caused distortion in the Jordanian labor market through the displacement of the local Jordanian labor force . Jordan thanks Germany for its continuous support exemplified by her Excellency the Chancellor Angela Merkel who co-chaired the London Donors Conference . We also thank the countries that have pledged financial support to Jordan to overcome the challenges created by the Refugees influx The Government of Jordan is currently negotiating the revision of the RoO to enable manufactured products in Jordan to obtain easier access to the EU market.

Investment Dimension – Jordan Compact Action Plan FDI Attraction and Increasing Exports: Organizing Inward Economic missions from the EU that includes field visits to the designated Development Zones:

Investment Dimension – Jordan Compact Action Plan Negotiating with the Countries of the EU for the Simplification of the Rules of Origin from the Least Developed Countries according to the EU’s General System of Preferences which will contribute to increasing the FDI and the Local Exports. Developing Investor Services: Issuing the Investment Law no. 30- 2014 and the related regulations. Establishing the Investment Window at the Investment Commission to provide a One Stop Shop service to provide licensing and registration for the economic activities in the kingdom. Special lane Creating an E-Portal that will be part of the Commission’s website to provide online services and handle enquiries.

Thank You..