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JordanJordan

FactsFacts

Jordan is located in the heart of the Arab Jordan is located in the heart of the Arab WorldWorld

Total Area: 89,342 sq kmTotal Area: 89,342 sq km Population: 5,6 millionPopulation: 5,6 million GDP $14 billionGDP $14 billion GDP Growth 7.6%GDP Growth 7.6% GDP per Capita $2,500GDP per Capita $2,500 Labor Force 1,41 millionLabor Force 1,41 million

Market OverviewMarket Overview

The local market depends mainly on importsThe local market depends mainly on imports 100% Foreign investment allowed100% Foreign investment allowed Favorable taxation structureFavorable taxation structure Unrestricted movement on fundsUnrestricted movement on funds Facilities afforded to investorsFacilities afforded to investors Friendly & flexible local regulationsFriendly & flexible local regulations Adequate infrastructure & servicesAdequate infrastructure & services 4 seasons climate4 seasons climate

U.S. Market PositionU.S. Market Position

Excellent reputation of products.Excellent reputation of products. Free Trade Agreement FTA.Free Trade Agreement FTA. $ vs. Euro value advantage.$ vs. Euro value advantage. Major companies have office in Jordan.Major companies have office in Jordan. U.S. exports to Jordan $544 million.U.S. exports to Jordan $544 million.

Market EntryMarket Entry

Direct InvestmentDirect Investment Regional officeRegional office Local partner (after sales service)Local partner (after sales service)

Major SectorsMajor Sectors

Safety & SecuritySafety & Security Energy (Power & Gas)Energy (Power & Gas) AutomotiveAutomotive Building & Construction Building & Construction Information TechnologyInformation Technology Medical & Health Medical & Health

Safety & Security SectorSafety & Security Sector

SummarySummary

Jordan is one of the most stable and secure countries Jordan is one of the most stable and secure countries in the region.in the region.

The security sector has played a fundamental role in The security sector has played a fundamental role in the establishment and survival of the country since the the establishment and survival of the country since the early 1920s.early 1920s.

Government entities responsible Safety & Security in Government entities responsible Safety & Security in Jordan:Jordan:

1.1. Jordanian Armed Forces (JAF)Jordanian Armed Forces (JAF)2.2. Department of Public Security (DPS)Department of Public Security (DPS)3.3. General Intelligence Department (GID)General Intelligence Department (GID)4.4. General Directorate of Civil Defense (GDCD)General Directorate of Civil Defense (GDCD)

Market OverviewMarket Overview

The Jordanian S&S market will experience a growth The Jordanian S&S market will experience a growth rate of 10-15%.rate of 10-15%.

S&S imports were US$ 80 million.S&S imports were US$ 80 million. U.K. imports 19%, China 15%, Germany 12% and the U.K. imports 19%, China 15%, Germany 12% and the

U.S. 12%.U.S. 12%. There are three manufacturing organizations in Jordan There are three manufacturing organizations in Jordan

for defense/security equipment:for defense/security equipment:1.1. King Abdullah II Design & Development Bureau (KADDB)King Abdullah II Design & Development Bureau (KADDB)

2.2. Seabird Aviation Jordan (SAJ)Seabird Aviation Jordan (SAJ)

3.3. Jordan Light Vehicle Manufacturing (JLVM) Jordan Light Vehicle Manufacturing (JLVM)

Best Sales ProspectsBest Sales Prospects Security services (consulting, training…etc)Security services (consulting, training…etc) Access control & alarm systemsAccess control & alarm systems CCTVCCTV Personal identification Personal identification Fire fighting equipment & systemsFire fighting equipment & systems Traffic control systemsTraffic control systems Electrical signalingElectrical signaling GPRSGPRS Bomb detection & jamming equipmentBomb detection & jamming equipment Homeland securityHomeland security Night vision devicesNight vision devices Uniforms, Protective apparel & AccessoriesUniforms, Protective apparel & Accessories X-ray, Metal and Weapons equipmentX-ray, Metal and Weapons equipment

End UsersEnd Users Jordan Armed ForcesJordan Armed Forces General Intelligence DepartmentGeneral Intelligence Department Directorate of Public Security (Police)Directorate of Public Security (Police) Civil Defense DepartmentCivil Defense Department Commercial buildingsCommercial buildings UniversitiesUniversities Private villas and residential buildingsPrivate villas and residential buildings HotelsHotels HospitalsHospitals BanksBanks EmbassiesEmbassies Ports (air, sea and land)Ports (air, sea and land)

Competitive FactorsCompetitive Factors

Advanced TechnologyAdvanced Technology QualityQuality After Sale ServiceAfter Sale Service PricePrice

Energy Sector Energy Sector

Energy ResourcesEnergy Resources

Oil: Doesn’t existOil: Doesn’t exist Gas: Small local reservoirs (Risha field) & Gas: Small local reservoirs (Risha field) &

Imports form EgyptImports form Egypt Oil Shale: 40 billion tonsOil Shale: 40 billion tons Renewable Energy: Good potentials (Solar Renewable Energy: Good potentials (Solar

& Wind) & Wind)

Primary Energy DemandPrimary Energy Demand

The growing rate of primary energy The growing rate of primary energy demand was 6% in 2006.demand was 6% in 2006.

The demand is expected to continue The demand is expected to continue growing 3% per year until 2020.growing 3% per year until 2020.

The electricity demand was between 8-The electricity demand was between 8-10% in 2005. It’s expected to continue 10% in 2005. It’s expected to continue growing 4.6% annually. growing 4.6% annually.

Energy Master PlanEnergy Master Plan

In 2004 a new $3 billion energy master plan was In 2004 a new $3 billion energy master plan was approved to meet the growing demand and approved to meet the growing demand and challenges in the Energy sector:challenges in the Energy sector:

- Refining $700 – Oil Shale $25 – Gas distributing - Refining $700 – Oil Shale $25 – Gas distributing $300 – Gas E&P $25 – Electricity Transmission $300 – Gas E&P $25 – Electricity Transmission $385 – DSM & Energy Efficiency $72 – $385 – DSM & Energy Efficiency $72 – Renewable Energy $450 – Power Generation Renewable Energy $450 – Power Generation $872 – Storage $100 – Oil Pipe Line from Iraqi $872 – Storage $100 – Oil Pipe Line from Iraqi Boarder $125.Boarder $125.

Privatization PlansPrivatization Plans

The intention to sell the Government shares in The intention to sell the Government shares in the following entities:the following entities:

1- 51% of CEGCO (has been sold in 2007)1- 51% of CEGCO (has been sold in 2007)2- 100% of EDCO2- 100% of EDCO3- 55.4% of IDECO3- 55.4% of IDECO- The first Individual Power Plant (IPP) is under The first Individual Power Plant (IPP) is under

way.way.- In 2008 the concession of the JPRCO will end In 2008 the concession of the JPRCO will end

and the market will open to the private sector to and the market will open to the private sector to import oil & refined products to Jordan.import oil & refined products to Jordan.

SummarySummary

Jordan’s Power sector is growing Jordan’s Power sector is growing rapidly.rapidly.

Many investment opportunities Many investment opportunities available. available.

Automotive SectorAutomotive Sector

Market SizeMarket Size

Currently around 700,000 vehicles are Currently around 700,000 vehicles are registered in Jordanregistered in Jordan

Increase of 10% Increase of 10% 60% Korean, 20% Japanese, 16% 60% Korean, 20% Japanese, 16%

European, 3% American and 1% ChineseEuropean, 3% American and 1% Chinese

Market ChallengesMarket Challenges

Fuel pricesFuel prices Availability of Spare PartsAvailability of Spare Parts After Sales ServiceAfter Sales Service Used carsUsed cars

Spare Parts & Accessories MarketSpare Parts & Accessories Market

Is a reflection of vehicles market shares Is a reflection of vehicles market shares Commercial spare parts with very Commercial spare parts with very

competitive prices competitive prices Used spare partsUsed spare parts

Market NeedsMarket Needs

Wheels & TiresWheels & Tires Engine Spare PartsEngine Spare Parts Lubricants & OilsLubricants & Oils Garage equipmentGarage equipment ToolsTools Breaks, disks, filters, seals & beltsBreaks, disks, filters, seals & belts

CompetitorsCompetitors

Europe (Garage equipment and tools)Europe (Garage equipment and tools) China ( Tools & Accessories)China ( Tools & Accessories) Asia (Spare Parts & Accessories)Asia (Spare Parts & Accessories)

Building & Construction SectorBuilding & Construction Sector

Market OverviewMarket Overview

Jordan is in the midst of an immense boom in Jordan is in the midst of an immense boom in construction activity.construction activity.

Announced project investments of over $30 billion.Announced project investments of over $30 billion. Most projects are taking place in Amman, Aqaba and the Most projects are taking place in Amman, Aqaba and the

Dead SeaDead Sea It accounted for 4.5 per cent of Jordan's gross domestic It accounted for 4.5 per cent of Jordan's gross domestic

product (GDP) in 2005.product (GDP) in 2005. grown at a compounded annual growth rate of 11.6% grown at a compounded annual growth rate of 11.6%

percent between 2001 to 2005. percent between 2001 to 2005. 202 companies in 2005 compared to 82 companies in 202 companies in 2005 compared to 82 companies in

2001. 2001.

Major Construction ProjectsMajor Construction Projects

Abdali Project $1.75 billionAbdali Project $1.75 billion Saraya Aqaba/Dead Sea Development $600 millionSaraya Aqaba/Dead Sea Development $600 million Jordan Gate & Cosmopolitan Villages $1 billionJordan Gate & Cosmopolitan Villages $1 billion Bonyan Towers $350 millionBonyan Towers $350 million Tala-Bay Development in Aqaba $500 millionTala-Bay Development in Aqaba $500 million Kempinski Dead Sea Development $120 millionKempinski Dead Sea Development $120 million Aqua Park & Hotel in Dead Sea $60 millionAqua Park & Hotel in Dead Sea $60 million Grand Resorts and Commercial Complex $ 350 million.Grand Resorts and Commercial Complex $ 350 million. Residential City Project $250 million… and many other.Residential City Project $250 million… and many other.

Market NeedsMarket Needs

New Construction Equipment & New Construction Equipment & Services to deal with new building Services to deal with new building structuresstructures

New Construction TechniquesNew Construction Techniques Project Management ServicesProject Management Services Property Management Services & Property Management Services &

Systems.Systems.

Medical SectorMedical Sector

Summary Summary

Medical Tourism Center for the regionMedical Tourism Center for the region According to the Arab World According to the Arab World

Competitiveness Report 2005, Jordan is Competitiveness Report 2005, Jordan is the top ranking Arab country in terms of the top ranking Arab country in terms of health care.health care.

Advanced and well developed Advanced and well developed Highly educated and well trained doctorsHighly educated and well trained doctors Using the latest technologies Using the latest technologies

The MarketThe Market Total market USD 75 millionTotal market USD 75 million Total imports USD 74 millionTotal imports USD 74 million U.S. Import market share 30%U.S. Import market share 30% Jordan’s total expenditure on health is estimated at $325 million, around Jordan’s total expenditure on health is estimated at $325 million, around

6.5% of total GDP6.5% of total GDP Average per capita spending is around $2,356 per year.Average per capita spending is around $2,356 per year. The Ministry of Health (MOH) in Jordan oversees the laws and regulations The Ministry of Health (MOH) in Jordan oversees the laws and regulations

of the entire healthcare sector.of the entire healthcare sector. Number of Hospitals 98Number of Hospitals 98 Total bed capacity 10,079Total bed capacity 10,079 Number of beds per 1,000 patient is 1.8 (575 person has 1 bed)Number of beds per 1,000 patient is 1.8 (575 person has 1 bed) Estimated market growth rate in 2006: 22%Estimated market growth rate in 2006: 22% More than 100,000 medical tourist annuallyMore than 100,000 medical tourist annually A leader in open heart surgery, kidney transplants, and optical surgery and A leader in open heart surgery, kidney transplants, and optical surgery and

test tubes babytest tubes baby

Market NeedsMarket Needs

Opportunities: MOH - Drugs Quality Control Laboratories, Al-Bashir Opportunities: MOH - Drugs Quality Control Laboratories, Al-Bashir Hospital renovation and remodeling - 850 bed, Pediatric Children Hospital renovation and remodeling - 850 bed, Pediatric Children Hospital- 200 beds, Expansion of Princes Haya Hospital, Aqaba - Hospital- 200 beds, Expansion of Princes Haya Hospital, Aqaba - 200 beds, Zarqa Hospital – 400 beds200 beds, Zarqa Hospital – 400 beds

Best Services Prospects: Consulting in hospital administration, Best Services Prospects: Consulting in hospital administration, quality control and certification standards, Training, and Hospital quality control and certification standards, Training, and Hospital software for hospital administration and laboratory test resultssoftware for hospital administration and laboratory test results

Given the hospital redesign projects and private clinics investments Given the hospital redesign projects and private clinics investments the following equipment offers excellent sales prospects. CT the following equipment offers excellent sales prospects. CT Scanners and MRI Physiological monitoring, Dialysis equipment, Scanners and MRI Physiological monitoring, Dialysis equipment, Reagents for automated laboratories Laparoscopy & Endoscopy Reagents for automated laboratories Laparoscopy & Endoscopy equipment, Cardiology equipment, Ophthalmology, Neurosurgery, equipment, Cardiology equipment, Ophthalmology, Neurosurgery, Oncology, Hospital/ Clinical furniture, Orthopedic & Prosthetic Oncology, Hospital/ Clinical furniture, Orthopedic & Prosthetic Appliances, and Waste Disposables.Appliances, and Waste Disposables.

End UsersEnd Users

Ministry of HealthMinistry of Health Universities hospitalsUniversities hospitals Military hospitalsMilitary hospitals Private hospitalsPrivate hospitals Private clinicsPrivate clinics NGO health centersNGO health centers Private laboratoriesPrivate laboratories

Information & Communication Information & Communication TechnologyTechnology

Market InformationMarket Information The Ministry of Information and Communications Technology is the The Ministry of Information and Communications Technology is the

policy maker of information technology, telecommunications, and policy maker of information technology, telecommunications, and post in Jordan post in Jordan

220 private companies employing 16,000 high caliber employees220 private companies employing 16,000 high caliber employees A contribution of 6% to GDP A contribution of 6% to GDP In the 2004-2005 Global Competitiveness Report, Jordan ranked In the 2004-2005 Global Competitiveness Report, Jordan ranked

3535thth out of 102 countries in terms of government commitment to ICT out of 102 countries in terms of government commitment to ICT Rapidly growing sector in FDI, more than $1.5 billion since 2000Rapidly growing sector in FDI, more than $1.5 billion since 2000 Exports of IT products exceeded $100 million in 2005Exports of IT products exceeded $100 million in 2005 Imports of telecommunication equipment exceeded $700 million in Imports of telecommunication equipment exceeded $700 million in

the last 2 yearsthe last 2 years Telecom sector was fully liberalized in 2004Telecom sector was fully liberalized in 2004 No limit on the number on licenses that can be granted to provide No limit on the number on licenses that can be granted to provide

telecom services except those specified by the Statement of telecom services except those specified by the Statement of Government policyGovernment policy

Current Market ConditionsCurrent Market Conditions

3 mobile telephone service providers (Mobilecom, 3 mobile telephone service providers (Mobilecom, Fastlink, Umniah) and nearly 4.3 million subscribers, in Fastlink, Umniah) and nearly 4.3 million subscribers, in addition to 1 iDEN based network operator (Xpress)addition to 1 iDEN based network operator (Xpress)

Telecommunication equipment imported into Jordan are Telecommunication equipment imported into Jordan are subject to testing and certification requirements subject to testing and certification requirements developed by Jordan Institute for Standards and developed by Jordan Institute for Standards and MetrologyMetrology

Investment OpportunitiesInvestment Opportunities

The TRC is seeking to implement Mobile Virtual Network Operators, The TRC is seeking to implement Mobile Virtual Network Operators, Next Generation National Boradband Networks. Also, opportunities Next Generation National Boradband Networks. Also, opportunities exist in the electronic service area of banking, commerce, exist in the electronic service area of banking, commerce, governance, health, eduction, accounting, information security, and governance, health, eduction, accounting, information security, and most recently 3D animation.most recently 3D animation.

Also potential for investment in: Call Centers, Education platforms/e-Also potential for investment in: Call Centers, Education platforms/e-learning, Arabization/Arabic language content, Animation, Mobile-learning, Arabization/Arabic language content, Animation, Mobile-phone sub-sector, Wi-Fi, Wi-Mas, Low-cost satellite systems, phone sub-sector, Wi-Fi, Wi-Mas, Low-cost satellite systems, International voice Gateways and bandwith provision.International voice Gateways and bandwith provision.

ICT IndustryICT Industry

Industry InformationIndustry Information The Ministry of Information and Communications Technology is the policy maker of The Ministry of Information and Communications Technology is the policy maker of

information technology, telecommunications, and post in Jordaninformation technology, telecommunications, and post in Jordan Fastest growing sector in Jordan’s economy (50% growth rate)Fastest growing sector in Jordan’s economy (50% growth rate) A contribution of 4% to GDP A contribution of 4% to GDP More than 16,000 employee (directly in the ICT firms or in ICT divisions in firms)More than 16,000 employee (directly in the ICT firms or in ICT divisions in firms) Import of IT equipment exceeded $200 million in the last 2 yearsImport of IT equipment exceeded $200 million in the last 2 years 15 new laws were enacted including labor, Telecom, IPR, and Private shareholding 15 new laws were enacted including labor, Telecom, IPR, and Private shareholding

lawslaws Many leading companies operate or manufacture products in JordanMany leading companies operate or manufacture products in Jordan Jordan has over 600,000 internet users, and eight operating ISP’s Jordan has over 600,000 internet users, and eight operating ISP’s The PC penetration rate is between 5-6%The PC penetration rate is between 5-6% ISDN, ADSL broadband lines, PSTN ISDL, GSM, GPRS, fram-relay, fiber and ATM ISDN, ADSL broadband lines, PSTN ISDL, GSM, GPRS, fram-relay, fiber and ATM

are available commercially and Blackberry services were launched in 2007.are available commercially and Blackberry services were launched in 2007. Telecommunication equipment imported into Jordan are subject to testing and Telecommunication equipment imported into Jordan are subject to testing and

certification requirements developed by Jordan Institute for Standards and Metrologycertification requirements developed by Jordan Institute for Standards and Metrology

Investment OpportunitiesInvestment Opportunities

e-government, e-learning solutions, financial software for e-government, e-learning solutions, financial software for the banking sector, network and date security the banking sector, network and date security equipment/softward/services, Electronic service areas of equipment/softward/services, Electronic service areas of banking, commerce, governance, health, education, banking, commerce, governance, health, education, accounting, information security, and 3D animationaccounting, information security, and 3D animation

Doing Business in Iraq Through Doing Business in Iraq Through JordanJordan

Because…..Because….. The easiest gate-way to Iraq The easiest gate-way to Iraq Jordan is the hub for over 1500 Iraqi companiesJordan is the hub for over 1500 Iraqi companies Export facilitation from Jordan to IraqExport facilitation from Jordan to Iraq Government officials visit Jordan frequently to Government officials visit Jordan frequently to

conduct business for Iraqconduct business for Iraq Prime contractors have their regional offices in Prime contractors have their regional offices in

JordanJordan Iraqis don’t need visa to visit JordanIraqis don’t need visa to visit Jordan Royal Jordanian airline and other private airlines Royal Jordanian airline and other private airlines

have routes to different cities in Iraq from Jordanhave routes to different cities in Iraq from Jordan Iraq-in-Amman UnitIraq-in-Amman Unit

Contact UsContact Us

U.S. Commercial Service / Iraq-in-Amman UniteU.S. Commercial Service / Iraq-in-Amman Unite

American Embassy, AmmanAmerican Embassy, Amman

Tel:+962 6 590-6632Tel:+962 6 590-6632

Fax: +962 6 592-0146Fax: +962 6 592-0146

E-mail: E-mail: ammanamman.office.box@mail.doc..office.box@mail.doc.govgov

www.buyusa.gov/jordanwww.buyusa.gov/jordan

www.buyusa.gov/iraqwww.buyusa.gov/iraq