1. The Development and Free Zones Regime of Jordan
The Development and Free Zones Regime of Jordan
Fourth Forum for Investment In Free Zones and Development Areas
Muscat, Sultanate of Oman
3rd-4th December 2011

2. Presentation Highlights 1.The National Economic Setup
1.The National Economic Setup
2. Investment Enabling Platforms
3. The Regulatory Role
4. The Financial Incentive Package
5. Site Development & Management
6. Existing Portfolio

3. Critical National Investment Drivers
National policy on key economic sectors
Track record of economic and political stability
Transparent and dynamic business environment
Geographic location; a transportation and logistics hub
Access to major international and regional markets
Educated and experienced workforce
High quality infrastructure
Support and commitment at all governmental levels

4. Access to National, International and Regional Markets
Member of the WTO
Jordan-US Free Trade Agreement
Great Arab Free Trade Agreement
Euro-Jordanian Association Agreement
Aghadeer Agreement
Bilateral Free Trade Agreements with Singapore, Canada and Turkey
“Customs Free and Quota Free” Access to 1 Billion Consumer

5. Enabling National Policy for Cluster Development
Objectives:
- Promote FDI and DDI
- Expand Export Potential under Preferential Market Access
- Distribute Economic Gains across Sub-national Regions
- Create Jobs and local economic benefits
Key Economic Clusters:
- Dry Port and Logistics
- Electricity Generation from Renewable Solar Energy Sources
- ICT, Clean Technology and BPO
- Eco-tourism and Wellness; Dead Sea and Ajloun
- High Value Added Industries

6. The Development and Free Zones as an Investment Enabling Platform
Government
Policy enablement
Land
External infra-structure
Financial Incentives
Commission
Planning approvals
Business licensing
Provide Gov”t interface
Master Developer
Onsite infrastructure
Municipal services
Marketing
Investor
Construct project
Regime in exchange for commitment
The Development and Free Zones as an Investment Enabling Platform
The Law Provides Total Business Solutions
Provide training
Generate Jobs
Transparent, Proactive, Unified and Streamlined

7. DFZC Roles and Responsibilities
Good Governance and Friendly Interface
Harmonizing National Investment Location Map
Recommending establishments of new sites
1.Economic Planning:
Land zoning, planning and construction permitting
Business registration and licensing
Environmental management
Expatriate workforce permitting
2.Regulating
Establishing and regulating Municipal or Common Facility Management Regime
Managing Master Development Contracts
3.Site Management
4.Local Economic Development
HR Training & Development
SME’s Support
Supporting Corporate Social Responsibility

8. Tax Exemptions for Development Areas
Automatic and Project Life-Long in exchange of
Preferential Market Access 5%
Corporate Income Tax
On income accrued by all business operations conducted within the zone
Custom Duties
On all capital assets and goods imported for conducting business operations 0% 0%
Sales Tax
On all goods and services procured for conducting business operations 0%
Social Services Tax
On accrued business income 0%
Capital Gains Tax
No restrictions on Foreign Direct Investment

9. Tax Exemptions for Free Zones
Preferential Market Access is Restricted 0%
Corporate Income & Social Services Tax
On income accrued by all business operations conducted within the zone 0%
Custom Duties
On capital assets and production input materials 0%
Buildings & Land Tax and Licensing Fees
On assets within the zone 0%
Personal Income Tax
On salaries and remittances of non-Jordanian employees
Full Repatriation of FDI Capital upon Liquidation

10. Master Developer’s Roles & Responsibilities
Advanced Municipal Entity
Business Planning, Site Development & Management, Promotion and Marketing
Preparing and implementing:
- Market Assessment and Business Plans
- Master Plan and Infrastructure Engineering Plan
- Financing Plan
- Marketing and Promotion Plan
- Strategic Environmental Assessment Study
Managing sub-development agreements with located business
Site and Facility Management & Provision of Municipal Services
Assuming regulatory powers delegated by DFZC

11. Master Development Companies
Public Funds with Long Term Investments Horizon & Opportunities for PPP’s
1.Master Developers
The Investment Unit/Social Security Corporation
Business Park
Irbid
Mafraq
10% Jordan Armed Forces, 5%King Abdullah II Fund For Development, 5% The Hashemite Fund For Development of Jordan Badia
Jordan For Development Zones (100% Public)
Dead Sea
Ajloun
King Abdullah II Fund For Development
Ma’an(Jordan Industrial Estates Corporation, Al-Hussein Bin Talal University)
2.Master Developers to be Grandfathered within the DFZC Regime
Industrial Zones Company
Free Zones Company
9 private companies in Private Industrial Zones
35 private companies in Private Free Zones

12. Harmonize all Investment Enabling Platforms and Consolidate within a National Vision
Level-Playing Field with Additional Room for Performance Based Incentives
61 Sites
6 Development Areas
15 Industrial Zones
40 Free Zones
More than 8000 businesses
More than 85,000 Jobs
Leading Sectors
IT Services
Trade & Logistics
Tourism
Industry

14. Development Areas
A Platform to Enable and Spread Investments across Different Regions of Jordan
مباشرة الهيئة أعمالها في مطلع 2009

15. Industrial Estates and Free Zones
Unifying the Regulatory Framework and Removing Existing Distortions