Amman: Minister of Investment Tareq Abu Ghazaleh announced that the Cabinet's recent decisions to expand industrial incentives align with the government's strategy to boost investments in Jordan's governorates, aiming to foster job creation, economic activity, and local development.
According to Jordan News Agency, the decisions include extending investment incentives for industrial estates in Madaba, Salt, and Tafileh for an additional three years. This extension is designed to provide serious investment projects with ample time to implement and transition into the production phase. Abu Ghazaleh emphasized that these incentives are contingent upon actual project implementation, employing Jordanian workers, and generating industrial value, thereby ensuring that government support is directed toward genuine and productive investments.
Initially introduced to stimulate investment in the three industrial estates, the incentives' extension comes after field assessments revealed some projects faced delays due to market conditions and regional challenges. The extended timeframe aims to allow viable projects to complete construction, begin production, efficiently utilize industrial land, and pave the way for new investments. By the end of June, the estates had attracted 105 companies with investments surpassing JD162 million, creating over 3,400 jobs and supporting various sectors across the economy.
Regarding the Al Rawdah Industrial Park in Ma'an, Abu Ghazaleh highlighted that the newly approved incentive package directly implements directives from Prime Minister Jaafar Hassan after his visit to the governorate. The Ministry of Investment, in coordination with relevant authorities, developed a comprehensive package addressing key industrial investment costs such as energy, land, employment, and exports.
The package includes significant electricity subsidies for industrial projects over five years, covering 75% of electricity costs in the first two years, 50% in the subsequent two years, and 25% in the fifth year. Additional support includes contributions toward wages, social security payments, and transportation allowances for employing local workers for three years, alongside covering 50% of container handling costs for exports through Aqaba Port for three years. This support aims to reduce production and export costs while enhancing the competitiveness of Jordanian products.
Further incentives involve reducing the price of industrial land from JD15 to JD7.5 per square meter for plots exceeding 20 dunums, up to a maximum of 120 dunums, enabling investors to allocate more capital toward factory construction, equipment, and production.
Eligibility for the Al Rawdah incentives is subject to conditions ensuring serious investment, including commencing operations within a specified timeframe, achieving at least 30% local value added, and employing local residents according to minimum employment requirements for each project. Abu Ghazaleh reiterated that the Ministry views industrial estates as development hubs that offer opportunities for Jordan's residents and bolster economic stability in local communities.
"The success of these decisions will ultimately be measured by the number of factories that enter production, the jobs they create, and the positive impact they have on people's lives," he concluded.