Megfnjrd presentation

Middle East Geological Forum Company
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-info@megf, jo.com-megfMobile: 00962777460539 Phone:0096264901537
Whom We Are
Invest Jordan
We are a privately owned companies working with close arrangements with the government of Jordan, to develop and bring in investments into Natural Resources and other sectors of Jordan Economic.
The natural Resources Authority and Jordan Investment Boards are the 2 governmental agencies authorized by the law to organize investments in Natural Resources Developments

Middle East Geological Forum Company jo.com-info@megf, jo.com-
megf
Mobile: 00962777460539 Phone:0096264901537
Jordan is a relatively small (89,300 sq. kms) Middle Eastern Arab country, with varied landscapes and Topography. Jordan was a trading center and crossroad between east and west since early historic times. The country occupies a strategic and unique location, situated at the confluence of Asia, Africa and Europe and shares borders with Syria, Iraq, Saudi Arabia, and Palestine.
Jordan
Jordan is constitutional Monarchy, the King appoint a Council of Ministers which is accountable to a two- house parliaments: the Upper House with 55 members appointed by the King himself and the Lower House with 110 members elected by the people of Jordan. According to the 1999 census and 2003 estimates, Jordan has a population of 5.5 millions. The capital Amman has about 2 million inhabitants..

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Foreign Direct Investment in Jordan(FDI)
o
Increasing foreign direct investment (FDI) in Jordan has cumulated close to JD 1.376 billions in 2008 or an average of JD 344 million per quarter. 2009’s first quarter generated 119 millions.
o
UNCTAD report 2008 ranked Jordan as country with increasing potential for FDI due to natural resources and strategic position. The government initiative to increase FDI focuses on three domains:
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privatizing major state-owned companies,
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facilitating partnership-based companies which unite domestic and foreign investors
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and creating free trade zones with multiple demarcations.

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· Political Stability and Security High Quality of Life
· Strategic Location and Market Access
· Growing and Robust Economy
· Skilled and Talented Human Capital
· Modern and Well Connected Infrastructure
· Favorable Business Environment
· Enabling Platforms
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Investments Environment

Incentives Offered to Investors (1)
The following components of qualifying projects shall be exempt from fees and taxes: Imported fixed assets. • Imported spare parts, provided that their value does not exceed 15% of that of the fixed assets. Fixed assets that are needed for expansion, provided that this results in an increase in production of at least 25%. • Qualifying projects shall be exempt from income and social services taxes (from 25% up to 75%, depending on the investment area) for a period of 10 years. The exemption period is extended upon expansion of more than 25%. • Projects in the Hotel and Hospital sectors shall be granted additional exemptions from fees and taxes once every seven years forpurchases of furniture and supplies for renewal purposes. • Fixed assets of any project may be mortgaged as security for extended credit facilities. • Transfer of a project from one investment area to another entails exemptions in accordance with the classification of the new areaof location for the remainder of the exemption period. • The investor has the right to manage the project in the manner he deems appropriate.

• If the ownership of a project is transferred during the exemption period, the project shall continue to enjoy the exemptions, providedthat the new owner continues in the same vein as before. • Non-Jordanian investors may invest through ownership, partnership, or shareholding. • Non-Jordanian investors may own any project wholly or partially. • Except for the limitations of the previous article, a non-Jordanian investor shall be treated in the same manner as a Jordanian investor. • Non-Jordanian investors shall be entitled to remit abroad the foreign capital transferred to Jordan for investment, together withany returns and profits. Non-Jordanian employees also have the right to transfer their salaries abroad without hindrance. • No project is allowed to be expropriated, unless this is done by way of compulsory purchase for public interest, and in return for ajust compensation to be paid to the investor. • Disputes between a non-Jordanian investor and the Jordanian government shall be first attempted to be settled amicably. Failingthat, either party may resort to litigation or may refer the matter to the International Centre for the Settlement of InvestmentDisputes (ICSID).
Incentives Offered to Investors (2)

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Investment Promotion Law Guidelines
The Investment Law (2003) and the Investment Promotion Law (IPL) (1995) regulate FDI in Jordan: while government financially and administratively independent body Jordan Investment Board (JIB) leads investment procedures for exemptions and benefits. Under IPL, foreign and domestic firms have equal treatments in regards to tax benefits

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Development of Natural Resources (1)
The economy of the Hashemite Kingdom of Jordan operates according to free market and free trade principles. In its attempt to help the industrial sector, a major legal and institutional reform has been in progress for the last five years. The new framework seeks to attract foreign direct investment (FDI) and to create the conditions for entrepreneurial growth. To these ends incentives have been introduced and recognized according to the Investment Promotion Law and its bylaws. Of specific interest to foreign investors in relation to the investment climate in the Mining Sector of Jordan are the following:

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Mobile: 00962777460539 Phone:0096264901537
•
Article 117 of the Constitution of Jordan allows for foreigners to invest in mineral resources under special agreements. These are negotiated with prospective investors on a win-win basis and thereafter sanctioned by parliament as special laws, binding the government to the extent of their articles.
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Under such agreements investors have a legally secure title and mining rights permitting the investor to explore, mine and market the resulting products without risk.
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Stability of the fiscal regime: As a special law overrides normal laws and all mining- related agreements are ratified as special laws, changes in the fiscal regime are not possible. It is thus the case that a project's IRR can be calculated on terms that are the same for the lifetime of the project.

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The fiscal regime: is stable and is secured by both the government and parliament under the constitution. The prime features of the fiscal regime are:
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Taxes: Income tax is at 15%, which is comparably lower that in most countries worldwide;
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Royalty: a new policy which is highly competitive by international standards.
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Profit Sharing: profit sharing in mineral agreements is usually considered at a level that produces an acceptable IRR to the participating company in line with international practices. The division of interests in the production sharing agreements for the oil and gas sector is set by the government at a level most favorable to participating companies when compared with international norms.

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Foreign exchange and repatriation of capital: there is freedom of movement of capital into and out of Jordan. Also, there are no restrictions on foreign exchange and companies are
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rmitted by law to have offshore accounts and to repatriate their profits from wherever they may sell their mining products.
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Project ownership: According to the new investment promotion regulations foreigners may own up to 100% of any project in the mining sector. The right to assign: as of the effective date of any mining agreement and at all stages of the project, companies are free to assign partially or entirely their interest in the project and all the rights and assets of the project can be used for financing purposes. In those limited cases where government approval is required, such approval will never be unreasonably withheld.

megf
Mobile: 00962777460539 Phone:0096264901537
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Right to market mining products: companies are free to market the products mined wherever they deem profitable without any restrictions.
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Arbitration: The Hashemite Kingdom of Jordan is a member of the ICSID (International Center for the Settlement of Investment Disputes) but international arbitration for the settlement of disputes is acceptable. The particulars of the arbitration are a negotiable matter.
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Freedom of commercial operations: Companies after the effective date of an agreement, as long as they are inline with the environmental and safety regulations and also with the development plan, are free to conduct their commercial operations as they wish.
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Stability in Environmental Management: The local Environmental Regulations are no tighter than those applied internationally, with an environmental management plan being regularly agreed upon after completion of the feasibility study. Such a document becomes binding on both the company and the government and thus environmental requirements should never pose a risk to any project.

megf
Mobile: 00962777460539 Phone:0096264901537
The World Economic Forum (WEF) Global CompetitivenessReport 2006

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Transparency International Global Corruption Report

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Natural Resources Developments
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Technical and Engineering
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Representing and negotiating
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Human Resources

Training and Teaching

Field and Touring Geology

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Administration
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Legal
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HR
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Financial
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Logistics and Support
Jordan Investment CentreOur Partner and Co-worker

megf
Mobile: 00962777460539 Phone:0096264901537

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