Jordan Times
Sunday, January 25, 2004
Business delegation highlights reform and development achievements, presents proposals for future cooperation to World Economic Forum
By Alia Shukri Hamzeh
DAVOS — Capitalising on the unique opportunity of attracting foreign investment, Jordan's business delegation on Friday presented World Economic Forum (WEF) governors with the country's economic reform and development achievements along with suggestions for future cooperation.
The delegation — comprised mainly of private sector leaders in the fields of travel, tourism and aviation, information technology, healthcare and the automotive industry — focused their presentations on the Kingdom's main asset exemplified in its mostly young and educated human resources.
In all four meetings with the governors, which took place throughout Friday, the Jordanian team explained to potential investors that the 95 per cent of educated citizens would prove to be highly qualified in undertaking skilled jobs.
Fully supported by His Majesty King Abdullah, the businessmen also pointed out the pioneer and aggressive role embarked on by the private sector to advance the country's economy and achieve strategic alliances with international market players.
Incentives for investment include an industrial base which adheres to the highest international quality standards at a competitive cost structure, availability of inexpensive land, a sophisticated financial and banking system and ready access to the port of Aqaba.
Privatisation, trade liberalisation, sweeping educational reforms, huge investments in human resources as well as ongoing integration of information and communications technology into all areas of life, were listed as main engines behind the country's economic growth.
Trade agreements with the US and the European Union, accompanied by the removal of all trade barriers, together with intellectual property rights laws were also put forth as major elements investors would find advantageous.
The delegation also highlighted the Arab common free trade agreement.
The value of Jordan's historical position at a crossroad in the Middle East and its stable environment were presented to potential investors seeking to set a base for regional businesses.
Attending the four meetings with the governors, King Abdullah stressed that he will do his utmost to facilitate the road for investors and endorse any necessary legal amendment that hinders them from starting or expanding ventures in Jordan.
Established contacts and achievements made during the meeting will be followed up on during the upcoming WEF meetings at the Dead Sea in May, the King said.
Jordan's hosting of the WEF's extraordinary meeting last June at the Dead Sea catapulted the Kingdom onto the international arena. The Dead Sea WEF meetings are meant to transform Jordan into a regional hub for economic and social growth.
“We came out with very aggressive initiatives in many sectors and have made achievements on all levels. Now we come to see you to discuss future plans and opportunities,” he told the governors.
“The sky is the limit,” the King added.
In the presentations, the country's border with Iraq was highlighted as presenting a springboard for those working to get involved in the comprehensive reconstruction process of Jordan's eastern neighbour.
“Jordan is a gateway to a 300 million population in the Middle East and North Africa (MENA) region. It is also a springboard for Iraq where we are very active in the pharmaceutical market,” said Mazen Darwazeh, chairman of Hikma Pharmaceuticals.
In his presentation on the health sector, Darwazeh said reasons to invest in Jordan include low tax rates estimated at 15 per cent, exemptions on revenues derived from exports, and the already established pharmaceutical manufacturing capabilities.
Jordan's pharmaceutical industry of 18 companies with a capital investment of $500 million, started in 1962. Direct and indirect employment in the sector hovers around 8,000, and production in 2003 exceeded $280 million, four times that made in 1991. Pharmaceutical exports represent 80 per cent of total production.
Darwazeh told the governors that Jordan's pharmaceutical products are already registered in more than 60 markets worldwide including the US and Europe. He also mentioned the country's adherence to intellectual property rights agreements.
In reference to Jordan's health sectors, he said the parameters were comparable to developed countries.
He noted that health expenditure accounted for 9.6 per cent of the gross domestic product. Private and public sector investment in the health sector, led by the pharmaceutical industry, exceeds $4 billion.
The private sector, which owns 36 per cent of total hospital beds in the Kingdom, accounts for around 54 per cent of overall health expenditure.
Darwazeh told the governors that the country has four well established Clinical Research Institutes with a capital of $50 million. These institutes, he said, are capable of undertaking clinical research studies in their first phases.
As for the automotive industry meeting with the governors, industrialist Ghassan Nuqul suggested an initiative by which Jordan could be included in the supply chains of automakers by creating a cluster for the manufacturing of various auto components in the country including glass, batteries, wheels, bumpers, seats, carpets and others.
On the longer term, Nuqul suggested taking advantage of the three existing companies producing buses, vans and other vehicles and to concentrate on niche markets by setting up new specialised vehicle production plants to serve the growing transportation sector in the region.
Jordan has three automotive companies: Elba House which manufactures buses, the King Abdullah II Design and Development Bureau (KADDB) which produces automotive components, light and medium wheeled vehicles and trucks as well as components that go into light aircraft manufacturing, and Land Rover which set up a factory in the southern Governorate of Maan three years ago.
During the meeting, King Abdullah underlined intentions to transform the impoverished governorate into a special automotive zone saying interested investors would be able to benefit from advantages offered at the nearby Aqaba Special Economic Zone.
IT and tourism sector officials also showcased their achievements to the governors and set the pace for future cooperation.
Jordan IT Association Marwan Jumaa presented achievements made by the relatively young but dynamic sector, which incorporates 70 companies and has an export profit of $100 million.
The presentation centred on the goals the Kingdom set for itself to realise a qualitative change and turn into a knowledge-based economy through optimum employment of information and communications technology (ICT) in all aspects of life.
On the tourism sector, Samer Majali, president and CEO of the national flag carrier Royal Jordanian (RJ), told governors during a lunch meeting that the country's unique historical heritage of natural, health and religious sites as well as its central location in the Middle East, made it a unique destination for tourism projects. Despite regional circumstances, the sector's revenues over the past year reached around $1billion. The number is expected to grow by 10 per cent this year.
Majali briefed the governors on major tourist projects in Aqaba including Tala Bay and the Lagoon. He marketed the hotelier business, which employs around 21,000 Jordanians and has a capacity of 17,000 rooms, as a good centre for major international conferences.
He also expressed RJ's readiness to take in strategic or global alliances saying the company, which marked its 40th anniversary in December, has an aircraft maintenance facility and an airline training simulation department, both of which service regional and international carriers at competitive prices.