Transcript GDP Growth Rate

A lecture presented by Samer Kawar JYES Chairman followed
by another presentation presented by Mrs. Farah Armoush
JYES member on boycott at NYIT University
Investment Climate and Business Opportunities in Jordan
Reform…
Macroeconomic Stability
8.4%
GDP Growth Rate
9%
8%
7.2%
7%
6.4%
6%
5%
6.0%
4.9%
4.1%
4.2%
4.2%
4%
3%
2%
1%
0%
2000
2001
2002
2003
2004
2005
2006
2007
Macroeconomic Stability
USD
3000
GDP per Capita
2526
2305
2500
2122
2000
1679
1803
1872
2001
2002
1939
1500
1000
500
0
2000
2003
2004
2005
2006
Macroeconomic Stability
200.0%
External Debt
as a percentage of GDP
189.0%
180.0%
160.0%
140.0%
105.0%
120.0%
84.0%
100.0%
77.0%
67.0%
58.6%
80.0%
60.0%
51.9%
46.3%
2006
2007
40.0%
20.0%
0.0%
1990
1995
2000
2003
2004
2005
Macroeconomic Stability
Million USD
7000
6872
Foreign Reserves
6000
6103
4700
4800
4800
2003
2004
2005
5000
3500
4000
2800
2600
3000
2000
1000
0
2000
2001
2002
2006
2007
Macroeconomic Stability
Million USD
5657
6000
Exports
5000
4180
3608
4000
3000
3000
3300
2195
1907
2000
1524
1000
0
2000
2001
2002
2003
2004
2005
2006
2007
International Reports
Top 20 rankings by Inward FDI Performance Index
2005 and 2006
(UNCTAD World Investment Report, 2007)
Economy
Luxembourg
Hong Kong, China
Suriname
Iceland
Singapore
Malta
Bulgaria
Jordan
Estonia
Belgium
Bahrain
Azerbaijan
Gambia
Lebanon
Georgia
Tajikistan
Panama
Bahamas
Sudan
Guyana
2005
5
4
3
12
6
10
8
19
7
11
23
1
14
9
16
33
25
21
13
32
2006
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Matrix of Inward FDI Performance and
Potential (UNCTAD)
Under Performers
Below Potential
Above Potential
Front Runners
1988-1990
Jordan, Morocco, Sudan,
Lebanon, Yemen, India,
Turkey
Saudi Arabia, UAE,
Kuwait, Japan, Germany,
Israel, Qatar, Italy
Syria, Tunisia,
Egypt
UK, USA, Oman,
Bahrain, Ireland, China,
France
1993-1995
Syria, Lebanon, Algeria,
Sudan, Turkey, India
Jordan, USA, Saudi
Arabia, Oman, UAE,
Kuwait, Libya, Germany,
Japan
Morocco, Tunisia,
Egypt, Yemen
UK, Bahrain, Qatar,
Singapore, Ireland,
China,
1999-2001
Syria, Algeria, Turkey,
India
USA, Oman, Lebanon,
Japan, Italy, Saudi
Arabia, Qatar, UAE,
Tunisia, Egypt
Morocco, Sudan,
Brazil, Kazakhstan
Jordan , UK, Singapore,
Ireland, Germany,
China, France
2001-2003
Algeria, India, Turkey,
Egypt, Yemen
UK, Japan, Kuwait,
Lebanon, Korea, Russia,
Saudi Arabia, UAE, USA
Syria, Sudan,
Morocco
Jordan, Kazakhstan,
Qatar, China, France,
Tunisia, Germany,
Ireland, Israel
Syria, Yemen, India,
Indonesia, South Africa
USA, Oman, Algeria,
Libya, Kuwait, Tunisia,
Saudi Arabia, Turkey,
Japan, Germany, Ireland
Egypt, Morocco,
Sudan, Lebanon,
Romania
Jordan, UK, Bahrain,
Qatar, UAE, Singapore,
China
2003-2005
The Globalization Index 2007
Issued by FOREIGN POLICY magazine in
partnership with A.T. Kearney
Measures countries on their economic, personal,
technological, and political integration.
The 2007 Index draws on data from 2005.
72 Countries took part in the Index 2007.
Countries of the Globalization Index,
ranked by foreign direct investment as a share of GDP
(sum of FDI inflows and outflows divided by GDP)
FDI 2005 Country
38.51%Hong Kong, China
25.89%
Netherlands
25.13%
Estonia
24.08%
Denmark
21.94%
Singapore
17.79%
Ireland
14.06%
Panama
13.27%
Switzerland
12.51%
Belgium
12.05%
Jordan
12.04%
Colombia
11.91% United Kingdom
10.97%
Sweden
10.60%
Australia
9.56% Czech Republic
9.50%
Bulgaria
9.39%
Ukraine
8.43%
France
7.41%
Chile
7.21%
Hungary
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Doing Business 2008
(World Bank Group)
Arab Countries
Ranking out of 17
Saudi Arabia
1
Kuwait
2
Oman
3
United Arab Emirates
4
Jordan
5
Lebanon
6
Tunisia
7
Yemen
9
Palestine
12
Algeria
17
Global Competitiveness Report
2007-2008 (World Economic Forum)
Prevention of Organized Crime:
Jordan ranks (9) out of (131) countries.
Business costs of crime and violence
Jordan ranks (13) out of (131) countries.
Reliability of Police Services:
Jordan ranks (14) out of (131) countries.
Investment Environment in Jordan
Jordan Investment Board Investment Promotion Law incentives
-- Income and Social Tax exemptions
- Tax Breaks for 10 years, the percentage of
which depends on the project’s location.
- Development areas are exempted for 20
years.
--Customs and sale tax exemptions on all
fixed assets
- Capital and production goods are exempted
from customs duties and sales tax.
Investment Volume of Projects that Benefited from
the Investment Law 2002 - 2007
3500
3,080
3000
2,586
2500
2000
1500
1,058
1000
424
370
590
500
0
2002
2003
2004
2005
2006
2007
Investment Volume of Projects that Benefited from the
Investment Law by origin 2002 - 2007
1,800
1,600
1,393
million USD
1,400
1,192
1,200
1,000
800
668
455
600
400
200
0
1,640
1,470
390
251
118
2003
135
2004
Domestic
2005
Foreign
2006
2007
Human Resources
People are our greatest asset
Well educated population.
Over 91% literacy rate.
192,000 students currently enrolled in universities.
17% of the population receives higher education.
24 universities (14 private, 10 public).
60 community colleges.
35 vocational training centers training over 10,000
people each year.
Competitive wage structure.
International Gateway
Member of WTO.
Jordan-US Free Trade Agreement (FTA).
Qualifying Industrial Zone (QIZ) Agreement.
Greater Arab Free Trade Agreement.
Euro-Jordanian Association Agreement.
Aghadir Agreement.
Jordan-EFTA FTA.
Jordan-Singapore FTA.
Access To One Billion Consumers…
Customs Free and Quota Free
Enabling Platforms
Aqaba Special Economic Zone
Development Zones
King Hussein bin Talal Economic Zone
Irbid Economic Development Zone
Ma’an Economic Development Zone
AQABA Special Economic Zone
Light
Industry
7%
Heavy
Industry
13%
Services
30%
Tourism
50%
AQABA Special Economic Zone
Strategic location, crossing point of 4 countries and 3
continents.
Favorable tax regime and an attractive package of
incentives:
0% customs duties.
5 % income tax rate.
0% tax on most products and services.
7 % sales tax rate.
0% building and land tax.
0% social services tax.
King Hussein Bin Talal
Economic Zone (Mafraq)
King Hussein Bin Talal
Economic Zone (Mafraq)
Target Industries
1
Food Processing
Jordan Projected Exports
(2005 – 2025)
(In US$ Million)
15,000 new
jobs created in
10 years!
5,060
2
Textiles, Apparel, Furniture
CAGR: 7%
4,380
3
Light Chemicals
1,251
4
680
Engineering & Electrical
2005
26
2025
King Hussein Bin Talal
Economic Zone (Mafraq)
Industrial and Logistics Opportunity
1
Proximity to Untapped Markets
3
2
Strategic Location
Turkey
73M
Syria
19M
Jordan
5.7M
Egypt
74M
Average Annual Wage
of Low Skilled Worker 2005(*)
Iraq
29M
Iran
70M
Israel
$12,165
Turkey
$5,837
Kuwait 3M
Saudi Arabia
25M
“Core market” of
330 million
inhabitants
Qatar 0.8M
Jordan
$2,961
U.A.E
4M
Egypt
$2,759
Syria
Yemen
21M
27
Competitive Land and Labor Costs
$2,315
Irbid Development Area
Irbid Economic Development Zone
Healthcare, IT, Education and Research clusters
Ma’an Economic Development Zone
Ma’an Economic Development Zone
Was launched in September 2007 by HM
King Abdullah II.
280 million USD is expected to be spent on
infrastructure.
Qatar-based Al Rimal Glass Company will
establish a glass factory in Ma’an over
300,000 square meters with a total daily
capacity of 700 tons.
Exemptions offered in
Development Zones
Income tax:
Flat rate of 5% income tax on all economic activities.
No income tax on profits from exports
Sales tax:
No sales tax on procurement for projects.
7% tax rate on sales of services to the local market.
16% tax rate on sale of goods to the local market.
Customs:
No Customs duties on production inputs.
Customs duties are due on sale to local market.
Healthcare
According to the Arab World Competitiveness Report 2007,
Jordan scored 6.4 out of 7 in terms of health care and primary
education.
Expenditure of health sector: 6.1% of the government budget.
101 hospitals and 24.5 physicians per 10,000 population.
More than 130,000 medical tourists in 2006.
Annual revenues from incoming foreign patients $650 million.
Medical Tourism Center for the region.
Unique spas and health resorts: Dead Sea and natural hot
springs in Ma’in, Himme and Zara.
Banking and Finance
Well developed banking system.
Comprehensive Legal Infrastructure (Central Bank of Jordan
Law, Banking Law and Anti-Money Laundering and
Combating Financing of Terrorism Law).
Compliance with international standards (Basel Core Principles
for Effective Banking Supervision).
Modern well established stock market infrastructure (no taxes on
capital gains, no taxes on cash dividends, free repatriation of
investment and income, no ceiling on foreign equity
ownership and privatization).
ASE Non-Jordanian ownership of market capitalization increased to
48.9% in 2007 from 45.5% in 2006.
Pharmaceuticals
Investment volume of $700 million.
Exports in 2006 $500 million, 2010 target $1 billion.
Largest Arab exporter.
18 major investments employing 8,000 high caliber
employees.
Compliant with intellectual property rights protection.
Available supporting infrastructure: 8 pharmaceutical
colleges, 4 clinical research organizations, and 97
hospitals.
Increased investment in R&D (Clinical Trial Law).
Automotive Industry
2 operating companies engaged in the assembly of transport vehicles
and four-wheel drive cars (mainly for military use).
8 companies operate in the production of automotive parts, radiators,
batteries, glass and filters.
75% of the production is exported.
Tourism
In 2007:
- Over 3.5 million overnight tourists.
- $2.4 billion in revenues.
- A rich mix of history, archaeology,
nature, religious and
Tourism
adventure and health tourism.
- 27,000 historical sites, of which 4 are globally renowned:
Wadi Rum, Dead Sea, Petra, Baptism Site.
- Potential for expansion in health and conference tourism
- Variety of hotels, restaurants and international fast food
chains.
What does Jordan offer investors?
Political stability and security.
Appropriateness of investment law.
Fiscal policy and economic stability.
Freedom to repatriate invested money, salaries and
profits.
Infrastructure.
The availability and costs of an adequate workforce.
The stability of laws and systems.
Size and potential for expansion of the market.
Ease of Government procedures.