Introduction

The idea of establishing Al-Karameh Free Trade Zone came after extensive studies and deep analysis of actual status of the Jordanian economy that is witnessing a great prosperity due to political, security, economical and social stability and the excellent reputation gained internationally. Jordan, which shares borders with six Middle East countries, forms an important transit center for the region. . Furthermore, Jordan’s long experience and expertise in serving as a transit center for the region, coupled with its strategic location, highly qualify it to play a pivotal role in promoting the development and integration of regional cooperation. Sharing borders with Iraq adding to the above privileges gave Al-Karameh Free Trade Zone the advantage to act as a leading participant in the reconstruction of Iraq in all fields since it will form an advanced physical location to Iraq.

Why Jordan

-   Unique and Strategic Location.

- Stable Political Environment.

- Free Market Oriented Economy.

- Access to Major International Markets.

- Qualified and Competitive Human Resources.

-  World Class Infrastructure and Communications.

- Attractive Investment Climate.

Al-Karama location

The Free Zone is located in Al-Mafraq Governorate, about (360) Km east of Amman, on an area of (10000) dunums along the Jordanian –Iraqi Borders. The Zone is divided as follows:

-      (2000) dunums were allocated to establish a public free zone.

-      (8000) dunums were allocated to establish a multi-purposes private free zone thereon.

Due to the great demand for investment in Jordan by many international companies especially the ones who will take part in the reconstruction of Iraq, it is expected that this location will be the main gateway to Iraq from the outside world.

Services and Facilities Provided in the Zone

-   Necessary facilities, services and infrastructure such as electricity, water, modern telecommunication nets, in addition to modern nets of internal roads.

- Construction of areas and necessary warehouses to meet the investor's requirements.

-Applying one-window service for investment applications to facilitate decision-making.

- Issuing certificates of origin (Free Zones) for industrial products produced inside the free zone, which have local inputs of less than (40%).

- Banking services, insurance and clearance companies will be available inside the free zone. 

Exemptions

Companies established in free zones enjoy the following exemptions and benefits:

-Exemption of project’s profits from income taxes for goods exported outside the Kingdom as well as transit trade, in addition to profits accruing from selling or transferring of goods inside the borders of the free zones. Profits accruing from goods when placed for domestic market shall be excluded from such exemptions.

- Exempting the salaries and allowances of non-Jordanian employees working in projects established in the free zone from income and social service taxes.

- Exempting imported goods or exported to parties other than domestic market from import fees, custom duties and all taxes and fees accrued thereon except services and rent charges.

- Exempting buildings and real estate constructions built in the free zones from the licensing fees as well as from buildings and land taxes.

- Permitting the transfer of the capital invested in the free zone and the profits generated there from outside the Kingdom in accordance with the regulations in force therein.

- Exempting the products of the industrial projects established in the free zone, upon placing them for consumption in the domestic market from customs duties within the extent of the value of materials, costs and local expenditures included in their manufacturing provided that the value is estimated by a committee chaired by the Director General(Jordanian free zones corporation) or his Deputy, and a representative from each of the Ministry of Industry & Trade and the Ministry of Finance/Customs, appointed by the competent Minister.

- The Zone's industrial projects enjoy 10% exemption of the rent of lands and installations' charges leased for this purpose.