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The draft law regulating the investment environment is vague and does not serve Jordan

Amman Today

publish date 2022-07-22 17:57:30

Compass – Oman

Economists commented on the draft law regulating the investment environment, which is on the nation’s exceptional agenda for discussion in preparation for its approval, that it does not serve Jordan as an investment, and does not meet the aspirations of investors.

The experts said that placing incentives and exemptions in the hands of a ministerial committee within the draft law increases the uncertainty of the scene for investors and opens the door to jurisprudence and the interference of personal relations to grant incentives or not.

It is noteworthy that the draft law includes the formation of an incentives committee by a decision of the Council of Ministers, provided that its membership includes the ministers of finance, planning and international cooperation, industry, trade and supply.

The economic expert, Munir Dayyeh, said in statements that reached Al-Bawsala, “The most important thing than approving the law regulating the investment environment is the practical application on the ground, changing the mentality with which the government employee deals with the investor, and holding accountable everyone who is negligent in completing his work in speed and time.”

He added, “We do not have the luxury of time to waste more opportunities or lose existing or upcoming investments, and everyone should know that we need the investor and not the other way around. The competition is in the most intense among the countries of the region to attract investment, and there are many who preceded us in this field after they were behind us.”

One of the most prominent points in the law is the term (large investor), whereby the investor will be qualified as a large investor by a decision of the Incentives Committee, whereby a period of no less than 24 months must pass since the value of his investment reaches 10 million dinars. There are many comments on this article, according to Deeh.

In turn, the head of the Jordanian Expatriate Businessmen and Women Association (Tawasul), Fadi Al-Majali, said the new draft law does not serve the investment environment in the Kingdom in light of the great competition witnessed in the region in the process of attracting investments.

Majali considered that the current investment law is better than the new draft law, pointing out that the contents of the draft law did not pay attention to the amount of facilities and incentives granted by the laws of countries surrounding the Kingdom to attract more investments.

Al-Majali explained that the draft law is considered incomplete and most of the privileges in the current law were withdrawn from it, as exemptions and benefits were limited to a ministerial committee, and this matter does not reassure investors. He said that Jordan does not have the luxury of wasting time in light of the great developments that the countries of the region are witnessing in attracting investment, noting that the draft law included integrating laws such as control and inspection of economic activities, and this does not serve the process of attracting and stimulating investments.

Majali stressed the need to reconsider the draft investment law so as to reach a modern law that meets the aspirations of investors and contributes to attracting more investments to achieve development and overcome economic challenges, especially unemployment and poverty.

The head of the Jordanian Businessmen Association, Hamdi Al-Tabbaa, said that investment incentives are supposed to be clear in the texts of the law, especially since the investor is looking forward to achieving a feasible return on his investments and clearly defining the incentives in order to avoid the reluctance of investors to invest and to facilitate investment-related procedures.

He stressed the importance of linking exemptions and incentives to employment and investment in the governorates, which will have a positive effect in creating new jobs and reducing unemployment rates, in addition to the growth and development of governorates by directing investments to them to take advantage of those incentives.

Al-Ghad quoted Al-Tabbaa as saying that the Jordanian private sector is looking forward to the existence of a modern investment law that meets the most important investment requirements at the global level and contributes to stimulating and attracting investment and encouraging investors at the local, Arab and international levels to direct their investments with confidence towards Jordan.

Al-Tabbaa said, “After reviewing the draft law regulating the investment environment for the year 2022, it can be noted that the law equals between local and foreign investors, which is a positive thing,” noting the importance of all investors in the Kingdom enjoying the stability and stability of the legislation regulating the investment environment for a period of no less than ten years as a minimum. .

In turn, the economic expert, Dr. Iyad Abu Haltam, said that linking granting incentives and exemptions to a committee increases the complex bureaucratic procedures, as the investor needs to submit to the committee in order to obtain exemptions and incentives.

Abu Haltam indicated that the principle is that there should not be a committee to grant incentives, since the purpose of the new law is to facilitate procedures, which requires that they be clear within the law.

He said that when the investor decides to set up a project in a country, he looks at the investment law, and in the event that incentives and exemptions are in the hands of a committee, he will hesitate, stressing that the countries of the region are witnessing intense competition in attracting investments to them by offering incentives and benefits to investors.

He pointed out that the draft law did not clearly address the immediate granting of licenses to acceptable activities.

For his part, Chairman of the Parliamentary Investment and Economy Committee, Dr. Khair Abu Sa’ilik, said that the committee will open an extensive discussion on the draft investment law in order to reach a modern law that serves the investment and business environment in the Kingdom.

He stressed the committee’s keenness to listen to the point of view of all actors related to the draft investment law, whether from the private sector or civil society institutions to agree on a law that contributes to improving the business environment and attracts more investments.

According to the draft law, the Council of Ministers, upon the recommendation of the Incentives Committee, has the right to approve any plans, incentives, benefits or exemptions for economic activities in any region of the Kingdom, including exemptions and incentives related to the price of selling or renting land owned by the public treasury for the purposes of establishing economic activities.

It also includes subsidizing energy and water costs and supporting renewable energy projects, in addition to allowing investors to deduct the costs of establishing the infrastructure that they have delivered to the activity in case the project is operated within a certain period of time, in addition to granting tax or customs exemptions in return for employing a minimum number of Jordanian workers.

The Incentives and Exemptions Committee issues its decision with the majority of its members within a period not exceeding 15 days from the date of the position being offered to it, while granting incentives takes into account the economic and value-added effects of investment on growth, job creation for Jordanians, export and transfer of knowledge and technology, and without affecting fair competition.

The draft investment environment law includes 5 chapters that include general policies for investment and investor rights, the Ministry of Investment and the Investment Council, incentives granted outside development and free zones, development and free zones, registration and licensing of investment activities.

According to the law, the investment window was canceled and replaced with a comprehensive investment service for licensing economic activities, whether in the ministry or through a joint electronic platform with the authorities responsible for registration and licensing.

The establishment of commercial centers, the establishment of exhibitions, the opening of markets inside and outside the Kingdom, and the organization of trade missions to promote and market national products from the Ministry of Investment to the Ministry of Industry, Trade and Supply and the Jordan Enterprise for the Development of Economic Projects are also approved.

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Jordan News

Source : اخبار الاردن

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