General Info about Jordan PDF Print E-mail
Jordan's Country Profile
Economy
State of Government:
The Hashemite Kingdom of Jordan is a constitutional monarchy, ruled since 1952 by his Majesty King Hussein. With the passing of the monarch in March 1999, the King eldest son, His Majesty King Abdullah the second, ascended the throne. In Jordan, executive power is vested in the Council of Ministers w
hich is appointed by the king, and which is accountable to a two house Parlaiment. The 40 members of the Upper house "House of Notables" are appointed by the king, while the 80 deputies of the Lower House "Representative" are elected by popular vote. Constitutional provisions define the rights and duties of Jordanian citizens, while guaranteeing the right of free worship, opinion, press, association and private property. Since 1989 all elements of the Jordanian political spectrum have demonstrated commitment to increased democracy, liberalization and consensus building. These reforms, which have been guided by the late King Hussein, have placed Jordan on an irreversible path towards democratization. The result has been greater empowerment and involvement of every day citizens in Jordan's civic life, contributing to increased stability and institutionalization, which will benefit the county far into the future. The remarkably stable political and social climate that Jordan has enjoyed for decades under the Hashemite Dynasty continues to thrive under His Majesty King Abdullah's leadership. The new King has undertaken his father's legacy of reform, committing his country to the goals of privatization, economic liberalization, and modernization of the law. Geography and History:
Strategically positioned at the convergence of Europe, Asia and Africa, Jordan's 89,342 square kilometers present a diversity of landscapes. From the hills and mountains of the geographic center of Jordan, the Badia plains extend in an eastward direction into Saudi Arabia. The Jordan river, flowing through the fertile Rift Valley, forms Jordan's western boundary and terminates in the dead sea. This body of water lies at the lowest point on earth, 400 meters below sea level. To the south, Port of Aqaba provides Jordan with a gateway to the Red Sea. Climate:
Jordan's climate is arid, and moderate in temperature. Winter temperatures in Amman average around 7 - 10 C in January, with July temperatures reaching 23 - 27 C. Average annual rainfall varies from less than 50 mm to over 600 mm in certain parts of the country. Amman, at over 950 meters elevation, is known for its cool, dry nights even in full summer. Population:
Jordan's population of 4.8 million is 92% Jordanian and 8% non-Jordanian. Gender distribution is fairly even at 52% male, 48% female. The country is young, with 40% of the population under the age of 15, and only 3% over the age of 65. Islam is the predominant religion. 92% of the people are Sunni Muslims. 6% are Christians, while the remainder are Shia Muslims, Sunni Circassians, Chechens, Druze, and Bahai. The Muslim New Year and other Islamic holy days are public holidays. Language:
Arabic is the official language, but English is spoken widely, especially in business. Weights & Measures:
The system used in measuring and weights is the metric system. Currency:
The unit of currency is the Jordanian Dinar divided into 1000 fils, and the rate of exchange is 1US$ = 0.710 fils. Electric Current:
The electric current used in Jordan is A.C.50 cycles 220/380 volts. Time:
Time is GMT (+ 2 in winter, + 3 in summer), or 7 hours ahead of US Eastern Standard Time. Summer time is observed from April through September. Working Days and Hours:
Most private businesses observe Friday as the weekly holiday, while banks and government offices close on Fridays and Saturdays. Jordanian labor law limits most workers to 48 hours per week, the exception being hotels, restaurants and cinema workers with 54 hours. Annual paid leave is 14 days, 21 days for workers over five years with the same employer. National Holidays:
All Islamic holy days are national holy days and are based on the lunar calendar:
Eid Al - Fitr: A 3-day feast marking the end of Ramadan. Eid Al- Adha: A 4-day holiday, which is the feast at the end of Haj, or the month of Pilgrimage to Mecca. Eid Al Isra Wal Mi'raj: The Prophet Mohammad's night Journey from Mecca to Jerusalem and his ascension to heavens. The Birth of Prophet Mohammad. In addition to:
New Year
1st January
His Majesty King Abdullah The Second Birthday
30th January
Labor Day
1st May
Independence Day
25th May
His late Majesty King Hussein's Birthday
14th November
Christmas
25th December
Working Permits & Visas:
Visas are required for entry into Jordan. Fees and length of stay vary according to the visitor's nationality. Visas can be obtained from either a Jordanian diplomatic mission, or for some nationalities, at point of entry. Work permits are required from the Ministry of Labor, and are issued for a period of one year. Hotels & Accommodation:
International chain Hotels such as "Hotel Intercontinental, Grand Hyatt, Sheraton etc.." in addition to others and served apartments are available in large cities and are categorized according to international standards "5 stars hotels to 3 stars". Transportation:
Visitors flying into Jordan have no problem in transportation. The country has an extensive network of paved roads which permits smooth movement through different parts of the country. Personal movement is not difficult as there are more than 100 rental car agencies offering a full range of vehicles. Also the yellow taxis are very reasonably priced and reliable. Medical Service:
Modern medical services are readily available in Jordan's larger cities and towns and the bigger hotels normally have a doctor on call. Most doctors speak English fluently.Pharmacies can provide medication for minor aliments, but travelers should carry their own prescription medication. Tourism:
Jordan has a unique historical and religious places to visit. For further information regarding tourism you can visit the Jordan Tourism board at their web-site address: http://see-jordan.com
Jordan's Economy
Led by an active private sector, Jordan's economy is free market oriented. The ownership of enterprises is largely private, the exception being public sector involvement in the mining industry. Prices (except for a few subsidized goods) interest rate, and wages are generally determined by market forces. During the last decade, Jordan's economy has been making steady progress through the implementation of comprehensive economic reforms and restructuring programs supervised by the IMF and the World Bank. The main goal of restoring non-inflationary, sustainable growth has been accomplished. The main economic indicators for the year 2000 are:
GDP
US $ 7410.2 million
GDP Per Capita
US $ 1512 million
Real GDP Growth
2.2 %
Inflation Rate
3 %
Export Value
US $ 1769 million
Major Exports
Phosphates, Potash, Feritlizers, Chemicals & Pharmaceuticals
Import Value
US $ 3683 million
Major Imports
Crude Oil, Wheat, Sugar, Meat, Machinery, Transport equipment and spare parts. Source: Central Bank of Jordan Monthly Statistical Bulletin
Jordan's economy is mainly service oriented. The service sector, which is comprised of financial services, trade, transportation, communication, tourism, construction, and education, contributes 71% to GDP and employs two-thirds of the labor force. The remaining 29% is contributed by the agricultural and industrial sectors. Privatization
In-order to liberate the national economy and increase the flow of foreign capital, the government of Jordan has initiated a privatization program designed to activate the role and efficiency of private investors in the long-term development plans of the kingdom. In 1996 the Telecommunication Corporation and the Jordanian electricity authority were both transformed into a public shareholding companies fully owned by the government as a first step towards full privatization. By the end of 1997, the government had sold off all its other holdings in companies where the original stake was 5% or less. The government also divested itself of its more strategic industries. Beginning with a 40% stake in the Jordan Telecommunications Company, and a 33% share in the Jordan Cement Company. 40% of state-owned Aqaba Railways has been sold to a consortium of American, Japanese and Jordanian companies. Plans are now underway to sell off significant stakes in Royal Jordanian Airlines and the Public Transport Corporation. Trade Agreements
Jordan trade enjoys a preferential treatment through the bilateral and multilateral agreements that are signed with other countries, these agreements allows the Jordanian products to become exempted from tax within a grace period of time agreed on. The Aqaba Special Economic Zone
The Aqaba Special Economic Zone Authority (ASEZA) is the statutory institution empowered with regulatory, administrative, fiscal, and economic responsibilities for the ASEZA. The ASEZA is governed by six ministerial-level Commissioners each responsible for major area of regulatory or operational activity. The Aqaba Special Economic Zone Law simplifies all procedures, licenses, and approvals enabling the Authority to provide a business-friendly environment from one single location in Aqaba. ASEZA is deeply committed to creating and preserving Aqaba as a competitive international investment location. ASEZA maintains a streamlined investment environment and encourages private sector participation in all aspects of the Zone's development and operations. This ensures the provision of world-class infrastructure and services to Aqaba's investors, residents, and visitors alike. ASEZA is genuinely committed to providing:
A one-stop investment center that serves as a single point of decision making that will facilitate business start-up and smooth operation;
A world-class business environment that maximizes private sector participation in a duty-free, tax-advantaged, and continuously improving investment climate;
A model approach to governance and environmentally sustainable development. Arab Free Trade Agreement (AFTA)
Jordan, along with ten other Arab countries, signed the Arab Free Trade Agreement and its implementation commenced on March 9, 1998. According to the agreement, all Arab goods moving between Arab Member States will be afforded the status of national goods in accordance with the principle of gradual liberalization, which took effect January 1, 1998. By way of annual reductions of 10% of customs duties, fees and taxes, goods are scheduled to be moving duty-free between the member States through the establishment of the Arab Free Trade Zone by 2008. As a result, Jordan is expected to attract new Arab-based investments, and to enjoy unhindered access to the markets of the Arab world. Jordan has signed agreements guaranteeing 100% free trade with Bahrain, Kuwait and Libya. Similar agreements are pending with Tunisia, Egypt and Algeria. Euro-Jordanian Partnership Agreement
Jordan's parliament has ratified the Euro-Jordanian Partnership Agreement whereby the Kingdom will enjoy free trade status with the EU countries. Pending approval of EU Parliaments, this accord will come into force in early 2001. In addition to benefits in the political, social and cultural fields, the new partnership agreement promises to play an important role in Jordan's economic development. The accord will encourage more direct European investments into Jordan, as industrial products manufactured in Jordan and exported to the EU will be exempted from customs taxes and fees. Numerous industrial and agricultural products will enjoy privileged access to the EU markets by means of a range of custom tax and quota exemptions. World Trade Organization
Jordan became the 136th member f the World Trade Organization (WTO) in December 1999. Accession to the World Trade Organization brings new opportunities and challenges to Jordanian businesses. WTO membership assures access to the entire world market for Jordanian manufactured products, but will also expose Jordanian companies to direct competition with international firms. The government has revised its laws, particularly those governing Intellectual Property Rights and Trade Secrets, in order to come into regulatory compliance with WTO standards. Jordan attained full membership status by June 2000
Upon accessing this site, you will be asked for the relevant symbols about Jordan. The following symbol should be inserted: " WT/ACC/JOR* ". there are 49 documents covering, in thousands of pages, Jordan's accession of the WTO. Jordan - U.S. Free Trade Area Agreement
Jordan and the United States signed a Free Trade Agreement. The Free Trade Agreement enables Jordanian exporters to access the U.S. market at an agreed duty-reduction schedule to be implemented on reciprocal basis. The Free Trade Agreement did not eliminate preferential treatment provided to Jordanian exports under the U.S. Generalized System of Preferences (GSP). Also, the agreement enforces the preferential treatment provided to Jordanian exports under the QIZ treatment. The Agreement defines all rules and conditions relating to trade between the United States and Jordan, especially provisions related to rules of origin. Qualifying Industrial Zones (QIZ)
Further enhancing Jordan's leverage over other neighboring countries in the MENA Region, Jordan was granted the unprecedented opportunity to establish Qualifying Industrial Zones (QIZs), zones which provide duty and quota free access to the U.S. market for products manufactured in Jordan. On March 6, 1998, the United States Trade Representative designated the Al Hassan Industrial Estate in Irbid as the world's first and only 'Qualifying Industrial Zone' (QIZ). Products produced by manufacturers in the Irbid QIZ can be exported to the American market quota and duty free if they involve economic cooperation between Jordan and Israel, and if they fulfill certain simple requirements. Besides the advantage of exporting to the U.S.A. duty and quota free, revenues earned from exports of QIZ products are fully exempted from income and social service taxes, and imported raw materials used in their manufacture are exempted from customs duties. In most cases this means that products produced in the QIZ can enter the U.S. at lower, more competitive prices than similar products from other countries. The success of the first QIZ has necessitated expansion of Al-Hassan Industrial Estate, along with the creation of additional zones. Three new QIZs have been established in industrial parks located near the cities of Karak, Zarka and Amman. A fourth QIZ, straddling the Jordan-Israeli border, is the Gateway Industrial Park, which will be fully operational by the end of the year 2000. The Advantages of the QIZ
- Duty and tariff free access to the US Market
- No quotas on production in the QIZ
- Income and social services tax exemptions
- Imported raw materials not subject to custom duties
- Land and buildings available for sale or lease
- No restrictions on project ownership
- No restrictions on foreign currency transactions
How to Qualify a Product in the QIZ
QIZ products can include material content from any part of the world. Qualification merely requires that a product derive at least 35% of its appraised value from the West Bank, Gaza Strip, Israel, or a Jordanian QIZ. Appraised value is defined as the cost or value of material content, plus the direct costs of processing operations. Of the 35% value-added requirement,
- One-third (11.7%) of the value must be added in the Jordan QIZ
- 8% must come from Israel (7% for high-tech products)
The remainder may be fulfilled by any combination of production in the QIZ, West Bank/Gaza Strip, Israel or the U.S. (Up to 15% in the case of the U.S.), OR
At least 20% of the manufacturing cost of QIZ-produced goods (excluding profits) can come from a Jordan QIZ, and 20% from Israel. Production costs may include originating materials, wages and salaries, design and R&D, depreciation of capital, investment, and overhead. OR,
Mixing and matching of the two above methods is allowed. One side may provide at least 20% of the total production cost, while the other side provides the minimum QIZ value-added (11.7% for the Jordan QIZ, 8% for Israel, etc.).
* For textiles and apparel, the Uruguay Round Agreement Act, 19 USC 3592 Section 334, rules of origin apply. QIZ qualification is administered through a joint committee appointed by the Jordanian and Israeli governments. Applications are submitted to the committee, which certifies products for QIZ status. Once a product is approved, the US Customs Department is notified. QIZ status must be renewed by application on an annual basis
