Total investments in Jordanian projects that enjoyed a special package of exemptions and incentives last year from the Investment Promotion Law amounted to JD800 million, up from JD584 million in 1999, said Jordan Investment Board (JIB) director general Reem Badran.
Speaking at a luncheon on Thursday, January 4, organized by the Jordanian-Scandinavia Business Club, Badran said that the JIB strategy for this year will give priority to investment projects in the field of pharmaceuticals, information technology and tourism for European countries.
The director said that enforcing intellectual property rights legislation as Jordan joined the World Trade Organization and signing the Free Trade Agreement with the US last year are an attraction for potential investors, mainly in the IT and pharmaceutical sectors.
She said Aqaba's transformation into a Special Economic Zone as of Jan. 1 is expected to lure investors.
The Dead Sea area is among the major attractions for attracting investment in tourist projects.
Badran said that promoting investments in textiles will target the US and the Far East.
Through the country's five designated Qualified lndustrial Zones (QIZs), goods enjoy duty and quota free access to the US market, after meeting certain criteria.
Four new QIZ locations have recently been approved as well to meet the growing demand, investors said.
Badran highlighted the incentives granted to specific projects exempted from income and social services taxes, during the presentation which gathered members of the Scan Business Club. Depending on the location and the sector of the project — 25 percent, 50 percent, or 75 percent exemptions are granted for a 10-year period.
She said the JIB will issue separate booklets on various sectors with detailed information that will answer the frequent questions of investors in early February. They will cover pharmaceuticals, IT, garments, hospitals, dead sea products and mining.
Speaking about business delegations to Jordan, Stefania Khalifeh, consul general for Iceland told the Jordan Times that six companies from Iceland's Export Council are expected to visit Jordan, but no date has been set yet.
Trade between Jordan and the Scandinavian countries remains minimal. Last year, Iceland imported sweaters worth $30,000 from Jordan in a single business deal.
The trade balance is tilted towards Sweden's favor, according to Klas Gierow, ambassador of Sweden to Jordan. Jordan's exports to Sweden amounted to $5 million in 1999, while Jordan imports stood at $45 million.
Gierow said IT-oriented business delegations came to the Kingdom last fall, and that there are discussions to deepen relations in the IT field.
A Norwegian-Jordanian project which was negotiated for three years between Norsk Hydro and the Jordan Phosphate Company, did not bear fruit as the Norwegian giant decided to pull out late last year to pursue projects in the energy field.
The Scan Club was set up in August last year and seeks to enhance trade ties and encourage investments between Jordan and Denmark, Sweden, Norway, Finland and Iceland. — ( Jordan Times )
By Suha Ma'ayeh
© 2001 Mena Report (www.menareport.com)
