# Presentation: 231021

## Jordan

- Your Gateway to
- Business in the
- Middle East

## Jordan

## Facts

- Jordan is located in the heart of the Arab World
- Total Area: 89,342 sq km
- Population: 5,6 million
- GDP $14 billion
- GDP Growth 7.6%
- GDP per Capita $2,500
- Labor Force 1,41 million

## Market Overview

- The local market depends mainly on imports
- 100% Foreign investment allowed
- Favorable taxation structure
- Unrestricted movement on funds
- Facilities afforded to investors
- Friendly & flexible local regulations
- Adequate infrastructure & services
- 4 seasons climate

## U.S. Market Position

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

## Market Entry

- Direct Investment
- Regional office
- Local partner (after sales service)

## Major Sectors

- Safety & Security
- Energy (Power & Gas)
- Automotive
- Building & Construction
- Information Technology
- Medical & Health

## Safety & Security Sector

## Summary

- Jordan is one of the most stable and secure countries in the region.
- The security sector has played a fundamental role in the establishment and survival of the country since the early 1920s.
- Government entities responsible Safety & Security in Jordan:
- Jordanian Armed Forces (JAF)
- Department of Public Security (DPS)
- General Intelligence Department (GID)
- General Directorate of Civil Defense (GDCD)

## Market Overview

- The Jordanian S&S market will experience a growth rate of 10-15%.
- S&S imports were US$ 80 million.
- U.K. imports 19%, China 15%, Germany 12% and the U.S. 12%.
- There are three manufacturing organizations in Jordan for defense/security equipment:
- King Abdullah II Design & Development Bureau (KADDB)
- Seabird Aviation Jordan (SAJ)
- Jordan Light Vehicle Manufacturing (JLVM)

## Best Sales Prospects

- Security services (consulting, training...etc)
- Access control & alarm systems
- CCTV
- Personal identification
- Fire fighting equipment & systems
- Traffic control systems
- Electrical signaling
- GPRS
- Bomb detection & jamming equipment
- Homeland security
- Night vision devices
- Uniforms, Protective apparel & Accessories
- X-ray, Metal and Weapons equipment

## End Users

- Jordan Armed Forces
- General Intelligence Department
- Directorate of Public Security (Police)
- Civil Defense Department
- Commercial buildings
- Universities
- Private villas and residential buildings
- Hotels
- Hospitals
- Banks
- Embassies
- Ports (air, sea and land)

## Competitive Factors

- Advanced Technology
- Quality
- After Sale Service
- Price

## Energy Sector 

## Energy Resources

- Oil: Doesn’t exist
- Gas: Small local reservoirs (Risha field) & Imports form Egypt
- Oil Shale: 40 billion tons
- Renewable Energy: Good potentials (Solar & Wind)

## Primary Energy Demand

- The growing rate of primary energy demand was 6% in 2006.
- The demand is expected to continue growing 3% per year until 2020.
- The electricity demand was between 8-10% in 2005. It’s expected to continue growing 4.6% annually.

## Energy Master Plan

- In 2004 a new $3 billion energy master plan was approved to meet the growing demand and challenges in the Energy sector:
- - Refining $700 – Oil Shale $25 – Gas distributing $300 – Gas E&P $25 – Electricity Transmission $385 – DSM & Energy Efficiency $72 – Renewable Energy $450 – Power Generation $872 – Storage $100 – Oil Pipe Line from Iraqi Boarder $125.

##  Privatization Plans

- The intention to sell the Government shares in the following entities:
- 1- 51% of CEGCO (has been sold in 2007)
- 2- 100% of EDCO
- 3- 55.4% of IDECO
- The first Individual Power Plant (IPP) is under way.
- In 2008 the concession of the JPRCO will end and the market will open to the private sector to import oil & refined products to Jordan.

## Summary

- Jordan’s Power sector is growing rapidly.
- Many investment opportunities available.

## Automotive Sector

## Market Size

- Currently around 700,000 vehicles are registered in Jordan
- Increase of 10%
- 60% Korean, 20% Japanese, 16% European, 3% American and 1% Chinese

## Market Challenges

- Fuel prices
- Availability of Spare Parts
- After Sales Service
- Used cars

## Spare Parts & Accessories Market

- Is a reflection of vehicles market shares
- Commercial spare parts with very competitive prices
- Used spare parts

## Market Needs

- Wheels & Tires
- Engine Spare Parts
- Lubricants & Oils
- Garage equipment
- Tools
- Breaks, disks, filters, seals & belts

## Competitors

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

## Building & Construction Sector

## Market Overview

- Jordan is in the midst of an immense boom in construction activity.
- Announced project investments of over $30 billion.
- Most projects are taking place in Amman, Aqaba and the Dead Sea
- It accounted for 4.5 per cent of Jordan's gross domestic product (GDP) in 2005.
- grown at a compounded annual growth rate of 11.6% percent between 2001 to 2005.
- 202 companies in 2005 compared to 82 companies in 2001.

## Major Construction Projects

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

## Market Needs

- New Construction Equipment & Services to deal with new building structures
- New Construction Techniques
- Project Management Services
- Property Management Services & Systems.

## Medical Sector

## Summary 

- Medical Tourism Center for the region
- According to the Arab World Competitiveness Report 2005, Jordan is the top ranking Arab country in terms of health care.
- Advanced and well developed
- Highly educated and well trained doctors
- Using the latest technologies

## The Market

- Total market USD 75 million
- Total imports USD 74 million
- U.S. Import market share 30%
- Jordan’s total expenditure on health is estimated at $325 million, around 6.5% of total GDP
- Average per capita spending is around $2,356 per year.
- The Ministry of Health (MOH) in Jordan oversees the laws and regulations of the entire healthcare sector.
- Number of Hospitals 98
- Total bed capacity 10,079
- Number of beds per 1,000 patient is 1.8 (575 person has 1 bed)
- Estimated market growth rate in 2006:  22%
- More than 100,000 medical tourist annually
- A leader in open heart surgery, kidney transplants, and optical surgery and test tubes baby

## Market Needs

- Opportunities:  MOH - Drugs Quality Control Laboratories, Al-Bashir Hospital renovation and remodeling - 850 bed,  Pediatric Children Hospital- 200 beds, Expansion of Princes Haya Hospital,  Aqaba - 200 beds, Zarqa Hospital – 400 beds
- Best Services Prospects: Consulting in hospital administration, quality control and certification standards, Training, and Hospital software for hospital administration and laboratory test results
- Given the hospital redesign projects and private clinics investments the following equipment offers excellent sales prospects.  CT Scanners and MRI Physiological monitoring, Dialysis equipment, Reagents for automated laboratories Laparoscopy & Endoscopy equipment, Cardiology equipment, Ophthalmology, Neurosurgery, Oncology, Hospital/ Clinical furniture, Orthopedic & Prosthetic Appliances, and Waste Disposables.

## End Users

- Ministry of Health
- Universities hospitals
- Military hospitals
- Private hospitals
- Private clinics
- NGO health centers
- Private laboratories

## Information & Communication Technology

## Market Information

- The Ministry of Information and Communications Technology is the policy maker of information technology, telecommunications, and post in Jordan
- 220 private companies employing 16,000 high caliber employees
-  A contribution of 6% to GDP
-  In the 2004-2005 Global Competitiveness Report, Jordan ranked 35th out of 102 countries in terms of government commitment to ICT
-  Rapidly growing sector in FDI, more than $1.5 billion since 2000
-  Exports of IT products exceeded $100 million in 2005
-  Imports of telecommunication equipment exceeded $700 million in the last 2 years
-  Telecom sector was fully liberalized in 2004
-  No limit on the number on licenses that can be granted to provide telecom services except those specified by the Statement of Government policy

## Current Market Conditions

- 3 mobile telephone service providers (Mobilecom, Fastlink, Umniah) and nearly 4.3 million subscribers, in addition to 1 iDEN based network operator (Xpress)
-  Telecommunication equipment imported into Jordan are subject to testing and certification requirements developed by Jordan Institute for Standards and Metrology

## Investment Opportunities

- The TRC is seeking to implement Mobile Virtual Network Operators, Next Generation National Boradband Networks.  Also, opportunities exist in the electronic service area of banking, commerce, governance, health, eduction, accounting, information security, and most recently 3D animation.
- Also potential for investment in: Call Centers, Education platforms/e-learning, Arabization/Arabic language content, Animation, Mobile-phone sub-sector, Wi-Fi, Wi-Mas, Low-cost satellite systems, International voice Gateways and bandwith provision.

## ICT Industry

## Industry Information

- The Ministry of Information and Communications Technology is the policy maker of information technology, telecommunications, and post in Jordan
- Fastest growing sector in Jordan’s economy (50% growth rate)
- A contribution of 4% to GDP
- 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 years
- 15 new laws were enacted including labor, Telecom, IPR, and Private shareholding laws
- Many leading companies operate or manufacture products in Jordan
- Jordan has over 600,000 internet users, and eight operating ISP’s
- The PC penetration rate is between 5-6%
- ISDN, ADSL broadband lines, PSTN ISDL, GSM, GPRS, fram-relay, fiber and ATM are available commercially and Blackberry services were launched in 2007.
- Telecommunication equipment imported into Jordan are subject to testing and certification requirements developed by Jordan Institute for Standards and Metrology

## Investment Opportunities

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

## Doing Business in Iraq Through Jordan

## Because.....

- The easiest gate-way to Iraq
- Jordan is the hub for over 1500 Iraqi companies
- Export facilitation from Jordan to Iraq
- Government officials visit Jordan frequently to conduct business for Iraq
- Prime contractors have their regional offices in Jordan
- Iraqis don’t need visa to visit Jordan
- Royal Jordanian airline and other private airlines have routes to different cities in Iraq from Jordan
- Iraq-in-Amman Unit

## Contact Us

- U.S. Commercial Service / Iraq-in-Amman Unite
- American Embassy, Amman
- Tel:+962 6 590-6632
- Fax: +962 6 592-0146
- E-mail: _[amman](mailto:amman.office.box@mail.doc.gov)__[.office.box@mail.doc.](mailto:amman.office.box@mail.doc.gov)__[gov](mailto:amman.office.box@mail.doc.gov)_
- _[www.buyusa.gov/jordan](http://www.buyusa.gov/jordan)_
- _[www.buyusa.gov/iraq](http://www.buyusa.gov/iraq)_