Jordan Times
Tuesday, October 2, 2001
Ministry to temporarily reduce work permit fees in QIZs
By Oula Al Farawati
AMMAN — The Labour Ministry has decided to lower the annual fees investors in qualifying industrial zones (QIZs) pay for foreign workers by half, but only for one year, a ministry source said on Monday.The source explained that the measure to reduce the fees from JD300 to JD150 was designed to encourage investment and lessen the burden on investors who are complaining of the lack of trained local manpower, especially women.
“We are giving investors one year to find trained local workers or train Jordanians,” he said, explaining that fees for foreign manpower — whose work permits are only valid for three years — will be hiked to JD225 in the second year and back to JD300 in the third.
“But we do not really want to encourage the employment of foreign manpower,” the source said.
Licenses for QIZs to operate in the Kingdom include a provision stipulating that Jordanian labour should make up at least 50 per cent of the total labour population in any zone.
Ministry officials put the number of foreign manpower at 300,000, which has trickled down from 600,000 labourers since 1999, while unemployment is officially estimated at 15 per cent.
There are six QIZs in Jordan and one subzone. Four more QIZs are expected to be operational in the near future. The QIZs have provided employment to over 20,000 Jordanians, while independent sources expect them to employ another 15,000. QIZs' exports are expected to reach around $200 million by year's end.