Transcript Document
www.dzc.jo www.dfzc.jo www.dfzc.jo 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 Presentation Highlights www.dzc.jo 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 www.dfzc.jo Critical National Investment Drivers www.dzc.jo • 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 www.dfzc.jo Access to National, International and Regional Markets www.dzc.jo www.dfzc.jo • 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 Enabling National Policy for Cluster Development www.dzc.jo www.dfzc.jo • 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 The Development and Free Zones as an www.dzc.jo Investment Enabling Platform www.dfzc.jo The Law Provides Total Business Solutions Government Commission • Policy enablement • Land • External infrastructure • Financial Incentives • Planning approvals • Business licensing • Provide Gov”t interface Provide training Master Developer • Onsite infrastructure • Municipal services • Marketing Investor • Construct project • Regime in exchange for commitment Generate Jobs Transparent, Proactive, Unified and Streamlined DFZC Roles and Responsibilities Good www.dzc.jo Governance and Friendly Interface www.dfzc.jo 1.Economic Planning: • Harmonizing National Investment Location Map • Recommending establishments of new sites 2.Regulating • • • • 3.Site Management • Establishing and regulating Municipal or Common Facility Management Regime • Managing Master Development Contracts 4.Local Economic Development • HR Training & Development • SME’s Support • Supporting Corporate Social Responsibility Land zoning, planning and construction permitting Business registration and licensing Environmental management Expatriate workforce permitting Tax Exemptions for Development Areas Automatic and Project Life-Long in exchange of www.dzc.jo Preferential Market Access 5% Corporate Income Tax On income accrued by all business operations conducted within the zone Duties 0% Custom On all capital assets and goods imported for conducting business operations Tax 0% Sales 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 www.dfzc.jo Tax Exemptions for Free Zones www.dzc.jo Preferential Market Access is Restricted 0% Corporate Income & Social Services Tax On income accrued by all business operations conducted within the zone Duties 0% Custom On capital assets and production input materials & Land Tax and Licensing Fees 0% Buildings On assets within the zone 0% Personal Income Tax On salaries and remittances of non-Jordanian employees Full Repatriation of FDI Capital upon Liquidation www.dfzc.jo Master Developer’s Roles & Responsibilities www.dzc.jo Advanced Municipal Entity www.dfzc.jo 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 Master Development Companies Publicwww.dzc.jo Funds with Long Term Investments Horizon & Opportunities for PPP’s www.dfzc.jo 1.Master Developers King Abdullah II Fund For Development • Ma’an(Jordan Industrial Estates Corporation, AlHussein Bin Talal University) Jordan For Development Zones (100% Public) • Dead Sea • Ajloun 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 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 Harmonize all Investment Enabling Platforms and Consolidate within a National Vision www.dzc.jo www.dfzc.jo 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 www.dzc.jo Development Areas A Platform to Enable and Spread Investments www.dzc.jo across Different Regions of Jordan www.dfzc.jo 2009 مباشرة الهيئة أعمالها في مطلع Industrial Estates and Free Zones www.dfzc.jo Unifying the Regulatory Framework and Removing www.dzc.jo Existing Distortions المدن الصناعية والمناطق الحرة قيمة االستثمارات :مليون دينار تاريخ التأسيس عدد المناطق عدد المؤسسات المسجلة تم استثماره قبل إعالن المنطقة التنموية استثمارات جديدة متحقق المدن الصناعية فرص العمل العمالة قبل إعالن فرص العمل الجديدة المنطقة التنموية متحقق ملتزم به JIEC: 1980 Under DFZC: 2011 العامة 6 500 1,400 29,000 الخاصة 9 175 450 34,000 المناطق الحرة ملتزم به JFZC: 1973 Under DFZC: 2011 العامة 5 7,600 2,700 12,000 الخاصة 35 100 1,000 8,000 المجموع 55 8,375 5,550 83,000 -