+-----------------------------------------------------------------------+
| # Jordan: Safety & Security Equipment market                          |
|                                                                       |
| #                                                                     |
+-----------------------------------------------------------------------+
| Fareedon Hartoqa                                                      |
|                                                                       |
| Date 03/2006                                                          |
|                                                                       |
| ID:138547                                                             |
+-----------------------------------------------------------------------+

####### Summary

Jordan is one of the most stable and secure countries in the Middle
East, and the Jordanian Government gives the Safety and Security sector
strong attention. The local market depends almost entirely on imports,
with market size estimated at \$ 71 million in 2004, and continued
growth of at 10-15% per year in the coming 3-5 years. Best sales
prospects in the Jordanian market will be in security services, access
control and alarm systems, CCTV, traffic control systems, GRPS, homeland
security, metal detectors and jamming equipment. New developments, such
large commercial and residential real estate development projects,
present important opportunities for American manufacturers and
suppliers.

####### 

####### Market Overview and Highlights

There are three entities that are tasked with the mission of maintaining
security in Jordan, namely: Jordanian Armed Forces (JAF), the Public
Security Directorate (PSD), and the General Intelligence Department
(GID). In addition, the General Directorate of Civil Defense (part of
the PSD) is the authorized governmental body to protect individuals'
properties against potential dangers and accidents.

Jordanian security and safety market is divided into three market
segments, which are: security equipment, personal protection equipment,
and fire fighting. This market offers promising marketing opportunities
for U.S. suppliers. Experts in the industry foresee a positive outlook
for the overall market over the coming three to five years. The total
demand is projected to grow by 10% to 15% annually

####### 

####### Safety & Security Market Size

The local market mostly depends on imports. The total market size
increased by 4%, up from US\$ 65,848,353 in 2002 up to US\$ 68,497,302
in 2003; and it reached US\$ 71,252,813 in 2004. U.K. imports represent
the largest share, with 19.68% followed by China and Germany with 15%
and 12.86%, respectively. Regarding the U.S. products, they represent
around 12.22% of the total market imports. The U.S. suppliers face
competition in the local market, however, U.S. security and safety
products are perceived as high quality performance products by the end
users and are known for their durability and reliability.

####### 

####### Competitive Factors

-   *[Technological advancements]{.underline}*

Firms interested in this market should have the necessary capabilities
to continuously deliver new and high technological content products into
the market. Therefore, the more innovative and high tech products
introduced into the market the more market share a manufacturer /
distributor could gain.

-   *[Quality]{.underline}*

The quality factor is considered one of the most important decisive
factors that directly impacts on end users' decisions for purchasing
security and safety equipment. Quality can be measured by the
performance of the product to meet the applicable international
standards and its ability to satisfy end users' needs. Security and
safety equipment should be easy to install, reliable, requires little
repair and maintenance, and robust.

-   *[After-Sale Service]{.underline}*

To a large extent, after-sale service and quality are factors of equal
importance for successful marketing of any security and safety equipment
in the domestic market. After-sale-services include installation,
training, consulting, repairing, and maintaining services introduced to
end-users. Any supplier who offers excellent after-sale-services will
establish a competitive advantage over other suppliers in the market and
could build good relationships with end users.

-   *[Price]{.underline}*

There is a direct relationship between the quality and the price of
security and safety equipment. Most of the end users make their decision
on price-quality basis. This indicates the importance of price as a
deciding factor that end users consider in the process of evaluating
alternatives of security and safety equipment. The price factor plays a
vital role in differentiating among security and safety equipment
suppliers, especially in case of governmental bids where the company
with the lowest price has an advantage to win.

####### 

####### Best Sales Prospects

The Jordanian market needs different kinds of Safety & Security
products/services that represents sales prospects for American
companies, these include:

+-----------------------------------------------------------------------+
| -   Security services (Consulting, training, guard services...etc)    |
+-----------------------------------------------------------------------+
| -   Video surveillance devices (CCTV cameras)                         |
+-----------------------------------------------------------------------+
| -   Personal identification access control equipment                  |
|                                                                       |
| -   Access control & Alarm systems                                    |
|                                                                       |
| -   Fire fighting equipment and systems                               |
|                                                                       |
| -   Bomb jamming equipment                                            |
|                                                                       |
| -   X-Ray and metal detection devices                                 |
|                                                                       |
| -   Traffic control systems                                           |
|                                                                       |
| -   Homeland security                                                 |
|                                                                       |
| -   Special Communication equipment                                   |
|                                                                       |
| -   Border control systems                                            |
|                                                                       |
| -   Biological and Chemical detection equipment                       |
+-----------------------------------------------------------------------+

####### Market Access

The best way to penetrate the market is through a qualified
agent/representative. In this way, he can do all the marketing,
promotion and eventually the selling to end-users. He will also has the
ability to reach and contact key decision-makers, particularly in
government agencies.

It is very important for the supplier to provide comprehensive support
such as technical assistance, visiting end-users, organizing promotional
seminars and training the local agent in providing after-sales service.

Because the Jordanian market is small, one agent/representative should
be enough to cover the market and handle the distribution channels,
contact end-users and provide after sales service.

Accessing the Jordanian market can be a step to enter other markets in
the region, in particular the Iraqi market. Jordan is considered to be
the most suitable gateway to enter Iraq for different reasons:

1.  Many Iraqi companies are operating from Jordan

2.  Iraqis don't need visas to come to Jordan

3.  Aqaba is the main port for goods going to Iraq

4.  Main contractors in Iraq have offices in Jordan

5.  Jordanian businessmen have been conducting business in Iraq for long
    time

####### Third Country Imports

Security and safety equipment in Jordan market is supplied almost
entirely by imports. Primary suppliers include the USA, Germany, U.K,
France, China, Japan, and South Korea. The U.K has the largest share of
the imports with a share of 19.68%. China and Germany are placed second
and third with 15% and12.86% respectively, followed by U.S. with market
share of 12.22%.

####### U.S. Market Position

The U.S. suppliers are consistent players in the local market and enjoy
an excellent reputation for their high quality products. The analysis of
Jordanian imports market of security and safety equipment showed that
U.S. products occupied at the fourth place among other suppliers with a
market share of 12.22% of the total imports. Jordanian imports of
security and safety equipment from U.S reached US\$ 14,189,445 in 2003,
at an increase of 144% than the imports in year 2002, which was US\$
5,819,531. The U.S. companies are confronting tough competition in the
local market, particularly from U.K and Chinese suppliers who have
established and maintained good relationships with the local
distributors. However, due to the high quality, accelerating
technological advancements, and the superiority perception of the U.S.
products by end users, it is anticipated that there will be an
increasing demand for the U.S. products over the next three years. This
presents opportunities to U.S. firms willing and able to effectively
market their products in this growing market.

The U.S. products have an advance among other countries as Jordan and
the U.S. have signed a Free Trade Agreement (FTA) in 2001 that will
reduce the custom duties on most of the imported products to 0% in 2010.

####### Prospective Buyers

The main end users that can be targeted in the market are:

-   Jordanian security departments (government)

-   Industrial parks

-   Commercial and residential complexes

-   Embassies

-   Schools

-   Hotels

-   Universities

####### Trade Events

The major trade show that takes place in Jordan concerning the Safety &
Security sector is the Special Operation Forces and Homeland Security
Exhibition (SOFEX). It takes place every 2 years at King Abdullah Air
Base in Marka and it is considered to be the major specialized show in
the Middle East and North Africa, were official delegations from all
over the world attend and companies from different countries exhibiting
in it.

####### Resources and Key Contacts

+------------------------------------+---------------------------------+
| -   Ministry of Interior           |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 100 Amman-Jordan       |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 562 2811            |                                 |
| >                                  |                                 |
| > Fax: (962-6) 560 6908            |                                 |
| >                                  |                                 |
| > Website:                         |                                 |
| > [www.m                           |                                 |
| oi.gov.jo](http://www.moi.gov.jo/) |                                 |
+------------------------------------+---------------------------------+
| -   Jordanian Armed Forces         |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 925839 Amman-Jordan    |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 462 2131            |                                 |
+------------------------------------+---------------------------------+
| > Fax: (962-6) 568 5694            |                                 |
+------------------------------------+---------------------------------+
| Website:                           |                                 |
| [www.j                             |                                 |
| af.mil.jo](http://www.jaf.mil.jo/) |                                 |
+------------------------------------+---------------------------------+
| -   General Intelligence           |                                 |
|     Department                     |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 1980 Amman - Jordan    |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 586 5131            |                                 |
+------------------------------------+---------------------------------+
| > Fax: (962-6 586 1136             |                                 |
+------------------------------------+---------------------------------+
| -   Public Security Directorate    |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 935 Amman - Jordan     |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 196                 |                                 |
+------------------------------------+---------------------------------+
| > Fax: (962-6) 568 7775            |                                 |
+------------------------------------+---------------------------------+
| > Website:                         |                                 |
| > [www.p                           |                                 |
| sd.gov.jo](http://www.psd.gov.jo/) |                                 |
+------------------------------------+---------------------------------+
| -   General Directorate of Civil   |                                 |
|     Defense                        |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 1050 Amman 11118       |                                 |
| > Jordan                           |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 566 0959            |                                 |
+------------------------------------+---------------------------------+
| > Fax: (962-6) 566 7717            |                                 |
+------------------------------------+---------------------------------+
| > Website:                         |                                 |
| > [[www.cdd.gov.jo]{.u             |                                 |
| nderline}](http://www.cdd.gov.jo/) |                                 |
+------------------------------------+---------------------------------+
| -   King Abdullah II Design and    |                                 |
|     Development Bureau             |                                 |
+------------------------------------+---------------------------------+
| > P.O. Box: 928125 Amman 11190     |                                 |
| > Jordan                           |                                 |
+------------------------------------+---------------------------------+
| > Tel: (962-6) 562-7201/2          |                                 |
+------------------------------------+---------------------------------+
| > Fax: (962-6) 562-7203            |                                 |
| >                                  |                                 |
| > [www                             |                                 |
| .kaddb.com](http://www.kaddb.com/) |                                 |
+------------------------------------+---------------------------------+
|                                    |                                 |
+------------------------------------+---------------------------------+

For more information about SOFEX:

[www.sofexjordan.com](http://www.sofexjordan.com/)

For Additional information about the Free Trade Agreement:

[www.jordanusfta.com](http://www.jordanusfta.com/)

####### 

####### For More Information

The U.S. Commercial Service in Amman/Jordan can be contacted via e-mail
at: [Fareedon.Hartoqa@mail.doc.gov]{.underline}; Phone: 962 6 590-605;
Fax: 962 6 592-0146 or visit our website:
[www.buyusa.gov/jordan](http://www.buyusa.gov/your_office).

####### The U.S. Commercial Service --- Your Global Business Partner

With its network of offices across the United States and in more than 80
countries, the U.S. Commercial Service of the U.S. Department of
Commerce utilizes its global presence and international marketing
expertise to help U.S. companies sell their products and services
worldwide. Locate the U.S. Commercial Service trade specialist in the
U.S. nearest you by visiting <http://www.export.gov/>.

*Disclaimer: The information provided in this report is intended to be
of assistance to U.S. exporters. While we make every effort to ensure
its accuracy, neither the United States government nor any of its
employees make any representation as to the accuracy or completeness of
information in this or any other United States government document.
Readers are advised to independently verify any information prior to
reliance thereon. The information provided in this report does not
constitute legal advice.*

*International copyright, U.S. Department of Commerce, 2006. All rights
reserved outside of the United States.*