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Investment mapping and SME attraction in Jordan


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Presented at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013

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Investment mapping and SME attraction in Jordan

  1. 1. Investment Mapping and SMEs Attraction Dr. Bashar Al-Zu’bi Senior Advisor to the CEO Paris 20 March, 2013
  2. 2. There is worldwide consensus that high rates of economic growth contribute to economic and social development and poverty reduction. At the same time, there is growing recognition that poverty reducing growth depends on the quality of growth: its composition, distribution and sustainability. Introduction
  3. 3. • Research demonstrated that 80% of the economic activity in the Kingdom is concentrated in the capital Amman where around 40% of the Kingdom’s population is living. • This means that only 20% of the economic activities to be raised by more than half the kingdom’s population in other Governorates leading to undistributed socio- economic development. Background
  4. 4. 0 20000 40000 60000 80000 100000 120000 140000 160000 No. of companies in the Kingdom No. of companies in Amman Remaining Governorates 150,000> 120,000> 30,000 - 80% of existing companies in Amman - 20% in the remaining Governorates Background
  5. 5. Amman 70% Remaining Governorates 30% Background No. of Projects benefited from the Investment Promotion Law, 1996 – 2011.
  6. 6. • Uneven development can hamper overall economic growth in Jordan. • JIB believes that the population in disadvantaged areas may generally benefit from growth – enhancing instruments, specifically distributed investments through which new assets are created and distributed among all the areas. Background
  7. 7. • The National Agenda through its Investment Development Theme aims to improve the investment environment in Jordan and to increase the participation of the SME„s within the economy, hence absorbing the human capital available throughout the Kingdom. • JIB is inspired by the national vision towards achieving an even sustainable development in all Jordanian Governorates which is translated into consecutive and regular visits to different Governorates in the Kingdom. National Perspective
  8. 8. • In 2007, JIB has completed Jordan Investment Map, which presented 75 pre-feasibility studies for projects and business opportunities in different sectors all around Jordan. • The investment size of the 75 projects are ranged between 2 – 500 million JDs, which require large investors Investment Mapping
  9. 9. • JIB is looking to create investment opportunities in different Governorates around Jordan with emphasis on promoting SME's in Governorates to address the needs of the local environment in the Governorates. • JIB has recently completed the execution of “Southern Governorates Investment Maps” that guide and create business opportunities for investors in the South. • The next step is the establishment of "Development of the North and Central Governorates Investment Maps" to help in promoting the targeted Governorates to the local and international market. Investment Mapping
  10. 10. Establishment of North and Central Investment Maps as means for creating and attracting SMEs investments in the seven Governorates and thus contributing to their local socio-economic development through: • Conducting a comprehensive Governorate-wide analysis with sectoral market assessment . • Establishing a competitive and up to date “Governorate Profile”. • Ideation of prime unique projects and exploring their potential through, Pre- Feasibility Studies (10 projects for each Governorate), with estimated size of capital investments ranging from 10 thousand to 5 million USD each. Investment Mapping Objectives
  11. 11. 11 Pre-Feasibility Studies (1-4) months ’ Phase 1 (5-9) months Comprehensive Governorate Analysis Pre-study Focus Group Sessions with Local StakeholdersPhase 3 Phase 2 Phase 4 Sectoral and Market Analysis Investment Promotion Anticipated Approach