<p>In an attempt to boost the local Jordanian economy, the government announced  its plans to create development zones around the country. The Development Zones  Law No. 2 for the year 2008 (the "law") creates six Development Zones,  strategically laid out across the kingdom, aiming to aid local investors by  creating a competitive business environment as well as providing them with new  investment incentives and tax redemptions.<br /><br />According to Article 3 of the  law, "the development zones aim at enhancing economic capacity in the Kingdom,  attracting the investments and creating an advanced investment environment for  economic activities."&nbsp; This is achieved through the execution of the strategic  objectives outlined by the law. Some of these objectives include the  establishment of public-public and public-private partnerships, creating  world-class regulatory and economic development organizations with strong  institutional capabilities as well as the creation of the Development Zones  Commission (the "Commission").<br /><br />The Commission, created by Article 6 of  the law, plans to accomplish its specific tasks by creating a dependable  regulatory system for both the investors and the government. These tasks  include, but are not limited, to the following:</p>
<ol>
<li>"Drawing up the general policy of the Development Zones and submitting it to  the Council of Ministers for the approval of the same and the endorsement of the  plans and programs necessary to implement it.</li>
<li>Regulating the investment environment in the Development Zones and  regulating and monitoring the Economic activities therein&hellip;"</li>
<li>"&hellip;Protecting the environment, water resources, natural resources and  biological diversity in a manner consistent with the Environment Law in effect  and the Regulations and Instructions issued thereupon and in coordination with  the concerned parties.<br />4.&nbsp;Regulating the customs procedures which will be  applied by the Ministry of Finance / Customs within the Development Zones under  a special Regulation issued for this purpose."</li>
</ol>
<p>Additionally, the development zones are intentionally situated in regions  with a high potential for access to significant and unique local and global  markets. These areas are situated in Mafraq (60 km north of the capital, Amman),  Maa'n, Irbid, the Dead Sea, Jabal Ajloun and Dabouq. While the King Hussein Bin  Talal Development Area (the "KHBTDA") in Marfaq and the Ma'an development areas  focus on the industry, residential, skill development, community services and  commercial sectors; other development zones such as the Dead Sea and Jabal  Ajloun development zones focus more on tourism development as well as the  hospitality and retail sectors. This is because while Marfaq and Ma'an are  situated in a geographical nexus of highway networks connecting Jordan to three  of its neighboring countries, the Dead Sea and Jabal Ajloun development zones  are situated in magnificent landscapes ranging from the historical Dead Sea  coast to the pine forest and olive groves of the north of Jordan. Meanwhile, the  Irbid and Dabouq development zones focus on the health care, services, media,  safety, education as well as research and development sectors.<br /><br />According  to the law, the development zones offer a number of incentives and exemptions to  the investors. These include:</p>
<ol>
<li>A flat 5% corporate income tax rate as shown in Article 22 (d).</li>
<li>An exemption from sales tax, custom duties, social services and dividends  tax as shown in Articles 23 (g) and 25 (a).</li>
<li>100% foreign ownership.</li>
<li>No limit on the number of foreign employees brought in. In addition, they  provide accelerated immigration and transit processes as well as business, and  family residency visas.<br />All the other tax and fee related incentives are  included in the law or any other applicable Jordanian laws.</li>
</ol>
<p>Another advantage that benefits investors when working in the development  zones is the Development Zone Commission One Stop Shop (the "DZC OSS"). The DZC  OSS was created for the comfort and convenience of the investors while  maintaining their rights as well as the rights of the public and the government.  The DCZ OSS's main purpose is to eliminate the investor's need to circulate  application to multiple agencies and public and private departments by providing  an efficient and time-saving process. They also do this by offering a number of  governmental investment related services such as the registration of enterprises  as well as employment related services such as employee visas and  residencies.<br /><br />By creating the Development Zones, the government has  realized the kingdom's potential for attracting local and international  investments and has worked to create reasons for them to come here. It has  simplified the process of registering an investment and sped the process of  hiring employees and issuing them with residencies and visas up. In addition to  attracting local and international investments, the development of these zones  will eventually enhance the economy and facilitate a competitive environment  with a dependable infrastructure that is built on the values of simplicity,  efficiency, leadership, teamwork, transparency, integrity as well as good  governance and focus on the community.</p>