AMMAN — During a meeting with investors at Al-Hassan
Industrial City last week, Interior Minister
Mazen Al-Farraya said that the
government had signed free trade agreements “with the most important economic
countries”, but that investors were leaving them “untapped”. According to
experts, difficulties in procedures are the primary cause for Jordan’s lack of
investor demand.
اضافة اعلان
According to Yousef Qaisieh, media
spokesperson for the
Jordanian Investors Association, the investment sector
requires strong and stable regulations, as well as greater facilities and
encouragement for investors. “The Jordanian economy and the investment
environment require total reconstruction in the hope of recovery,” he told
Jordan
News.
He added that a significant number of
Jordanian investors are doing well in other countries, and that Jordanian
investments outside of Jordan surpass $30 billion. He went on to say that
providing facilities for these investors would benefit the Jordanian economy.
The spokesperson said that that a tax on
shares trading was recently introduced, which he claims is illegal. The tax, he
said is a tactic to discourage large traders and investors from participating
in the economy and in public shareholding firms — pushing them to other
countries.
Qaisieh, through the investors association,
urged the authorities to focus on attracting investors by simplifying and
easing procedures, some of which take weeks to complete by investors. He also
called for encouraging investors through various exemptions that would
considerably stimulate the investment environment.
Mohammad Al-Bostanji, head of the Jordanian
Free Zones Investors Association, concurred, believing that the most serious
and widespread issue is the lengthy routine of investment procedures and the
granting of licenses and permits.
He said simplifying the issuance of visas and
entry permits is a must. Bostanji claimed that five years ago, the number of
investors (particularly Libyans) in free zones declined dramatically due to the
difficulties in acquiring visas, and they began to move to other countries such
as the UAE and
Türkiye, where permits are easier to obtain.
Bostanji added that, in the past, free zones
were the most appealing to foreign investors, but that the Income Tax Law
imposed on free zones today is a great deterrent to investors. “Jordan is
nearly the only country that taxes free zones,” he claimed.
Jordan, in his opinion, is “fertile soil” for
investments due to its central geographical location and its safety. For this
reason, he said the authorities should provide facilities to Jordanian and
foreign investors, provide speedy solutions to the visa issue, and simplify
procedures through automation.
Bostanji stressed that investment projects
have the potential to operate in a wide range of sectors, stimulate tourism,
and create jobs, and it is therefore prudent to prioritize investments and
assist investors.
Jordan Investment Commission media
spokesperson Bilal Abu Zaid told
Jordan News that in a recent report,
issued at the beginning of May, most investor-related procedures now take a
maximum of three days to complete through the “investment window”. Representatives
of all agencies and ministries whose jurisdictions are relevant to investors
are present at the investment window, including the Interior Ministry and the
Customs Department. In the past, procedures would take up to two weeks to
complete, according to Abu Zaid.
The spokesperson added that the investment
commission has already begun the project of automating routine procedures, and
that today 70 percent of the services related to investment projects are
completely electronic, with the remaining services slated for digitization by
the end of the year.
Jordan free trade agreements with many
countries, including the US, the EU, and many countries in Africa. It is also
party to the Arab Free Trade Agreement. All these deals benefit investment in
Jordan, according to Abu Zaid. He added that the most recent invest report
showed that the Investment Law has also had a positive effect on investment in
the Kingdom.
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