Talal Abu-Ghazaleh Forum’s Investment Promotion Committee Issues its Report
AMMAN - The Investment Promotion Committee of Talal Abu-Ghazaleh Knowledge Forum chaired by HE Dr. Nael Husami issued its report on investment promotion in Jordan.
In its report, the Committee underlined the importance of establishing stable investment legislation in Jordan without prejudice to investors' rights, and removing any contradictions between Investment Promotion Law and other relevant legislation, in particular the Income and Sales Tax Law.
The recommendations called for prioritizing research institutions to increase knowledge production, investing in Jordan’s labor, and attracting expatriates to build a knowledge-based economy.
The Committee underscored the need for expansion of the Investment Council authorities to include executive authorities that enhance decentralization, time efficiency and cost-saving.
Moreover, the Committee proposed expansion in its development zone investment attraction strategy to include entire governorates in order to redistribute economic development benefits amongst all governorates.
According to the Committee, investors need to be provided with a comprehensive infrastructure investment, highlighting the importance of conducting a national development project, free and industrial zones, for the purpose of delivering natural gas at lower cost, in addition to cooperating with regional and international organizations to establish renewable power plants to generate electricity.
To attract more investment, the Committee called for the removal of all restrictions on expat recruitment, offering reduced land rates that guarantee reduced construction costs for investors, activating the 'Investment Window' launched by the Jordan Investment Commission which grants representatives of related entities the authority to approve licensing and other relevant procedures.
According to the Committee, the role of the Jordan Investment Commission should not be limited to attracting investments but must include regular follow- up of investments and obstacle removal.
The Committee recommended the establishment of a high-level taskforce to analyze the current status of Jordanian and foreign companies working in the Kingdom and identify the problems they face in all sectors.
The recommendations also include the establishment of export institutions tasked with the mission of promoting Jordanian products in new markets, establishment of unions in charge of marketing products of their members and establishing the investment marketing role of Jordanian embassies and consulates abroad by activating the role of commercial attaches at these embassies.
The Committee affirmed that Jordan, like other countries, must provide non-financial incentives for attracting foreign investments to boost the economy.
According to the Committee’s report, some countries in the region offer investors additional incentives such as real-estate investment residency incentives in which investors are granted an automatic five-year residency at a minimum real estate investment value of $250k.
Other countries operate citizenship by investment programs for foreign investors contingent upon a specified and quantifiable economic investment in the country such as real estate investment (not to be sold for three years at least), business investment with a minimum value of $2 million, Bank deposit investment at a local bank with a minimum value of $3million not to be withdrawn for three years, or providing employment by recruiting 100 local workers.
The Committee made several recommendations and clarified some of the problems and challenges facing the status of investment in the country. The full report can be found at www.tag-forum.org
It’s worth mentioning that the Committee includes HE Dr. Nael Al Husami- CEO of Amman Chamber of Industry, HE Eng. Abdel Rahim Biqai- former parliamentarian and owner of an engineering consulting office, Dr. Jamal Abu Obeid- Department of Strategic Planning- Housing Bank, Dr. Afaf Abu Zer- Accounting Department, Philadelphia University, Dr. Mohamed Al-Hadab- Professor of Accounting at Al-AlBayt University, Professor Malak Al Aqili- CEO at Golden Wheat for Grain Trading, Mr. Issam Al Samhouri, Director General of AJYAL Company for Accounting Services, Professor Yahya Ratib Alami- Expert economy.