Economic development in Jordan remains highly clustered around Amman, leaving a developmental gap in the regions and a resulting lower standard of living. The establishment of special development zones throughout the country provides the opportunity to bring growth to a wider segment of the population. These development zones also provide a platform for other areas of growth in Jordan, including activities in clean tech and outsourcing. Therefore, supporting the Government’s efforts to improve the development and operation of these areas can have a wide-ranging impact on Jordan’s economic growth.

In late 2008 the Government established a single Development Zones Commission (DZC) and requested SABEQ’s support in establishing that organization. These efforts have been on-going for the past months and SABEQ has found the DZC to be a natural and effective partner in supporting investment in key sectors that SABEQ has identified, such as BPOs and clean technology. Because of this synergy, SABEQ views support to the DZC as a major Enabling Activity.

In the coming year, SABEQ’s support of the DZC will include assistance in legal and regulatory regime setup, institutional development, governance capacity and project development for economic zones. Planned efforts include:

• Establishing competitive Special Economic Zones (SEZ’s) regulatory framework.
• Establishing a DZC one-stop-shop.
• Transitioning DZC to an oversight organization for all zones activities in Jordan.
• Creating a physical and regulatory IT-enabled system for all development zones and IT-enabled PPP management and monitoring framework.
• Establishing a PPP framework, including a performance evaluation group and criteria and supporting the PPP management through an electronic portal.
• Developing the organizational structure of the DZC and building the capacity of management and staff.
• Supporting the Dead Sea and Ajloun development areas through analyses, assessments and the creation of conceptual master and project business plans.

The overarching goal of the USAID-SABEQ’s support to the DZC is to help it be established and operational in accordance with best practices for similar organizations, maximizing its ability to promote exports and increase regional development. The economic and social benefits of assistance to the DZC are many. Special development zones will promote job creation and contribute to local economic development, well as improve competitiveness to attract foreign investment. High-level activities planned for Year 4 are the following: