holistic approach for syrian refugees crisis (jordan compact) and the main challenges facing the...

Holistic Approach for Syrian Refugees Crisis (Jordan Compact) and the Main Challenges facing

the Kingdom

Thabet ElWir Chief of Commission

Jordan Investment Commission

Main Pillars for the Holistic Approach – Jordan Compact

The Holistic Approach – Jordan Compact is anchored on three interlinked pillars:

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First • Turning the Syrian refugee crisis into a development

opportunity that attracts new investments

Second

• Rebuilding Jordanian host communities by adequate financing

Third

• Mobilizing sufficient grants and concessionary financing to support the macroeconomic framework and address Jordan’s financing needs over the next three years

Post London Conference 2016

Pledges made by the International Community in London:

1. Financial Support & concessionary funding ( Grants & Soft Loans) to support the Host Communities and bridge the funding gap that Jordan is facing according to the adopted budget (2016-2018).

2. Enabling Jordan to attract new investments to the development zones, providing them with full support and benefits, while the EU will adopt simplified rules of origin

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Action Plan Components- Jordan Compact

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Improved Market

Access to the EU

Support to the Education Sector/Jordan

Response Plan

Doing Business Reforms,

Investment Reforms

and Development Zones Approach

Labor Market Reform

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IMF Extended

Fund Facility

Program

Grant Support to the Jordan Response

Plan 2016-2018

Concessionary Financing-Grants

Investment Dimension – Jordan Compact Action Plan

First Component: Improved Market Access to the EU :

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Task

Hold a video conference with Brussels (DG Trade/DG Taxation and Customs Union) to agree on next steps; including timeframe for technical discussions on RoO with a target to conclude by Summer 2016

Evaluate the proposed development zones (pilot zones) and assess their readiness and needs. Select other zones/industries in light of the intention to request applying the simplified RoO to additional zones and industries


Second Component: Labor Market Reforms:

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Task

Provide specific training programs for Syrians and Jordanians (subject to donors support and based on the outcomes of the assessment study expected to identify needed areas and the available demand gaps)

Take necessary arrangements to allow Syrian refugees to apply for work permits both inside and outside of the development zones

Take measures to allow Syrians to formalize their existing businesses and to set up new, tax-generating businesses, including access to investor residencies, in accordance with the existing laws and regulations


Third Component: Doing Business Reforms,Investment Reforms and Development Zones Approach

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TaskEndorse the Residency, Work and Workers in Development Zones by-Law Endorse the by-laws under the new Investment Law

Establish a Special Lane at the Investment Window at the Jordan Investment Commission to enable timely and smooth registrations and licensing in addition to issuance of needed approvals and permits

Open offices for JIC (Investment Windows) at the designated development zones and outline their mandate with objective to enable timely and smooth registrations and licensing; issuance of approvals and permits



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Task

Identify sectors and industries to be attracted to the zones as part of Jordan’s promotional plan

Organize a private sector event in London in cooperation with EBRD

Organize and mobilize investment outreach missions (e.g. to European capitals in 2nd half of 2016)



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TaskTake necessary measures to improve investment climate, and develop a detailed plan on measures, regulation, structural reforms, investment strategy, investment promotion plan with timeline for implementation

Take necessary measures to improve investment climate, and develop a detailed plan on measures, regulation, structural reforms, investment strategy, investment promotion plan with timeline for implementation

Start the implementation of the Deauville Transition Fund funded project “Jordan Economic Legislation Reform” aimed at modernizing critical laws and regulations governing business activities in line with international best practices


Targeted Sectors and the Designated Development Zones:

• The Following Labour -Intensive Sectors have been identified to support significant refugee employment:

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Garment

Construction & Real Estate

Agriculture

Contact Centers

Pharmaceuticals

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• Needs of the designated Development Zones have been identified to ensure the readiness of those Zones to receive FDI, in terms of Infrastructure and Vocational Training:

• IT/BPO Services R&D and HealthcareIrbid Development Area

• Industrial Park for Light, Medium and Heavy Industries; Ceramics, Plastics, Electrical Appliances and Renewable Energy.

Ma'an Development Area

• Industrial (Light And Medium) and Logistics Hub, Strategically Located Between Syria, Iraq, and Saudi Arabia

KHBTDA (Mafraq)

• Electronics, Pharmaceuticals, Food, Gramet Muwaqqar Industrial City

• Garment, Food, ChemicalsKarak Industrial City

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• New Zones will be added in addition to the designated Development Zones in order to ensure the creation of a significant number of Job opportunities for Syrian Refugees and Jordanians as well.

Al-Dulail Industrial City in Zarqa Al-Tajamouat Industrial City in Sahab Marka, Qastal and AlJeezeh

• Providing Skilled and trained labour through specialized training programmes according to the Investment Project needs in the Designated Areas, in addition to establishing vocational training centers within the Development Areas

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FDI Attraction and Increasing Exports:• Organizing Inward Economic missions from the

United States of America and the EU that includes field visits to the designated Development Zones:

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• Negotiating with the Countries of the EU for the Simplification of the Rules of Origin from the Least Developed Countries according to the EU’s General System of Preferences and up to ten years which will contribute to increasing the FDI and the Local Exports

Developing Investor Services:• Issuing the Investment Law no. 30- 2014 and the related

regulations.• Establishing the Investment Window at the Investment

Commission to provide a One Stop Shop service to provide licensing and registration for the economic activities in the kingdom.

• Creating an E-Portal that will be part of the Commission’s website to provide online services and handle enquiries.

Main Challenges facing the Kingdom

• The continuous Influx of Syrian Refugees.• The state of instability and turmoil in the region.• Opening up new export markets after the closure

of Syria and Iraq trade routes• Upgrading the quality of the local products and

increasing the production capacity of the local factories to meet EU Specifications.

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Zaatari Refugee Camp

Thank You..

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