Planning minister highlights benefits of investing in Jordan

AMMAN – Minister of Planning and International Cooperation Imad Fakhoury on Tuesday briefed French President Francois Hollande and the accompanying delegation of businesspeople on what Jordan can offer to investors while working to turn challenges caused by the Syrian refugee crisis into economic opportunities. 

At a presentation during the French-Jordanian Economic Forum at the Jordan Chamber of Commerce, Fakhoury said the private sector could play an important role in the response plan to the Syrian refugee crisis by alleviating social problems in the region while creating economic gains for shareholders.

He called for building on what has to offer through its strategic location on world’s main trade route, preferential access to most global markets, productive and qualified labour force, favourable tax conditions, political and macroeconomic stability and long-term planning through the Jordan Vision 2025.

The minister said that Jordan has bilateral trade agreements with 38 countries, whose markets would absorb future goods.  

Pointing out to London conference on the Syrian crisis in February of this year, which acknowledged the importance of including Jordan into the EU value chain, Fakhoury said a 10-year agreement to grant Jordan simplified rules of origin status would support Jordanian products to reach the EU market in the short term and improve Jordan’s supply chain and national competiveness to be one of the EU reliable suppliers. 

Fakhoury said that Jordan can also play a major role in the reconstruction efforts in the region, adding that the Kingdom is home to productive and qualified human resources. 

He said that many multinational companies are already present in the Kingdom. 

He briefed the attendees on tax incentives for businesses, who he said would also enjoy extensive support from government. 

He underlined tax incentives in special economic zones, explaining that companies would enjoy a low income tax rate of only 5 per cent on all taxable incomes, zero sales tax on goods and services acquired by a registered enterprise, import duties of zero rate on all materials, instruments and machines used in establishing, constructing and equipping a registered enterprise and a zero rate on dividends tax on all income accrued within the zone or outside the Kingdom. 

Fakhoury said Jordan offers macroeconomic stability for exporters, and a political environment supportive of economic growth, pointing out to a stable and high economic growth of at least 2.5 per cent consistently over the past 15 years. 

There is a clear commitment to the private enterprise system, he said, noting that Jordan ranked 38th out of 178 countries in the economic freedom index. 

Fakhoury briefed them on Jordan Vision 2025, which is a 10-year economic blueprint that seeks to achieve a more resilient and prosperous Jordan, focusing on inclusive growth and improving economic competitiveness, investment climate, ease of doing business, self-reliance and entrepreneurship and innovation, based on nine economic clusters.