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Doing Business in Jordan: 2008 Country

Commercial Guide for U.S. Companies

I!"#$!I%$& C%'(#IG)!* U.S. + ,%#"IG C%--"#CI$& S"#IC" $D U.S.D"'$#!-"! %, S!$!"* 2008. $&& #IG)!S #"S"#"D %U!SID" %, !)" UI!"DS!$!"S.

Chapter 1: Doing Business In

Chapter 2: Political and Economic Environment

Chapter 3: Selling US Products and Services

Chapter !: "eading Sectors #or US E$port and Investment

Chapter %: &rade 'egulations and Standards

Chapter (: Investment Climate Chapter ): &rade and Pro*ect +inancing

Chapter ,: Business &ravel

Chapter -: Contacts. /ar0et 'esearch and &rade Events

Chapter 1: uide to ur Services

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'eturn to ta5le o# contents

C/apter : Doing Business in 1Jordan

/ar0et vervie6

/ar0et Challenges /ar0et pportunities

/ar0et Entr7 Strateg7

-ar3et %4er4ie5 #eturn to top

&he 8ordanian mar0et continued its e$pansion in 2) 6ith a DP gro6th estimated at%)9 Signi#icant opportunities 6ill continue to e$ist #or US #irms in a variet7 o# sectorsincluding

Construction and 'eal Estate Development

Energ7 and Po6er otel and 'estaurant E;uipment

1! 5illion Its main imports include crude petroleum and derivatives. #a5ricsand te$tiles. machiner7 and e;uipment. manu#actured goods. iron. and cereals /a*or

suppliers are Saudi

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< continued gro6th in construction and real estate development that includes anum5er o# pro*ects valued at over >1 5illion creates signi#icant mar0etopportunities #or US providers

1 5illion a 7ear medical tourism industr7 continues to dra6 inpatients #rom across the region creating tremendous opportunities #or US medicale;uipment

Upgrades to the logistics s7stem. including the port o#

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C/apter 2: 'olitical and "conomic "n4ironment

+or 5ac0ground in#ormation on the political and economic environment o# the countr7.

please clic0 on the lin0 5elo6 to the US Department o# State Bac0ground oteshttp:44666stategov4r4pa4ei45gn43!(!htm


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http://www.state.gov/r/pa/ei/bgn/3464.htmhttp://www.state.gov/r/pa/ei/bgn/3464.htm

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C/apter 6: Selling U.S. 'roducts and Ser4ices

Using an

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E$amples o# the recent #ranchises include &I +rida7s and

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customs administration 8ordan has also 5een selected as a /CC Compact countr7.6hich 6ill provide su5stantial #uture assistance +or more in#ormation seehttp:44666mccgov4

Distri7ution and Sales C/annels #eturn to top

&here are several 5order crossings in 8ordan. ho6ever. goods generall7 arrive throughthe Port o#

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advertisements are sent via S/S US #irms ma7 also advertise on the CommercialService4

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instance should US advice 5e seen as a su5stitute #or the o5ligation o# a rights holderto promptl7 pursue its case

It is al6a7s advisa5le to conduct due diligence on partners egotiate #rom the positiono# 7our partner and give 7our partner clear incentives to honor the contract < goodpartner is an important all7 in protecting IP rights Aeep an e7e on 7our cost structure

and reduce the margins ?and the incentive@ o# 6ould5e 5ad actors Pro*ects and salesin 8ordan re;uire constant attention or0 6ith legal counsel #amiliar 6ith 8ordan la6sto create a solid contract that includes noncompete clauses. and con#identialit74nondisclosure provisions

It is also recommended that small and mediumsie companies understand theimportance o# 6or0ing together 6ith trade associations and organiations to supporte##orts to protect IP' and stop counter#eiting &here are a num5er o# theseorganiations. 5oth 8ordanor US5ased &hese include:

- &he US Cham5er and local

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registered trademar0s and cop7righted 6or0s ?to assist customs in 5loc0ing importso# IP'in#ringing products@ and allo6s 7ou to register #or e5inars on protectingIP'

- &he US Commerce Department has positioned IP attachQs in 0e7 mar0ets aroundthe 6orld Gou can get contact in#ormation #or the IP attachQ 6ho covers 8ordan at:APlease insert a link to the appropriate contact information on BuyUSA.gov

for the IP Officer who covers your region, e.g., the officer in Brazil for atinAmerica, in !ew "elhi for South Asia, in Bangkok for Southeast Asia, in #airofor the $i%%le &ast an% !orth Africa, in $oscow for &astern &urope, an%thea%%ress usptochina'mail.%oc.govfor #hina

- +or trademar0s and patent issues and registration in 8ordan. contact the /inistr7 o#Industr7 and &rade. Department o# Industrial Propert7 Protection ?666mitgov*oKtel: R-(2(%(2-3@

- +or cop7right issues and registration in 8ordan. contact the Cop7right Protection##ice in the ational "i5rar7 Department o# the /inistr7 o# Culture ?666nlgov*oKtel:R-(2(!(1311@

I'# Climate in Jordan

Prior to its accession to the &. 8ordan passed several ne6 la6s to improve protectiono# intellectual propert7 rights ?IP'@. patents. cop7rights. and trademar0s "a6sconsistent 6ith &'IPS ?&rade 'elated

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C/apter : &eading Sectors for U.S. "Eport and In4estment

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Construction and #eal "state De4elopment

%4er4ie5 #eturn to top

2( 2) ?estimated@ 2, ?estimated@&otal /ar0et Sie ?trading@ 4a >% 5illion >) 5illion&otal "ocal Production 4a 4a 4a&otal E$ports 4a 4a 4a&otal Imports 13% 1( 1-3Imports #rom the US 2 2- 3%&hose are estimates 5ased on several reportsK the 2) E$ternal &rade 'eport has not 5een pu5lished 7et

Since 2!. the Aingdom o# 8ordan has 5een 6itness to an unprecedented 5oom in real estate. 6ith total investmentsin the sector over the past #ive 7ears estimated at over 8D 1% 5illion &rading in the sector last 7ear reached 8D !-5illion. comprising almost hal# o# the ross Domestic Product ?DP@. compared to 8D 3% 5illion and 8D 2 5illion in 2%and 2! respectivel7 &his #igure is e$pected to e$ceed 8D ( 5illion this 7ear

&he 8ordanian 'eal Estate mar0et 6as a##ected signi#icantl7 57 the political turmoil and economic 5oom in recent 7ears.instigated 57 the Septem5er 11th terrorist attac0 on the United States 6hich compelled

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Since the reater

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'o5er and "nergy


Electricit7 demand is gro6ing. and the 8ordanian government has 5een see0ing 6a7s to attract #oreign capital to#und additional capacit7

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Best 'rospectsSer4ices #eturn to top

&he 5est prospects #or electricit7 generation are in IPPs &his creates tremendous opportunities #or US investorsinterested in investing in concessions in electricit7 generation

iven the ne6 direction in rene6a5les. there is a huge potential #or US manu#acturers

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ational Electrical Po6er Co ?EPC@ 666nepcocom*oElectricit7 Po6er regulator7 Commission 666ercgov*o8ordan Electrical Po6er Co ?8EPC@ 666*epcocom*oIr5id District Electricit7 Co ?IDEC@666idecocom*o

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http://www.nepco.com.jo/http://www.erc.gov.jo/http://www.jepco.com.jo/http://www.jepco.com.jo/http://www.ideco.com.jo/http://www.ideco.com.jo/http://www.nepco.com.jo/http://www.erc.gov.jo/http://www.jepco.com.jo/http://www.ideco.com.jo/

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)otel and #estaurant "9uipment


2( 2) 2, ?estimated@&otal /ar0et Sie ?trading@ 4a 4a 4a n&otal "ocal Production 4a 4a 4a&otal E$ports 4a 4a 4a&otal Imports 4a -) 1!2Imports #rom the US 4a 11 2)&hose are estimates 5ased on several reportsK the 2) E$ternal &rade 'eport has not 5een pu5lished 7et

&ourism is o# vital importance to the national econom7 o# 8ordan It is the AingdomMs largest e$port sector. itssecond largest private sector emplo7er. and its second highest producer o# #oreign e$change &ourism contri5utesmore than >, million to 8ordanMs econom7 and accounts #or appro$imatel7 1 percent o# the countr7Ms grossdomestic product

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&here are a num5er o# hotel pro*ects in the 6or0s ?either alread7 under construction or in the planning phases&hose pro*ects include the #ollo6ing:

&ala Ba7 resort. an integrated tourist = residential resort #eaturing a marina. hotels. a gol# course.

housing units and other entertainment = sports #acilities 3 hotels are under development 6ith a totalcapacit7 o# -2 rooms

Sara7a 3(2 million tourism pro*ects to 5e developed on (1. m2. 6ith a 5uilt up area o#(!,. m2 &he pro*ect includes ( hotels = resorts ?managed 57 8umairah and Star6ood@. sports =spa comple$. convention center. residential compounds. serviced apartments. an a;uarium and other#acilities

) million pro*ect on the north 5each #eaturing a manmade lagoon. % hotels = resorts 6ith

a total room capacit7 o# 1%!. 2,,! housing unitsK a marina village and an 1,hole gol# courseconstructed over !3 hectares ?1.( acres@

Aempins0i ( million tourist pro*ect 6ith 2% rooms and 3 serviced apartmentsK a >1%m

tourist resort 57 Natari investorsK a >1! million resort pro*ect 57 Union Integrated &ourism Co and a2room hotel 57 Bela #or &ourist Investments

&he

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#esources #eturn to top

- /inistr7 o# &ourism and

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modern e;uipment ith a6areness and regulation on environmental issues increasing. the mar0et #orenvironmentall7 #riendl7 e;uipment is gro6ing accordingl7

Belo6 is a list #or some o# the main t7pes o# e;uipment utilied in the car service industr7. 6hich is e$pected to 5ein demand due to the continued gro6th in the 8ordanian mar0et:

S ,23,2% and tools and the li0e ?scre6drivers. clamps. etc@

S ,!2%! "i#ts. *ac0s. and hoist e;uipment

S ,!1%2

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ealth and /edical Sector


8ordanJs health care s7stem is regarded as one o# the 5est in the region 8ordan has 5ecome amedical tourism destination in the region 57 o##ering relativel7 high;ualit7 care at comparativel7

ine$pensive rates &he 5oom in private hospitals is 0e7ed to this gro6ing Hmedical tourism trade/edical tourism generates a5out t6othirds o# all the tourism income to 8ordan. as patients o#ten travel6ith their entire #amilies and4or sta7 #or relativel7 long periods

8ordanJs health care s7stem uses the latest technologies and has highl7 educated and 6ell traineddoctors /an7 8ordanian ph7sicians have received some #orm o# medical training in the US. givingUS products good e$posure 8ordanian doctors are respected throughout the region #or theire$pertise. hence their choices o# technolog7 in#luences 5u7ing decision throughout the region /an7doctors in the region are trained in 8ordan. and man7 8ordanian doctors 6or0 in neigh5oring countries&he in#luence o# 8ordanian doctorsJ choices in medical technolog7 can impact 5u7ing decisions in othercountries 6here the7 practice &his raises the incentive #or US #irms to enter the 8ordanian mar0et

Primar7 health care sector re#orms under6a7 include renovating and adding medical diagnostic devicesand therapeutic e;uipmentK improving the ;ualit7 o# health care and hospital servicesK upgradinghospital in#rastructureK and developing and implementing health in#ormation s7stems

/edical e;uipment: Demand #or medical e;uipment and services should increase during the ne$t #e67ears 6ith the increase in the num5er o# government and privatel7 o6ned hospitalsK ne6 e;uipment #orhospitals under constructionK renovated e;uipment to replace e$isting e;uipment in #unctioning#acilitiesK upgrading clinics and health care structuresK e$panding health insurance coverageK andshi#ting #rom older conventional methods to modern treatment methods

Best 'rospectsSer4ices #eturn to top

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Information and Communication !ec/nology


In#ormation and Communication &echnolog7 ?IC&@ is one o# the gro6th sectors in 8ordanJs econom7 It is8ordanJs 3rdlargest contri5utor to econom7 accounting #or 19 o# DP. ). *o5s. and attracting >1% million ininvestments annuall7 8ordanJs IC& sector is dominated 57 telecommunications rather than I& 6ith !, millionmo5ile phone su5scri5ers in 8ordan. 6hich represents an ,!9 penetration rate

8ordan currentl7 has #our mo5ile phone provides: ain ?3,9 mar0et share@. 8ordan &elecom4range [email protected] ?2(9@. and Vpress ?39@ &he &elecommunications 'egulator7 Commission ?&'C@ is currentl7 in acomment period regarding its plans to auction one 3 license and one 243 license

Vpress o##ers pushtotal0 mo5ile service and in 2!. it received a >%! million loan guarantee #rom the USE$portImport Ban0 to #inance construction o# a /otorola net6or0 Since then. customer ac;uisition has 5eenslo6 and Vpress has 5een lo557ing 8 #or a #ree4lo6cost S/ license

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ith the governmentJs am5itious aims to increase internet penetration to %9. there remains tremendousopportunities #or e$panding the sector

&he last IC& #orum revealed plans to 5oost IC& revenues to >35illion 57 the end o# 211 &his 6ill need theadoption o# the latest technologies o# the sector

&he relocation o# the Port o#

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/inistr7 o# ater and Irrigation http:44666m6igov*o4/inistr7 o# Environment http:44666moenvgov*o4US

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8ordan

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C/apter >: !rade #egulations and Standards

Import &ari##s

&rade Barriers

Import 'e;uirements and Documentation

US E$port Controls

&emporar7 Entr7

"a5eling and /ar0ing 'e;uirements

Prohi5ited and 'estricted Imports

Customs 'egulations and Contact In#ormation

Standards

&rade

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ensure that it is #it #or human consumption Firtuall7 all prepared and mi$ed #oods aretested at the 5order

8ordan +ood and Drug

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U.S. "Eport Controls #eturn to top

US e$porters to 8ordan must #ollo6 the standard US overnment re;uirementsregarding e$port control documentation #or sensitive US e$ports +or in#ormation onthis su5*ect contact the US Department o# Commerce Bureau o# Industr7 and Securit7.Internet 6e5 site: http:446665isdocgov or the &rade In#ormation Center at 1,,)2

,)23

US e$port licenses are re;uired #or e$ports to 8ordan o# certain high technolog7. andde#enserelated e;uipment US e$porters should ensure that the7 are in compliance6ith the e$port control regulations as administered through the US Department o#Commerce. Bureau o# E$port

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should not 5e 5lurred n a multila7ered pac0age. the e$ternal la7er should 5e mar0edI# the e$ternal la7er is transparent the mar0ing should 5e done underneath that la7ern a pac0age containing su5pac0age. the la5eling should speci#7 the num5er o# suchsu5pac0age. the net content o# a su5pac0age. and the overall net 6eight o# thepac0age

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e;uipment

Decoders and satellite receivers 'adio and &elevision Corporation

Color photocopiers Central Ban0 o# 8ordan

/edical drugs and anti5iotics. #ood supplements #orathletes. potassium 5romide. #ood d7es. as5estos pipesand panels. #roen ice cream. 5a57 #ood and mil0. laserpens. o$7gen and nitrogen o$ide

/inistr7 o# ealth

alogen use materials. +reon gas/inistr7 o# /unicipal o# /unicipal

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'roduct1s !itle ofCertificate

$ttestation#e9uired onCertificate

'urpose #e9uesting-inistry or$ut/ority

Sanitar7 andPh7to Sanitar7?SPS@ Feterinar7

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'rocessed-eat

CC USovernmentr Cham5er

o# commerce

- Customvaluation

- ealth

-'is0management

/

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'isces1,is/ andsea fruits

,roen andor'rocessed

Falidit7 certi#icate +D

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+or more in#ormation on e$porting

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agreements. && and SPS. Euro 8ordanian partnership agreement. US8ordan +ree&rade

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&echnical standards ?8ordan Nualit7 /ar0@ are pu5lished in the 8ordan o##icial aette inhard cop7 onl7 and are registered in the 8ordan Nualit7 /ar0 data5ase It can also 5epurchased in a hard cop7 #rom 8IS/

&a7eling and -ar3ing #eturn to top

Imported products must compl7 6ith la5eling and mar0ing re;uirements issued 57 theInstitute o# Standards and /etrolog7 and relevant government ministries Details onla5eling re;uirements are presented a5ove

Contacts #eturn to top

8ordan Institution #or Standards and /etrolog7: 666*ismgov*o

8ordan /inistr7 o# Industr7 and &rade: 666mitgov*o

!rade $greements #eturn to top

&he +ree &rade

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ta$is operate 57 meter ?#ares controlled 57 the government@. and can 5e hired #or theda7 /ost #our or #ive star hotels can arrange rental car. or car 6ith driver services #orvisiting 5usiness people. as 6ell as visits to tourist destinations

US drivers 6ith an international driverJs license ma7 rent a car /a*or international carrental companies and a num5er o# local companies operate in 8ordan &he accident rate

in 8ordan is high and 6e recommend hiring a driver or using caution 6hen sel#driving+or in#ormation on driving regulations. please contact the Em5ass7 o# the ashemiteAingdom o# 8ordanhttp:44666*ordanem5ass7usorg

Dail7 5uses. ta$is and servicee ca5s lin0 8ordan 6ith Ira;. Saudi

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Immuniations should 5e current #or &etanus and Diphtheria. epatitis < and B +or#urther in#ormation on vaccinations and other health precautions. such as sa#e #ood and6ater precautions and insect 5ite protection. ma7 5e o5tained #rom the Centers #orDisease Control and PreventionMs hotline #or international travelers at 1,))+GI&'IP ?1,))3-!,)!)@ or via the CDCMs Internet site at http:44666cdcgov4travel +orin#ormation a5out out5rea0s o# in#ectious diseases a5road consult the orld ealth

rganiationMs ?@ 6e5site at http:446666hoint4en +urther health in#ormation #ortravelers is availa5le at http:446666hoint4ith

&he Department o# State strongl7 urges

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6idel7 availa5le and #airl7 ine$pensive should 5e drun0 Fisitors should 5e 6ar7 o# an7#ood that ma7 have 5een e$posed too long in the hot. open air

!emporary "ntry of -aterials and 'ersonal Belongings #eturn to top

&here are no restrictions on temporar7 entr7 o# laptops. so#t6are. mo5ile phones. andcameras &emporar7 entr7 o# e$hi5it materials re;uires a &emporar7 1@. nonmerchandisa5le samplesand printed advertising material are usuall7 e$empt &rade samples 6ith a value up toUS>1 can 5e entered 6ithout restrictions e$cept #or electrical appliances that can 5esold in the mar0et I# valued over US>1 an import license is re;uired In certaincases. ;uic0 admission temporar7 entr7 approval can 5e o5tained #rom airport customson the condition to sho6 the product to customs on e$it

e7 #esources #eturn to top

-inistry of ,inance

8ordan Department o# Customs and F

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C/apter ;: In4estment Climate

penness to +oreign Investment

Conversion and &rans#er Policies E$propriation and Compensation

Dispute Settlement

Per#ormance 'e;uirements and Incentives

'ight to Private 6nership and Esta5lishment

Protection o# Propert7 'ights

&ransparenc7 o# 'egulator7 S7stem

E##icient Capital /ar0ets and Port#olio Investment

Political Fiolence

Corruption

Bilateral Investment

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Under the terms o# the US8ordan +&

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Doing Business 'eport. 8ordan 6as ran0ed ,th out o# 1), countries #or the regulator7ease o# doing 5usiness 8ordan received its 5est ran0ings #or ta$ation and emplo7mentpolicies 8ordan received its 6orst ran0ings #or en#orcing contracts and starting a5usiness. although the B ac0no6ledged re#orm in this area 8ordan ran0ed ,th out o#1!1 countries in in6ard investment per#ormance in 2(. according to the 2) orldInvestment 'eport issued 57 the United ations Con#erence on &rade and Development

?UC&

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&here are no 0no6n cases 6here the government has e$propriated the private propert7o# an investor

Dispute Settlement #eturn to top

Under 8ordanian la6. #oreign investors ma7 see0 third part7 ar5itration or aninternationall7 recognied settlement o# disputes &he 8ordanian government recogniesdecisions issued 57 the International Center #or the Settlement o# Investment Disputes?ICSID@ o# 6hich it is a mem5er 8ordan is also a mem5er o# the e6 Gor0 Conventiono# 1-%, on the recognition and en#orcement o# #oreign ar5itral a6ards In cases 6herethe government ?or its agencies@ is a part7 to the dispute. it generall7 pre#ers settlementin local courts i# an outo#court settlement is not #orthcoming 8ordan a5ides 57 &dispute settlement mechanisms Dispute settlement mechanisms under the +&< areconsistent 6ith & commitments

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Increases in the value o# imported capital goods are e$empt #rom duties andta$es i# the increases result #rom higher #reight charges or changes in thee$change rate

In addition to the Investment Promotion "a6. additional e$emptions are grantedto investments 6ithin industrial estates designated as Special Industrial ones

Industrial pro*ects are granted e$emptions on income and social services ta$es#or a t6o7ear period Esta5lished industrial #acilities that relocate to an industrialestate also receive this 5ene#it

Industrial pro*ects are granted propert7 ta$ e$emptions throughout their li#etime

Industrial pro*ects are granted partial or #ull e$emptions #rom most municipalit7and planning #ees

&o promote e$ports. all e$porters are granted the #ollo6ing incentives:

et pro#its generated #rom most e$port revenues are #ull7 e$empt #rom incometa$ E$ceptions include #ertilier. phosphate. and potash e$ports. in addition toe$ports governed 57 speci#ic trade protocols and #oreign de5t repa7ment

schemes Under the &. the e$emption is e$tended until the end o# 21%

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the courts &he Competition Directorate has settled 12) cases since 2!. and re#erred#our cases to the courts in 2)

In 2). the government continued its strateg7 to promote egovernment &hegovernment has pledged to ma0e its services. regulations. and procurement proceduresmore accessi5le and transparent via egovernment Implementation to date has 5een

slo6. 5ut programs to register 5usinesses and to vie6 ta$ records and pendinglegislation online are no6 availa5le

"fficient Capital -ar3ets and 'ortfolio In4estment #eturn to top

&he three 0e7 capital mar0et institutions are the regulator. 8ordan SecuritiesCommission ?8SC@K the e$change. the

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#ormat e6 issues #or the #irst 1 months o# 2) reached >21 5illion &he CB8 hasintroduced a primar7 dealer plan designed to increase li;uidit7 in the secondar7 mar0et.though the program has to this point 5een unsuccess#ul in achieving this goal < Pu5licDe5t "a6 allo6s #or an increase in the volume o# 5ond and 5ill issuance 57 the treasur7Commercial 5an0s hold securities #or their clients in a su5account #ormat +oreigninvestors are 6elcome to participate in auctions and to purchase government securities

through 5an0s

&he corporate 5ond mar0et remains underdeveloped. and continues to 5eovershado6ed 57 traditional direct lending ne reason is the a5sence o# propermechanisms #or corporate lending Increasingl7. ho6ever. some 5an0s have startedintroducing ne6 products and corporate 5ond issues e6 corporate 5ond issues #or the#irst 1 months o# 2) totaled >122,. compared to >)- million in 2(

8ordanian 5an0s have recovered #rom an economic slo6do6n o# the late1--s. andhad e$cellent 7ears in 2%. 2(. and 2) 6ith high pro#its and lo6 de#ault rates &he

1) 5illion and >22 5illion. respectivel7 &hedi##erence 5et6een their values o6es to the vast di##erence in their scope o# operationsK

the 1!.@ &he corporation also acts as the li;uidator o# 5an0s asdirected 57 the CB8 &he CB8 esta5lished a credit 5ureau #or 5ounced chec0s in 21&he 5ureau re;uires 5an0s to report on a timel7 5asis the names o# account holders 6ith5ounced chec0s +ollo6ing a third report o# a 5ounced chec0. the CB8 circulates thenames o# the account holders to all 5an0s 6ith instructions to 6ithhold chec05oo0s andan7 other #acilities #or a period o# time

&he CB8 issued a num5er o# circulars in 232% to implement mone7launderingregulations that are consistent 6ith the recommendations o# the rganiation o#Economic Cooperation and DevelopmentJs ?ECD@ +inancial

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&here are a num5er o# internationall7 recognied accounting and auditing #irms in8ordan &he governmentMs accounting and auditing regulations are consistent 6ithinternational standards and are internationall7 recognied

'olitical iolence #eturn to top

Some incidents o# political violence and terrorist activities have occurred in 8ordan.including the shooting to death o# a tourist in do6nto6n

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o# Decem5er 2). the 5ul0 o# NI e$ports have 5een garments Since 1---. the NIshave attracted over >!% million in capital investments. generated a5out >! 5illion ine$ports to the US. and created over %%. ne6 *o5s. o# 6hich a5out 1%. are held57 8ordanians and %)9 57 8ordanian 6omen

&he US8ordan +&

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civil 6ar. nationaliation. polic7 changes. etc &he program covers investments in8ordan irrespective o# the investorJs nationalit7. in addition to covering 8ordanianinvestments a5road

Several European countries have o##icial de5t#ore;uit7 s6ap programs that are open toinvestors o# all nationalities

&a7or #eturn to top

&he rate o# population gro6th ?5irths minus deaths and #actoring in migration@ is a5out2% percent a 7ear. 5ased on the most recent census in 2! &he 2) population isestimated 57 the Department o# Statistics at %) million %9 o# the population is underthe age o# 2 In general. the la5or #orce is 6ell educated "iterac7 rates approach -%2percent #or men and ,() percent #or 6omen 8ordan has a la5or #orce o# a5out 1%million and an unemplo7ment rate that hovers 5et6een appro$imatel7 13 and 1%percent In ovem5er 2). the Department o# Statistics reported a 131 percentunemplo7ment rate

&here are an estimated 313. #oreign la5orers in 8ordan ith the e$ception o# the

appro$imate 3(.( that 6or0 in the NIs as te$tile 6or0ers. most #oreign 6or0ers 6or0primaril7 in uns0illed sectors. such as construction. agriculture. and domestic service&here are also uno##icial indicators 6hich suggest tens o# thousands o# unregistered#oreign 6or0ers &he /inistr7 o# "a5or regulates #oreign 6or0er licensing. licensing #ees.prohi5ited sectors. and emplo7er lia5ilit7

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ne6 unions outside o# the eneral +ederation o# 8ordanian &rade Union. the current la6places 8ordan in compliance 6ith international and

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Pro#its are e$empt #rom income and social services ta$es #or a period o# t6elve7ears. 6ith the e$ception o# pro#its generated #rom storage services that involvegoods released to the domestic mar0et

Salaries and allo6ances pa7a5le to non8ordanian emplo7ees are e$empt #romincome and social services ta$es

oods imported to and4or e$ported #rom #ree ones are e$empt #rom importta$es and customs duties. 6ith the e$ception o# goods released to the domesticmar0et

Industrial goods manu#actured in #ree ones en*o7 partial customs dutiese$emption once released to the domestic mar0et. depending on the proportion o#the value o# local inputs and locall7 incurred production costs

Construction pro*ects are e$empt #rom licensing #ees and ur5an propert7 ta$es

+ree trans#er o# capital invested in #ree ones. including pro#its

8ordan has esta5lished #our Special Economic ones 6hich all aim to alleviate povert7and create *o5s in impoverished areas o# 8ordan through development o# industrialcenters supported 57 logistics. transport. utilities. and in#ormation technolog7 servicesIn /a7 21. the government converted the

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13 Nuarter 2( 2.,(

13 Nuarter 2% 1.-1)

2( 3.22!

2% 1.)))

Source: Central Ban0 o# 8ordan. Balance o# Pa7ments

e5 'ro?ects under t/e In4estment 'romotion &a5 7y Geograp/ical $rea 1in USD-illion

$rea 200= 200; 200>

8ordan 1.(%2 1.3-3 ())

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&&

Ira; (() %(- !)

Au6ait %,3 %(( !(1

Denmar0 !) !) 3--

United

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(422421!

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C/apter =: !rade and 'ro?ect ,inancing

o6 Do I et Paid ?/ethods o# Pa7ment@

o6 Does the Ban0ing S7stem perate +oreignE$change Controls

US Ban0s and "ocal Correspondent Ban0s

Pro*ect +inancing

e5 'esources

)o5 Do I Get 'aid 1-et/ods of 'ayment #eturn to top

&he 5est 6a7 to get paid in 8ordan is through issuing a letter o# credit ?"C@ &his methodensures that 5oth parties can guarantee their rights in the shipment

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Some 5an0s have started adopting modern 5an0ing practices such as automated chec0clearing and the use o# magnetic chec0 processors. uni#ied reporting #orms andelectronic datatransmission net6or0s Some 5an0s have also started &ele5an0ing ande5an0ing services

Credit #acilities include loans. discounted 5ills. and overdra#t #acilities Investment 5an0s

are not permitted to e$tend overdra#t #acilities Due to rigid interest rates and thea5sence o# a secondar7 mar0et. the corporate 5ond mar0et remains underdevelopedand continues to 5e overshado6ed 57 traditional direct lending Increasingl7. ho6ever.some 5an0s have started introducing ne6 products and corporate 5ond issues

,oreign"Ec/ange Controls #eturn to top

8ordanJs li5eral #oreign e$change la6 666c5*gov*o4pagesphpentitles #oreigninvestors to remit a5road. in a #ull7 converti5le #oreign currenc7. #oreign capital invested.including all returns. pro#its. and proceeds arising #rom the li;uidation o# investmentpro*ects on8ordanian administrative and technical emplo7ees are permitted totrans#er their salaries and compensation a5road

&he 8ordanian Dinar is #ull7 converti5le #or all commercial and capital transactions &he8D is pegged to the US dollar at an e$change rate o# appro$imatel7 1 8D to USD 1!1

"icensed mone7e$changers are supervised 57 the central 5an0. 5ut are #ree to set theiro6n e$change rates depending on mar0et conditions Unli0e 5an0s. the7 do not pa7the central 5an0 commissions #or e$change transactions. giving them a competitive edgeover 5an0s

onresidents are allo6ed to open 5an0 accounts in #oreign currencies that aree$empted #rom all trans#errelated commission #ees charged 57 the central 5an0

Ban0s are permitted to purchase an unlimited amount o# #oreign currenc7 #rom theirclients in e$change #or 8D on a #or6ard 5asis Ban0s are permitted to engage in reverse

operations involving the selling o# #oreign currenc7 in e$change #or 8D on a #or6ard deal5asis #or the purpose o# covering the value o# imports

&here are no restrictions on the amount o# #oreign currenc7 that residents ma7 hold in5an0 accounts. and there are no ceilings on the amount residents are permitted totrans#er a5road

Ban0s do not re;uire prior central 5an0 approval #or the trans#er o# #unds. includinginvestmentrelated trans#ers

U.S. Ban3s and &ocal Correspondent Ban3s #eturn to top

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&o o5tain pro*ect #inancing. 5an0s re;uire a comprehensive #easi5ilit7 stud7. including adetailed cash #lo6 anal7sis here larger pro*ects are concerned. 5an0s generall7pre#er to spread credit ris0 57 s7ndicating the loan Conventional #inancing methodsinclude overdra#ts. one7ear discounted loans. three7ear loans 6ith interest pa7a5le

monthl7 and s7ndicated loans #or periods o# one to seven 7ears&he United States E$portImport Ban0 and the CB8 signed an agreement in 1--(allo6ing the private sector to import US goods using E$Im Ban0 short or mediumtermcredit guarantees &o date. this program has 5een underutilied /ore in#ormation onthis program can 5e o5tained at E$Im Ban0Js 6e5 page at: EVI/F

In 8anuar7 2!. the E$portImport Ban0 o# the US signed a master guaranteeagreement 6ith the ousing Ban0. allo6ing #irms to receive E$Im Ban0 5ac0ed loansthrough those 5an0s

Investments in 8ordan are eligi5le #or verseas Private Investment Corporation ?PIC@insurance and pro*ect #inancing &erms and conditions are #ull7 descri5ed on PICJs6e5site: PICF

e7 #esources #eturn to top

E$portImport Ban0 o# the United States:http:44666e$imgov

Countr7 "imitation Schedule: http:44666e$imgov4tools4countr74countr7Llimitshtml

PIC: http:44666opicgov

&rade and Development

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C/apter 8: Business !ra4el

Business Customs

&ravel

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and the #a$ num5er is -(2(%-2!12 &he a#terhours emergenc7 telephone num5er is-(2(%-( &he Internet 6e5site is http:44ammanusem5ass7gov &he USEm5ass7 is open Sunda7 through &hursda7. ,: am!:3 pm

isa #e9uirements #eturn to top

US citiens are re;uired to have visa to enter 8ordan < visa ma7 5e o5tained inadvance #rom the 8ordanian Em5ass7 in ashington. DC?http:44666*ordanem5ass7usorg4ne64inde$shtml@ or one o# its consulates. or at Nueen

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C/apter

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&elephone: ?-(2@ ?(@ %(3%)+a$: ?-(2@ ?(@ %(,!%(,Email: *edcoW*edcogov*o666*edcogov*o

8ordan Industrial Estates Corporation

P Bo$ -%2),.

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&elephone: ?-(2@ ?(@ !(3,%--+a$: ?-(2@ ?(@ %(),2-%Email: *t5Wnetscom*o666*stagor

"icensed Ban0s. +inancial Institutions =&he Stoc0 E$changeCiti5an0P Bo$ %%%.

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Societe eneralPBo$ %(.

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666EVI/F

(422421!

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US &rade = Development

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8ordanian /inistr7 o# ealth666mohgov*o

8ordan E$port Development andCommercial Centers Corporation

6668EDCF8

ational In#ormation Center.

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666mideast6e5com47ello6

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C/apter 0: Guide to %ur Ser4ices

&he US Commercial Service o##ers customied solutions to help 7our 5usiness enterand succeed in mar0ets 6orld6ide ur glo5al net6or0 o# trade specialists 6ill 6or0oneonone 6ith 7ou through ever7 step o# the e$porting process. helping 7ou to:

&arget the 5est mar0ets 6ith our 6orldclass research

Promote 7our products and services to ;uali#ied 5u7ers

/eet the 5est distri5utors and agents #or 7our products and services

vercome potential challenges or trade 5arriers

+or more in#ormation on the services the US Commercial Service o##ers US5usinesses. please clic0 on the lin0 5elo6

?Insert lin0 to Products and Services section o# local 5u7usagov 6e5site here@


US e$porters see0ing general e$port in#ormation4assistance or countr7speci#ic commercialin#ormation should consult 6ith their nearest "Eport $ssistance Centeror the U.S. Departmentof CommerceKs !rade Information Centerat 1800 US$!#$D". or go to the #ollo6ing 6e5site:http:44666e$portgov

&o the 5est o# our 0no6ledge. the in#ormation contained in this report is accurate as o# the date

pu5lished o6ever. !/e Department of Commercedoes not ta0e responsi5ilit7 #or actionsreaders ma7 ta0e 5ased on the in#ormation contained herein 'eaders should al6a7s conducttheir o6n due diligence 5e#ore entering into 5usiness ventures or other commercialarrangements !/e Department of Commercecan assist companies in these endeavors

2008 ccg jordan

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