Jordan Times
Thursday, May 6, 2004
JIB, EJADA unveil strategy for
attracting investments in automotive industries
Government willing to offer incentives for manufacturers of spare parts and
electronic components
By Sahar Aloul
AMMAN — Jordan's first national strategy for attracting foreign direct
investments (FDI) in automotive spare parts and electronic components received
strong governmental backing when it was unveiled on Wednesday.
“There is a political commitment at the highest levels for [the automotive]
strategy... led by His Majesty,” Acting Prime Minister and Minister of Industry
and Trade Mohammad Halaiqa told public and private sector representatives
attending the strategy's announcement.
He said the government is willing to offer incentives and legislative changes to
accommodate and attract capital to invest in automotive industries in the
Kingdom. Some fifty private and public sector representatives took part in
discussing the FDI strategy prepared by the Euro-Jordanian Action for the
Development of Enterprise (EJADA) and the Jordan Investment Board (JIB).
The study and action plan indicated that Jordan could be included in the supply
chains of automakers by creating a cluster for the manufacturing of various auto
components in the country.
According to JIB CEO Reem Badran, Jordan possesses political stability, skill
availability and infrastructure which are the most important elements for
automotive spare parts and electronic components, the two main sectors targeted
in the study.
She explained that, in the beginning, 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.
“In the long-term, Jordan should take advantage of the three existing companies
manufacturing buses, vans and other vehicles and concentrate on niche markets by
setting up new specialised vehicle production plants to serve the growing
transportation sector in the region,” she elaborated.
Jordan has three automotive companies: Elba House, which manufactures buses, the
King Abdullah II Design and Development Bureau (KADDB) which produces vehicles
and trucks as well as components that go into light aircraft manufacturing, and
Land Rover which is setting up a factory in the southern Governorate of Maan.
EJADA's Nisreen Barakat stressed that Jordan should take advantage of the rapid
growth in global exports of automotive spare parts and electronic components to
build a sound automotive sector.
She also highlighted the need for implementing an FDI promotion strategy through
reaching out to European automotive manufacturers to invest in Jordan.
Earlier this year, His Majesty King Abdullah underlined at the World Economic
Forum in Davos the drive to transform the impoverished Governorate of Maan into
a special automotive zone saying interested investors would be able to benefit
from advantages offered at the nearby Aqaba Special Economic Zone.
Also on Wednesday, the JIB chief also gave a presentation on investment
opportunities to members of the Jordanian-Bahraini Business Council holding
their third meeting in the capital with their Jordanian counterparts from the
Jordanian Businessmen Association.
Meanwhile, Badran stressed that the Cabinet's decision to issue an Arab investor
card came as a result to a decision made by the Arab Investment Committee.
Badran, who was elected as head of the committee, said the card would be issued
through the Arab Economic Union Council to ease the movement of Arab investors
and business people between Arab countries that recognise the investor card.
The card will be issued to investors carrying Arab nationalities and who have a
registered investment capital of JD200,000 per project.