Keep Us Strong WikiLeaks logo

Currently released so far... 143912 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AORC AS AF AM AJ ASEC AU AMGT APER ACOA ASEAN AG AFFAIRS AR AFIN ABUD AO AEMR ADANA AMED AADP AINF ARF ADB ACS AE AID AL AC AGR ABLD AMCHAMS AECL AINT AND ASIG AUC APECO AFGHANISTAN AY ARABL ACAO ANET AFSN AZ AFLU ALOW ASSK AFSI ACABQ AMB APEC AIDS AA ATRN AMTC AVIATION AESC ASSEMBLY ADPM ASECKFRDCVISKIRFPHUMSMIGEG AGOA ASUP AFPREL ARNOLD ADCO AN ACOTA AODE AROC AMCHAM AT ACKM ASCH AORCUNGA AVIANFLU AVIAN AIT ASECPHUM ATRA AGENDA AIN AFINM APCS AGENGA ABDALLAH ALOWAR AFL AMBASSADOR ARSO AGMT ASPA AOREC AGAO ARR AOMS ASC ALIREZA AORD AORG ASECVE ABER ARABBL ADM AMER ALVAREZ AORCO ARM APERTH AINR AGRI ALZUGUREN ANGEL ACDA AEMED ARC AMGMT AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ASECAFINGMGRIZOREPTU ABMC AIAG ALJAZEERA ASR ASECARP ALAMI APRM ASECM AMPR AEGR AUSTRALIAGROUP ASE AMGTHA ARNOLDFREDERICK AIDAC AOPC ANTITERRORISM ASEG AMIA ASEX AEMRBC AFOR ABT AMERICA AGENCIES AGS ADRC ASJA AEAID ANARCHISTS AME AEC ALNEA AMGE AMEDCASCKFLO AK ANTONIO ASO AFINIZ ASEDC AOWC ACCOUNT ACTION AMG AFPK AOCR AMEDI AGIT ASOC ACOAAMGT AMLB AZE AORCYM AORL AGRICULTURE ACEC AGUILAR ASCC AFSA ASES ADIP ASED ASCE ASFC ASECTH AFGHAN ANTXON APRC AFAF AFARI ASECEFINKCRMKPAOPTERKHLSAEMRNS AX ALAB ASECAF ASA ASECAFIN ASIC AFZAL AMGTATK ALBE AMT AORCEUNPREFPRELSMIGBN AGUIRRE AAA ABLG ARCH AGRIC AIHRC ADEL AMEX ALI AQ ATFN AORCD ARAS AINFCY AFDB ACBAQ AFDIN AOPR AREP ALEXANDER ALANAZI ABDULRAHMEN ABDULHADI ATRD AEIR AOIC ABLDG AFR ASEK AER ALOUNI AMCT AVERY ASECCASC ARG APR AMAT AEMRS AFU ATPDEA ALL ASECE ANDREW
EAIR ECON ETRD EAGR EAID EFIN ETTC ENRG EMIN ECPS EG EPET EINV ELAB EU ECONOMICS EC EZ EUN EN ECIN EWWT EXTERNAL ENIV ES ESA ELN EFIS EIND EPA ELTN EXIM ET EINT EI ER EAIDAF ETRO ETRDECONWTOCS ECTRD EUR ECOWAS ECUN EBRD ECONOMIC ENGR ECONOMY EFND ELECTIONS EPECO EUMEM ETMIN EXBS EAIRECONRP ERTD EAP ERGR EUREM EFI EIB ENGY ELNTECON EAIDXMXAXBXFFR ECOSOC EEB EINF ETRN ENGRD ESTH ENRC EXPORT EK ENRGMO ECO EGAD EXIMOPIC ETRDPGOV EURM ETRA ENERG ECLAC EINO ENVIRONMENT EFIC ECIP ETRDAORC ENRD EMED EIAR ECPN ELAP ETCC EAC ENEG ESCAP EWWC ELTD ELA EIVN ELF ETR EFTA EMAIL EL EMS EID ELNT ECPSN ERIN ETT EETC ELAN ECHEVARRIA EPWR EVIN ENVR ENRGJM ELBR EUC EARG EAPC EICN EEC EREL EAIS ELBA EPETUN EWWY ETRDGK EV EDU EFN EVN EAIDETRD ENRGTRGYETRDBEXPBTIOSZ ETEX ESCI EAIDHO EENV ETRC ESOC EINDQTRD EINVA EFLU EGEN ECE EAGRBN EON EFINECONCS EIAD ECPC ENV ETDR EAGER ETRDKIPR EWT EDEV ECCP ECCT EARI EINVECON ED ETRDEC EMINETRD EADM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ETAD ECOM ECONETRDEAGRJA EMINECINECONSENVTBIONS ESSO ETRG ELAM ECA EENG EITC ENG ERA EPSC ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EIPR ELABPGOVBN EURFOR ETRAD EUE EISNLN ECONETRDBESPAR ELAINE EGOVSY EAUD EAGRECONEINVPGOVBN EINVETRD EPIN ECONENRG EDRC ESENV EB ENER ELTNSNAR EURN ECONPGOVBN ETTF ENVT EPIT ESOCI EFINOECD ERD EDUC EUM ETEL EUEAID ENRGY ETD EAGRE EAR EAIDMG EE EET ETER ERICKSON EIAID EX EAG EBEXP ESTN EAIDAORC EING EGOV EEOC EAGRRP EVENTS ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ETRDEMIN EPETEIND EAIDRW ENVI ETRDEINVECINPGOVCS EPEC EDUARDO EGAR EPCS EPRT EAIDPHUMPRELUG EPTED ETRB EPETPGOV ECONQH EAIDS EFINECONEAIDUNGAGM EAIDAR EAGRBTIOBEXPETRDBN ESF EINR ELABPHUMSMIGKCRMBN EIDN ETRK ESTRADA EXEC EAIO EGHG ECN EDA ECOS EPREL EINVKSCA ENNP ELABV ETA EWWTPRELPGOVMASSMARRBN EUCOM EAIDASEC ENR END EP ERNG ESPS EITI EINTECPS EAVI ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EADI ELDIN ELND ECRM EINVEFIN EAOD EFINTS EINDIR ENRGKNNP ETRDEIQ ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD EAIT ECONEINVEFINPGOVIZ EWWI ENERGY ELB EINDETRD EMI ECONEAIR ECONEFIN EHUM EFNI EOXC EISNAR ETRDEINVTINTCS EIN EFIM EMW ETIO ETRDGR EMN EXO EATO EWTR ELIN EAGREAIDPGOVPRELBN EINVETC ETTD EIQ ECONCS EPPD ESS EUEAGR ENRGIZ EISL EUNJ EIDE ENRGSD ELAD ESPINOSA ELEC EAIG ESLCO ENTG ETRDECD EINVECONSENVCSJA EEPET EUNCH ECINECONCS
KPKO KIPR KWBG KPAL KDEM KTFN KNNP KGIC KTIA KCRM KDRG KWMN KJUS KIDE KSUM KTIP KFRD KMCA KMDR KCIP KTDB KPAO KPWR KOMC KU KIRF KCOR KHLS KISL KSCA KGHG KS KSTH KSEP KE KPAI KWAC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPRP KVPR KAWC KUNR KZ KPLS KN KSTC KMFO KID KNAR KCFE KRIM KFLO KCSA KG KFSC KSCI KFLU KMIG KRVC KV KVRP KMPI KNEI KAPO KOLY KGIT KSAF KIRC KNSD KBIO KHIV KHDP KBTR KHUM KSAC KACT KRAD KPRV KTEX KPIR KDMR KMPF KPFO KICA KWMM KICC KR KCOM KAID KINR KBCT KOCI KCRS KTER KSPR KDP KFIN KCMR KMOC KUWAIT KIPRZ KSEO KLIG KWIR KISM KLEG KTBD KCUM KMSG KMWN KREL KPREL KAWK KIMT KCSY KESS KWPA KNPT KTBT KCROM KPOW KFTN KPKP KICR KGHA KOMS KJUST KREC KOC KFPC KGLB KMRS KTFIN KCRCM KWNM KHGH KRFD KY KGCC KFEM KVIR KRCM KEMR KIIP KPOA KREF KJRE KRKO KOGL KSCS KGOV KCRIM KEM KCUL KRIF KCEM KITA KCRN KCIS KSEAO KWMEN KEANE KNNC KNAP KEDEM KNEP KHPD KPSC KIRP KUNC KALM KCCP KDEN KSEC KAYLA KIMMITT KO KNUC KSIA KLFU KLAB KTDD KIRCOEXC KECF KIPRETRDKCRM KNDP KIRCHOFF KJAN KFRDSOCIRO KWMNSMIG KEAI KKPO KPOL KRD KWMNPREL KATRINA KBWG KW KPPD KTIAEUN KDHS KRV KBTS KWCI KICT KPALAOIS KPMI KWN KTDM KWM KLHS KLBO KDEMK KT KIDS KWWW KLIP KPRM KSKN KTTB KTRD KNPP KOR KGKG KNN KTIAIC KSRE KDRL KVCORR KDEMGT KOMO KSTCC KMAC KSOC KMCC KCHG KSEPCVIS KGIV KPO KSEI KSTCPL KSI KRMS KFLOA KIND KPPAO KCM KRFR KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KFAM KWWMN KENV KGH KPOP KFCE KNAO KTIAPARM KWMNKDEM KDRM KNNNP KEVIN KEMPI KWIM KGCN KUM KMGT KKOR KSMT KISLSCUL KNRV KPRO KOMCSG KLPM KDTB KFGM KCRP KAUST KNNPPARM KUNH KWAWC KSPA KTSC KUS KSOCI KCMA KTFR KPAOPREL KNNPCH KWGB KSTT KNUP KPGOV KUK KMNP KPAS KHMN KPAD KSTS KCORR KI KLSO KWNN KNP KPTD KESO KMPP KEMS KPAONZ KPOV KTLA KPAOKMDRKE KNMP KWMNCI KWUN KRDP KWKN KPAOY KEIM KGICKS KIPT KREISLER KTAO KJU KLTN KWMNPHUMPRELKPAOZW KEN KQ KWPR KSCT KGHGHIV KEDU KRCIM KFIU KWIC KNNO KILS KTIALG KNNA KMCAJO KINP KRM KLFLO KPA KOMCCO KKIV KHSA KDM KRCS KWBGSY KISLAO KNPPIS KNNPMNUC KCRI KX KWWT KPAM KVRC KERG KK KSUMPHUM KACP KSLG KIF KIVP KHOURY KNPR KUNRAORC KCOG KCFC KWMJN KFTFN KTFM KPDD KMPIO KCERS KDUM KDEMAF KMEPI KHSL KEPREL KAWX KIRL KNNR KOMH KMPT KISLPINR KADM KPER KTPN KSCAECON KA KJUSTH KPIN KDEV KCSI KNRG KAKA KFRP KTSD KINL KJUSKUNR KQM KQRDQ KWBC KMRD KVBL KOM KMPL KEDM KFLD KPRD KRGY KNNF KPROG KIFR KPOKO KM KWMNCS KAWS KLAP KPAK KHIB KOEM KDDG KCGC
PGOV PREL PK PTER PINR PO PHUM PARM PREF PINF PRL PM PINS PROP PALESTINIAN PE PBTS PNAT PHSA PL PA PSEPC POSTS POLITICS POLICY POL PU PAHO PHUMPGOV PGOG PARALYMPIC PGOC PNR PREFA PMIL POLITICAL PROV PRUM PBIO PAK POV POLG PAR POLM PHUMPREL PKO PUNE PROG PEL PROPERTY PKAO PRE PSOE PHAS PNUM PGOVE PY PIRF PRES POWELL PP PREM PCON PGOVPTER PGOVPREL PODC PTBS PTEL PGOVTI PHSAPREL PD PG PRC PVOV PLO PRELL PEPFAR PREK PEREZ PINT POLI PPOL PARTIES PT PRELUN PH PENA PIN PGPV PKST PROTESTS PHSAK PRM PROLIFERATION PGOVBL PAS PUM PMIG PGIC PTERPGOV PSHA PHM PHARM PRELHA PELOSI PGOVKCMABN PQM PETER PJUS PKK POUS PTE PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PERM PRELGOV PAO PNIR PARMP PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PHYTRP PHUML PFOV PDEM PUOS PN PRESIDENT PERURENA PRIVATIZATION PHUH PIF POG PERL PKPA PREI PTERKU PSEC PRELKSUMXABN PETROL PRIL POLUN PPD PRELUNSC PREZ PCUL PREO PGOVZI POLMIL PERSONS PREFL PASS PV PETERS PING PQL PETR PARMS PNUC PS PARLIAMENT PINSCE PROTECTION PLAB PGV PBS PGOVENRGCVISMASSEAIDOPRCEWWTBN PKNP PSOCI PSI PTERM PLUM PF PVIP PARP PHUMQHA PRELNP PHIM PRELBR PUBLIC PHUMKPAL PHAM PUAS PBOV PRELTBIOBA PGOVU PHUMPINS PICES PGOVENRG PRELKPKO PHU PHUMKCRS POGV PATTY PSOC PRELSP PREC PSO PAIGH PKPO PARK PRELPLS PRELPK PHUS PPREL PTERPREL PROL PDA PRELPGOV PRELAF PAGE PGOVGM PGOVECON PHUMIZNL PMAR PGOVAF PMDL PKBL PARN PARMIR PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PDD PRELKPAO PKMN PRELEZ PHUMPRELPGOV PARTM PGOVEAGRKMCAKNARBN PPEL PGOVPRELPINRBN PGOVSOCI PWBG PGOVEAID PGOVPM PBST PKEAID PRAM PRELEVU PHUMA PGOR PPA PINSO PROVE PRELKPAOIZ PPAO PHUMPRELBN PGVO PHUMPTER PAGR PMIN PBTSEWWT PHUMR PDOV PINO PARAGRAPH PACE PINL PKPAL PTERE PGOVAU PGOF PBTSRU PRGOV PRHUM PCI PGO PRELEUN PAC PRESL PORG PKFK PEPR PRELP PMR PRTER PNG PGOVPHUMKPAO PRELECON PRELNL PINOCHET PAARM PKPAO PFOR PGOVLO PHUMBA POPDC PRELC PHUME PER PHJM POLINT PGOVPZ PGOVKCRM PAUL PHALANAGE PARTY PPEF PECON PEACE PROCESS PPGOV PLN PRELSW PHUMS PRF PEDRO PHUMKDEM PUNR PVPR PATRICK PGOVKMCAPHUMBN PRELA PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PBT PAMQ

Browse by classification

Community resources

courage is contagious

Viewing cable 09AMMAN134, JORDAN 2009 INVESTMENT CLIMATE STATEMENT: OPENNESS TO

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09AMMAN134.
Reference ID Created Released Classification Origin
09AMMAN134 2009-01-15 06:50 2011-08-26 00:00 UNCLASSIFIED Embassy Amman
VZCZCXYZ0000
RR RUEHWEB

DE RUEHAM #0134/01 0150650
ZNR UUUUU ZZH
R 150650Z JAN 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 4181
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPCIM/CIMS NTDB WASHDC
UNCLAS AMMAN 000134 
 
SIPDIS 
 
STATE PLEASE PASS TO USTR 
STATE FOR NEA/ELA AND EB/IFD/OIA 
TREASURY FOR SETH BLEIWEIS 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ELAB ENRG ETRD PGOV OPIC KTDB USTR JO
SUBJECT: JORDAN 2009 INVESTMENT CLIMATE STATEMENT: OPENNESS TO 
FOREIGN INVESTMENT 
 
REF: 08 STATE 123907 
 
OPENNESS TO FOREIGN INVESTMENT 
------------------------------ 
 
1. In the nearly ten years since King Abdullah succeeded to the 
throne, Jordan has taken several steps to encourage foreign 
investment and realize the vision of transforming Jordan into an 
outward-oriented, market-based economy competitive in the global 
marketplace.  Key reforms have been undertaken in the information 
technology, pharmaceuticals, tourism, and services sectors.  Foreign 
and domestic investment laws grant specific incentives to industry; 
agriculture; tourism; hospitals; transportation; and energy and 
water distribution.  The laws also allow the cabinet flexibility in 
offering investment incentives to other sectors. 
 
2. Jordan acceded to the World Trade Organization (WTO) in April 
2000.  In addition, a U.S.-Jordan Free Trade Agreement (FTA) entered 
into force on December 17, 2001.  Investment promotion activities 
have been consolidated under the Jordan Investment Board (JIB), 
which provides a "one-stop shop" for investors.  A new investment 
promotion law stalled in 2008 but is expected to pass parliament in 
2009 and provide JIB with greater flexibility in supporting new 
investors.  Jordan is still in negotiations on a WTO Government 
Procurement Agreement due to domestic concerns.  Jordan's current 
investment laws treat foreign and local investors equally, with the 
following exceptions: 
-- Under the terms of the U.S.-Jordan FTA, ownership of periodical 
publications is restricted to Jordanian natural persons or Jordanian 
juridical entities wholly-owned by Jordanians. 
-- Foreign investors may not have whole or partial ownership of 
investigation and security services, sports clubs (except for health 
clubs), stone quarrying for construction purposes, customs clearance 
services, or land transportation including buses or taxis. 
-- Under the same agreement, foreign investors are limited to 50 
percent ownership in printing/publishing and in aircraft or maritime 
vessel maintenance and repair services.  Also under the FTA, foreign 
investors are limited to 50 percent ownership in a number of 
businesses and services.  The most up-to-date listing of limitations 
on investments is available in the FTA Annex 3.1 and may be found at 
the following internet address: 
http://www.ustr.gov/Trade_Agreements/Bilatera l/ 
Jordan/Section_Index.html. 
-- A minimum capital requirement of JD 50,000 (U.S. $70,000) is set 
for foreign investors.  This requirement was lowered for Jordanian 
businesses in 2008 to JD 1,000 (U.S. $1,400).  This requirement does 
not apply to participation in public shareholding companies. 
 
3. Local and foreign investments are screened by JIB's Incentives 
Committee.  In addition, investors in large projects find that the 
informal approval of local and central government officials helps to 
ensure governmental cooperation in project implementation. 
 
4. Jordanian law stipulates that expropriation is prohibited unless 
deemed in the public interest.  It provides for fair compensation to 
the investor in convertible currency. 
 
5. The government has engaged in an extensive privatization program 
since 1999, with ongoing achievements in 2008 in energy and 
aviation.  By 2008, the majority of Jordan's energy sector had been 
privatized including two distribution companies: Electricity 
Distribution Company (EDCO), Irbid District Electricity Company 
(IDECO) and one generation company: Central Electricity Generating 
Company (CEGCO).  The privatization of a second generation company, 
Samra Power Plant (SEPGCO), is in progress. 
 
6. In early 2008, the Government of Jordan concluded the initial 
public offering of national air carrier Royal Jordanian.  Concurrent 
with this privatization, the role of the regulatory body, the Jordan 
Civil Aviation Regulatory Commission, continues to evolve with 
greater separation between regulation and aviation management. 
Related to this regulatory change, management of Amman's Queen Alia 
International Airport was fully transferred to a private company and 
the build-operate-transfer (BOT) airport expansion is well underway. 
 
 
7. The number and size of future privatization projects, however, is 
expected to shrink as most government assets have already been 
privatized, with the small number of remaining assets, such as 
Jordan Silos and Supply, eliciting little private sector interest. 
The majority of future projects are expected to be public-private 
partnerships (PPP) rather than pure privatization deals and the 
government has changed the mandate of its privatization commission 
to focus on partnerships. 
 
8. The Executive Privatization Commission most recently initiated a 
 
medical and industrial waste project.  Among the projects still 
seeking investors are passenger and cargo rail, the postal system, 
and the nation's refinery.  The 50-year concession to the Jordan 
Petroleum Refinery Company ended in March 2008, and the government 
has drafted a new energy law to open up the hydrocarbon sector for 
local and foreign investors.  This restructuring will involve 
unbundling the distribution and storage facilities and creating 
several new companies.  Multiple bids have been received and a short 
list of potential partners is scheduled to be selected in mid-2009. 
Some U.S. companies have expressed frustration with the lack of 
transparency, unexpected delays, and changing requirements during 
the tendering process of several large energy PPP projects. 
 
9. With respect to ownership and participation in the major economic 
sectors in Jordan, there is no apparent discrimination against 
foreign participation.  In fact, many Jordanian businesses seek 
foreign partners, which are perceived as the key to increased 
competitiveness and easier entry into international markets. 
Jordan's efforts have combined to make Jordan's investment climate 
more welcoming, but some large U.S. investors have reported "hidden 
costs" when investing in Jordan due to bureaucracy, red tape, vague 
regulations, and conflicting jurisdictions.  In the World Bank's 
(WB) 2009 Doing Business Report, Jordan was ranked 101st out of 181 
countries for the regulatory ease of doing business.  Jordan 
received its best rankings for taxation and employment policies. 
Jordan received its worst rankings for enforcing contracts and 
starting a business.  Jordan ranked 6th out of 142 countries in 
inward foreign direct investment performance in 2007, according to 
the 2008 World Investment Report issued by the United Nations 
Conference on Trade and Development (UNCTAD).  As they would in 
other countries, investors should execute due diligence in exploring 
investment opportunities and concluding purchases. 
 
CONVERSION AND TRANSFER POLICIES 
-------------------------------- 
10. Jordan's liberal foreign exchange law entitles foreign investors 
to remit abroad, in a fully convertible foreign currency, foreign 
capital invested, including all returns, profits, and proceeds 
arising from the liquidation of investment projects.  Non-Jordanian 
administrative and technical employees are permitted to transfer 
their salaries and compensation abroad. 
 
11.  The Jordanian Dinar (JD) is fully convertible for all 
commercial and capital transactions.  The JD has been pegged to the 
U.S. dollar at an exchange rate of approximately 1 JD to US $1.41 
since 1995, and the Central Bank of Jordan (CBJ) is expected to 
continue this policy. 
 
12. Licensed money-exchangers are supervised by the CBJ, the banking 
system's regulatory authority, but are free to set their own 
exchange rates depending on market conditions.  Unlike banks, they 
do not pay the CBJ commissions for exchange transactions, giving 
them a competitive edge over banks. 
 
13. Other foreign exchange regulations include: 
-- Non-residents are allowed to open bank accounts in foreign 
currencies.  These accounts are exempted from all transfer-related 
commission fees charged by the CBJ. 
-- Banks are permitted to purchase an unlimited amount of foreign 
currency from their clients in exchange for JD on a forward basis. 
Banks are permitted to engage in reverse operations involving the 
selling of foreign currency in exchange for JD on a forward deal 
basis for the purpose of covering the value of imports. 
-- There are no restrictions on the amount of foreign currency that 
residents may hold in bank accounts, and there are no ceilings on 
the amount residents are permitted to transfer abroad. 
-- Banks do not require prior CBJ approval for the transfer of 
funds, including investment-related transfers, although stricter 
measures are now in place to monitor bank wire transfers to boost 
Jordan's ability to participate in the global fight against illicit 
financial flows. 
 
EXPROPRIATION AND COMPENSATION 
------------------------------ 
 
14. There are no known cases where the government has expropriated 
the private property of an investor without just compensation and a 
just court process. 
 
DISPUTE SETTLEMENT 
------------------ 
 
15. Under Jordanian law, foreign investors may seek third party 
arbitration or an internationally recognized settlement of disputes. 
 The Jordanian government recognizes decisions issued by the 
International Center for the Settlement of Investment Disputes 
 
(ICSID) of which it is a member.  A small number of cases between 
investors and the Jordanian government have been brought before an 
ICSID tribunal in the last six years.  Jordan is also a member of 
the New York Convention of 1958 on the recognition and enforcement 
of foreign arbitral awards.  In cases where the government (or its 
agencies) is a party to the dispute, it generally prefers settlement 
in local courts if an out-of-court settlement is not forthcoming. 
Jordan abides by WTO dispute settlement mechanisms.  Dispute 
settlement mechanisms under the FTA are consistent with WTO 
commitments.   Article IX of the Bilateral Investment Treaty (BIT) 
establishes procedures for dispute settlement. 
 
Jordan's Legal System: 
 
16. In the legislative process, draft laws are prepared by various 
ministries and submitted to the Legislative and Opinion Bureau of 
the Prime Ministry for initial review.  From there, laws are then 
submitted to the cabinet and subsequently presented to the lower 
house of parliament for consideration.  Once passed by the lower 
house, draft laws must be approved by the senate.  All laws require 
royal assent and must be published in the Official Gazette before 
they come into force. 
 
17. According to the constitution, the judiciary is independent of 
other branches of the government.  In some cases, it is susceptible 
to political pressure and interference by the executive branch.  The 
judiciary does not have an independent budget, and appointments to 
the bench are not always done on the basis of merit. 
 
18. The constitution classifies the judiciary into three categories: 
religious courts, special courts (e.g., Military Court, Customs 
Court, Income Tax Court), and regular courts.  Verdicts rendered by 
the Jordanian judiciary are based on decisions made by a judge or a 
panel of judges. 
 
19. General legal provisions are incorporated within the Civil Code, 
unless a separate, more specialized law governs the nature of the 
specific relationship.  Commercial activities, including business 
contracts and financial papers, are governed by the Commercial Code. 
 
 
20. Various provisions in the Commercial Code, the Civil Code, and 
the Companies Law govern bankruptcy and insolvency.  A temporary 
Bankruptcy Law came into force in 2002.  NOTE: Temporary laws in 
Jordan are constitutionally permitted laws passed when parliament is 
not in session.  They remain in force until parliament convenes and 
takes further action, and retain their validity for the time they 
were in force, even if they are later rejected by parliament.  END 
NOTE.  In 2009, a new bankruptcy law is expected to be submitted to 
parliament. 
 
PERFORMANCE REQUIREMENTS/INCENTIVES 
----------------------------------- 
 
21. Following Jordan's accession to the WTO, the Trade-Related 
Investment Measures (TRIMS) agreement came into force.  Investment 
and commercial laws do not contain any trade-restrictive investment 
measures and have generally been in compliance with TRIMS. 
 
22. Investment incentives take the form of income tax and 
custom-duties exemptions, which are granted to both Jordanian and 
foreign investors. 
 
23. The country is divided into three development areas: Zones A, B, 
and C. Investments in Zone C, the least developed areas of Jordan, 
receive the highest level of exemptions.  All agricultural, maritime 
transport and railway investments are classified as Zone C, 
irrespective of location.  Hotel and tourism-related projects set up 
along the Dead Sea coastal area, leisure and recreational compounds, 
and convention and exhibition centers receive Zone A designations. 
Qualifying Industrial Zones (QIZs) are zoned according to their 
geographical location, unless they apply for an exemption.  The 
three-zone classification scheme does not apply to nature reserves 
and environmental protection areas, which are granted special 
consideration. 
 
24. Specifically, the Investment Promotion Law allows for: 
-- Exemptions from income and social services taxes of up to ten 
years for projects approved by the Investment Promotion Committee 
(which includes senior officials from the Ministry of Industry and 
Trade, Income Tax Department, Customs Department, the private 
sector, and the Director General of the Jordan Investment Board), in 
accordance with the designated zone scheme: 
-- 25 percent tax exemption for Zone A 
-- 50 percent tax exemption for Zone B 
-- 75 percent tax exemption for Zone C 
 
 
25. An additional year of these tax exemptions is granted to 
projects each time they undergo expansion, modernization, or 
development resulting in a 25 percent increase in their production 
capacity for a maximum of four years. 
-- Capital goods are exempt from duties and taxes if delivered 
within three years from the date of the investment promotion 
committee's approval.  The committee may extend the three-year 
period, if necessary. 
-- Imported spare parts related to a specific project are exempt 
from duties and taxes, provided that their value does not exceed 15 
percent of the value of fixed assets requiring spare parts. They 
should be imported within ten years from a project's commencement 
date. 
-- Capital goods used for expansion and modernization of a project 
are exempt from duties and taxes, provided they result in at least a 
25 percent increase in production capacity. 
-- Hotel and hospital projects receive exemptions from duties and 
taxes on furniture and supply purchases, which are required for 
modernization and renewal once every seven years. 
-- Increases in the value of imported capital goods are exempt from 
duties and taxes if the increases result from higher freight charges 
or changes in the exchange rate. 
--In addition to the Investment Promotion Law, additional exemptions 
are granted to investments within industrial estates designated as 
Special Industrial Zones. 
-- Industrial projects are granted exemptions on income and social 
services taxes for a two-year period.  Established industrial 
facilities that relocate to an industrial estate also receive this 
benefit. 
-- Industrial projects are granted property tax exemptions 
throughout their lifetime. 
-- Industrial projects are granted partial or full exemptions from 
most municipality and planning fees. 
 
26. To promote exports, all exporters are granted the following 
incentives: 
-- Net profits generated from most export revenues are fully exempt 
from income tax.  Exceptions include fertilizer, phosphate, and 
potash exports, in addition to exports governed by specific trade 
protocols and foreign debt repayment schemes.  Under the WTO, the 
exemption is extended until the end of 2015. 
-- Approximately 95 percent of foreign inputs used in the production 
of exports are exempt from custom duties and all additional import 
fees on a drawback basis. 
 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
-------------------------------------------- 
 
27. In general, the laws on investment and property ownership permit 
domestic and foreign entities to establish and own businesses and 
engage in remunerative activities.  However, activities relevant to 
military and national security are subject to different provisions 
and procedures. 
 
28. Foreign companies may open regional and branch offices; branch 
offices may carry out full business activities, while regional 
offices may serve as liaisons between head offices and Jordanian or 
regional clients.  The Ministry of Industry and Trade manages the 
government's policy on setting up regional and branch offices. 
 
29. No foreign firm may import goods without appointing an agent 
registered in Jordan; the agent may be a branch office or a wholly 
owned subsidiary of the foreign firm, notwithstanding the 
limitations on foreign ownership in certain sectors.  The agent's 
connection to the foreign company must be direct, without a 
sub-agent or intermediary.  A Commercial Agents and Intermediaries 
Law governs the contract between foreign firms and commercial 
agents.  It clearly delineates the distinction between commercial 
agency and distribution contract relationships.  Private foreign 
entities, whether licensed under sole foreign ownership or as a 
joint venture, compete on an equal basis with local companies. 
 
30. Foreign nationals and firms are permitted to own or lease 
property in Jordan for investment purposes and are allowed one 
residence for personal use, provided that their home country permits 
reciprocal property ownership rights for Jordanians.  Property 
intended for investment should be developed within five years from 
the date of approval.  Depending on the size and location of the 
property, the Lands and Surveys Department, its Director General, 
the Minister of Finance, or the Cabinet are the authorities that 
approve foreign ownership of land and property.  Foreign companies 
holding a majority share in a Jordanian company, as well as 
wholly-owned subsidiaries, automatically obtain national treatment 
with respect to ownership of land where the company's business 
objectives require (e.g., agriculture), or allow for, ownership of 
 
land or real estate. 
 
PROTECTION OF PROPERTY RIGHTS 
----------------------------- 
 
31. Interest in property (moveable and real) is recognized, enforced 
and recorded through reliable legal processes and registries.  The 
legal system facilitates and protects the acquisition and 
disposition of all property rights. 
 
32. Jordan has passed several new laws to comply with the FTA and 
meet international commitments in protection of intellectual 
property rights (IPR).  Laws consistent with "Trade Related Aspects 
of Intellectual Property Rights" (TRIPS) now protect trade secrets, 
plant varieties, and semiconductor chip designs.  The National 
Library, part of the Ministry of Culture, registers copyrights. 
Patents are registered with the Registrar of Patents and Trademarks 
at the Ministry of Industry and Trade.  Jordan has signed the Patent 
Cooperation Treaty and the protocol relating to the Madrid Agreement 
Concerning the Registration of Marks, and amended patent and 
trademark laws in 2007 to enable pending ratification of the 
agreements.  Jordan's domestic pharmaceutical industry generally 
abides by the new TRIPS-consistent Patent Law.  Jordan acceded to 
the World Intellectual Property Organization (WIPO) treaties on 
copyrights (WCT) and performances and phonographs (WPPT), and has 
been developing updated laws for copyrights, trademark standards, 
and customs to meet international standards.  Jordanian firms now 
seek joint ventures and licensing agreements with multinational 
partners. 
 
33. Jordan's record on IPR enforcement has improved, but more 
effective enforcement mechanisms and legal procedures are still 
needed.  As a result, the government's record on IPR protection 
remains mixed.  A sizeable portion of videos and software sold in 
the marketplace continues to be pirated.  Enforcement action against 
audio/video and software piracy is growing in frequency and 
improving in its targeting capability, resulting in the first jail 
sentence in 2007 for software piracy in Jordan.  In 2008, 354 
violations of Jordan's current copyright law were referred to the 
judiciary, which is similar to 2007 levels.  Government committees 
are examining means to provide more comprehensive IPR protections, 
including more stringent enforcement of existing laws and creation 
of an umbrella IPR agency to coordinate government policy and 
enforcement efforts. 
 
TRANSPARENCY OF THE REGULATORY SYSTEM 
------------------------------------- 
 
34. The government is gradually implementing policies to improve 
competition and foster transparency.  These reforms aim to change an 
existing system that can be influenced greatly by family 
affiliations and business ties.  Although JIB has worked to 
streamline the process, red tape and opaque procedures still present 
problems for foreign and domestic investors.  The arbitrary 
application of customs, tax, labor, health, and other laws or 
regulations, particularly at the local government level, have 
impeded investment. 
 
35. Jordan's 2004 Competition Law (similar to the Antitrust Law in 
the U.S.) aims to improve the Jordanian economic environment and 
attract foreign investment by providing incentives for enterprises 
to improve their competitiveness, protect small and medium 
enterprises from restrictive anticompetitive practices, and provide 
consumers with high quality products at competitive prices.  The 
Competition Directorate at the Ministry of Industry and Trade 
monitors market performance, conducts research, examines complaints, 
reports violators to the judicial system, and investigates cases 
referred by the courts.  The Competition Directorate has settled 195 
cases and inquiries since 2003, including fifty in 2008. 
 
36. In 2008, the government continued its strategy to promote 
e-government.  The government has pledged to make its services, 
regulations, and procurement procedures more accessible and 
transparent via e-government.  Implementation to date has been slow, 
but programs to register businesses and to view tax records and 
pending legislation online are now available.  A national call 
center to answer government service-related questions also launched 
in 2008. 
 
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT 
--------------------------------------------- ----- 
 
37. The three key capital market institutions are the regulator, 
Jordan Securities Commission (JSC); the exchange, the Amman Stock 
Exchange (ASE); and the custodian for all transaction contracts, 
clearings and settlement, the Securities Depository Center (SDC). 
 
 
The government passed the most recent Securities Law in 2002, which 
brought the law more in line with international best practices.  The 
ASE suffers from intermittent liquidity problems, which have meant 
that the bourse remains prone to speculative movements.  The ASE's 
market capitalization has grown and shrunk rapidly and repeatedly 
since 2003.  More recently, the worldwide financial crisis and 
economic slowdown reduced the market capitalization nearly 40 
percent from its record high in June 2008 of $57 billion. 
 
Key Market Indicators (USD) 
                           2007            2008 
--------------------------------------------- -------- 
Market Capitalization     $41.2 billion  $35.8 billion 
Market Capitalization/GDP  289%            220% 
Index                      3675 points     2758 points 
Number of shares traded    4.5 billion     5.4 billion 
Trading Volume            $17.22 billion $28.6 billion 
Number of brokerage firms  65              70 
Number of companies on ASE 245             262 
Percent of Shares owned by 
  - Jordanians             52.8%           50.8% 
  - Non-Jordanian Arabs    35.6%           35.9% 
  - Other Non-Jordanians   11.6%           13.3% 
 
Source: Amman Stock Exchange 
 
38. The CBJ, on behalf of the Ministry of Finance, conducts regular 
treasury bill auctions of differing maturities.  A tap series of 
one-year treasury bills is held monthly and a tap series of three- 
and five-year treasury bonds is held bimonthly.  The government 
issues development bonds, equivalent to treasury bonds, as 
necessary.  All government securities are listed on the ASE, and 
ownership is registered at CBJ in a book entry format.  Treasury 
bonds valued at $1.6 billion and treasury bills valued at $2.1 
billion were issued in the first 11 months of 2008.  The CBJ has 
introduced a primary dealer plan designed to increase liquidity in 
the secondary market.  A Public Debt Law allows for an increase in 
the volume of bond and bill issuance by the treasury.  Commercial 
banks hold securities for their clients in a sub-account format. 
Foreign investors are welcome to participate in auctions and to 
purchase government securities through banks. 
 
39. The corporate bond market remains underdeveloped, and continues 
to be overshadowed by traditional direct lending.  One reason is the 
absence of proper mechanisms for corporate lending.  Increasingly, 
however, some banks have started introducing new products and 
corporate bond issues.  New corporate bond issues for the first 11 
months of 2008 totaled $179 million, compared to $238 million in 
2007. 
 
40. Jordanian banks, due to strict regulations on lending, 
particularly mortgage lending, were reasonably well-insulated 
against the 2008 sub-prime mortgage crisis.  Nevertheless, worldwide 
declines in market capitalization impacted Jordan's two largest 
banks: the Arab Bank and the Housing Bank with total market 
capitalization in November 2008 of $10.4 billion and $3.2 billion, 
respectively.  The difference between their values owes to the vast 
difference in their scope of operations; the Arab Bank has a 
worldwide presence, while the Housing Bank's prime focus is the 
local market.  Jordan no longer distinguishes between "investment 
banks" and "commercial banks" and CBJ has been encouraging bank 
mergers.  Jordan has 23 banks in total, including commercial banks, 
Islamic banks, and foreign bank branches. 
 
41. Banks offer loans, discounted bills, and overdraft facilities. 
 
In addition to long-term instruments, securitization, short-selling, 
and treasury stocks are being introduced in some banks.  The CBJ 
permits banks to extend loans and credit facilities in foreign 
currency but only for exporting purposes.  In such cases, it 
requires debt repayment to be in the denominated foreign currency. 
A number of banks have established mutual funds. 
 
42. A banking law, which aims at improving the industry's 
efficiency, came into force in 2000.  The law protects depositors' 
interests, diminishes money market risk, guards against the 
concentration of lending, and includes articles on electronic 
banking practices and money laundering.  In addition, the CBJ set up 
a separate and independent Deposit Insurance Corporation (DIC) in 
late 2000 that insures deposits of up to JD 10,000 (US $14,000).  In 
2008, in response to the global financial crisis, the Prime Minister 
pledged that the government will guarantee all bank deposits in 
Jordan - to unlimited amounts - until the end of 2009.  DIC also 
acts as the liquidator of banks as directed by the CBJ.  The CBJ 
established a credit bureau for bounced checks in 2001.  The bureau 
requires banks to report the names of account holders with bounced 
checks.  Following a third report of a bounced check, the CBJ 
 
circulates the names of the account holders to all banks with 
instructions to withhold checkbooks and any other facilities for a 
period of time. 
 
43. The CBJ issued a number of circulars in 2003-2005 to implement 
money-laundering regulations that are consistent with the 
recommendations of the Organization of Economic Cooperation and 
Development's (OECD) Financial Action Task Force.  Jordan's 
parliament passed an anti-money laundering bill that became law in 
July 2007.  The law criminalizes money laundering, and specifies 
that any money or proceeds gained from any felony offense or crimes 
stated in international agreements to which Jordan is a party are 
subject to the provisions of the law.  The law is also the legal 
basis for the creation of the Anti-Money Laundering Unit, Jordan's 
Financial Intelligence Unit.  Jordan has no record of major money 
laundering incidents. 
 
44. There are a number of internationally recognized accounting and 
auditing firms in Jordan.  The government's accounting and auditing 
regulations are consistent with international standards and are 
internationally recognized. 
 
POLITICAL VIOLENCE 
------------------ 
 
45. Some incidents of political violence and terrorist activities 
have occurred in Jordan, including the shooting and wounding of six 
people in downtown Amman in July 2008, the stabbing of a tourist in 
downtown Amman in March 2008, the shooting to death of a tourist in 
downtown Amman in September 2006, the November 2005 hotel bombings 
in Amman, and the August 2005 rocket attack on a U.S. Navy ship in 
Aqaba.  The hotel bombings targeted foreign business interests 
specific to the hotel industry.  Other industries with foreign 
business interests have remained unaffected by political violence. 
While Jordan enjoys political stability, events in the region, 
particularly in the West Bank and Gaza or Iraq, can trigger 
demonstrations of anti-U.S. hostility.  The assassination of 
American diplomat Larry Foley outside his west Amman residence on 
October 28, 2002, was attributed to former Al Qaida in Iraq leader 
Abu Mus'ab Al-Zarqawi, who was killed in Iraq in June 2006. 
 
46. The Government of Jordan is proactive in maintaining public 
security, containing demonstrations and preventing terrorist 
attacks, and has increased its efforts since the November 2005 hotel 
bombings.  The potential for politically motivated violence, 
however, remains.  Visitors should consult current State Department 
public announcements. 
 
CORRUPTION 
---------- 
 
47. Corruption is a crime in Jordan.  In September 2006, parliament 
approved a financial disclosure law requiring public office holders 
and specified government officials to declare their assets. 
Parliament also enacted an Anti-Corruption Law in 2006 that created 
a commission, reporting to the Prime Minister, to investigate 
allegations of corruption.  The commission has yet to prosecute a 
case to completion.  Some domestic NGOs and some international 
corruption watchdog groups have criticized Jordan's and the 
commission's ineffectiveness.  Jordan's law defines corruption as 
any act that violates official duties and all acts related to 
favoritism and nepotism that could deprive others from their 
legitimate rights, as well as economic crimes and misuse of power. 
The General Intelligence Directorate (GID) also has a separate 
anti-corruption department that is responsible for combating 
bribery, extortion, and other similar crimes. 
 
48. Influence peddling and a lack of transparency have, however, 
been alleged in government procurement and dispute settlement. 
"Wasta," the use of family, business, and other personal connections 
to advance personal business interests, at the expense of others, is 
endemic and seen by many Jordanians as simply part of the culture 
and a part of doing business. 
 
BILATERAL TRADE/INVESTMENT AGREEMENTS 
------------------------------------- 
 
49.  In 1996, the U.S. Congress established the "Qualifying 
Industrial Zone" (QIZ) initiative to support the Middle East peace 
process.  Under this agreement, goods produced in the thirteen 
designated QIZs in Jordan can be imported into the United States 
tariff and quota free if 35 percent of the product's content comes 
from the QIZ, Israel, and the West Bank/Gaza.  Of that 35 percent, a 
minimum 11.7 percent must be added in the QIZ, eight percent in 
Israel, and 15.3 percent in a Jordanian QIZ, Israel, or the West 
Bank/Gaza.  This makes investment in a QIZ particularly attractive 
 
to industries whose products are assessed with high tariffs when 
they are imported into the U.S.  The QIZs have attracted over $987 
million in capital investments, generated over $5.6 billion in 
exports to the U.S., and currently employ about 45,000 workers, 
one-quarter of whom are Jordanian.  The bulk of QIZ exports 
continues to be garments. 
 
50. The U.S.-Jordan FTA, which entered into force in 2001, does not 
supersede or eliminate the QIZ initiative.  Whereas the QIZ 
agreement grants immediate duty- and quota-free access to the U.S. 
for goods produced in the QIZs that meet certain rules of origin, 
the FTA mandates a gradual phasing out of import duties and other 
trade barriers by January 2010.  FTA rules of origin require 35 
percent Jordanian content.  The agreement incorporates labor, 
environment, and intellectual property rights provisions. 
 
51. A Bilateral Investment Treaty between Jordan and the United 
States entered into force in 2003.  The agreement provides 
reciprocal protection of Jordanian and U.S. individual and corporate 
investments. 
 
52. While the U.S. remains Jordan's top trading partner, Jordan 
maintains an active trade relationship with neighboring countries, 
and has been actively pursuing enhanced trade arrangements globally. 
 Jordan is a member of the Greater Arab Free Trade Area (GAFTA), 
which has been in force since 1998.  The GAFTA reached full trade 
liberalization of goods in 2005 through full exemption of customs 
duties and charges for all 17 Arab members, with the exception of 
gradual reductions for Sudan and Yemen which are expected to benefit 
from full exemption by the end of 2010.  Jordan has also signed 
several trade preference agreements and bilateral free trade 
agreements with Arab countries, including Egypt, Syria, Morocco, 
Tunisia, the UAE, Algeria, Lebanon, the Palestinian Authority, 
Kuwait, Sudan, and Bahrain.  The bilateral agreements are generally 
applied in parallel to the GAFTA, with the GAFTA often providing 
more trade preferences than most of the bilateral trade agreements 
(see www.mit.gov.jo for more information). 
 
53. An economic association agreement between Jordan and the 
European Union (EU) entered into force in 2002 to establish free 
trade over a twelve-year period.  This agreement calls for the free 
movement of capital, as well as cooperation on development and 
political issues.  Jordan also signed a Free Trade Area Agreement in 
2001 with the European Free Trade Association (EFTA) states 
(Iceland, Liechtenstein, Norway and Switzerland), which aims for 
complete trade liberalization by 2014. 
 
54. In 2004, Jordan signed a Free Trade Agreement with Singapore. 
In addition to enhancing bilateral trade ties, the agreement aimed 
to create new export opportunities for Jordanian products worldwide 
through the possibility of diagonal accumulation of origin with 
countries that have concluded free trade agreements with both Jordan 
and Singapore.  In the same year, Jordan completed the Agadir trade 
agreement with Egypt, Morocco, and Tunisia, and upgraded its trade 
agreement with Israel to take advantage of accumulation of content 
provisions in the EU's Pan-Euro-Mediterranean trade rules of origin. 
 In 2008, Jordan concluded negotiations for a Free Trade Agreement 
with Canada and when it comes into effect it will eliminate all 
non-agricultural tariffs and most agricultural tariffs.  A similar 
agreement with Turkey is still under negotiation. 
 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
-------------------------------------------- 
 
55. Investments in Jordan are eligible for Overseas Private 
Investment Corporation (OPIC) insurance and private financing.  All 
eligible projects require a minimum of 25 percent U.S. equity.  In 
2008, OPIC made significant investments in Jordanian private equity 
ventures and in mortgage financing. 
 
56. Jordan is a member of the Multilateral Investment Guarantee 
Agency (MIGA), a World Bank agency, which guarantees investment 
against non-commercial risks such as civil war, nationalization, 
policy changes, etc.  The program covers investments in Jordan 
irrespective of the investor's nationality, in addition to covering 
Jordanian investments abroad. 
 
57. Several European countries have official debt-for-equity swap 
programs that are open to investors of all nationalities. 
 
LABOR 
----- 
 
58. The rate of population growth (births minus deaths and factoring 
in migration) is about 2.5 percent a year, based on the most recent 
census in 2004.  The 2008 population is estimated by the Department 
 
 
of Statistics at 5.8 million.  50 percent of the population is under 
the age of 20.  In general, the labor force is well educated. 
Literacy rates approach 95.7 percent for men and 88.4 percent for 
women.  Jordan has a labor force of about 1.8 million.  In the third 
quarter of 2008, the Department of Statistics reported that 
unemployment had fallen to 12 percent, the lowest level in eight 
years. 
 
59. Of the 1.8 million, there are an estimated 230,000 registered 
foreign workers, a number which has fallen since 2007.  Unofficial 
indicators suggest that tens of thousands of foreign workers remain 
unregistered.  With the exception of the approximately 33,700 that 
work in the QIZs as textile workers, most foreign workers work in 
unskilled sectors, such as construction, agriculture, and domestic 
service.  The Ministry of Labor regulates foreign worker licensing, 
licensing fees, prohibited sectors, and employer liability.  Among 
its responsibilities, the ministry approves the hiring of 
professional foreign workers by private businesses.  Non-citizens 
are not permitted by the current law to join unions, though the 
Ministry of Industry and Trade maintains that such workers enjoy any 
benefits and protections that unions obtain.  In 2008, amendments 
were drafted to allow full union membership for foreign workers but 
they did not pass parliament.  The union and the Ministry of Labor 
have begun drafting a new amendment that would allow for membership. 
 The textile union provides medical and legal services to foreign 
workers in textile factories, in addition to serving Jordanians. 
The union said it resolved 2,968 individual worker-related 
complaints from foreign workers in 2007. 
 
60. Labor unions serve primarily as intermediaries between workers 
and the Ministry of Labor, and may engage in collective bargaining 
on behalf of workers.  Currently, there are 17 recognized unions in 
Jordan, all members of the General Federation of Jordanian Trade 
Unions.  Estimates put union membership at 10 percent of the labor 
force.  In addition to the 17 unions, there are forty professional 
associations active in Jordan, many of which have mandatory 
membership.  While these associations occasionally take on 
characteristics of traditional unions, they more closely resemble 
political bodies.  According to official figures, about 30 percent 
of the total labor force, including government workers, belongs to 
either a union or a professional association. 
 
61. Article 28 of the Labor Law specifies the conditions under which 
an employer can discharge a worker without notice.  Article 31 
allows employers to lay off employees if economic or technical 
circumstances necessitate reorganization.  The law does not require 
employers to include retirement plans in their employment package. 
However, if the employer agreed to provide retirement benefits when 
the worker was contracted, the employer must fulfill his/her 
commitment.  The Social Security Law stipulates that if the employer 
has more than five employees, they must be enrolled in the national 
social security system.  The Labor Law also addresses worker 
compensation and outlines compensatory categories for work-related 
injuries.  Article 67 provides unpaid maternity leave for a maximum 
of one year for mothers working in firms employing 10 or more 
workers, and Article 70 requires full pay for 10 weeks of maternity 
leave.  Article 71 provides for one hour per day of nursing leave 
within a year of the date of delivery.  The law provides for 14 
calendar days of annual leave for employees during the first five 
years with the employer, and 21 calendar days after five years of 
successive service.  Article 65 entitles workers to 14 days of sick 
leave with full pay per year, which may be renewed for another 14 
days at half pay if the worker is hospitalized.  With two exceptions 
(the exclusion of foreigners from unions and the prohibition against 
forming new unions outside of the General Federation of Jordanian 
Trade Unions), the current law places Jordan in compliance with 
international and Arab labor agreements. 
 
62. Since 2006, the Government of Jordan has been reforming its 
labor inspection system and in 2008 amended its labor law to expand 
coverage to domestic and agricultural workers, formalize a 
tripartite Labor Affairs Committee, increase fines for violations of 
the labor law, and include sexual harassment provisions.  Ministry 
of Labor (MoL) inspections have identified problems at some QIZ 
factories regarding delayed payment of wages, length of overtime and 
physical abuse of workers.  In 2008, the Better Work Jordan program 
was launched as a five-year joint project between the Ministry of 
Labor, the International Labor Organization (ILO) and the 
International Finance Corporation to improve labor conditions and 
standards and raise compliance levels through public reporting and 
technical assistance.  Under MoL's more rigorous inspection regime, 
which included the hiring and training of additional inspectors in 
2008, allegations of forced labor continue to decrease. 
 
FOREIGN TRADE ZONES/FREE TRADE ZONES 
------------------------------------ 
 
 
63. As part of Jordan's efforts to foster economic development and 
enhance the investment climate, the government has created 
geographically demarcated, policy-favored commercial zones, 
including industrial estates, free zones, and special economic 
zones.  The goal is to encourage "clustering" among related firms 
within an industry and linkages to other industries.  Some of these 
zones overlap or have multiple designations. 
 
64. The semi-governmental Jordan Industrial Estates Corporation 
(JIEC) currently owns five public industrial estates in Irbid, 
Karak, Aqaba, Amman, and Ma'an.  There are also several 
privately-run industrial parks in Jordan, including al-Mushatta, 
al-Tajamouat, al-Dulayl, Cyber City, al-Qastal, Jordan Gateway, and 
al-Hallabat.  These estates provide basic infrastructure networks 
for a wide variety of manufacturing activities, reducing the cost of 
utilities and providing cost-effective land and factory buildings. 
Investors in the estates also receive various exemptions, including 
a two-year exemption on income and social services taxes, total 
exemptions from building and land taxes, and exemptions or 
reductions on most municipalities' fees. 
 
65. Jordan also has public "free zones" in Zarka, Sahab, Karak, 
Karama, and Queen Alia Airport that are run by the publicly-owned 
Free Zone Corporation (FZC).  Over 30 private free zones have also 
been designated, which are administered by private companies under 
the supervision of the FZC.  Considered outside the Jordan Customs 
jurisdiction, the free zones provide a duty- and tax-free 
environment designed for the storage of goods transiting Jordan. 
 
66. Both Jordanian and foreign investors are permitted to invest 
with few restrictions in trade, services, and industrial projects in 
free zones.  Industrial projects must fulfill one of the following 
conditions: 
-- New industries which depend on advanced technology; 
-- Industries requiring locally available raw material and/or 
locally manufactured parts; 
-- Industries that complement domestic industries; 
-- Industries that enhance labor skills and promote technical 
know-how; 
-- Industries providing consumer goods and that contribute to 
reducing market dependency on imported goods. 
 
67. The following incentives are granted to investors in the 
designated free zones: 
-- Profits are exempt from income and social services taxes for a 
period of twelve years, with the exception of profits generated from 
storage services that involve goods released to the domestic market. 
 
-- Salaries and allowances payable to non-Jordanian employees are 
exempt from income and social services taxes. 
-- Goods imported to and/or exported from free zones are exempt from 
import taxes and customs duties, with the exception of goods 
released to the domestic market. 
-- Industrial goods manufactured in free zones enjoy partial customs 
duties exemption once released to the domestic market, depending on 
the proportion of the value of local inputs and locally incurred 
production costs. 
-- Construction projects are exempt from licensing fees and urban 
property taxes. 
-- Free transfer of capital invested in free zones, including 
profits. 
 
68. Jordan has established four Special Economic Zones in Aqaba, 
Mafraq, Irbid, and Ma'an which all aim to alleviate poverty and 
create jobs in impoverished areas of Jordan through development of 
industrial centers supported by logistics, transport, utilities, and 
information technology services.  The first and most successful of 
these zones -- Aqaba -- was established in 2001 when the government 
converted the Aqaba port and surrounding area into the Aqaba Special 
Economic Zone (ASEZ) with streamlined bureaucracy, special tax 
exemptions, a flat five percent income tax, and facilitated customs 
handling.  ASEZ has attracted projects valued at over $8 billion in 
recent years, mainly in hotel and property development.  In 2006, 
Jordan created the King Hussein Bin Talal Economic Zone in the city 
of Mafraq.  The Irbid Economic Zone was launched in 2007 as a 
healthcare, education, and information technology free zone in the 
north based on its proximity to Jordan University for Science and 
Technology (JUST).  Also in 2007, King Abdullah launched the fourth 
Economic Development Zone in Ma'an, a governorate 210 kilometers 
south of the capital, which will include infrastructure projects 
estimated at U.S. $200 million. 
 
FOREIGN DIRECT INVESTMENT STATISTICS 
------------------------------------ 
 
69. Jordan does not maintain official detailed statistics of FDI. 
Aggregate inflows tracked by the Central Bank give an indication of 
the overall volume, while registered capital and projects that 
benefit from the Investment Promotion Law give an indication of the 
break down of FDI by source and market segment. 
 
70. Foreign Direct Investment Inflows (USD Million) 
Period          Full Year  1-3Q 
-------         -----------     --------- 
2008    not yet available      1,775 
2007      1,952   1,341 
2006      3,271            2,842 
2005              1,776    1,356 
 
Source: Central Bank of Jordan, Balance of Payments 
 
71. The Jordan Investment Board approved foreign investment projects 
worth about $1.2 billion, $1.48 billion and $790 million for the 
years 2006, 2007, and 2008 respectively. 
 
 
72. New Projects under the Investment Promotion Law by Geographical 
Area (in USD Million) 
 
              2008   2007     2006 
-------------------------------------- 
Jordan         1,938 1,652    1,393 
Arab             434       764    1,091 
U.S. and Canada    5       126       30 
Europe           345        56       13 
Other              6       534       58 
 
Total          2,728      3,132    2,585 
 
Source: Jordan Investment Board 
 
 
73. New Registered Capital by Industry (in USD Million) 
 
Industry           2008  2007     2006     2005 
--------------------------------------------- ------- 
Manufacturing       246    44      144       81 
  Percent Foreign   28%  62%      35%      43% 
 
Trade               150  124      109      129 
  Percent Foreign   38%  35%      47%      36% 
 
Agriculture         130   27      110        9 
  Percent Foreign   18%  60%      49%      67% 
 
Construction         81  167       24       35 
  Percent Foreign    4%   2%      23%      19% 
 
Services            221  184      291      822 
  Percent Foreign   17%  30%      34%      43% 
 
 
Total               828  545      678    1,075 
  Percent Foreign   23%  33%      39%      42% 
 
Source: Companies Controller Directorate at the Ministry of Industry 
and Trade 
 
 
74. Registered Capital Stock at Year-End by Country (in USD 
Million) 
 
Country              2008 2007     2006 
--------------------------------------------- 
Iraq                 739  687      580 
Belgium              670  670      670 
Kuwait               629  615      574 
United Arab Emirates 470  410     367 
Saudi Arabia         313   306      285 
Bahrain              265  265      197 
Egypt                228  212      196 
Great Britain        161  161      157 
Syria                102   92       82 
Lebanon              100   94       87 
United States        100   92       86 
Netherlands           89   89       89 
Libya                 65   63       63 
Switzerland           56   55       55 
India                 44   42       42 
Palestinian Authority 39   35       32 
China                 37   32       28 
 
 
Source: Companies Controller Directorate at the Ministry of Industry 
and Trade 
 
BEECROFT