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Jordan Country Commercial Guide for FY 95-96
Office of the Coordinator for Business Affairs
Record Date:  Jun 23, 1995



                  Country Commercial Guide for FY 95-96
                              Jordan


This Country Commercial Guide (CCG) presents a comprehensive look at 
Jordan's commercial environment through economic, political and market 
analyses.  

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies. 


                            TABLE OF CONTENTS

CHAPTER I.     EXECUTIVE SUMMARY
CHAPTER II.    ECONOMIC TRENDS AND OUTLOOK
CHAPTER III.   POLITICAL ENVIRONMENT
CHAPTER IV.    MARKETING U.S. PRODUCTS AND SERVICES
CHAPTER V.     LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
CHAPTER VI.    TRADE REGULATIONS AND STANDARDS
CHAPTER VII.   INVESTMENT CLIMATE
CHAPTER VIII   TRADE AND PROJECT FINANCING
CHAPTER IX.    BUSINESS TRAVEL
CHAPTER X.     APPENDICES



                   CHAPTER I. EXECUTIVE SUMMARY

JORDAN IS ONE OF THE MORE PROMISING EMERGING MARKETS IN THE MIDDLE EAST.  
AN ANNUAL POPULATION GROWTH RATE OF 3.8 PERCENT SINCE 1990 HAS FUELED AN 
INCREASED DEMAND FOR IMPORTS.  THE SMALL SIZE OF THE JORDANIAN MARKET 
SOMEWHAT LIMITS OPPORTUNITIES FOR AMERICAN BUSINESS, ALTHOUGH CHANGING 
POLITICAL CONDITIONS IN THE REGION COULD HELP JORDAN REESTABLISH ITSELF 
AS A SUPPLIER OF GOODS AND SERVICES TO THE WEST BANK, IRAQ AND THE GULF.

THE POTENTIAL COMMERCIAL IMPORTANCE OF JORDAN IS REINFORCED BY ITS 
STRATEGIC GEOGRAPHIC POSITION AT THE CONFLUENCE OF THREE CONTINENTS.  
THE SUCCESS OF THE MIDDLE EAST PEACE PROCESS HAS STIMULATED INCREASED 
INTEREST IN THE REGION.  FOREIGN BUSINESSES ARE EXPLORING OPPORTUNITIES 
FOR GREATER INVESTMENT IN AND TRADE WITH THE REGION.  THE PRESIDENT HAS 
PROMISED TO FORGIVE APPROXIMATELY 750 MILLION DOLLARS IN JORDANIAN DEBT.  
OTHER FOREIGN GOVERNMENTS HAVE PROMISED TO HELP JORDAN ADDRESS ITS 
ECONOMIC NEEDS.   
 
THE GOJ HAS SIGNED BILATERAL TRADE AGREEMENTS WITH A LARGE NUMBER OF 
ARAB, EUROPEAN AND ASIAN COUNTRIES, GIVING JORDAN-MADE PRODUCTS 
FAVORABLE TARIFF TREATMENT.  ALTHOUGH U.S. GOVERNMENT EXPORT FINANCING 
PROGRAMS HAVE BEEN LIMITED AS COMPARED TO OTHER TRADING PARTNERS, U.S. 
PRODUCTS ENJOY A HIGH REPUTATION IN JORDAN FOR THEIR SUPERIOR QUALITY.  
THESE FACTORS SHOULD ENCOURAGE AMERICAN BUSINESSES INTERESTED IN SELLING 
THEIR PRODUCTS OR INVESTING IN JORDAN.

ON OCTOBER 26, 1994, JORDAN AND ISRAEL SIGNED THE JORDAN-ISRAEL PEACE 
TREATY.  THE TWO COUNTRIES SUBSEQUENTLY REACHED AGREEMENTS ON TRADE, 
JOINT DEVELOPMENT OF THE JORDAN RIFT VALLEY AND THE GULF OF AQABA, CIVIL 
AVIATION, NAVIGATION TELECOMMUNICATIONS, AND COOPERATION IN THE AREAS OF 
TOURISM, ENERGY, AGRICULTURE, SCIENCE, AND THE ENVIRONMENT.  UNDER ITS 
PEACE TREATY WITH ISRAEL, JORDAN COMMITTED TO PURGING EXISTING LAWS OF 
LANGUAGE PERTAINING TO THE ARAB BOYCOTT OF ISRAEL.

JORDAN WILL HOST THE MIDDLE EAST AND NORTH AFRICA ECONOMIC SUMMIT, ALSO 
KNOWN AS THE AMMAN ECONOMIC SUMMIT, IN OCTOBER 1995.  THE SUMMIT WILL 
BRING TOGETHER SENIOR PUBLIC-SECTOR OFFICIALS AND PRIVATE-SECTOR 
EXECUTIVES FROM THE MIDDLE EAST, NORTH AFRICA, NORTH AMERICA, EUROPE AND 
ASIA TO EXPLORE INVESTMENT AND BUSINESS OPPORTUNITIES IN JORDAN AND 
OTHER COUNTRIES OF THE REGION. 

MAJOR BUSINESS OPPORTUNITIES

THE AGRO-CHEMICAL, ENVIRONMENTAL, COMPUTER AND INFORMATION
TECHNOLOGY, TELECOMMUNICATION AND MEDICAL TECHNOLOGY SECTORS PROVIDE 
PROMISING OPPORTUNITIES FOR U.S. EXPORT SALES.  MAJOR OPPORTUNITIES FOR 
GOVERNMENT-MANAGED PROJECTS EXIST IN THE WATER, INFRASTRUCTURE, AND 
ENERGY SECTORS.  MARKET OPENINGS FOR U.S. MANUFACTURERS AND SUPPLIERS 
CAN ALSO BE FOUND IN INDUSTRIAL FRANCHISING AND LICENSING, TECHNOLOGY-
RELATED AND ENGINEERING CONSULTING SERVICES, AUTOMATION AND ELECTRONICS 
PRODUCTS AND COMPUTER PERIPHERALS AND EQUIPMENT. 

MAJOR ROADBLOCKS TO DOING BUSINESS

NON-COMPETITIVE PRICES FOR CONSUMER PRODUCTS AND HIGH SEA FREIGHT 
CHARGES FROM THE U.S. TO JORDAN ARE AMONG THE MAJOR BARRIERS TO 
EXPORTING TO JORDAN.  OBSTACLES TO DOING BUSINESS IN JORDAN INCLUDE:  A) 
WEAK GOVERNMENT ENFORCEMENT OF REGULATIONS TO PROTECT FOREIGN 
INTELLECTUAL PROPERTY RIGHTS;  B) RESTRICTIONS ON FOREIGN CAPITAL 
OWNERSHIP IN LOCAL BUSINESSES AND GENERAL RESTRICTIONS ON FOREIGN 
BUSINESS VENTURES;  AND C) TIME-CONSUMING AND ARBITRARY CUSTOMS 
CLEARANCE PROCEDURES AND LACK OF INTRAMINISTERIAL COORDINATION.

NATURE OF LOCAL AND THIRD COUNTRY COMPETITION

JORDANIAN BUSINESSES OPERATE IN A VERY COMPETITIVE MARKET THAT IS 
DELUGED BY PRODUCTS FROM AROUND THE WORLD.  GENEROUS AND FLEXIBLE EXPORT 
TERMS AND DIRECT SUPPORT TO LOCAL BUSINESS ARE THE MOST COMMON FACTORS 
IN ESTABLISHING A SUCCESSFUL PRESENCE IN JORDAN.  IMPORTERS BUY MORE 
PRODUCTS FROM COUNTRIES WHOSE COMPANIES GIVE THEIR LOCAL SALES STAFF 
ACCESS TO TRAINING AND PRODUCT ORIENTATION.  THE ESTABLISHMENT OF 
INDUSTRIAL AND BUSINESS JOINT VENTURES IS MORE EFFECTIVE IN THE 
JORDANIAN MARKET THAN DIRECT EXPORTING.

COUNTRY COMMERCIAL GUIDES (CCGS) ARE AVAILABLE ON THE NATIONAL TRADE 
DATA BANK ON CD-ROM OR THROUGH THE INTERNET.  PLEASE CONTACT STAT-USA AT 
1-800-STAT-USA FOR MORE INFORMATION.  TO LOCATE COUNTRY COMMERCIAL 
GUIDES VIA THE INTERNET, PLEASE USE THE FOLLOWING WORLD WIDE WEB 
ADDRESS:  WWW.STAT-USA.GOV.  CCGS CAN ALSO BE ORDERED IN HARD COPY OR ON 
DISKETTE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-
800-553-NTIS.



                CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK

MAJOR TRENDS AND OUTLOOK

JORDAN ACHIEVED A 5.7 PERCENT GROWTH RATE IN GDP IN 1994.  WHILE JORDAN 
STILL SUFFERS FROM A SIGNIFICANT DEBT BURDEN, IT HAS MET OR SURPASSED 
MOST STRUCTURAL ADJUSTMENT TARGETS SET BY THE INTERNATIONAL MONETARY 
FUND (IMF), AND ITS CURRENCY, THE JORDANIAN DINAR, HAS BEEN STABLE SINCE 
1989. JORDAN'S ECONOMY IS, AND HAS ALWAYS BEEN, DEPENDENT ON INPUTS OF 
OUTSIDE CAPITAL, WHETHER FROM FOREIGN ASSISTANCE OR REMITTANCES FROM 
JORDANIANS WORKING ABROAD.

JORDAN'S OUTLOOK FOR THE FUTURE IS POSITIVE.  THE SIGNING OF THE PEACE 
TREATY BETWEEN JORDAN AND ISRAEL COUPLED WITH ITS SKILLED, LOW-COST 
LABOR FORCE ESTABLISHES THE KINGDOM AS A STABLE AND ATTRACTIVE REGIONAL 
SALES/MARKETING AND SERVICE CENTER. THE GOVERNMENT IS COMMITTED TO 
IMPROVING ITS INFRASTRUCTURE IN ORDER TO SUPPORT NEW INVESTMENT AND 
CONTINUED ECONOMIC GROWTH.  IN ADDITION, IT IS TAKING STEPS TO 
LIBERALIZE THE TRADE AND INVESTMENT CLIMATE.  PREPARING FOR THE FUTURE, 
JORDAN IS IN THE PROCESS OF REFORMING ITS INVESTMENT AND CUSTOMS LAWS IN 
AN EFFORT TO ATTRACT FOREIGN INVESTMENT.  THE JORDANIAN PARLIAMENT WILL 
CONSIDER NEW LAWS ON INVESTMENT, INCOME AND SALES TAXES, COMPANIES 
REGISTRATION AND THE AMMAN FINANCIAL MARKET IN 1995.  FOREIGN INVESTORS 
ARE NOW ALLOWED TO INVEST IN JORDAN'S STOCK MARKET. A GRADUAL WARMING OF 
RELATIONSHIPS WITH ARAB GULF STATES, ESTRANGED BY THE GULF WAR, OR AN 
IMPROVEMENT IN THE POLITICAL SITUATION IN IRAQ WILL FURTHER OPEN UP 
TRADE OPPORTUNITIES FOR JORDAN.  

PRINCIPAL GROWTH SECTORS

SECTORS WHICH ARE EXPERIENCING SIGNIFICANT GROWTH INCLUDE THE 
ENVIRONMENTAL, COMPUTER AND INFORMATION-TECHNOLOGY, AND LIGHT 
MANUFACTURING, PARTICULARLY TEXTILES, PHARMACEUTICALS, FOOD PROCESSING 
AND TOURISM.

JORDAN IS EMBARKING ON EXPANSIONS OF ITS PHOSPHATE AND POTASH WORKS, THE 
TWO LARGEST HARD CURRENCY EARNERS FOR THE KINGDOM.  JOINT VENTURE 
AGREEMENTS WERE SIGNED RECENTLY WITH INDIAN AND JAPANESE FIRMS FOR THE 
PRODUCTION OF FERTILIZERS.  THESE NEW PROJECTS WILL LEAD TO SIGNIFICANT 
EXPANSION IN DOWNSTREAM INDUSTRIES.

THE ENVIRONMENT HAS BECOME MORE OF AN ISSUE IN THE PAST FEW YEARS 
CREATING OPPORTUNITIES FOR RELATED INDUSTRY AND PRODUCTS.  THE 
GOVERNMENT AND PRIVATE SECTORS ARE BOTH INTERESTED IN REDUCING ENERGY 
AND WATER USAGE AND IN REDUCING AND TREATING WASTES HARMFUL TO THE 
ENVIRONMENT.

THE COMPUTER AND INFORMATION-TECHNOLOGY FIELD IS ALSO EXPERIENCING RAPID 
GROWTH.  COMPUTER SOFTWARE DEVELOPMENT, DATA NETWORKS AND VOICE MAIL 
SERVICES ARE EXPANDING WITH A GROWING CADRE OF EXPERIENCED SOFTWARE 
ENGINEERS.  A NUMBER OF THE MOST COMPETITIVE FIRMS HAVE U.S.-TRAINED 
ENGINEERS OR ARE COOPERATING WITH U.S. COMPANIES ON SPECIFIC PROJECTS.

IN LIGHT MANUFACTURING, TEXTILES AND GARMENTS HAVE EXPERIENCED THE 
FASTEST GROWTH OF ANY SECTOR.  SEVERAL FIRMS REGULARLY EXPORT FINISHED 
GOODS TO THE U.S.  PHARMACEUTICALS ARE A SECOND AREA OF GROWTH, WITH 
RIGOROUS STANDARDS AND A WIDE VARIETY OF PRODUCTS.  FOOD PROCESSING IS A 
THIRD HIGH-GROWTH AREA.

GOVERNMENT ROLE IN THE ECONOMY

THE GOVERNMENT PLAYS AN ACTIVE ROLE, CONTROLLING ABOUT 62 PERCENT OF THE 
TOTAL ECONOMY.  IT IS ALSO THE LARGEST EMPLOYER IN THE COUNTRY.  
GOVERNMENT ENTITIES, SUCH AS THE SOCIAL SECURITY AGENCY, MAINTAIN 
SIGNIFICANT INVESTMENTS IN SHAREHOLDING 
COMPANIES.  GOVERNMENT REGULATIONS AND PROCEDURES ARE 
BUREAUCRATIC, ALTHOUGH THE LIBERALIZATION OF INVESTMENT LAWS IS 
EXPECTED TO REDUCE THE BUREAUCRACY.

THE GOVERNMENT ANNOUNCED ITS INTENTION TO MOVE TOWARD THE PRIVATIZATION 
OF SOME OF ITS HOLDINGS, INCLUDING PARTS OF THE JORDAN ELECTRICITY 
AUTHORITY (JEA) AND ROYAL JORDANIAN AIRLINES (RJ).  JEA IS SPINNING OFF 
ITS DISTRIBUTION NETWORK INTO A SHAREHOLDING COMPANY, STILL LARGELY 
OWNED BY THE GOVERNMENT.  RJ INTENDS TO MOVE FROM DIRECT GOVERNMENT 
OWNERSHIP TO A COMBINATION OF INDIRECT GOVERNMENT OWNERSHIP THROUGH 
GOVERNMENTAL ENTITIES SUCH AS THE SOCIAL SECURITY CORPORATION AND THE 
CONVERSION OF DEBT TO EQUITY THROUGH THE ISSUANCE OF SHARES.

HOST COUNTRY BUDGET PRIORITIES & PRIVATIZATION

JORDAN'S USD 2.4 BILLION BUDGET FOR 1994, AS APPROVED BY PARLIAMENT, 
REFLECTS THE GOVERNMENT'S CONTINUED COMMITMENT TO THE IMF STRUCTURAL 
ADJUSTMENT PROGRAM.  TOTAL REVENUES ARE EXPECTED TO INCREASE BY 8.7 
PERCENT TO USD 2.32 BILLION.  EXPENDITURES WILL RISE BY ABOUT 16.2 
PERCENT TO USD 2.39 BILLION, LARGELY DUE TO A LARGE INCREASE IN CAPITAL 
EXPENDITURES.

THE GOVERNMENT HAS SET THE FOLLOWING BUDGET TARGETS FOR 1995: 

-- GDP GROWTH:  10 PERCENT AT CURRENT PRICES, 6 PERCENT AT FIXED PRICES;
-- INFLATION:  5 PERCENT, ONE PERCENT ABOVE 1994;
-- BUDGET DEFICIT BEFORE GRANTS:  4.3 PERCENT OF GDP;
-- THE CURRENT ACCOUNT DEFICIT:  8 PERCENT, DOWN FROM 8.8 PERCENT 
   IN 1994.
-- TRADE BALANCE DEFICIT: 33.5 PERCENT, DOWN FROM 34.6 PERCENT IN 1994;
-- GROSS CONSUMPTION:  94.4 PERCENT OF GDP, AGAINST 97.1 PERCENT 
   IN 1994; AND
-- RATIO OF INVESTMENT TO GDP:  27.4 PERCENT, AGAINST 28.6 PERCENT
   IN 1994.


BALANCE OF PAYMENTS SITUATION

JORDAN HAS SUCCESSFULLY MANAGED ITS BALANCE OF PAYMENTS SITUATION 
THROUGH A COMBINATION OF PAYMENTS, RENEGOTIATION GOVERNMENT-TO-
GOVERNMENT (PARIS CLUB) AND COMMERCIAL BANKING LOANS (LONDON CLUB), AND 
NEGOTIATION OF AN IMF STRUCTURAL ADJUSTMENT AND STANDBY AGREEMENT.  
JORDAN HAS SURPASSED THE IMF TARGETS ESTABLISHED FOR IT IN THE LAST TWO 
YEARS.  ITS OVERALL BALANCE OF PAYMENTS DEFICIT AMOUNTED TO USD 27 
MILLION IN 1994,  WHICH WAS COVERED BY RESCHEDULING DEBT, RECONCILIATION 
OF ARREARAGES WITH INTERNATIONAL LENDING ORGANIZATIONS, REMITTANCES AND 
OTHER FOREIGN EXCHANGE RECEIPTS, SUCH AS TOURISM.

JORDAN'S OVERALL INDEBTEDNESS STANDS AT ABOUT USD 6.6 BILLION, 
APPROXIMATELY 107 PERCENT OF GDP.  THE GOVERNMENT IS AIMING TO REDUCE 
ITS FOREIGN DEBT TO 100 PERCENT OF GDP BY 1998.  JORDAN REGISTERED A 14 
PERCENT IMPROVEMENT IN ITS TRADE BALANCE DEFICIT IN 1994 DUE TO 
INCREASES IN EXPORTS AND RE-EXPORTS OF 15 AND 16 PERCENT, RESPECTIVELY, 
AND A DECREASE IN IMPORTS BY 3.7 PERCENT.  MOREOVER, INCREASED LEVELS OF 
WORKER REMITTANCES AND TOURISM RECEIPTS REDUCED THE CURRENT ACCOUNT 
DEFICIT BY 50.9 PERCENT TO USD 336 MILLION IN 1994.  JORDAN'S FOREIGN 
EXCHANGE RESERVES DROPPED FROM APPROXIMATELY USD 450 MILLION TO USD 280 
MILLION IN MID-1994, BUT STAND AT 400 MILLION IN THE FIRST QUARTER OF 
1995.

INFRASTRUCTURE SITUATION RE: GOODS/SERVICES DISTRIBUTION

JORDAN'S ROAD NETWORK, CONSISTING OF 8,000 KM OF SURFACED ROADS, HAS 
IMPROVED DRAMATICALLY DURING THE LAST TEN YEARS.  THERE ARE TWO MAJOR 
HIGHWAYS FROM THE NORTH BORDER WITH SYRIA TO AMMAN, CONTINUING SOUTH TO 
THE PORT OF AQABA AND SOUTHEAST TO SAUDI ARABIA, AND UPGRADED OR NEW 
HIGHWAYS GOING EAST FROM AMMAN TO IRAQ AND WEST TOWARD THE WEST BANK AND 
ISRAEL.  BY-PASS ROADS ROUTE LONG-DISTANCE TRUCKING AROUND AMMAN.  
JORDAN'S RAILWAY LINE IS CURRENTLY USED ONLY FOR TRANSPORTATION OF 
PHOSPHATE ROCK FROM THE MINES TO THE PORT OF AQABA.

THE PORT OF AQABA IS MODERN AND WELL-ORGANIZED WITH SEPARATE SECTIONS 
FOR CONTAINERS AND BULK SHIPMENTS.  THE PORT WAS BUILT TO ACCOMMODATE 35 
MILLION TONS PER YEAR.  PRIOR TO THE GULF WAR, 27 MILLION TONS OF CARGO 
PASSED THROUGH THE PORT OF AQABA.  THIS FIGURE DROPPED TO 11 MILLION 
TONS DUE TO THE GULF WAR AND SUBSEQUENT U.N. SANCTIONS AGAINST IRAQ.

THERE ARE TWO INTERNATIONAL AIRPORTS, QUEEN ALIA INTERNATIONAL (QAI) 
NEAR AMMAN AND AQABA AIRPORT.  QAI WAS DESIGNED FOR THREE MILLION 
PASSENGERS A YEAR AND IS EXPECTED TO ACCOMMODATE 430,000 TONS OF AIR 
CARGO BY THE YEAR 2000.  THE JORDANIAN AND ISRAELI GOVERNMENTS ARE 
CURRENTLY DISCUSSING EXPANSION OF THE AQABA AIRPORT AND ITS USE BY 
INTERNATIONAL FLIGHTS DESTINED FOR BOTH AQABA AND EILAT, ISRAEL'S RESORT 
CITY ON THE GULF OF AQABA.  A STUDY OF THE EXPANSION PROJECT IS BEING 
FUNDED BY THE U.S. TRADE DEVELOPMENT AGENCY.  BOTH AIRPORTS ARE ADJACENT 
TO MAJOR HIGHWAYS.  MARKA AIRPORT, THE OLD AMMAN AIRPORT, IS STILL USED 
FOR EXECUTIVE JET CHARTER SERVICES.

MAJOR INFRASTRUCTURE PROJECTS UNDERWAY

IN MID-1995, THE GOVERNMENT AWARDED A CONTRACT TO ABB FOR THE AQABA 
THERMAL POWER SECOND STAGE EXPANSION. THIS PROJECT WILL ADD TWO 130 
MEGAWATT GENERATORS TO PROVIDE MUCH OF THE ELECTRICITY TO THE SOUTH OF 
JORDAN AS WELL AS A POSSIBLE SUPPLY TO SINAI.  A LATER THIRD STAGE 
ANTICIPATES THE INSTALLATION OF AN ADDITIONAL TWO GENERATORS OF GREATER 
CAPACITY.  

USAID IS PROVIDING BETWEEN USD 10-12 MILLION OF A USD 40 MILLION PROJECT 
FOR THE CONSTRUCTION OF A WATER TREATMENT PLANT AT KHIRBET AS-SAMRA.  
RECONSTRUCTION OF THE WATER AND SEWAGE NETWORK IN IRBID BEGAN IN 1993.  
MOST OF THE WATER AND SEWAGE PROJECTS ARE FUNDED WHOLLY OR IN PART BY 
DEVELOPMENT ASSISTANCE LOANS AND GRANTS.  THE AL-KARAMAH DAM WILL BE A 
MAJOR CONSTRUCTION PROJECT TO FURTHER DEVELOP JORDAN'S LIMITED WATER 
RESOURCES. 
   
TRANSPORTATION PROJECTS RECENTLY COMPLETED:  THE NAOUR-DEAD SEA HIGHWAY 
AND THE AMMAN-IRBID HIGHWAY WERE COMPLETED IN 1994. A NEW SCENIC ROAD 
BORDERING THE EASTERN SHORE OF THE DEAD SEA WAS OPENED IN EARLY 1995. A 
PROPOSED HIGHWAY LINKING AQABA, EILAT AND TABA, EGYPT IS UNDER 
DISCUSSION. A RAIL LINE IS EXPECTED TO CONNECT THE NEW IRSHEDIYEH 
PHOSPHATE MINE IN SOUTHERN JORDAN TO THE MAIN LINE GOING TO THE PORT OF 
AQABA.  IN AQABA, A NEW GENERAL CARGO JETTY IS PLANNED FOR THE NEAR 
FUTURE. 

TELECOMMUNICATIONS PROJECTS FOR INCREASING THE NUMBER OF LAND LINES AND 
NATIONAL AND REGIONAL SWITCHING STATIONS HAVE BEEN AWARDED. THE 
GOVERNMENT WILL ALSO REPLACE JORDAN'S SATELLITE EARTH STATIONS.  THE 
CONTRACT FOR DEVELOPMENT OF A CELLULAR TELEPHONE SYSTEM WAS AWARDED TO 
MOTOROLA.  THE SYSTEM SHOULD BE OPERATIONAL BY LATE 1995. 

BOTH THE FREE ZONES AUTHORITY AND THE JORDAN INDUSTRIAL ESTATES ARE 
PLANNING EXPANSION PROJECTS.  FREE ZONES WILL OPEN IN MAFRAQ, THE JORDAN 
VALLEY AND IN AQABA.  INDUSTRIAL ESTATES ARE PLANNED FOR AMMAN (NEAR QAI 
AIRPORT), SALT, TAFILA AND KERAK.

THE DISI PROJECT FOR DUAL WATER CONVEYANCE FROM A SOUTHERN JORDAN 
AQUIFER TO AMMAN IS ALSO PLANNED.  UNDER THE JORDAN RIFT VALLEY 
INITIATIVE, THE GOVERNMENT IS ALSO STUDYING CONSTRUCTION OF A CANAL FROM 
THE RED SEA TO THE DEAD SEA ON THE BORDER OF JORDAN AND ISRAEL, WHICH 
WOULD SUPPLY ELECTRICITY, FRESH WATER FOR DRINKING AND SALTY WATER TO 
THE DEAD SEA.  THE DEAD SEA REGION IS TARGETED FOR DEVELOPMENT AS A 
TOURIST PARK.

MAJOR LOCAL AND THIRD-COUNTRY COMPETITORS IN SPECIFIC SECTORS

COMPETITION IN KEY SECTORS TRADITIONALLY HAS COME FROM THE FRENCH, 
JAPANESE, ITALIANS, GERMANS, BRITISH AND KOREANS, IN ADDITION TO LOCAL 
COMPANIES.  

IN CONSTRUCTION, ONE OF THE LARGEST LOCAL COMPANIES IS ZEYAD SALAH AND 
PARTNERS CONSTRUCTION, BUT THE JAPANESE HAVE ALSO BEEN ACTIVE.  IN 
TELECOMMUNICATIONS, THE FRENCH AND JAPANESE HAVE BEEN THE MOST 
AGGRESSIVE COMPETITORS. ITALIANS AND GERMANS SUPPLY NEARLY TWO-THIRDS OF 
JORDAN'S REQUIREMENTS FOR MACHINERY USED FOR MANUFACTURING.  THE U.S., 
JAPAN, FRANCE AND GERMANY SUPPLY TWO-THIRDS OF HIGH TECHNOLOGY MEDICAL 
AND LABORATORY EQUIPMENT.

JAPANESE, GERMAN AND KOREAN AUTOMOBILES DOMINATE THE LOCAL MARKET, WITH 
RUSSIAN AND UKRAINIAN VEHICLES AT THE LOW END OF THE MARKET.  AMERICAN 
VEHICLES HAVE BEEN HINDERED BY HIGH CUSTOMS TARIFFS IMPOSED ON THE BASIS 
OF ENGINE DISPLACEMENT.  THE U.S. GOVERNMENT AND U.S. AUTO MANUFACTURERS 
CONTINUE TO PRESSURE THE JORDANIAN GOVERNMENT TO MODIFY THIS CUSTOMS 
REGULATION.  JORDAN'S PARLIAMENT RECENTLY APPROVED LEGISLATION PROVIDING 
DUTY-FREE IMPORT PRIVILEGES TO TAXI OWNERS FOR AUTOMOBILES WITH ENGINE 
DISPLACEMENT GREATER THAN 1.6 CC.  THERE ARE AN ESTIMATED 12,000-15,000 
TAXIS IN JORDAN.  U.S. FIRMS REMAIN VERY COMPETITIVE IN THE CONSTRUCTION 
EQUIPMENT MARKET.



               CHAPTER III.  POLITICAL ENVIRONMENT

NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES

JORDAN HAS HAD STRONG RELATIONS WITH THE UNITED STATES SINCE 1949.  THE 
U.S. IS ONE OF JORDAN'S LARGEST TRADING PARTNERS AND HAS PROVIDED 
ECONOMIC AND MILITARY ASSISTANCE SINCE THE LATE 1940'S.  SINCE THE 
CONCLUSION OF THE JORDAN-ISRAEL PEACE TREATY IN 1994, THE U.S. HAS 
REITERATED ITS COMMITMENT TO HELP JORDAN MEET THE NEW CHALLENGES IT 
FACES AS PART OF LARGER U.S. EFFORTS TO PROMOTE A COMPREHENSIVE PEACE 
SETTLEMENT BETWEEN ISRAEL AND THE ARAB STATES.

MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE

JORDAN'S GEOGRAPHY IS A KEY FACTOR IN THE COUNTRY'S FOREIGN POLICY.  THE 
JORDAN-ISRAEL PEACE TREATY PRESENTS NEW ECONOMIC POSSIBILITIES FOR 
JORDAN OVER THE LONG TERM, THOUGH A WIDESPREAD PUBLIC SENSE THAT JORDAN 
WILL ONLY SLOWLY ENJOY THE FRUITS OF PEACE HAS ENGENDERED SKEPTICISM IN 
THE IMMEDIATE TERM.  OPPONENTS OF PEACE AND NORMALIZATION WITH ISRAEL 
ARE TRYING TO EXPLOIT THIS SKEPTICISM FOR POLITICAL GAIN, BUT THEIR 
OVERALL APPEAL AND ABILITY TO CHANGE GOVERNMENT POLICY IS LIMITED.  
JORDAN'S RELATIONS WITH THE GULF STATES AFTER THE IRAQI INVASION OF 
KUWAIT REMAIN STRAINED, ESPECIALLY WITH SAUDI ARABIA AND KUWAIT.  THIS 
SITUATION HAMPERS TRADE WITH THE GULF.  UNITED NATIONS SANCTIONS WITH 
IRAQ HAVE ALSO SIGNIFICANTLY REDUCED TRADE WITH THAT COUNTRY.  JORDANIAN 
BUSINESSMEN STILL EXPECT THAT JORDANIAN TRADE TO IRAQ WILL INCREASE 
DRAMATICALLY ONCE THE EMBARGO IS LIFTED OR AT LEAST EASED.

BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND 
ORIENTATION OF MAJOR POLITICAL PARTIES

JORDAN IS A CONSTITUTIONAL MONARCHY RULED, SINCE 1952, BY HIS MAJESTY 
KING HUSSEIN IBN TALAL.  UNDER THE CONSTITUTION, POWER IS VESTED IN THE 
KING AND THE PARLIAMENT, WHICH CONSISTS OF A SENATE AND A HOUSE OF 
REPRESENTATIVES.  THE SENATE IS COMPRISED OF 40 APPOINTED MEMBERS, WHILE 
THE HOUSE OF REPRESENTATIVES IS COMPRISED OF 80 ELECTED MEMBERS.  THE 
KING APPOINTS THE PRIME MINISTER AND THE PRESIDENT AND MEMBERS OF THE 
SENATE.  THE PRIME MINISTER FORMS A CABINET TO MANAGE THE INTERNAL AND 
EXTERNAL AFFAIRS OF THE GOVERNMENT AND IS THE GOVERNMENT'S WORKING 
PARTNER WITH THE HOUSE OF REPRESENTATIVES.

AFTER A LONG HIATUS, PARLIAMENTARY ELECTIONS WERE HELD IN NOVEMBER 1989 
AND AGAIN IN NOVEMBER 1993.  REPRESENTATIVES SERVE A FOUR-YEAR TERM.  
POLITICAL PARTIES WERE LEGALIZED IN 1992.  OF THE APPROXIMATELY 22 
POLITICAL PARTIES, THE LARGEST AND MOST COHESIVE IS THE ISLAMIC ACTION 
FRONT (IAF), AN ARM OF THE MUSLIM BROTHERHOOD.  THE IAF CAPTURED 16 
SEATS, THE LARGEST BLOC, IN PARLIAMENT.  THE OTHER POLITICAL PARTIES 
HAVE NOT YET COALESCED INTO WELL-ORGANIZED BODIES.  THESE PARTIES 
REPRESENT THE FULL SPECTRUM OF POLITICAL VIEWS FROM RIGHT TO LEFT, BUT 
MOST TEND TO BE CENTRIST.



          CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES

DISTRIBUTION AND SALES CHANNELS, USE OF AGENTS ANDDISTRIBUTORS, AND 
FINDING A PARTNER

AMERICAN FIRMS INTERESTED IN EXPORTING TO JORDAN SHOULD APPOINT LOCALLY-
REGISTERED JORDANIAN AGENTS OR DISTRIBUTORS.   THE COMMERCIAL AGENTS AND 
MIDDLEMEN LAW NO. 44 OF 1985 STIPULATES THAT NO FOREIGN FIRM MAY IMPORT 
GOODS INTO THE COUNTRY WITHOUT APPOINTING A REGISTERED AGENT.  THE 
AGENT'S CONNECTION TO THE FOREIGN COMPANY MUST BE DIRECT, WITHOUT A SUB-
AGENT OR INTERMEDIARY.  EXCEPT FOR THE BASIC DEFINITIONS STIPULATED IN 
THE COMMERCIAL CODE, THERE ARE NO REGULATIONS GOVERNING THE CONTRACT 
BETWEEN THE FOREIGN FIRM AND THE COMMERCIAL AGENT.

MOST OF LAW NO. 44 AFFECTS THE DEALINGS OF LOCAL AGENTS.  THE MOST 
SIGNIFICANT PROVISIONS AFFECTING THE PRINCIPAL/AGENT RELATIONSHIP ARE:

A.   JORDANIAN AGENTS OR DISTRIBUTORS OF FOREIGN COMPANIES ARE ALWAYS 
ENTITLED TO COMPENSATION FOR UNJUSTIFIED TERMINATION OF THE AGENCY 
CONTRACT, NOTWITHSTANDING ANY AGREEMENT TO THE CONTRARY;

B.   THE JORDANIAN COURTS HAVE JURISDICTION OVER ALL DISPUTES ARISING 
OUT OF THE AGENCY/DISTRIBUTORSHIP CONTRACT, NOTWITHSTANDING ANY 
AGREEMENT TO THE CONTRARY.  HOWEVER, THE CHOICE OF THE FOREIGN LAW TO 
GOVERN THE AGENCY/DISTRIBUTORSHIP ARRANGEMENT BETWEEN THE PARTIES IS 
PERMITTED AND ENFORCED BY THE JORDANIAN COURTS;  AND

C.   IT IS ILLEGAL FOR A FOREIGN COMPANY TO APPOINT AN AGENT AND PAY 
COMMISSIONS IF THE JORDANIAN COMPANY IS SELLING ARMS OR MUNITIONS TO THE 
GOVERNMENT OF JORDAN.  

ONCE A CONTRACT IS REACHED, THE AGENT MUST TAKE THE SIGNED AGREEMENT TO 
THE REGISTRAR OF COMPANIES AT THE MINISTRY OF INDUSTRY AND TRADE.  THE 
MINISTRY ISSUES A REGISTRATION NUMBER, WHICH THEN MUST BE CITED IN ALL 
SUBSEQUENT IMPORT LICENSE APPLICATIONS FOR GOODS UNDER THE CONTRACT.

FRANCHISING

JORDANIAN BUSINESSMEN HAVE EXPRESSED INCREASING THEIR INTEREST IN 
FRANCHISING,ESPECIALLY IN INDUSTRY, SERVICES, AND FAST FOOD.  HOWEVER, 
THEIR ACTUAL FAMILIARITY WITH THE CONCEPT IS LIMITED.   RETAIL AND 
SERVICE FRANCHISES ARE RARE IN JORDAN.  

DIRECT MARKETING

DIRECT MARKETING OF U.S. PRODUCTS AND SERVICES IS USUALLY HANDLED BY 
AGENTS/DISTRIBUTORS, IMPORTERS AND REGISTERED BRANCH OFFICES OF AMERICAN 
COMPANIES.  AMERICAN BUSINESSES ALSO MARKET THEIR PRODUCTS BY 
PARTICIPATING IN EXHIBITIONS OR TRADE EVENTS, USING EMBASSY COMMERCIAL 
SECTION EXPORT PROMOTION SERVICES AND SENDING REPRESENTATIVES TO DISCUSS 
BUSINESS PROSPECTS DIRECTLY WITH JORDANIAN END-USERS.

JOINT VENTURES/LICENSING

THE INCREASED AVAILABILITY OF DOMESTIC CAPITAL HAS FUELED THE INTEREST 
OF LOCAL INVESTORS IN ACQUIRING INDUSTRIAL LICENSES AND ESTABLISHING 
JOINT-VENTURES.  PROMISING OPPORTUNITIES INCLUDE FERTILIZERS AND AGRO-
CHEMICALS, INFORMATION SYSTEMS AND TECHNOLOGIES, COMPUTER PRODUCTS, 
ENVIRONMENTAL PRODUCTS AND TECHNOLOGIES, AUTOMOBILES, ELECTRONICS, 
COMPUTER PERIPHERALS AND HARDWARE ASSEMBLY, POWER AND ENERGY,PACKING AND 
PACKAGING, FOOD PROCESSING AND MACHINERY BUILDING, FOOD CANNING AND 
REFRIGERATION AND REPLACEMENT PARTS.  MANY AMERICAN COMPANIES ALREADY 
HAVE LICENSING ARRANGEMENTS WITH JORDANIAN MANUFACTURERS.  JOINT 
VENTURES ARE LESS COMMON, ALTHOUGH ONE WAS ESTABLISHED IN 1993.
HOWEVER, JORDANIAN BUSINESSES HAVE SHOWN INCREASING INTEREST IN FORMING 
JOINT VENTURES.

STEPS TO ESTABLISHING AN OFFICE

THE COMPANIES ACT OF 1989 PROVIDES GUIDANCE FOR REGISTERING FOREIGN 
COMPANIES AND ESTABLISHING REGIONAL AND REPRESENTATIVE OFFICES.  THE LAW 
DISTINGUISHES BETWEEN TWO TYPES OF FOREIGN COMPANIES: "FOREIGN COMPANIES 
OPERATING IN THE KINGDOM" AND "FOREIGN COMPANIES NOT OPERATING IN THE 
KINGDOM."  THE FORMER INCLUDES FOREIGN FIRMS THAT HAVE ESTABLISHED 
BRANCH OFFICES IN JORDAN.  THE LATTER INCLUDES REPRESENTATIVE (I.E., 
REGIONAL) OFFICES, WHICH ARE NOT PERMITTED TO ACT AS COMMERCIAL AGENTS 
AND MIDDLEMEN FOR BUSINESS ACTIVITIES IN JORDAN.  HOWEVER, THEY ARE 
ALLOWED TO SERVE AS LIAISONS BETWEEN THEIR HEAD OFFICES AND JORDANIAN OR 
REGIONAL CLIENTS.

FOREIGN FIRMS EXECUTING CONTRACTS IN JORDAN ARE ENCOURAGED TO ESTABLISH 
BRANCH OFFICES.  THE REGISTRATION FEE IS JD 250 (USD 360) IF THE PARENT 
COMPANY'S CAPITAL IS JD ONE MILLION OR BELOW AND JD 500 (USD 720) IF ITS 
CAPITAL IS ABOVE JD ONE MILLION.  THE REGISTRATION FEE TO ESTABLISH A 
REGIONAL OFFICE IS MINIMAL.

SELLING FACTORS/TECHNIQUES

THOUSANDS OF LOCAL WHOLESALERS, SEMI-WHOLESALERS AND RETAILERS OPERATE 
IN JORDAN.  AMERICAN PRODUCTS MUST COMPETE IN AN OPEN TRADE ENVIRONMENT 
WITH GOODS FROM ALL OVER THE WORLD.  PRICE-COMPETITIVENESS IS AN 
ESSENTIAL SALES REQUIREMENT.  TO GAIN THE EDGE IN THE JORDANIAN MARKET, 
BUSINESSMEN SEEKING TO SELL AMERICAN CAPITAL EQUIPMENT SHOULD FOCUS ON 
FINANCING ARRANGEMENTS AND TECHNICAL SUPPORT.  SELLERS MUST CONSIDER 
SHIPPING AND FREIGHT CHARGES, AS WELL AS DELIVERY TERMS.  THEY MUST ALSO 
SHOW SOME FLEXIBILITY IN OFFERING INDUSTRIAL DESIGN MODIFICATIONS TO 
SUIT JORDANIAN END-USERS' SPECIFICATIONS.

ADVERTISING AND TRADE PROMOTION

IN ADDITION TO USING THE EMBASSY COMMERCIAL SECTION AS A VEHICLE FOR 
PROMOTION, U.S. EXPORTERS MAY ALSO PARTICIPATE IN LOCAL EXHIBITIONS AND 
TRADE EVENTS.  ADVERTISING IN JORDANIAN NEWSPAPERS AND BUSINESS JOURNALS 
IS AN ADDITIONAL METHOD FOR LOCATING AGENTS/DISTRIBUTORS OR DIRECT 
IMPORTERS.  THE EMBASSY RECOMMENDS THE FOLLOWING JORDANIAN NEWSPAPERS 
FOR U.S. PRODUCT ADVERTISEMENTS:

JORDAN TIMES (ENGLISH DAILY)
AL-ASWAQ (ARABIC BUSINESS DAILY)
AD-DUSTOUR (ARABIC DAILY)
AL-RAI (ARABIC DAILY)
THE STAR (ENGLISH WEEKLY)
AL-FORSA (ARABIC COMMERCIAL WEEKLY)

PRODUCT PRICING

LOCAL IMPORTERS BASE THEIR PRODUCT PRICING ON THE EXPORT PRICE, FREIGHT 
COSTS, APPLICABLE IMPORT TARIFFS AND TAXES, THE SALES TAX AND THEIR 
PROFIT MARGIN.  PRICE CONTROLS ARE USED BY GOJ TO PREVENT UNREASONABLE 
PRICE HIKES, PRODUCT HOARDING, AND DUMPING OF FOREIGN GOODS AND 
SERVICES.  UNDER THE SUPPLY LAW, THE GOVERNMENT MAY SET THE IMPORTER'S 
PROFIT MARGIN BY USING AN INTERNATIONALLY ACCEPTED FORMULA.  THE PROFIT 
MARGIN ON IMPORTED FOODSTUFFS, WHICH ARE PRICE-CONTROLLED BY THE 
MINISTRY OF SUPPLY, IS SET AT 17 PERCENT, WHICH INCLUDES 2 PERCENT IN 
ADMINISTRATIVE AND STORAGE EXPENSES, 8 PERCENT FOR THE IMPORTER'S PROFIT 
AND 7 PERCENT FOR THE RETAILER'S PROFIT.  THE MINISTER OF SUPPLY HAS SET 
THE PROFIT MARGIN ON IMPORTED TEA PRODUCTS AT 13 PERCENT INSTEAD OF 17 
PERCENT.  GOODS AND SERVICES THAT ARE NOT SUBJECT TO MINISTRY PRICE 
CONTROLS ARE LEFT TO MARKET-BASED COMPETITIVE PRICING STRATEGIES.  THE 
PROFIT MARGIN OF DOMESTIC GOODS IS USUALLY ABOUT 10-25 PERCENT OF THE 
DOMESTIC MANUFACTURER'S TOTAL COSTS.
 
SALES SERVICE/CUSTOMER SUPPORT

THE QUALITY OF SALES SERVICE AND CUSTOMER SUPPORT FOR AMERICAN PRODUCTS 
IS HIGHER THAN IS TYPICAL IN THE JORDANIAN MARKET, AN IMPORTANT SELLING 
POINT.  AMERICAN FIRMS CAN IMPROVE FURTHER ON CUSTOMER SUPPORT BY 
HOLDING WORKSHOPS FOR THEIR LOCAL AGENTS OR SUB-CONTRACTING TO LOCAL 
SERVICE AND MAINTENANCE FIRMS.  THE AVAILABILITY OF TECHNICALLY-SKILLED 
LABOR IN JORDAN GIVES THE KINGDOM A COMPETITIVE ADVANTAGE AS A REGIONAL 
SALES AND SERVICING CENTER.

SELLING TO THE GOVERNMENT

THE GENERAL SUPPLIES DEPARTMENT IS THE GOVERNMENT'S CENTRAL PROCUREMENT 
AGENCY.  DIRECT OFFER FOR LOCAL BIDS ARE NOT PERMITTED; I.E., A LOCAL 
AGENT/DISTRIBUTOR OR REPRESENTATIVE MUST BE APPOINTED TO ACT ON THE 
POTENTIAL AMERICAN SUPPLIER'S BEHALF.  DIRECT BIDS FOR TENDERS FINANCED 
BY INTERNATIONAL DONORS OR THE WORLD BANK ARE PERMITTED, AS STATED IN 
THE TENDER DOCUMENTS.

PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT

THE GOJ ANNOUNCED ITS INTENT TO JOIN THE BERNE CONVENTION BY 1996. A NEW 
COPYRIGHT LAW WHICH WILL ADDRESS THE INADEQUACIES OF CURRENT LAWS IS 
PENDING.  JORDANIAN LAW REQUIRES THE REGISTRATION OF COPYRIGHTS, PATENTS 
AND TRADEMARKS.  WITHOUT REGISTRATION, FOREIGN PRODUCTS DO NOT HAVE 
PROTECTION.  UNDER THE COPYRIGHT LAW OF 1992, ALL WORKS MUST BE 
REGISTERED AT THE DEPARTMENT OF NATIONAL LIBRARIES, UNDER THE MINISTRY 
OF CULTURE.  TRADEMARKS AND PATENTS MUST BE REGISTERED WITH THE 
REGISTRAR OF PATENTS AND TRADEMARKS AT THE MINISTRY OF INDUSTRY AND 
TRADE.  DUE TO WEAK GOVERNMENT IPR ENFORCEMENT, THE ACT OF REGISTERING 
COPYRIGHTS, TRADEMARKS AND PATENTS DOES NOT GUARANTEE PROTECTION;  
HOWEVER, IT ALLOWS THE U.S. COMPANY TO PURSUE A COURT CASE IF ITS RIGHTS 
ARE VIOLATED.
 
NEED FOR A LOCAL ATTORNEY

FIRMS OPERATING IN JORDAN THROUGH REGISTERED BRANCH OFFICES OR REGIONAL 
OFFICES MAY NEED AN ATTORNEY TO COMPLETE PAPERWORK AND REGISTRATION 
REQUIREMENTS.  THE LOCAL ATTORNEY MAY ALSO PROVIDE CONTINUING ADVICE ON 
LAWS AND REGULATIONS AFFECTING THE U.S. COMPANIES' ACTIVITIES.  
APPOINTING A LOCAL LAWYER CAN ALSO HELP ENSURE THAT COPYRIGHTS, PATENTS 
AND TRADEMARK RIGHTS ARE PROTECTED.



    CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES

RANK OF       NAME OF SECTOR               ITA CODE
SECTOR
-------      ----------------------------  --------
1-         COMPUTER/PERIPHERALS               CPT
2-         COMPUTER SOFTWARE                  CSF
3-         TELECOMMUNICATIONS EQUIPMENT       TEL
4-         MEDICAL EQUIPMENT                  MED
5-         POLLUTION CONTROL EQUIPMENT        POL


COMPUTER/PERIPHERALS      
   
LOCAL DEMAND FOR PERSONAL COMPUTERS IS INCREASING, WITH THE LARGEST END-
USER BEING THE GOJ.   SCHOOLS AND UNIVERSITIES NOW INCLUDE COMPUTER AND 
DATA PROCESSING CLASSES IN THEIR CURRICULUM. DEMAND FOR COMPUTER 
COMPONENTS (STORAGE DEVICES, CPU'S AND CHIPS) INCREASED BY APPROXIMATELY 
60 PERCENT FROM 1991 TO 1994.  COMPUTER MARKET SOURCES CLAIM THAT 
AMERICAN SOFTWARE AND HARDWARE SYSTEMS MAKE UP 85 PERCENT OF THEIR LARGE 
ACCOUNTS OF ACADEMIC INSTITUTIONS, BANKS, FACTORIES AND GOVERNMENT 
AGENCIES EMPLOYING MORE THAN 50 EMPLOYEES.  U.S. MADE COMPUTER EQUIPMENT 
AND PERIPHERALS ENJOY A HIGH REPUTATION FOR THEIR SUPERIOR QUALITY, EVEN 
THOUGH U.S. PRODUCTS CAN BE UP TO 25 PERCENT HIGHER IN COST THAN ASIAN 
OR EUROPEAN COUNTERPARTS.  

ASIAN SUPPLIERS OFFER GOOD EXPORT TERMS TO LOCAL DEALERS AND HENCE THEY 
ENJOY A 3 TIMES GREATER MARKET SHARE THAN THE U.S. POST EFFORTS TO 
PROMOTE THE IMPORT OF U.S. COMPUTERS AND PERIPHERALS TO JORDAN HAVE MET 
WITH AN ENTHUSIASTIC RESPONSE.  IN THE PAST YEAR, THE EMBASSY HAS HOSTED 
THREE SEPARATE COMMERCIAL SHOWS SPECIFICALLY TARGETED AT U.S. COMPUTER 
AND COMPUTER-RELATED PRODUCTS.  ATTENDANCE AT ALL THREE EVENTS EXCEEDED 
EXPECTATIONS.


                             1994   1995    1996
                              (IN USD MILLIONS)



TOTAL MARKET SIZE            30      35      40
TOTAL LOCAL PRODUCTION        5       6       9
TOTAL EXPORTS                 3       4       6
TOTAL IMPORTS                28      33      37
IMPORTS FOR THE U.S.         10      12      14

(THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES)


COMPUTER SOFTWARE

THE INFORMATION SYSTEMS MARKET UNDERWENT AN UNPRECEDENTED BOOM WITH THE 
RETURN OF JORDANIAN EXPATRIATES FROM THE GULF AND FROM THE GROWING 
PERCEPTION THAT BUSINESSES NEEDED TO INTRODUCE INFORMATION TECHNOLOGY TO 
REMAIN COMPETITIVE AND PROFITABLE.

A NUMBER OF WELL-KNOWN AMERICAN SOFTWARE FIRMS ENJOY AN EXCELLENT 
REPUTATION IN JORDAN.  MORE STRICT ENFORCEMENT OF INTELLECTUAL PROPERTY 
RIGHTS (IPR), EXPECTED BY 1996, WILL LIKELY ENCOURAGE FURTHER U.S. 
COMPUTER SOFTWARE SALES TO JORDAN.  TOTAL EXPORTS OF PACKAGED SOFTWARE 
INCREASED BY 25 PERCENT IN 1994.  MULTI-USER BUSINESS SOFTWARE, 
EDUCATIONAL SOFTWARE, AND CLIENTAL ON-LINE SERVICE ARE INCREASINGLY IN 
DEMAND IN THE LOCAL MARKET.

DESPITE A 20 PERCENT PRICE DISADVANTAGE AS COMPARED TO THEIR ASIAN-MADE 
COUNTERPARTS, AMERICAN SOFTWARE ENJOYS A SIGNIFICANT SHARE OF THE 
COMPUTER SOFTWARE MARKET.     

                             1994      1995      1996
                                (IN USD MILLIONS)

TOTAL MARKET SIZE              10      12      15
TOTAL LOCAL PRODUCTION          3       4       5
TOTAL EXPORTS                   2       3       4
TOTAL IMPORTS                   9      11      14
IMPORTS FROM THE U.S.           5       7       9

(THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES)


TELECOMMUNICATIONS EQUIPMENT

THE GOJ SUBMITTED THE TELECOMMUNICATIONS DRAFT LAW TO PARLIAMENT IN 
1995.  THIS DRAFT LAW ALLOWS PRIVATE-SECTOR FIRMS TO INVEST IN 
TELECOMMUNICATION HARDWARE AND OFFER SERVICES. IT IS EXPECTED TO 
ENCOURAGE SALES OF AMERICAN TELECOMMUNICATIONS EQUIPMENT TO JORDAN.  
MORE TENDERS FOR MOBILE COMMUNICATION EQUIPMENT, SATELLITE TRANSMISSION 
AND RECEIVING COMPONENTS, FIBER OPTIC SUPPORT STATIONS, AND MODEM-DRIVEN 
LINE-CLUSTERING STATIONS ARE EXPECTED BY MID-1996.   THE GOJ IS WORKING 
TO ATTRACT WORLD BANK FUNDS TO FINANCE AMBITIOUS TELECOMMUNICATIONS AND 
INFORMATION TECHNOLOGY PROJECTS BEFORE THE COMMENCEMENT OF THE AMMAN 
ECONOMIC SUMMIT.  

U.S. PRODUCTS ARE GENERALLY MORE EXPENSIVE THAN ASIAN OR EUROPEAN MADE 
PRODUCTS BY APPROXIMATELY 35 PERCENT.  

                              1994      1995      1996
                                  (IN USD MILLIONS)

TOTAL MARKET SIZE              30      35      40
TOTAL LOCAL PRODUCTION          3       4       6
TOTAL EXPORTS                   1       2       3
TOTAL IMPORTS                  26      33      36
IMPORTS FROM THE U.S.           8      10      13

(THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES)


MEDICAL EQUIPMENT

DEMAND FOR U.S. MEDICAL SUPPLIES, LABORATORY EQUIPMENT AND DIAGNOSTIC 
EQUIPMENT IS INCREASING IN JORDAN.  THE PRIVATE SECTOR IS A LARGE END-
USER; ANNUAL PURCHASES EXCEED GOVERNMENT PURCHASES OF MEDICAL EQUIPMENT 
BY TWO FOLD.  AN ADDITIONAL FIVE HOSPITALS OPENED IN JORDAN SINCE 1993 
AND THREE MORE SPECIALTY HOSPITALS ARE EXPECTED TO OPEN BY 1997.  

IN GENERAL, PRICES FOR U.S. MEDICAL EQUIPMENT IS COMPARABLE TO GERMAN 
MADE PRODUCTS DUE TO THE EURO-DOLLAR RATE AND THE SHIFT IN PLANT 
SPECIALIZATIONS.

                             1994      1995      1996
                                 (IN USD MILLIONS)

TOTAL MARKET SIZE               25      30      35
TOTAL LOCAL PRODUCTION           2       3       4
TOTAL EXPORTS                    1       1       1
TOTAL IMPORTS                   24      28      32
IMPORTS FROM THE U.S.            7       9      12

(THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES)


POLLUTION CONTROL EQUIPMENT

THE INCREASE IN DEMAND FOR U.S. POLLUTION CONTROL EQUIPMENT JUMPED BY 80 
PERCENT DUE TO THE HIGH REPUTATION OF U.S.-MADE EQUIPMENT AND TO EFFORTS 
OF THE GOJ AND VOLUNTARY ORGANIZATIONS TO ENHANCE PUBLIC AWARENESS OF 
ENVIRONMENTAL PROTECTION.  THE GOJ SUBMITTED THE ENVIRONMENT LAW TO THE 
PARLIAMENT IN MAY AND IT IS EXPECTED TO PASS INTO LAW BY 1996.  MORE 
THAN 30 FIRMS IN JORDAN SELL POLLUTION CONTROL AND WATER TREATMENT 
EQUIPMENT.  ABOUT 18 U.S. FIRMS HAVE ENTERED THE MARKET SINCE 1993.  
PRIVATE SECTOR DEMAND FOR U.S. EQUIPMENT INCREASED FROM USD 7 MILLION IN 
1992 TO USD 13 MILLION BY THE FIRST QUARTER OF 1995.  

U.S. PRODUCTS ARE APPROXIMATELY 40 PERCENT MORE EXPENSIVE THAN 
COMPARABLE BRITISH AND FRENCH PRODUCTS.  DUE THE LEADING POSITION OF THE 
U.S. IN WATER PURIFICATION AND FILTRATION TECHNOLOGY, EUROPEAN 
COMPETITORS HAVE RETREATED FROM THESE SECTORS MAKING U.S. PRODUCTS MORE 
COMPETITIVE.  U.S. PRODUCTS HOLD NEARLY 50 PERCENT OF JORDAN'S OVERALL 
POLLUTION CONTROL MARKET.

                              1994      1995      1996
                                 (IN USD MILLIONS)

TOTAL MARKET SIZE               13      15      18
TOTAL LOCAL PRODUCTION           2       3       5
TOTAL EXPORTS                    1       1       1
TOTAL IMPORTS                   12      13      14
IMPORTS FROM THE U.S.            9      11      13

(THE ABOVE STATISTICS ARE UNOFFICIAL ESTIMATES)

BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
(SEE APPENDIX C FOR A LISTING OF TOP U.S. AGRICULTURAL IMPORTS) 


SIGNIFICANT INVESTMENT OPPORTUNITIES

SECTOR:         PROJECTS                EST. COST   CLASS   FINANCE
-------         --------                ---------   -----   -------

ENERGY:         POWER SYSTEM               224       N&R        G
                INTERCONNECTION
ENVIRONMENT:    HAZARDOUS WASTE             25       N&R        G&P
                MANAGEMENT
MINERALS&INDSTY:
                INDUSTRIAL WORKSHOPS         4       N          P
                POTASSIUM SULPHATE &        85       N          P
                DICALCIUM PHOSPHATE PLANT   -        -          -
                MAGNESIUM OXIDE PLANT      125       N          P
                PHOSPHORIC ACID COMPLEX    350       N          P
                INDUSTRIAL MINERALS        N/A       N          P
                COPPER EXPLORATION         N/A       N          P
                GRANITE QUARRYING          N/A       N          P
                OIL & GAS EXPLORATION      N/A       N          P
                BROMINE & DERIVATIVES      150       N          P

TRANSPORT:

JORDAN RIVER BRIDGES:

   KING HUSSEIN BRIDGE              14      R      G&P
   KING ABDULLAH BRIDGE             14      R      G&P
   JORDAN VALLEY CROSSING BRIDGE     9      R      G&P
   PRINCE MOHAMMED BRIDGE           11      R         

WESTERN BOARDER HIGHWAY:

   IRBID-NORTH SHUNA HIGHWAY        18      R      G
   AQABA COASTAL HIGHWAY            26      R      G
   KUFUR HUDA-DAMIA JUNCT. HWY      30      R      G
   SOUTH SHUNA-NORTH SHUNA HWY.    102      R      G

RAILWAY:
   AQABA-WADI II RAILWAY &          55      N      P
   ESHIDIYA LINK

SEA PORTS:
   MULTI-PURPOSE JETTY              25      R      P
   PASSENGER BERTH                  10      R      P

AIRPORTS:
   AQABA INTERNATIONAL AIRPORT      40      R      G

TELECOMMUNICATIONS:
   FREQUENCY MANAGEMENT             10      N/R    G
   & LICENSING
   DIGITAL TELECOMMUNICATION       300      N      G
   INFRASTRUCTURE
   NATIONAL INFORMATICS             20      N      G&P
   INFRASTRUCTURE
   PRIVATE SECTOR OPPORTUNITY       N/A     N      P
   PROJECTS
   
(PROJECTS TARGETED FOR THE AMMAN ECONOMIC SUMMIT OCTOBER 29-31)
  
ESTIMATED COST IN USD MILLIONS; N DENOTES NATIONAL PROJECTS; R DENOTES 
REGIONAL PROJECT; P DENOTES PRIVATE SECTOR FINANCING; AND G DENOTES 
GOVERNMENT FINANCING).


THE GOVERNMENT OF THE UNITED STATES ACKNOWLEDGES THE CONTRIBUTION THAT 
OUTWARD FOREIGN DIRECT INVESTMENT IS INCREASINGLY VIEWED AS  COMPLEMENT 
OR EVEN A NECESSARY COMPONENT OF TRADE.  FOR EXAMPLE, ROUGHLY 60 PERCENT 
OF U.S. EXPORTS ARE SOLD BY AMERICAN FIRMS THAT HAVE OPERATIONS ABROAD.  
RECOGNIZING THE BENEFITS THAT U.S. OUTWARD INVESTMENT BRINGS TO THE U.S. 
ECONOMY, THE GOVERNMENT OF THE UNITED STATES UNDERTAKES INITIATIVES, 
SUCH AS OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) PROGRAMS, 
INVESTMENT TREATY NEGOTIATIONS AND BUSINESS FACILITATION PROGRAMS, THAT 
SUPPORT U.S. INVESTORS.



            CHAPTER VI.  TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS, TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES

ACCORDING TO THE ARAB BOYCOTT OF ISRAEL LAW OF 1958, JORDANIAN IMPORTERS 
AND EXPORTERS ARE PROHIBITED FROM TRADING WITH ISRAELI COMPANIES OR WITH 
FOREIGN COMPANIES DOING BUSINESS WITH ISRAEL.   HOWEVER, THIS LAW WAS 
VOIDED BY THE SIGNING OF THE PEACE AGREEMENT BETWEEN JORDAN AND ISRAEL.   
A LAW FORMALLY ABOLISHING THE BOYCOTT LAW IS EXPECTED TO PASS IN 
PARLIAMENT IN 1995.  

MOST IMPORTS INTO JORDAN ARE SUBJECT TO TARIFFS AND IMPORT TAXES. 
INDUSTRIAL RAW MATERIALS AND CAPITAL EQUIPMENT IMPORTED BY    - 18 -

LICENSED INDUSTRIAL PROJECTS ARE EXEMPT.  IMPORT TARIFFS RANGE BETWEEN 
5-45 PERCENT ON MOST COMMODITIES.  TARIFFS ON LUXURY ITEMS ARE HIGHER, 
RANGING BETWEEN 60-120 PERCENT.  AUTOMOBILES TARIFFS ARE 130-300 
PERCENT.  ALL IMPORTS INTO JORDAN, EXCEPT THOSE EXEMPTED BY LAW OR 
REGULATION, ARE SUBJECT TO THE FOLLOWING IMPORT DUTIES, FEES AND TAXES:

  A.  IMPORT TARIFF;
  B.  SALES TAX (7 PERCENT;  CERTAIN IMPORTS SUBJECT TO EXCISE 
      TAXES PAY MORE THAN 10 PERCENT);  AND
  C.  IMPORT TAXES AND FEES (21.06 PERCENT):
         5 PERCENT IMPORT LICENSE FEES
         6 PERCENT UNIFORM ADDITIONAL DUTIES
         6 PERCENT UNIVERSITY AND MUNICIPAL DUTIES
         3 PERCENT ADDITIONAL TAX (IMPORTS WHICH ARE EXEMPTED
           FROM IMPORT DUTIES PAY 5 PERCENT ADDITIONAL TAX)
         1 PERCENT COMMERCIAL CENTERS DUTY
        .02 PERCENT PER THOUSAND OVERTIME FEES
        .04 PERCENT PER THOUSAND CUSTOMS SERVICE DUTY

IMPORTERS WHO DO NOT PRESENT AN IMPORT LICENSE MAY BE SUBJECT TO A TEN 
PERCENT FINE.  THIS INCLUDES THE FIVE PERCENT IMPORT LICENSE FEE PLUS A 
FIVE PERCENT PENALTY.  IMPORTERS WHO DO NOT PRESENT A CERTIFICATE OF 
ORIGIN AND AN INVOICE MAY BE FINED TWO PERCENT FOR EACH DOCUMENT.  
IMPORTERS WHO PRESENT A FAULTY CERTIFICATE OF ORIGIN ARE LIABLE TO A ONE 
PERCENT FINE.  THOSE PRESENTING INVOICES THAT SHOW AN ERROR IN THE 
QUANTITY SHIPPED, WHETHER A SHORTAGE OR AN EXCESS, MAY BE ACCUSED OF 
SMUGGLING AND ASSESSED FINES AND PENALTIES EQUAL TO THREE TIMES THE 
VALUE OF THE IMPORT DUTIES DUE.  GOODS IN TRANSIT ARE SUBJECT TO A .02 
PERCENT PER THOUSAND CUSTOMS SERVICE DUTY AND A .01 PERCENT PER THOUSAND 
OVERTIME FEE.  THE AGGREGATE RATES OF IMPORT DUTIES, TAXES, FEES AND 
FINES ARE MULTIPLIED BY THE CUSTOMS-DETERMINED VALUE OF THE IMPORTED 
GOODS TO DETERMINE THE TOTAL AMOUNT OF TARIFFS AND DUTIES PAYABLE TO THE 
CUSTOMS DEPARTMENT.

CUSTOMS VALUATION

GENERALLY, CUSTOMS VALUATION OFFICERS DO NOT ACCEPT THE VALUE OF 
IMPORTED GOODS AS STATED ON THE INVOICE AND MAY ADD AN ADDITIONAL 
PERCENTAGE POINT TO RAISE IT TO A LEVEL DEEMED APPROPRIATE.  THIS IS 
PERMITTED BY LAW, UNDER THE ASSUMPTION THAT IMPORTERS DO NOT REPORT THE 
TRUE VALUE OF THEIR IMPORTS.  THE ADDED AMOUNT IS CONSIDERED A PENALTY 
VALUED BY THE CUSTOMS OFFICER IN PERCENTAGE TERMS AND PAYABLE BY THE 
IMPORTER.  THE EXPORTER IS EXPECTED TO INCLUDE IN HIS SALES PRICE ALL 
EXPENSES RELATED TO THE SALE AND DELIVERY OF GOODS UNTIL ARRIVAL AT THE 
POINT OF ENTRY.  LOCAL AGENTS ESTIMATE THAT, IN GENERAL, UP TO 85 
PERCENT OF THE GOODS IMPORTED INTO JORDAN ARE OVERVALUED BY CUSTOMS.

ACCORDING TO ARTICLE 39 OF THE CUSTOMS LAW, THE PRICE OF IMPORTS 
INCLUDES THE RIGHT OF THE IMPORTER TO USE THE PATENTS, DESIGNS, FORMS, 
MANUFACTURING MARKS AND TRADEMARKS RELATED TO THE PRODUCT IF IT IS 
MANUFACTURED ACCORDING TO A REGISTERED DESIGN AND FORM OR HAS A FOREIGN 
MANUFACTURING MARK OR A TRADEMARK.  THE CUSTOMS LAW STIPULATES THAT THE 
VALUE OF THE GOODS, IF STATED IN FOREIGN CURRENCY, SHOULD BE CONVERTED 
TO DINARS AT THE RATE SET BY THE CENTRAL BANK AS OF THE DATE OF THE 
CUSTOMS DECLARATION.  THE ABSENCE OF REQUIRED IMPORT DOCUMENTATION GIVES 
THE CUSTOMS VALUATION OFFICER THE RIGHT TO DETERMINE THE VALUE OF THE 
IMPORTED GOODS AS HE SEES APPROPRIATE.

INVOICE OR EXPORT DISCOUNTS ARE NOT ACCEPTED BY THE CUSTOMS DEPARTMENT.  
IF THE EXPORTER AGREES TO GIVE A DISCOUNT, HE SHOULD CONSULT THE LOCAL 
IMPORTER TO DETERMINE WHETHER IT SHOULD BE GRANTED DIRECTLY OR 
INDIRECTLY.  ALTHOUGH IT IS LEGAL, AN "AGENT'S DISCOUNT" MAY NOT BE 
ACCEPTED BY THE CUSTOMS DEPARTMENT.

IMPORT LICENSES

ACCORDING TO IMPORT/EXPORT REGULATION NO. 74 OF 1993, AN IMPORT LICENSE 
IS NOT REQUIRED EXCEPT IN SPECIFIC CASES.  HOWEVER THE MINISTER OF 
INDUSTRY AND TRADE HAS NOT YET ISSUED INSTRUCTIONS MANDATING THAT 
LICENSES BE WAIVED ON GOODS IMPORTED BY LOCAL BUSINESSMEN.  THESE 
INSTRUCTIONS WILL HAVE TO BE PASSED TO THE DEPARTMENT OF CUSTOMS THROUGH 
THE MINISTER OF FINANCE.  UNTIL SUCH TIME, THE CUSTOMS DEPARTMENT WILL 
CONTINUE TO REQUIRE AN IMPORT LICENSE AT THE CLEARING POINT.

EXPORT CONTROLS

THE IMPORT/EXPORT LAW NO. 14 OF 1993 AND THE IMPORT/EXPORT REGULATION 
NO. 74 OF 1993 GOVERN GENERAL EXPORT CONTROL ISSUES.  ENFORCEMENT OF 
REGULAR EXPORT CONTROLS IS THE RESPONSIBILITY OF THE MINISTRY OF 
FINANCE/CUSTOMS AND THE MINISTRY OF INDUSTRY AND TRADE.  UNDER JORDANIAN 
LAW, THE MINISTRY OF FINANCE/CUSTOMS EXERCISES DIRECT CONTROL ON GOODS 
CLEARED TO ENTER AND LEAVE THE KINGDOM.  ACCORDING TO THE IMPORT/EXPORT 
LAW AND REGULATION, NO EXPORT LICENSE IS REQUIRED FOR JORDANIAN-MADE 
PRODUCTS, TRANSIT GOODS, FREE TRADE ZONE GOODS, RE-EXPORTS OR GOODS 
ENTERED UNDER TEMPORARY STATUS.  HOWEVER, WHILE THE LAW WAS PASSED MORE 
THAN SEVEN MONTHS AGO, THE MINISTER OF INDUSTRY AND TRADE HAS NOT ISSUED 
THE NECESSARY INSTRUCTIONS TO IMPLEMENT IT.  FOR THIS REASON, THE 
CUSTOMS DEPARTMENT CONTINUES TO DEMAND AN EXPORT APPLICATION FOR ALL 
EXPORTS AND RE-EXPORTS FROM JORDAN.  PAPERWORK REQUIRED INCLUDES THE 
EXPORT APPLICATION, THE EXPORT DECLARATION STATEMENT AND ALL OTHER 
COMMERCIAL DOCUMENTS, INCLUDING A DETAILED CUSTOMS DECLARATION.

IMPORT/EXPORT DOCUMENTATION

ACCORDING TO ARTICLE 40 OF THE CUSTOMS LAW, EVERY CUSTOMS DECLARATION 
MUST INCLUDE AN ATTESTED CERTIFICATE OF ORIGIN ISSUED BY THE CONCERNED 
AUTHORITY IN THE AREA OF THE EXPORTER.  GENERALLY, THE INVOICE MUST HAVE 
AN ATTESTATION FROM THE JORDANIAN DIPLOMATIC MISSION WHERE THE GOODS 
ORIGINATED.  IF THERE IS NO JORDANIAN CONSULATE NEAR THE EXPORTER, THE 
CERTIFICATION OF THE LOCAL CHAMBER OF COMMERCE IS SUFFICIENT, SUBJECT TO 
THE APPROVAL OF THE CUSTOMS DEPARTMENT DIRECTOR.

THE BUYING PRICE AND ORIGIN OF THE GOODS MUST BE STATED ON INVOICES AND 
ALL OTHER DOCUMENTS, ALONG WITH SHIPPING COSTS AND FREIGHT CHARGES, 
INSURANCE AND ALL OTHER EXPENSES.  THE CUSTOMS DEPARTMENT MAY ACCEPT AN 
INVOICE AND CERTIFICATE OF ORIGIN IN ONE DOCUMENT IF THE REQUIRED 
INFORMATION IS PRESENT.  THE CUSTOMS DEPARTMENT MAY REQUEST OTHER 
DOCUMENTS RELATED TO THE SHIPMENT AS NEEDED.  ALL INVOICES SHOULD 
DESCRIBE THE IMPORTED GOODS IN ARABIC.

THE LOCAL IMPORTER MUST OBTAIN AN IMPORT LICENSE BEFORE HIS CLEARING 
AGENT COMPLETES THE CUSTOMS DECLARATION, WHICH PROVIDES ALL DETAILS 
RELATING TO THE VALUE AND TYPE OF GOODS, COUNTRY OF ORIGIN, METHOD OF 
SHIPMENT, DETAILS ABOUT THE EXPORTER AND SHIPPER, AND THE LOCAL 
CONSIGNEE'S NAME AND ADDRESS.  THE IMPORTER, OR HIS CLEARING AGENT, 
SHOULD PRESENT A BILL OF LADING WITH THE DECLARATION.  THE BILL OF 
LADING IS USED BY CUSTOMS TO VERIFY THE OWNERSHIP OF THE GOODS.  FOR 
GOODS IN TRANSIT THROUGH JORDAN, THE LOCAL IMPORTER, OR HIS CLEARING 
AGENT, MUST PRESENT A CUSTOMS DECLARATION ISSUED BY A NEIGHBORING 
COUNTRY.

IMPORTING MANY PRODUCTS, SUCH AS FOODSTUFFS, AGRICULTURAL AND ANIMAL 
PRODUCTS, SATELLITE DISHES AND TELEPHONE EQUIPMENT, REQUIRE A SPECIAL 
PERMIT BEFORE THE CUSTOMS DEPARTMENT WILL GIVE ITS CLEARANCE.  THE 
PERMIT IS ISSUED BY THE RESPONSIBLE JORDANIAN MINISTRY OR AGENCY.  FOR 
EXAMPLE, THE TELECOMMUNICATIONS CORPORATION (TCC) ISSUES PERMITS FOR 
IMPORTING SATELLITE DISHES AND TELEPHONE EQUIPMENT, THE CIVIL DEFENSE 
DEPARTMENT IS RESPONSIBLE FOR FIRE-FIGHTING EQUIPMENT, AND THE TCC AND 
SECURITY AGENCIES ISSUES PERMITS FOR ALARM EQUIPMENT EQUIPPED WITH 
RADIOWAVE COMPONENTS.

FOR FOODSTUFFS, A LABORATORY REPORT IS REQUIRED.  A COMMITTEE AT THE 
AQABA AND AMMAN CUSTOMS CENTERS, CALLED "THE SAMPLING COMMITTEE", MUST 
AUTHORIZE LABORATORY TESTING.  THE COMMITTEE INCLUDES REPRESENTATIVES 
FROM THE MINISTRIES OF HEALTH, SUPPLY, AGRICULTURE, AND THE DEPARTMENT 
OF STANDARDS AND MEASURES AND CUSTOMS.  ACCORDING TO CUSTOMS OFFICERS, 
ONLY THE AQABA CUSTOMS LABORATORY IS CAPABLE OF VERIFYING THE TYPE AND 
COMPOSITION OF AN IMPORTED PRODUCT SO THAT A CUSTOMS TARIFF NUMBER CAN 
BE ASSIGNED, ACCORDING TO THE INTERNATIONAL HARMONIZED CODING SYSTEM.  
CERTAIN IMPORTS, SUCH AS PRECIOUS METALS AND REGULAR METALS, CAN ONLY BE 
TESTED AT THE AQABA CUSTOMS LABORATORY.

TEMPORARY ENTRY

INSTRUCTIONS COVERING TEMPORARY ENTRY REQUIREMENTS FOR MANUFACTURING AND 
EXPORT PURPOSES WERE ISSUED IN MAY 1994, AND STATE THAT:

A)  A WRITTEN REQUEST MUST BE SUBMITTED TO THE CUSTOMS DEPARTMENT FOR
    THE TEMPORARY ENTRY OF RAW MATERIALS AND INTERMEDIATE GOODS
    NECESSARY TO MANUFACTURE PRODUCTS DESTINED FOR EITHER THE LOCAL
    MARKET OR FOR EXPORT;
B)  LOCAL FACTORIES REGISTERED WITH THE MINISTRY OF INDUSTRY AND TRADE
    AND THE AMMAN CHAMBER OF INDUSTRY MAY APPLY FOR TEMPORARY ENTRY
    APPROVAL;
C)  THE PERIOD OF TEMPORARY ENTRY IS GRANTED FOR ONE YEAR, RENEWABLE FOR
    ANOTHER YEAR PENDING APPROVAL AND EVALUATION BY CUSTOMS, AND;
D)  THE MANUFACTURER MUST SUBMIT A BANK GUARANTEE EQUAL TO THE VALUE OF
    ALL TARIFFS, DUTIES AND FEES ON THE MATERIALS CLEARED FOR ENTRY.

LABELING, MARKING REQUIREMENTS

LOCAL BUSINESSMEN MAY ONLY IMPORT PRODUCTS WHICH COMPLY WITH THE 
LABELING AND MARKING REQUIREMENTS ISSUED BY THE DEPARTMENT OF STANDARDS 
AND MEASURES AND RESPONSIBLE GOVERNMENT MINISTRIES.  DIFFERENT 
REQUIREMENTS GOVERN THE IMPORTS OF FOODSTUFFS, MEDICINES, CHEMICALS AND 
OTHER CONSUMER PRODUCTS.  JORDANIAN IMPORTERS ARE RESPONSIBLE FOR 
INFORMING EXPORTERS OF ANY APPLICABLE LABELING AND MARKING REQUIREMENTS.

PROHIBITED IMPORTS

THE MINISTRY OF SUPPLY BANS IMPORTS OF THE FOLLOWING GOODS INTO JORDAN:  
WHEAT SEMOLINA, TABLE SALT, VEGETABLE OIL/HYDRATED PALM OIL, EGGS, OLIVE 
OIL AND BOTTLED OLIVES, ARABIC-STYLE SWEETS, BREAD AND ICE CREAM.  
HOWEVER, THE MINISTRY MAY GRANT PERMISSION FOR THE PRIVATE SECTOR TO 
EXPORT THESE PRODUCTS.

STANDARDS (ISO 9000 USAGE)

THE JORDANIAN STANDARDS AND MEASURES DEPARTMENT IS RESPONSIBLE FOR 
VERIFYING THAT IMPORTED GOODS COMPLY WITH JORDANIAN-ISSUED STANDARDS.  
UNTIL THE END OF 1993, THE DEPARTMENT ISSUED 960 STANDARDS BROKEN DOWN 
INTO THE FOLLOWING CATEGORIES:  FOODSTUFFS, 278;  CHEMICALS, 289;  
CONSTRUCTION MATERIALS, 103;  TEXTILES AND PAPER, 109;  AND ENGINEERING 
AND METEOROLOGY, 181.  THE DEPARTMENT WILL BECOME AN INDEPENDENT, 
AUTONOMOUS GOVERNMENT CORPORATION BEFORE THE END OF 1994 AND MAY MOVE 
FORWARD IN IMPLEMENTING THE ISO 9000 QUALITY-MARK STANDARDS.  THE ROYAL 
SCIENTIFIC SOCIETY, A GOVERNMENT AGENCY, CARRIES OUT LABORATORY TESTING 
AND PRODUCT ANALYSIS TO VERIFY COMPLIANCE WITH LOCAL STANDARDS.  FREE 
TRADE ZONES/WAREHOUSES

GOODS MAY BE SHIPPED TO THE JORDANIAN FREE TRADE ZONES BY SHIPPING 
AGENTS AND REPRESENTATIVES OF LAND TRANSPORT AND CLEARING FIRMS.  ALL 
SHIPPING DOCUMENTATION MUST BE SUBMITTED TO THE FREE ZONES WITHIN 72 
HOURS AND BEFORE SHIPMENTS ARE UNLOADED.  JORDANIAN AND FOREIGN 
INVESTORS ARE PERMITTED EQUALLY TO INVEST IN TRADE, SERVICES, OR STORAGE 
FACILITIES IN THE FREE ZONES.

TRANSIT GOODS ENTERING THE KINGDOM MAY BE STORED IN WAREHOUSES AT THE 
PORT OF AQABA FOR UP TO ONE MONTH;  BEYOND THAT, THEY MUST BE STORED IN 
A FREE ZONE.  THE FREE ZONES INVESTMENT REGULATION NO. 43 OF 1987 
PERMITS THE ENTERING, DEPOSITING AND EXPORTING OF ANY TYPE OF FOREIGN 
GOODS FROM ANY ORIGIN WITHOUT AN IMPORT OR EXPORT LICENSE.  HOWEVER,  
ENTRY OF THE FOLLOWING GOODS IS PROHIBITED:

A)  GOODS ORIGINATING FROM COUNTRIES WITH WHICH TRADING IS BANNED;
B)  DRUGS, EXCEPT WHAT IS REQUIRED BY THE LOCAL PHARMACEUTICAL INDUSTRY,
    AS DETERMINED BY THE MINISTRY OF HEALTH;
C)  ARMS, MUNITIONS AND EXPLOSIVES, EXCEPT WHAT IS USED IN HUNTING, AS
    DETERMINED BY THE SECURITY DEPARTMENTS;
D)  ROTTEN OR FLAMMABLE GOODS, AS DEFINED BY THE BOARD OF DIRECTORS OF
    THE FREE ZONES CORPORATION; AND,
E)  RADIOACTIVE MATERIALS, EXCEPT WHAT IS PERMISSIBLE BY THE MINISTER OF
    ENERGY AND MINERAL RESOURCES.


SPECIAL IMPORT PROVISIONS

THE MINISTRY OF SUPPLY HAS A MONOPOLY OVER THE IMPORT OF THE FOLLOWING 
FOOD PRODUCTS:  SUGAR, RICE, LENTILS, WHEAT, CIGARETTES, FROZEN 
CHICKENS, OLIVE OIL, WHEAT FLOUR, HALIBUNA MILK AND COMPLETE FROZEN 
LAMBS.  THE MINISTRY MUST GRANT PERMISSION FOR IMPORTING AND EXPORTING 
THE FOLLOWING PRODUCTS:  LIGHT AND DARK BROWN SUGAR IN CONTAINERS OF NOT 
MORE THAN 500 GRAMS, SUGAR FOR PHARMACEUTICAL MANUFACTURING, COOKIES, 
TEA, MACARONI, NOODLES, ANIMAL FODDER (BARLEY, BROKEN WHEAT ARTICLES AND 
YELLOW CORN), BARLEY WHEAT FOR BREAD, YEAST, BUTTER, ANIMAL GHEE, HALAWA 
TAHINA, YELLOW CHEESE, VEGETABLE OIL, FRESH OR FROZEN LAMB AND VEAL, 
LIVESTOCK IMPORTED FOR FARMING OR SLAUGHTERING, CANNED MEAT, FISH, 
MORTADELLA (COLD CUTS) OF ALL TYPES, EDIBLE CEREALS (CHICK PEAS AND 
BRUISED AND CRUSHED WHEAT), ALL COW AND SHEEP PRODUCTS, ALL FLOUR 
DERIVATIVES, CANNED POWDERED MILK, CANNED AERATED WATER, LONG-GRAIN 
RICE, AND YOGURT.


MEMBERSHIP IN FREE TRADE ARRANGEMENTS

JORDAN IS NOT A MEMBER IN ANY REGIONAL OR INTERNATIONAL FREE TRADE 
ARRANGEMENT.  IT RECENTLY APPLIED FOR MEMBERSHIP IN THE GENERAL 
AGREEMENT OF TARIFFS AND TRADE (GATT).



              CHAPTER VII.  INVESTMENT CLIMATE STATEMENT

OPENNESS TO FOREIGN INVESTMENT

THE GOVERNMENT OF JORDAN (GOJ) OFFICIALLY ENCOURAGES FOREIGN AND PRIVATE 
INVESTMENT, YET BARRIERS TO INVESTMENT EXIST.  SOME OF THE MAIN BARRIERS 
INCLUDE THE INEFFECTIVE ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS, 
THOUGH JORDAN PLANS TO JOIN THE BERNE CONVENTION BY 1996.  THE 
ENCOURAGEMENT OF INVESTMENT LAW NO. 11 OF 1987 AND THE FOREIGN 
INVESTMENTS LAW NO. 27 OF 1992 HAVE TRADITIONALLY BEEN CONSIDERED 
OBSTACLES TO INVESTMENT.  HOWEVER, THE DRAFT INVESTMENT LAW OF 1995, 
WHICH SHOULD BECOME LAW BY THE FALL OF 1995, WILL INTEGRATE THE TWO 
LAWS, REMOVE MOST OBSTACLES AND PROMOTE INVESTMENT THROUGH THE 
ESTABLISHMENT OF AN INVESTMENT PROMOTION COUNCIL. ANOTHER BARRIER IS THE 
LAW WHICH REQUIRES 51 PERCENT JORDANIAN OWNERSHIP IN ANY BUSINESS ENTITY 
IN TRADE, TRANSPORTATION AND SERVICE SECTORS. 

UNDER THE ENCOURAGEMENT OF INVESTMENT LAW, AN INVESTMENT MEETING THE 
DEFINITION OF AN "ECONOMIC PROJECT" OR AN "APPROVED ECONOMIC PROJECT" 
QUALIFIES FOR TAX HOLIDAYS AND OTHER EXEMPTIONS FOR UP TO FIVE YEARS.  
PROFITS ACCRUING TO REGISTERED FOREIGN INVESTMENT COMPANIES, WHICH HAVE 
BEEN EXAMINED BY THE INVESTMENT COMMITTEES, MAY BE FREELY REMITTED 
BEGINNING TWO YEARS FROM THE DATE OF PRODUCTION.

THE FOREIGN INVESTMENT LAW MAKES A DISTINCTION BETWEEN ARAB AND NON-ARAB 
FOREIGN INVESTMENTS  IT PERMITS AN ARAB TO INVEST IN ANY PROJECT IN 
INDUSTRY, TOURISM, HEALTH, AGRICULTURE, AND HOUSING, PROVIDED THAT HIS 
INVESTMENT, SHARE OR CONTRIBUTION IS AT LEAST JD 30,000.  AN ARAB 
INVESTOR SATISFYING THESE REQUIREMENTS IS TREATED AS A JORDANIAN 
INVESTOR.

FOREIGN (NON-ARAB) INVESTORS ARE NOT PERMITTED TO INVEST IN ANY OF THE 
ABOVE-MENTIONED SECTORS UNLESS THE MINISTER OF INDUSTRY AND TRADE 
RECOMMENDS THE PROJECT AND THE COUNCIL OF MINISTERS GIVES ITS APPROVAL.  
THE FOREIGN (NON-ARAB) INVESTOR'S CAPITAL, SHARE OR CONTRIBUTION SHOULD 
BE AT LEAST JD 50,000.  ARABS OR NON-ARABS MAY INVEST IN TRADE, 
CONTRACTING, AND TRANSPORT BUSINESS WITH A JORDANIAN PARTNER PROVIDED 
THAT THE ARAB OR FOREIGN INVESTOR'S SHARE IN THE PROJECT IS AT LEAST JD 
100,000 IN TRANSPORT OR JD 200,000 IN TRADE OR CONTRACTING, AND THAT IT 
DOES NOT EXCEED 49 PERCENT OF THE CAPITAL INVESTED IN THE PROJECT.

BEFORE INITIATING AN INVESTMENT, A FOREIGNER MUST TRANSFER HIS CAPITAL 
INTO JORDAN IN A CONVERTIBLE FOREIGN CURRENCY.  IN ADDITION, ARAB 
NATIONALS MAY BUY SHARES OF PUBLIC SHAREHOLDING COMPANIES LISTED ON THE 
AMMAN FINANCIAL MARKET IN ANY CONVERTIBLE CURRENCY OR IN JORDANIAN 
DINARS.  THE LAW IS NOW BEING INTERPRETED TO THE EFFECT THAT NON-ARAB 
INVESTORS REQUIRE CABINET APPROVAL BEFORE THEY CAN PURCHASE SHARES ON 
THE FINANCIAL MARKET.

THE GOVERNMENT OF JORDAN RECOGNIZES THE LIMITATIONS OF BOTH INVESTMENT 
LAWS.  THE ENCOURAGEMENT OF INVESTMENT LAW ESTABLISHES A BUREAUCRATIC 
REGIME THAT IS GIVEN ONLY VAGUE GUIDELINES IN DETERMINING WHAT 
CONSTITUTES AN ECONOMIC OR AN APPROVED ECONOMIC PROJECT.  IN ADDITION, 
THE TAX EXEMPTION PROVISIONS ENCOURAGE SHORTER RATHER THAN LONGER TERM 
INVESTMENT.  THE FOREIGN INVESTMENT LAW RESTRICTS ANYTHING BUT ARAB 
DIRECT INVESTMENT.  THE GOVERNMENT IS CURRENTLY STUDYING WAYS TO AMEND 
BOTH LAWS.

CONVERSION AND TRANSFER POLICIES

IN MARCH 1995, THE CENTRAL BANK OF JORDAN ANNOUNCED THAT THE JORDANIAN 
DINAR IS FULLY CONVERTIBLE FOR COMMERCIAL TRANSACTION PURPOSES. THIS 
MEASURE IS PART OF GOJ'S EFFORTS TO LIBERALIZE THE INVESTMENT CLIMATE.  

THERE ARE NO RESTRICTIONS ON TRANSFERRING FUNDS ASSOCIATED WITH 
INVESTMENT.  TRANSFERS WITHIN THE JORDANIAN BANKING SYSTEM ARE PERMITTED 
IN ANY MAJOR WORLD CURRENCY AT THE LEGAL MARKET CLEARING RATE, WHICH IS 
THE CENTRAL BANK OF JORDAN'S (CBJ) OFFICIAL RATE.  CBJ REGULATIONS 
PERMIT NON-RESIDENTS AND FOREIGN INVESTORS WHO TRANSFERRED THEIR FUNDS 
INTO THE KINGDOM TO REMIT THEIR FUNDS ABROAD IN THE SAME OR ANY OTHER 
TRANSFERABLE CURRENCY.

TO TRANSFER FUNDS OUTSIDE JORDAN, A LOCAL BANK MUST OBTAIN A FOREIGN 
CURRENCY TRANSFER PERMIT FROM THE CBJ.  FURTHERMORE, THE CBJ MUST BE 
INFORMED WHEN AN INVESTOR TRANSFERS FUNDS INTO THE KINGDOM, OPENS A NON-
RESIDENT ACCOUNT AT A LOCAL BANK OR SEEKS TO TRANSFER FOREIGN CURRENCY 
FUNDS OUTSIDE JORDAN BEFORE AN INVESTMENT HAS BEEN MADE.  CBJ APPROVAL 
FOR THESE TRANSACTIONS IS GENERALLY GRANTED ON THE SPOT.

FOREIGNERS CAN GET CLEAR REGULATIONS GOVERNING THEIR SPECIFIC NEEDS FROM 
THE CBJ OR A LOCAL BANK BEFORE INVESTING IN JORDAN.  THERE ARE NO 
LIMITATIONS ON THE INFLOW OR OUTFLOW OF FUNDS FOR REMITTANCES OF 
PROFITS, DEBT SERVICE, CAPITAL GAINS, RETURNS ON INTELLECTUAL PROPERTY 
OR IMPORTED INPUTS, AS LONG AS AUTHORIZATION FROM THE CBJ IS OBTAINED 
FIRST.

EXPROPRIATION AND COMPENSATION

THERE HAVE BEEN NO CASES IN JORDAN WHERE THE GOVERNMENT HAS EXPROPRIATED 
THE PRIVATE PROPERTY OF AN INVESTOR.  EMBASSY BELIEVES IT UNLIKELY THAT 
THE GOVERNMENT'S POLICIES REGARDING EXPROPRIATIONS WILL CHANGE IN THE 
NEAR FUTURE.

DISPUTE SETTLEMENT

THE JORDANIAN GOVERNMENT HAS NOT BEEN A PARTY TO INVESTMENT DISPUTES 
WITH FOREIGNERS IN RECENT YEARS.  THE COURT SYSTEM IS USED TO ENFORCE 
JORDANIAN LAWS AND REGULATIONS REGARDING PROPERTY AND CONTRACTUAL 
RIGHTS.  EMBASSY HAS RECEIVED NO COMPLAINTS ABOUT JUDICIAL APPLICATION 
OF JORDAN'S COMMERCIAL CODE OR OF GOVERNMENT INTERFERENCE IN COMMERCIAL 
CASES; MOST COMPLAINTS CONCERN THE EXCESSIVE TIME IT TAKES FOR A CASE TO 
GO TO COURT.  JORDANIAN COURTS ENFORCE INTERNATIONAL ARBITRATION 
DECISIONS ON INVESTMENT DISPUTES BETWEEN FOREIGN INVESTORS AND THE STATE 
ONLY IF THE CASE HAD PREVIOUSLY BEEN REGISTERED WITH ANOTHER COURT.  
JORDAN IS NOT A MEMBER OF THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF 
INVESTMENT DISPUTES.

PERFORMANCE REQUIREMENTS/INCENTIVES

FOR INVESTMENTS THAT FALL UNDER THE ENCOURAGEMENT OF INVESTMENT LAW, 
INVESTORS ARE REQUIRED TO SUBMIT TO THE MINISTER OF INDUSTRY AND TRADE 
SEMI-ANNUAL REPORTS ON THE PROGRESS OF THEIR PROJECTS DURING THE YEARS 
OF TAX EXEMPTION.  THE MINISTER STIPULATES THE STANDARDS FOR DEVELOPING 
SUCH PROJECTS, PLUS THE DATE OF PRODUCTION START-UP.  IN THE CASE OF 
IMPORTED RAW MATERIALS, WHICH RECEIVE TAX EXEMPTIONS UNDER THE LAW, 
INVESTORS MUST DOCUMENT THE VALUE OF IMPORTS WHICH HAVE BEEN USED OR 
INSTALLED AT THE PROJECT.

IN RETURN FOR SATISFYING THESE PERFORMANCE REQUIREMENTS, AN INVESTOR 
BENEFITS FROM THE FOLLOWING INCENTIVES OFFERED UNDER THE ENCOURAGEMENT 
OF INVESTMENT LAW:

A)  EXEMPTION FROM CUSTOMS AND IMPORT DUTIES ON FIXED ASSETS;
B)  EXEMPTION FROM INCOME AND SOCIAL SERVICE TAXES ON NET PROFITS FOR
    FIVE YEARS FROM THE DATE OF PRODUCTION;
C)  EXEMPTION FROM BUILDING AND LAND TAXES FOR FIVE TO SEVEN 
    YEARS FROM THE DATE OF PROJECT APPROVAL;
D)  FREE GRANTS OF STATE-OWNED LAND OUTSIDE THE CITIES OF AMMAN AND
    ZARQA AS APPROVED BY THE COUNCIL OF MINISTERS;
E)  REPATRIATION OF IMPORTED CAPITAL IN THREE EQUAL ANNUAL INSTALLMENTS
    STARTING TWO YEARS AFTER PRODUCTION BEGINS;
F)  EXEMPTION FROM INCOME TAXES ON INTEREST AND DIVIDENDS; AND
G)  ANNUAL REPATRIATION OF DIVIDENDS.


RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT

IN GENERAL, PREVAILING JORDANIAN LAWS ON INVESTMENTS AND PROPERTY 
OWNERSHIP PERMIT DOMESTIC AND FOREIGN ENTITIES TO ESTABLISH AND OWN 
BUSINESS ENTERPRISES AND ENGAGE IN REMUNERATIVE ACTIVITIES.  HOWEVER, 
ACTIVITIES THAT CONCERN THE MILITARY AND NATIONAL SECURITY INTERESTS OF 
THE KINGDOM ARE SUBJECT TO DIFFERENT PROVISIONS AND PROCEDURES.  FOREIGN 
COMPANIES MAY OPEN REGIONAL AND BRANCH OFFICES TO CONDUCT BUSINESS.  
UNDER THE REGISTRATION OF FOREIGN COMPANIES LAW, BRANCH OFFICES MAY 
CARRY OUT FULL BUSINESS ACTIVITIES IN JORDAN WHILE REGIONAL OFFICES MAY 
SERVE AS LIAISONS BETWEEN THEIR HEAD OFFICES AND JORDANIAN OR REGIONAL 
CLIENTS.

NO FOREIGN FIRM MAY IMPORT GOODS INTO THE COUNTRY WITHOUT APPOINTING A 
REGISTERED AGENT.  THE AGENT'S CONNECTION TO THE FOREIGN COMPANY MUST BE 
DIRECT, WITHOUT A SUB-AGENT OR INTERMEDIARY IN BETWEEN.  THERE ARE NO 
REGULATIONS GOVERNING THE CONTRACT BETWEEN THE FOREIGN FIRM AND THE 
COMMERCIAL AGENT.  PRIVATE FOREIGN ENTITIES THAT ARE REGISTERED, 
LICENSED AND PERMITTED TO OPERATE IN JORDAN, WHETHER UNDER SOLE FOREIGN 
OWNERSHIP OR AS A JORDANIAN-FOREIGN JOINT VENTURE, COMPETE EQUALLY WITH 
LOCAL COMPANIES.

PROTECTION OF PROPERTY RIGHTS

THE JORDANIAN LEGAL SYSTEM FACILITATES AND PROTECTS THE ACQUISITION AND 
DISPOSITION OF PROPERTY RIGHTS.  HOWEVER, WHILE THE GOJ HAS EXPRESSED 
ITS INTENT TO JOIN THE BERNE CONVENTION BY 1996, NO GOVERNMENT MEASURES 
HAVE BEEN PUT INTO PLACE TO ENFORCE IPR LAWS IN JORDAN.  THE JORDANIAN 
COPYRIGHTS LAW, ADOPTED IN 1992, ONLY PROTECTS FOREIGN WORKS THAT ARE 
MADE AND REGISTERED IN JORDAN, ARE SUBJECT TO AN INTERNATIONAL AGREEMENT 
TO WHICH JORDAN IS A PARTY, OR ARE SUBJECT TO RECIPROCAL PROTECTION.  
FOREIGN WORKS MADE ABROAD MUST BE REGISTERED IN JORDAN IN ORDER TO BE 
PROTECTED AND RECOGNIZED.  THE LAW GIVES THE IPR HOLDER THE EXCLUSIVE 
RIGHT TO COPY AND REPRODUCE WORKS; TRANSLATE, REVISE, ADAPT, OR PREPARE 
DERIVATIVE WORKS; DISTRIBUTE COPIES OF WORKS; AND PUBLICLY COMMUNICATE 
WORKS.

ROYALTIES MAY BE REMITTED UNDER LICENSING AGREEMENTS APPROVED BY THE 
MINISTRY OF INDUSTRY AND TRADE.  TRADEMARKS AND PATENTS REGISTERED AT 
THE MINISTRY OF INDUSTRY AND TRADE, IN ACCORDANCE WITH JORDANIAN LAW NO. 
33 OF 1952, ARE PROTECTED FOR A PERIOD OF SEVEN YEARS FROM THE DATE OF 
REGISTRATION.  REGISTRATION MAY BE RENEWED ONCE, FOR A TOTAL PERIOD OF 
14 YEARS.  TRADEMARK FEES ARE NOMINAL.  A FOREIGN COMPANY MAY HAVE ITS 
TRADEMARKS OR PATENTS REGISTERED IN JORDAN BY SENDING A POWER OF 
ATTORNEY TO A TRADEMARK AGENT OR TO A LAWYER.  IN PRACTICE, LOCAL 
BUSINESSMEN HAVE BEEN KNOWN TO REGISTER INTERNATIONALLY-KNOWN TRADEMARKS 
WITHOUT THE HOLDERS KNOWLEDGE.

REGULATORY SYSTEM:  LAWS AND PROCEDURES

WHILE THE GOVERNMENT HAS ANNOUNCED ITS INTENTION TO STREAMLINE 
REGULATORY SYSTEMS, ESPECIALLY THOSE THAT INHIBIT BUSINESS ACTIVITY, 
PROGRESS HAS BEEN SLOW.  LOCAL BUSINESSMEN FREQUENTLY COMPLAIN ABOUT THE 
CUMBERSOME PROCEDURES FOR REGISTERING COMPANIES OR CLEARING GOODS 
THROUGH CUSTOMS.  THE GOVERNMENT HAS HAD SOME SUCCESSES IN ELIMINATING 
UNNECESSARY BUREAUCRACY.  IMPORT LICENSING PROCEDURES HAVE BEEN 
SIMPLIFIED AND EXPORT LICENSING PROCEDURES HAVE BEEN ELIMINATED.  THE 
GOVERNMENT IS CURRENTLY LOOKING AT WAYS TO FACILITATE COMPANY 
REGISTRATIONS.

IN GENERAL, TAX, LABOR, HEALTH AND SAFETY LAWS DO NOT DISTORT OR IMPEDE 
THE EFFICIENT MOBILIZATION AND ALLOCATION OF INVESTMENT.  IN LATE 1993, 
THE INVESTMENT DIRECTORATE AT THE MINISTRY OF INDUSTRY AND TRADE WAS 
ESTABLISHED AS AN INDEPENDENT AGENCY TO SERVE AS A ONE STOP SERVICING 
CENTER FOR INVESTORS.  THIS AGENCY WILL SEEK TO STREAMLINE FOREIGN 
INVESTMENT PROCEDURES AND ELIMINATE BUREAUCRATIC IMPEDIMENTS TO 
INVESTMENT.

EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT

THE CENTRAL BANK OF JORDAN (CBJ) IS THE ULTIMATE AUTHORITY ON CAPITAL 
AND CREDIT MARKETS IN JORDAN.  ITS POLICIES ARE AIMED AT FACILITATING 
THE FLOW OF FINANCIAL RESOURCES IN AND OUT OF JORDAN.  JORDANIAN 
CITIZENS ARE PERMITTED TO INVEST IN OTHER ARAB COUNTRIES IN ORDER TO 
ENCOURAGE RECIPROCAL TREATMENT.

THE RECESSION IN THE LATE 1980'S EXACERBATED WEAKNESSES WITHIN THE 
BANKING SYSTEM, WHICH CULMINATED WITH THE COLLAPSE OF PETRA BANK IN 
1989.  THE CENTRAL BANK RESPONDED BY REORGANIZING A NUMBER OF OTHER 
BANKS AND INSTITUTING STRICT CAPITAL SUFFICIENCY REQUIREMENTS, WHICH 
RESTORED THE HEALTH OF THE FINANCIAL SECTOR.  FOR THE PAST TWO YEARS, 
THE BANKING SYSTEM HAS BEEN ONE OF THE FASTEST GROWING SECTORS OF THE 
ECONOMY.  TOTAL ASSETS GREW FROM 10.3 BILLION IN 1994 TO 11.6 BILLION IN 
1994 .  THE TOTAL ASSETS OF THE FIVE LARGEST BANKS ARE ABOUT USD 6.62 
BILLION.

THE JORDANIAN BANKING SYSTEM OFFERS ALL TYPES OF BANKING, INVESTMENT AND 
PORTFOLIO SERVICES, INVOLVING LOCAL OR INTERNATIONAL ACCOUNTS AND 
TRANSACTIONS.  FOREIGN FIRMS, AS NON-RESIDENT ACCOUNT HOLDERS, ENJOY 
ACCESS TO BANKING CREDIT AND LOANS.  THE INTEREST RATE CHARGED ON CREDIT 
FACILITIES GRANTED TO FOREIGN FIRMS MAY BE DECIDED ON A CASE-BY-CASE 
BASIS AND MAY DIFFER BETWEEN BANKS.  HOWEVER, FOREIGN INVESTORS MUST 
RECEIVE THE APPROVAL OF THE CBJ BEFORE APPLYING FOR CREDIT LOCALLY.  
THERE ARE A NUMBER OF INTERNATIONALLY-RECOGNIZED ACCOUNTING AND AUDITING 
FIRMS IN JORDAN.  THE GOVERNMENT'S ACCOUNTING AND AUDITING REGULATIONS 
ARE CONSISTENT AND INTERNATIONALLY RECOGNIZED.

POLITICAL VIOLENCE

EXCEPT FOR FOOD RIOTS IN MA'AN FOLLOWING THE DEVALUATION OF THE DINAR IN 
1988, THERE HAVE BEEN NO POLITICALLY-MOTIVATED DAMAGE TO FOREIGN 
INVESTMENT PROJECTS IN JORDAN SINCE THE EARLY 1970'S.  THE EMBASSY DOES 
NOT ANTICIPATE ANY CIVIL DISTURBANCES IN THE NEAR FUTURE.

BILATERAL INVESTMENT AGREEMENTS: JORDAN HAS NOT ENTERED INTO ANY 
BILATERAL INVESTMENT AGREEMENTS.

OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS

OPIC HAS AN INVESTMENT AGREEMENT WITH JORDAN.  WHILE THE AGREEMENT 
REQUIRES THE JORDANIAN GOVERNMENT TO APPROVE OPIC 
INSURANCE FOR CERTAIN TYPES OF INVESTMENTS, THE EMBASSY HAS BEEN 
OFFICIALLY INFORMED THAT THE GOVERNMENT CONSIDERS APPROVAL TO BE 
AUTOMATIC.  JORDAN HAS NEVER SHOWN INTEREST IN JOINING THE MULTILATERAL 
INVESTMENT GUARANTEE AGENCY (MIGA).

LABOR

JORDAN HAS ONE OF THE HIGHEST POPULATION GROWTH RATES (3.8 PERCENT 
ANNUALLY) IN THE WORLD.  ABOUT ONE HALF OF THE POPULATION OF 4.3 MILLION 
IS UNDER THE AGE OF 15.  JORDAN HAS A LABOR FORCE OF 797,000 AND A 
GOVERNMENT ESTIMATED UNEMPLOYMENT RATE OF 20 PERCENT; UNOFFICIAL 
ESTIMATES ARE HIGHER. IN GENERAL, THE LABOR FORCE IS WELL EDUCATED.  
LITERACY RATES ARE 85 PERCENT FOR MEN AND ABOUT 73 PERCENT FOR WOMEN. 
MANY OF THE 300,000 JORDANIANS WHO RETURNED FROM THE GULF STATES AT THE 
OUTBREAK OF THE GULF CRISIS HAVE SPECIALIZED SKILLS IN FIELDS SUCH AS 
COMPUTER PROGRAMMING AND MARKETING THAT PREVIOUSLY WERE IN SHORT SUPPLY 
IN JORDAN. THIS HAS ENHANCED THE ATTRACTIVENESS OF THE KINGDOM AS A 
SOURCE OF HIGH-SKILLED LABOR.

TO AVOID AGGRAVATING THE UNEMPLOYMENT PROBLEM, THE GOVERNMENT DOES NOT 
PERMIT FOREIGN LABOR TO WORK IN JORDAN, EXCEPT IN EXCEPTIONAL 
CIRCUMSTANCES.  THE MINISTER OF LABOR MUST APPROVE THE HIRING OF FOREIGN 
WORKERS BY PRIVATE BUSINESSES. HOWEVER, THERE ARE CERTAIN SECTORS WHERE 
FOREIGN WORKERS PLAY AN IMPORTANT ROLE.  NON-JORDANIAN ARAB WORKERS, OF 
WHICH EGYPTIANS ARE THE LARGEST SINGLE GROUP, COMMONLY WORK AS LABORERS, 
CONSTRUCTION WORKERS, FARM WORKERS, AND IN SERVICE JOBS.  ASIAN WORKERS 
SUCH AS FILIPINOS AND SRI LANKANS, COMMONLY WORK AS DOMESTICS AND IN 
SERVICE INDUSTRIES INCLUDING FOOD AND HEALTH SERVICES.

LABOR UNIONS EXIST IN JORDAN BUT SERVE PRIMARILY AS INTERMEDIARIES 
BETWEEN WORKERS AND THE MINISTRY OF LABOR.  ALTHOUGH UNIONS MAY ENGAGE 
IN COLLECTIVE BARGAINING ON BEHALF OF WORKERS, THEY CANNOT ORGANIZE 
DEMONSTRATIONS WITHOUT A PERMIT. CURRENTLY, LESS THAN 15 PERCENT OF THE 
TOTAL LABOR FORCE IS UNIONIZED.

THE GOVERNMENT MANDATES WORKER BENEFITS FOR MANY INDUSTRIES AND 
BUSINESSES.  WAGE LEVELS ARE NOT MANDATED, ALTHOUGH THE GOVERNMENT 
RETAINS THE RIGHT TO SET WAGES FOR SPECIFIC SKILLS OR REGIONS.  OVERTIME 
IS SET AT 125 PERCENT OF WAGES, MINIMUM ANNUAL LEAVE IS 14 DAYS AND 
THERE ARE APPROXIMATELY 20 PAID PUBLIC HOLIDAYS.  SOCIAL SECURITY 
REGULATIONS REQUIRE EMPLOYERS PAY 10 PERCENT AND EMPLOYEES 5 PERCENT OF 
WAGES INTO THE SOCIAL SECURITY FUND.

BOTH POLITICAL AND LABOR LEADERS RESPONSIBLE FOR JORDAN'S LABOR SECTOR 
AGREE THAT THEIR TOP PRIORITIES ARE REDUCING UNEMPLOYMENT AND CREATING 
JOBS.  THE GOVERNMENT IS NOW PURSUING MEANS SUCH AS PASSING A NEW SOCIAL 
SECURITY LAW, EXPANDING VOCATIONAL TRAINING, AND IMPLEMENTING ECONOMIC 
REFORMS IN ORDER TO ALLEVIATE THE SITUATION. THE JORDANIAN PARLIAMENT IS 
CURRENTLY CONSIDERING A NEW DRAFT LABOR LAW, WHICH WILL MANDATE FURTHER 
BENEFITS FOR WORKERS.  PROVISIONS CONSIDERED FOR INCLUSION ARE 
PROTECTION FOR WORKERS FROM ARBITRARY OR POLITICALLY MOTIVATED 
DISMISSALS, THE ESTABLISHMENT OF A MINIMUM WAGE, MATERNITY LEAVE FOR 
WOMEN, AND REFORMS TO THE SOCIAL SECURITY SYSTEM  

FOREIGN TRADE ZONES/FREE PORTS

JORDAN'S FREE ZONES CORPORATION HAS DEVELOPED TWO TRADE AND INDUSTRIAL 
ZONES NEAR AQABA AND ZARQA, WHICH OFFER FOREIGN INVESTORS SUBSTANTIAL 
FINANCIAL INCENTIVES, INCLUDING DUTY-FREE IMPORTATION, TAX RELIEF, AND 
GUARANTEED REPATRIATION OF FOREIGN EXCHANGE.  ALTHOUGH THE AQABA FREE 
ZONE OFFERS FACILITIES FOR INDUSTRIAL MANUFACTURING, ITS ACTIVITIES 
CONCENTRATE ON TRANSIT, COLD STORAGE, AND WAREHOUSING.  THE ZARQA ZONE 
OFFERS AUTOMOBILE AND COMMERCIAL SALES OPPORTUNITIES, PLUS MANUFACTURING 
AND WAREHOUSING.

THE FREE ZONE FACILITIES ARE AVAILABLE TO LOCAL JORDANIAN COMPANIES, 
JOINT VENTURES, AND REGIONAL OFFICES OF FOREIGN FIRMS.  TENANTS ENJOY 
SIX PRINCIPAL BENEFITS:

1.  EXEMPTION FROM INCOME AND SOCIAL SECURITY TAXES FOR TWELVE YEARS,
    EXCEPT FOR PROFITS REALIZED FROM THE COMMERCIAL STORAGE OF GOODS
    RELEASED FOR DOMESTIC CONSUMPTION;
2.  EXEMPTION FROM INCOME AND SOCIAL SECURITY TAXES ON SALARIES AND
    ALLOWANCES EARNED BY NON-JORDANIANS WORKING IN FREE ZONE VENTURES;
3.  EXEMPTION FROM IMPORT AND CUSTOM DUTIES, AS WELL AS OTHER TAXES AND
    FEES, ON GOODS IMPORTED TO OR RE-EXPORTED FROM THE ZONES, EXCEPT FOR
    SERVICE DUES AND WAGES;
4.  EXEMPTION FROM REAL ESTATE TAXES AND LICENSE FEES ON BUILDINGS
    PROPERTY ERECTED IN THE ZONES;
5.  GUARANTEE OF FULL REPATRIATION OF FOREIGN EXCHANGE INVESTED IN AND
    PROFITS EARNED FROM FREE ZONE VENTURES; AND
6.  EXEMPTION FROM CUSTOMS FEES OF INDUSTRIAL PROJECTS THAT WILL SUPPLY
    THE DOMESTIC MARKET.

IMPORTERS USING THE FREE ZONES TO SUPPLY THE LOCAL MARKET AVOID IMPORT 
LICENSE FEES AMOUNTING TO FIVE PERCENT OF CARGO VALUE UNTIL THE GOODS 
ARE ACTUALLY CLEARED FOR RELEASE FROM THE ZONE.  SIMILARLY, IMPORTERS 
MAY SIMPLY ISSUE INVOICES TO PURCHASERS WHO THEN ASSUME RESPONSIBILITY 
FOR CLEARING THEIR GOODS; IMPORTERS THEREBY AVOID TYING UP LARGE SUMS OF 
CASH FOR EXTENDED PERIODS.

CAPITAL OUTFLOW POLICY:

PRIVATE INDIVIDUAL CAPITAL OUTFLOWS ARE RESTRICTED BY LAW.  CENTRAL BAND 
OF JORDAN REGULATIONS ISSUED IN 1988 PROVIDE THAT:

A)  ANY PERSON LEAVING THE KINGDOM MAY TAKE UP TO JD 5,000 IN CASH OUT
    OF THE COUNTRY;
B)  A PERSON HOLDING A RESIDENT ACCOUNT IN DINARS MAY NOT DRAW ON IT IN
    FAVOR OF A PERSON OUTSIDE THE KINGDOM, UNLESS GIVEN APPROVAL BY
    THE CBJ;
C)  A PERSON RESIDING IN THE KINGDOM MAY NOT OPEN A DINAR ACCOUNT
    OVERSEAS, UNLESS GRANTED APPROVAL BY THE CBJ;
D)  A PERSON DEPARTING THE KINGDOM MAY TAKE, OR TRANSFER ANNUALLY, UP TO
    JD 35,000 IN FOREIGN CURRENCY FOR STUDYING, MEDICAL TREATMENT,
    FAMILY REMITTANCE, TRAVEL OR PILGRIMAGE PURPOSES;
E)  A PERSON RESIDING IN THE KINGDOM MAY NOT MAINTAIN FOREIGN CURRENCY
    ACCOUNTS OVERSEAS, EXCEPT FOR BANKS AND FINANCIAL COMPANIES;
F)  A BANK OR FINANCIAL COMPANY MAY EXPORT FOREIGN CURRENCY, PROVIDED
    THAT CBJ APPROVAL IS OBTAINED BEFOREHAND;
G)  A BANK OR FINANCIAL COMPANY MAY OPEN FOREIGN CURRENCY ACCOUNTS WITH
    BRANCHES OR CORRESPONDENT BANKS OVERSEAS, PROVIDED THAT THE CBJ IS
    KEPT INFORMED OF THESE RELATIONSHIPS.  THE CBJ MAINTAINS THE RIGHT
    TO OBJECT TO A RELATIONSHIP WITH ANY CORRESPONDENT BANK;
H)  RESIDENT JORDANIANS ARE ALLOWED TO OPEN FOREIGN CURRENCY ACCOUNTS OF
    UP TO JD 500,000 PER YEAR;
I)  BANKS AND FINANCIAL COMPANIES MUST OBTAIN CBJ APPROVAL IN ORDER TO
    ISSUE FOREIGN CURRENCY TRANSFER PERMITS FOR IMPORT LICENSES FROM THE
    MINISTRY OF INDUSTRY AND TRADE; AND
J)  PURCHASING FOREIGN BANKNOTES FROM THE JORDANIAN BANKING SYSTEM TO
    PAY FOR GOODS IMPORTED TO THE FREE ZONES IS PROHIBITED.



             CHAPTER VIII.  TRADE AND PROJECT FINANCING

BRIEF DESCRIPTION OF BANKING SYSTEM

THE CENTRAL BANK OF JORDAN (CBJ) IS THE KINGDOM'S MONETARY AUTHORITY AND 
CONTROLS AND REGULATES BANKING OPERATIONS.  IT HAS LICENSED 15 
COMMERCIAL BANKS AND SIX INVESTMENT BANKS TO OPERATE IN JORDAN.  IN 
ADDITION TO REGULAR DEPOSIT AND LENDING ACTIVITIES, JORDANIAN BANKS DEAL 
IN DINAR AND DOLLAR-DENOMINATED CERTIFICATES OF DEPOSITS AND FOREIGN 
CURRENCY INVESTMENT PORTFOLIOS.  THEY ALSO ENGAGE IN CONSORTIUM-LENDING 
TRANSACTIONS.  MONEYCHANGERS ALSO OPERATE LEGALLY IN JORDAN AND ARE 
REGULATED BY THE CBJ.

FOREIGN EXCHANGE CONTROLS AFFECTING TRADING

THE FOREIGN EXCHANGE LAW NO. 95 OF 1966 AND ITS REGULATIONS PROVIDE 
RULES RELATED TO COMMERCIAL PAYMENTS, PAYMENTS FOR GOODS ENTERING THE 
FREE TRADE ZONES IN TRANSIT, EXPORT TRANSACTIONS AND CAPITAL TRANSFERS.  
ACCORDING TO THE REGULATIONS:

A)  ALL TRANSFERS OF FUNDS OUTSIDE THE KINGDOM REPRESENTING PAYMENT FOR
    IMPORTED GOODS MUST GO THROUGH THE JORDANIAN BANKING SYSTEM;
B)  A FOREIGN EXCHANGE PERMIT MUST BE ISSUED BY A LOCAL BANK AFTER THE
    IMPORTER HAS OBTAINED AN IMPORT LICENSE FROM THE MINISTRY OF
    INDUSTRY AND TRADE;
C)  ALL LOCAL BANKS MUST FOLLOW THE INSTRUCTIONS STATED ON THE IMPORT
    LICENSE BEFORE OPENING A LETTER OF CREDIT OR ACCEPT BILLS OF LADING
    RELATED TO IMPORTED GOODS;
D)  TRANSFERS OUTSIDE THE KINGDOM TO SETTLE PAYMENT OF GOODS IMPORTED TO
    THE FREE ZONES OR GOODS PASSING IN TRANSIT ARE NOT PERMITTED, UNLESS
    TRANSACTED THROUGH BANKS AND FINANCIAL COMPANIES;  AND
E)  THE PURCHASE OF FOREIGN BANKNOTES FROM THE JORDANIAN BANKING SYSTEM
    TO PAY FOR GOODS IMPORTED TO THE FREE ZONES IS NOT PERMITTED.

IN JANUARY 1994 THE CBJ ANNOUNCED THAT RESIDENTS OF JORDAN WOULD BE 
PERMITTED TO TRANSFER OUT OF THE COUNTRY 35,000 DINARS IN FOREIGN 
CURRENCY FOR TRAVEL, EDUCATION, MEDICAL TREATMENT, LIVING OVERSEAS, 
RELIGIOUS PILGRIMAGES AND FAMILY ALLOWANCES.  BANKS COULD EXECUTE THESE 
TRANSFERS WITHOUT PRIOR PERMISSION FROM THE CBJ.  BANKS AND FINANCIAL 
COMPANIES MAYOPEN NON-RESIDENT ACCOUNTS IN FOREIGN CURRENCY, FROM WHICH 
THEY CAN EXECUTE WITHDRAWAL AND TRANSFER ORDERS WITHOUT ANY CONDITIONS 
OR RESTRICTIONS.  THE JANUARY INSTRUCTIONS ALSO PERMIT LOCAL BANKS TO 
OFFER FOREIGN CURRENCY LOANS AFTER OBTAINING PERMISSION FROM THE CBJ.

GENERAL FINANCING AVAILABILITY

FINANCING IN JORDAN IS AVAILABLE THROUGH OVERDRAFTS, ONE-YEAR DISCOUNTED 
LOANS, THREE-YEAR LOANS WITH INTEREST PAYABLE MONTHLY,  AND SYNDICATED 
LOANS FOR PERIODS OF ONE TO SEVEN YEARS (INTEREST IS BASED ON A THREE- 
OR SIX-MONTH BASE RATE PLUS A MARGIN).  GOVERNMENT-GUARANTEED DEBT 
SECURITIES ARE AVAILABLE TO FINANCE PUBLIC SECTOR PROJECTS.

HOW TO FINANCE EXPORTS/METHODS OF PAYMENT

JORDANIAN EXPORTS ARE FINANCED THROUGH LETTERS OF CREDIT (L/C'S) AND 
LETTERS OF GUARANTEE (L/G'S).  FINANCING PERIODS RANGE FROM 90-360 DAYS 
AGAINST L/C'S ISSUED BY INTERNATIONALLY-RECOGNIZED BANKS, OR AGAINST 
EXPORT CONTRACTS BACKED BY PRIME BANKS ACCEPTANCES OF 180-360 DAYS 
TENOR.  PRE-EXPORT FINANCING IS AVAILABLE FOR 180 DAYS AGAINST L/C'S.  
ALL CREDITS EXTENDED TO EXPORTERS AGAINST INWARD L/C'S AND L/G'S OR 
ACCEPTANCES ARE ELIGIBLE FOR REFINANCING WITH THE CBJ AT PREFERENTIAL 
RATES.  THE COST FOR EXPORTERS IS PRESENTLY SET AT SIX PERCENT.

THE CBJ MUST APPROVE PROJECT FINANCING EXTENDED TO NON-RESIDENT 
OPERATIONS.  LOCAL BANKS REQUEST A FOREIGN BANK GUARANTEE BEFORE 
FINANCING IS APPROVED.  LOCAL COMMERCIAL BANKS ARE PERMITTED TO OFFER 
DIRECT ADVANCES FOR WORKING CAPITAL REQUIREMENTS.  THEY OFFER SHORT- OR 
LONG-TERM PROJECT FINANCING.  SYNDICATED FINANCING CAN ALSO BE ARRANGED 
FOR LARGE PROJECTS.

TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE

JORDAN'S EXIM BANK: IN 1994, THE CBJ ENDORSED THE ESTABLISHMENT OF AN 
EXPORT/IMPORT BANK WITH A REGISTRATION CAPITAL OF JD 20 MILLION, HALF OF 
WHICH IS TO BE INVESTED IN EXPORT PROMOTION.  JORDAN'S EXIM BANK IS 20% 
PUBLIC SECTOR AND 80% PRIVATE SECTOR OWNED.  THE JORDAN EXIM BANK 
PROVIDES CREDIT, LOANS, COMMODITY EXPORT FINANCING, LOANS TO FOREIGN 
INVESTORS TO ENCOURAGE EXPORTS, EXPORT L/C's AND L/G's,PROMOTES THE BOND 
MARKET, ESTABLISHES TIES WITH FINANCIAL INSTITUTIONS OUTSIDE JORDAN 
AMONG OTHER SERVICES. 

LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS

COMMERCIAL BANKS

ARAB BANKING CORP.(JORDAN):
     ABC (NEW YORK)

ANZ GRINDLAYS BANK:
     ANZ, BANK OF NEW YORK
     BANKERS TRUST COMPANY
     CHASE MANHATTAN BANK
     CITIBANK NZ
     CREDIT LYONNAISE S.A.
     LIBERTY BANK & TRUST CO. OF TULSA NA
     UBAF (ARAB AMERICAN BANK)
     COT MELB, N.Y.

BANK OF JORDAN:
     BANK OF NEW YORK
     CHEMICAL BANK
     CHASE MANHATTAN BANK
     BANK OF AMERICA.

JORDAN-GULF BANK:
     CHEMICAL BANK
     AMERICAN EXPRESS BANK
     BANK OF NEW YORK
     BANK OF AMERICA.

THE BUSINESS BANK:
     AMERICAN EXPRESS BANK LTD.
     CHEMICAL BANK, BANK OF NEW YORK
     ARAB AMERICAN BANK.

     CITIBANK AMMAN
     BRITISH BANK OF THE MIDDLE EAST
     ARAB BANK LIMITED
     JORDAN-KUWAIT BANK
     JORDAN NATIONAL BANK
     CAIRO-AMMAN BANK

INVESTMENT BANKS

ARAB JORDAN INVESTMENT BANK:
     BANKERS TRUST AND CHEMICAL BANKING CORP.

AMMAN BANK OF INVESTMENTS
UNION INVESTMENT AND SAVINGS BANK
JORDAN INVESTMENT AND FINANCE BANK
PHILADELPHIA INVESTMENT BANK
MIDDLE EAST INVESTMENT BANK


ISLAMIC BANKS:
JORDAN ISLAMIC BANK

SPECIALIZED CREDIT BANKS:

JOINT GOVERNMENT-PRIVATE SECTOR OWNERSHIP:
   HOUSING BANK
   INDUSTRIAL DEVELOPMENT BANK
   CO-OPERATIVE ORGANIZATION

GOVERNMENT-OWNED:
   CITIES AND VILLAGES DEVELOPMENT BANK
   AGRICULTURAL CREDIT CORPORATION
   HOUSING CORPORATION



                     CHAPTER IX.  BUSINESS TRAVEL

TRAVEL ADVISORY AND VISAS

U.S. BUSINESSMEN INTERESTED IN VISITING JORDAN ARE ADVISED TO CONTACT 
THE STATE DEPARTMENT TO OBTAIN THE LATEST TRAVEL ADVISORY INFORMATION.  
VISITING U.S. BUSINESSMEN ARE GRANTED AN ENTRY VISA AT THE AIRPORT FOR A 
FEE OF JD 15 (APPROXIMATELY USD 21).  THE VISA IS RENEWABLE THROUGH THE 
MINISTRY OF INTERIOR'S DEPARTMENT OF FOREIGNERS AND BORDERS CONTROL.

BUSINESSMEN CARRYING SAMPLES OR CATALOGS MUST DECLARE THEM AT THE 
BORDERS AS "SAMPLES OF NO COMMERCIAL VALUE."  SINCE JANUARY 1993, 
JORDANIAN CUSTOMS HAVE TAXED SAMPLES AND REFUSED TO GRANT THEM A FREE 
TARIFF ENTRY.  THESE CASES INVOLVE U.S. BUSINESSMEN VISITING JORDAN.  
PERSONAL BELONGINGS ARE PERMITTED AND BUSINESSMEN ARE ASKED TO DECLARE 
THEIR EXPENSIVE LUGGAGE AS WELL.  JORDANIAN REGULATIONS REQUIRE 
INVESTORS AND BUSINESSMEN WHO ARE LICENSED TO DO BUSINESS N JORDAN TO 
DECLARE THEIR CURRENCY UPON ENTRY.  IN CASES WHERE THE INVESTOR HAS 
TRANSFERRED HIS CAPITAL FROM A U.S. BANK TO A JORDANIAN BANK, THE 
CUSTOMS OFFICER MUST BE INFORMED UPON ENTRY.

HOLIDAYS

JORDANIAN GOVERNMENT OFFICES ARE CLOSED ON FRIDAYS AND PUBLIC (NATIONAL 
AND MUSLIM) HOLIDAYS.  PRIVATE FIRMS DO NOT WORK ON FRIDAY.  LOCAL BANKS 
DO NOT OPERATE ON CHRISTMAS AND NEW YEARS.

BUSINESS INFRASTRUCTURE

THE BUSINESS INFRASTRUCTURE IN JORDAN IS REASONABLY WELL-DEVELOPED IN 
BUSINESS SERVICES, MAIL, FAX, TELEX, AND TELEPHONE NETWORKS.  HOWEVER, 
TELEPHONE LINES FOR NEW BUSINESSES ARE DIFFICULT TO OBTAIN IN CERTAIN 
AREAS OF AMMAN.  THIS WEAKNESS WILL BE OVERCOME WITH THE INTRODUCTION OF 
CELLULAR TELEPHONES IN 1995.  BUSINESS OFFICES ARE AVAILABLE IN MAJOR 
CITIES.  IN THE BUSINESS AREAS OF AMMAN, RENT FOR VACANT OFFICES RANGES 
BETWEEN USD 3,000-6,000 PER YEAR.  CARE RENTAL FACILITIES ARE AVAILABLE 
IN JORDAN.  MOST JORDANIAN HOTELS HAVE BUSINESS SERVICE OFFICES FOR 
TRAVELING BUSINESSMEN.  THE MARRIOTT AND JORDAN INTER-CONTINENTAL HOTELS 
OFFER AIRPORT-TO-HOTEL CARE PICK-UP AND ASSISTANCE AT AIRPORT CUSTOMS 
CLEARANCE POINTS. ENGLISH IS WIDELY SPOKEN IN JORDAN.

U.S. BUSINESSMEN TRAVELING TO JORDAN ARE ADVISED TO CONTACT THE EMBASSY 
ECONOMIC/COMMERCIAL SECTION TO OBTAIN INFORMATION ON THE LOCAL MARKET 
AND TRENDS IN THE ECONOMY.  THE FEDERATION OF JORDANIAN CHAMBERS OF 
COMMERCE, AMMAN CHAMBER OF COMMERCE, AMMAN ASSOCIATION, JORDAN EXPORT 
DEVELOPMENT AND COMMERCIAL CENTERS AND COMMERCIAL CENTERS CORPORATION 
PROVIDE ASSISTANCE FOR FOREIGN BUSINESSMEN.  BUSINESS EXPENSES IN JORDAN 
ARE VERY COMPETITIVE WHEN COMPARED AGAINST GULF COUNTRIES.  
INTERNATIONALLY-ACCEPTED BUSINESS SERVICES AND FACILITIES CAN BE 
ACQUIRED IN JORDAN AT ACCEPTABLE RATES.

JORDAN HAS EXCELLENT AIR CONNECTIONS WITH OTHER MIDDLE EASTERN 
COUNTRIES, EUROPE AND ASIA.  THE NATIONAL AIRLINE, ROYAL JORDANIAN, 
FLIES TO MAJOR CITIES IN THE WORLD.  HOUSING, WHILE EXPENSIVE, IS 
GENERALLY AVAILABLE AND SUITABLE FOR INTERNATIONAL BUSINESS EXECUTIVES.  
U.S. PRODUCTS ARE AVAILABLE AT MAJOR SUPERMARKETS.  THE CLIMATE IN 
JORDAN IS MEDITERRANEAN, RELATIVELY MILD AND VERY FAVORABLE COMPARED THE 
GULF REGION AND NORTH AFRICA.


                         CHAPTER X:  APPENDICES


APPENDIX A:  COUNTRY DATA

POPULATION:          4.2 MILLION
POP. GROWTH RATE:    3.8 PERCENT
RELIGION(S): 
ISLAM:               94 PERCENT
CHRISTIANITY:        6 PERCENT
GOVERNMENT SYSTEMS:  CONSTITUTIONAL MONARCHY
LANGUAGES: OFF.      ARABIC
           BUS.      ENGLISH
WORK WEEK:           SATURDAY-THURSDAY


APPENDIX B:  DOMESTIC ECONOMY

                                             1994      1995      1996
                                   (IN USD MILLION, EXCEPT WHERE NOTED)

GDP (CURRENT PRICES)                  6,186.00     6,804.60   7,244.3
GDP (FIXED PRICES)                    3,655.30     3,863.70   4,010.7
GDP GROWTH RATE % (CURRENT PRICES)       10.30        10.00      10.0
GDP GROWTH RATE % (FIXED PRICES)          5.70         6.00       6.0
GDP PER CAPITA ( IN USD)              1,041.60     1,112.60   1,663.4
GDP PER CAPITA (FIXED)                  651.50       631.80     923.0
GOVT SPENDING AS % OF GDP                39.10        35.60      41.2
INFLATION (PERCENT)                       4.00         5.00       6.0
UNEMPLOYMENT (PERCENT)                   20.00        20.00      17.0
FOREIGN EXCHANGE RESERVES               500.00       500.00     650.0
AVG EXCHANGE RATE (USD 1 TO DINAR)        1.45         1.45      1.45
U.S. ECON/MILITARY ASSISTANCE            28.00        12.20      12.4
                                          9.00         7.30      30.0


APPENDIX C:  TRADE

TOTAL COUNTRY EXPORTS         1,443.0   1,400.0   1,610.0
(INCLUDES RE-EXPORTS)
TOTAL COUNTRY IMPORTS         3,425.8   3,500.0   4.025.0
U.S. EXPORTS                     12.9      14.0      18.0
U.S. IMPORTS                    337.8     365.0     420.0


     MAJOR JORDANIAN IMPORTS FROM THE UNITED STATES (1993)
                (IMPORTS ABOVE USD 3.5 MILLION)

B.T.N.   COMMODITY                  VALUE IN     PERCENT
CODE                                 USD MIL     OF IMPORTS
------   ---------                  ---------    ----------

10/1      WHEAT                        106.4      96.4
88/3      AIRCRAFT PARTS                61.8      50.5
10/5      MAIZE                         50.3      99.9
10/3      BARLEY                        27.3      27.3
84/23/B   EXCAVATING, BORING            15.7      36.2
          & EXTRACTING MACHINERY
10/6/B    HUSKED RICE                   12.0      40.5
84/63/A   TRANSMISSION SHAFTS & CRANKS   8.1      20.4
47/1      PULP                           6.1      79.2
84/53/A   AUTOMATIC DATA PROCESSING      5.8      28.4
          MACHINES & UNITS
84/59/A   OTHER MACHINERY/MECHANICAL     5.5       8.6
          APPLIANCES
90/17     MEDICAL/DENTAL/SURGICAL/       4.6      17.5
          VETERINARY INSTRUMENTS
87/6/B    TRACTOR PARTS/ACCESSORIES      4.0      23.3
87/A/A/1  AUTOMOBILE PARTS/ACCESSORIES   3.9       6.7
23/4      OIL CAKE/OTHER RESIDUES        3.8      16.6
24/2/B    CIGARETTES                     3.6      62.5
87/2/C    VAN VEHICLES(DIESEL/OVER       3.8       7.2
                         2000 KG)


APPENDIX D:  INVESTMENT STATISTICS

FOREIGN AND DOMESTIC INVESTMENT IN JORDAN DURING 1994

                    VOLUME OF INVESTED CAPITAL
                   MILLIONS OF JORDANIAN DINARS)

               DOMESTIC      FOREIGN       TOTAL
               --------      -------      ------
INDUSTRY        112.6          12.0       124.6
TRADE            57.7           5.4        63.1
TOURISM           0.2           0.0         0.2
AGRICULTURE       0.2           0.2         0.4
CONTRACTING      19.1           0.7        19.8
TRANSPORTATION    1.3           0.2         1.5
SERVICES         36.9           2.7        39.6
---------
TOTAL            228.0       21.2          249.2

(SOURCE:  MINISTRY OF INDUSTRY & TRADE.  PRELIMINARY FIGURES).


NUMBER OF PROJECTS:

               DOMESTIC    FOREIGN        TOTAL
               --------    -------       ------
INDUSTRY         1,030       90           1,120
TRADE            5,094       60           5,164
TOURISM             10        0              10
AGRICULTURE         11        4              15
CONTRACTING        327        2             329
TRANSPORTATION      76        2              78
SERVICES         3,190       36           3,226
---------
TOTAL            9,738      204           9,942

(SOURCE:  MINISTRY OF INDUSTRY & TRADE.  PRELIMINARY FIGURES).


APPENDIX E:  U.S. AND COUNTRY CONTACTS

COMMERCIAL SECTION
AMERICAN EMBASSY
GARY A. GRAPPO, ECONOMIC/COMMERCIAL COUNSELOR
UNIT 70200
APO AE O9892-0200

MINISTRY OF INDUSTRY AND TRADE
ALI ABU RAGHEB, MINISTER
P.O. BOX 2019, AMMAN, JORDAN
TELEPHONE:  603721

JORDAN INVESTMENT PROMOTION DEPARTMENT
MR. IYAD AL-QUDAH, DIRECTOR GENERAL
P.O. BOX 893, AMMAN, JORDAN
TELEPHONE:  861081/3
FAX:  861084

JORDAN EXPORT DEVELOPMENT AND COMMERCIAL CENTERS COPR (JEDCO)
DR. MOHAMMED AL-HALIKA, DIRECTOR GENERAL
P.O. BOX 7704, AMMAN, JORDAN
TELEPHONE:  603507
FAX:  684568

JORDAN INDUSTRIAL ESTATES CORPORATION
DR. FAYEZ SUHAIMAT, DIRECTOR GENERAL
P.O. BOX 950278, AMMAN, JORDAN
P.O. BOX 17, SAHAB INDUSTRIAL ESTATE, AMMAN, JORDAN
TELEPHONE:  722101/3
FAX:  723299

FREE ZONES CORPORATION
MR. MUSA AL-JAGHBEER, DIRECTOR GENERAL
P.O. BOX 20036, AMMAN, JORDAN
TELEPHONE:  642001
FAX:  644821

CENTRAL BANK OF JORDAN
DR. MOHAMMED SAID EL-NABULSI, GOVERNOR
P.O. BOX 20036, AMMAN, JORDAN
TELEPHONE:  642001
FAX:  644821


CHAMBER OF COMMERCE AND TRADE ASSOCIATIONS
------------------------------------------

AMMAN CHAMBER OF COMMERCE
MR. HAIDAR MURAD, CHAIRMAN
P.O. BOX 287, AMMAN, JORDAN
TELEPHONE:  666151/3
FAX:  666151

AMMAN CHAMBER OF INDUSTRY
MR. KHALDOUN ABU HASSAN, CHAIRMAN
MR. WALID AL-KHATIB, DIRECTOR GENERAL
P.O. BOX 1800, AMMAN, JORDAN
TELEPHONE:  644569
FAX:  647825

JORDAN TRADE ASSOCIATION
DR. ZIAD FARIZ
MR. HALIM ABU RAHMEH, EXECUTIVE DIRECTOR
P.O. BOX 830432, AMMAN, JORDAN
TELEPHONE:  685603/4
FAX:  685605

JORDANIAN BUSINESSMEN ASSOCIATION
MR. HAMDI TABBA', PRESIDENT
MR. ALI YOUSEF, DIRECTOR GENERAL
P.O. BOX 926182, AMMAN, JORDAN
TELEPHONE:  680855
FAX:  680663

AMMAN WORLD TRADE CENTER
MR. HAIDAR MURAD, PRESIDENT
MR. OSAMA GHANNOUM, GENERAL MANAGER
P.O. BOX 962140, AMMAN, JORDAN
TELEPHONE:  605691/2
FAX:  605793

MARKET RESEARCH FIRMS
---------------------

NOTE:  FIRMS REGISTERED AT THE MINISTRY OF INDUSTRY AND TRADE AS MARKET 
RESEARCH FIRMS ARE NOT REQUIRED TO COMPLY WITH DEFINED PROFESSIONAL 
REQUIREMENTS SET BY THE STATE OR THE PRIVATE SECTOR.  EMBASSY SUGGESTS 
THAT AMERICAN FIRMS CONTACT THE COMMERCIAL SECTION FOR A LIST OF FIRMS 
IN SPECIFIC SECTORS WHICH MAY PROVIDE THIS SERVICE AND SEEK THE 
SECTION'S ADVICE BEFORE MAKING A SELECTION.

COUNTRY COMMERCIAL BANKS
------------------------

THE HOUSING BANK
MR. ZUHAIR KHOURI, CHAIRMAN AND GENERAL MANAGER
P.O. BOX 7693, AMMAN, JORDAN
TELEPHONE:  667126/9
FAX:  678121

CITIBANK
MR. WALID ALAMUDDIN, GENERAL MANAGER
P.O. BOX 5055, AMMAN, JORDAN
TELEPHONE:  644065/642276
FAX:  658693

ARAB BANK LIMITED
MR. ABDULMAJEED SHOMAN, CHAIRMAN AND GENERAL MANAGER
P.O. BOX 950545, AMMAN, JORDAN
TELEPHONE:  607115/30
FAX:  606793

CAIRO-AMMAN BANK
MR. KHALIL Y. TALHOUNI, CHAIRMAN
MR. YAZID MUFTI, GENERAL MANAGER
P.O. BOX 715, AMMAN, JORDAN
TELEPHONE:  639321/7
FAX:  639328
ARAB BANKING CORPORATION/JORDAN
MR. ABDUL WAHAB A. AL-TAMMAR, CHAIRMAN
MR. JAWAD AL HADID, GENERAL MANAGER
P.O. BOX 926691, AMMAN, JORDAN
TELEPHONE:  664183/5
FAX:  686291

U.S. EMBASSY ECONOMIC AND COMMERCIAL PERSONNEL
----------------------------------------------

GARY A. GRAPPO, ECONOMIC/COMMERCIAL COUNSELOR
STEVEN BONDY, ECONOMIC/COMMERCIAL OFFICER
DON HEPBURN, COMMERCIAL OFFICER
RASIM S. ABDERRAHIM, ECONOMIC/COMMERCIAL SPECIALIST
MUNA FAKHOUH, COMMERCIAL SPECIALIST
GEORGINA ABU MANNEH, COMMERCIAL ASSISTANT
HALA KHOURY, AGRICULTURAL SPECIALIST

WASHINGTON-BASED USG COUNTRY CONTACTS
-------------------------------------

DEBORAH JONES
DESK OFFICER FOR JORDAN, SYRIA AND LEBANON
NEA/ARN, DEPARTMENT OF STATE
WASHINGTON, DC 20520
TELEPHONE:  (202) 647-1058
FAX:  (202) 647-0989

PAUL THANOS
JORDAN DESK OFFICER
OFFICE OF THE NEAR EAST
DEPARTMENT OF COMMERCE
WASHINGTON, DC
TELEPHONE:  (202) 377-1870
FAX:  (202) 377-0878

U.S.-BASED MULTIPLIERS RELEVANT FOR COUNTRY
-------------------------------------------

U.S. ARAB CHAMBER OF COMMERCE
1825 K STREET, N.W.
SUITE 1107
WASHINGTON, DC 20006
TELEPHONE:  (202) 331-8010
FAX:  (202) 331-8297

APPENDIX F:  MARKET RESEARCH

INTERNATIONAL MARKET INSIGHTS (IMI'S) 
    SCHEDULED IN FY95 AND FY96

A)  BEST PROSPECTS FOR EXPORTS OF U.S. COMPUTER AND INFORMATION
    TECHNOLOGY TO JORDAN
B)  JORDAN'S TELECOMMUNICATIONS SECTOR:  MID-TERM PUBLIC-PRIVATE
    INVESTMENT OPPORTUNITIES IN JORDANIAN PROJECTS
C)  THE FUTURE OF U.S. ENVIRONMENTAL TECHNOLOGY EXPORTS TO
    JORDAN'S EMERGING MARKETS
D)  JORDAN'S FREE TRADE ZONES AND TRANSIT TRADE
E)  NEW DEVELOPMENTS IN JORDAN'S FOREIGN INVESTMENT REGIME


INDUSTRIAL SUB-SECTOR ANALYSES (ISI'S)
   SCHEDULED IN FY95 AND FY96

A)  TELECOMMUNICATIONS PROJECTS
B)  CONSTRUCTION MATERIALS AND SUPPLIES
C)  MEDICAL EQUIPMENT AND SUPPLIES
D)  ENERGY AND ENVIRONMENTAL PRODUCTS AND TECHNOLOGIES
E)  COMPUTER AND INFORMATION TECHNOLOGY SECTOR
F)  CONSUMER ELECTRONICS AND ELECTRONIC PARTS

APPENDIX G:  TRADE EVENT SCHEDULE

SCHEDULED EVENTS FOR FY 1995 AND FY 1996

OCT 29-31      AMMAN ECONOMIC SUMMIT
FEB 22-24      FOURTH ANNUAL AMERICAN COMPUTER SHOW
APR 20-25      FOURTH ANNUAL AMERICAN PROMOTION WEEK


OTHER EVENTS ORGANIZED BY LOCAL EXHIBITION ORGANIZERS

1995 EVENTS:

AUG 15-18  JORDAN INTERNATIONAL TRADE FAIR AT AMMAN
           (GOLDEN JORDANIAN GROUP)
OCT 9-12   MIDDLE EAST AGRICULTURAL, IRRIGATION AND FOOD PROCESSING
           (AL MADINA INFORMATION AND BUSINESS)
OCT 9-12   MIDDLE EAST PACKAGING AND PACKING INTERNATIONAL
           (AL MADINA INFORMATION AND BUSINESS)
OCT 17-21  THIRD ANNUAL JORDAN INTERNATIONAL TRADE FAIR
           (HIKMAT INTERNATIONAL)
OCT 18-22  MIDDLE EAST TECHNOLOGY SHOW 
           (JORDAN COMPUTER SOCIETY)
OCT 22-26  MIDDLE EAST HEALTH CARE, MEDICAL, DENTISTRY & LABORATORIES
           (UNIVERSAL EXHIBITIONS CORP.)
NOV 6-9    MIDDLE EAST BUILDING MATERIAL & CONSTRUCTION 
           EQUIPMENT INTERNATIONAL (AL MADINA INFORMATION)
NOV 6-9    MIDDLE EAST PROTECTION & SECURITY INTERNATIONAL
           (AL MADINA INFORMATION AND BUSINESS)
NOV 27-30  MIDDLE EAST TELECOMMUNICATION EXHIBITION
           (MIDDLE EAST EXHIBITION & INT'L TRADE CO.)
DEC 4-7    MIDDLE EAST INDUSTRIAL MACHINE & TOOLS INTERNATIONAL
           (AL MADINA INFORMATION AND BUSINESS)


1996 EVENTS:

AUG 5-11   AMMAN INTERNATIONAL TRADE FAIR
           (AL MADINA INFORMATION AND BUSINESS)
SEP 22-26  MIDDLE EAST TRAVEL & TOURISM MARKET
           (AL MADINA INFORMATION AND BUSINESS)
OCT 14-17  MIDDLE EAST FOOD TECHNOLOGY & CATERING INTERNATIONAL
           (AL MADINA INFORMATION)
NOV 4-7    MIDDLE EAST BUILDING MATERIAL & CONSTRUCTION EQUIPMENT
           (AL MADINA INFORMATION AND BUSINESS)
NOV 20-24  MIDDLE EAST EDUCATION AND TRAINING INTERNATIONAL
           (AL MADINA INFORMATION AND BUSINESS)
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