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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
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.
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.” 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”).
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:
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.
According to the law, the development zones offer a number of incentives and exemptions to the investors. These include:
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.
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.
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