The Syrian-Jordanian Free Zone Company is a gateway to reconstruction projects in Syria and Iraq

There is no doubt that the crossings (Tribil - Karama) and (Jaber - Nassib) represent the artery of Jordan's relations with its two economic lungs (Iraq and Syria), which paid the Jordanian economy - and still - a heavy economic price, exacerbating budget deficits, indebtedness, and declining investments Unemployment, as the events in the region had political, economic, social and humanitarian repercussions, in which Jordan opened its doors to receive the Iraqi brothers and then the Syrian brothers at a time when the doors of the crossings were (closed) so that Jordan suffers from an “economic blockade” imposed by the events in the region and exacerbated by the consequences of asylum on the Jordanian economy. .

Today, after a (decade) period of time has passed, there are signs of hope and positive indicators for a gradual exit from this commercial and economic suffocation, as Jordan, under the leadership of His Majesty King Abdullah II, his directives and tireless contacts, took advanced steps that led to making great progress in the Jordanian-Iraqi relations on the one hand, and linking them to a regional relationship. With the big sister, Egypt, in what has become known as (the new Levant axis), as the recommendations of the four summits that were held over a period of about three years depend on a lot of hopes for realizing the dream of economic integration between these three countries, and then expanding in this model with the rest of the countries in the region, and we are waiting on The near reality is the start of major regional economic projects, foremost of which is the free economic development zone between Jordan and Iraq, in which the two parties, “the Jordanian and the Iraqi,” have taken advanced steps in which they bypassed the stage of defining the common site on the borders between the two countries, to start other more advanced steps.

On the level of joint Jordanian-Syrian relations, there were early contacts between the private sector in the two countries on the commercial and industrial levels, and exchange of visits since a previous period. Industrial and commercial delegations visited Jordan and held meetings with the chambers of industry, commerce and businessmen, but the official relations accelerated recently and culminated in the decision of the Minister of Interior to open the movement of entry and exit through the Jaber border crossing, then the decision stopped, so that the Jordanian-Syrian border (Jaber Border Center) was reopened again by a decision of the Minister of Interior as of Wednesday Corresponding to September 29, 2021, in front of the movement of freight and passengers, according to a matrix of technical and logistical procedures for the center.

The positive messages continued between Amman and Damascus, and an important meeting was held in the capital, Amman, for the energy ministers of the countries (Jordan, Egypt, Syria and Lebanon) to discuss practical steps to deliver electricity from Jordan and Egyptian gas through Jordan and through the Syrian territories to Lebanon, then the visit of the Syrian Minister of Defense to Jordan As well as the meeting of the Jordanian Deputy Prime Minister and Minister of Foreign Affairs and Expatriate Affairs with his Syrian counterpart in New York on the sidelines of the meetings of the United Nations General Assembly.

Yesterday, Monday, corresponding to September 27, the capital, Amman, hosted a Jordanian-Syrian meeting with a number of ministers from both sides to discuss many issues, including transportation and shipping issues, and other files that enhance trade and economic cooperation in all its details (energy, transportation, water, agriculture, trade, and industry. etc).

Yesterday, Prime Minister Dr. Bishr Al-Khasawneh received, in his office at the Prime Ministry, the Syrian ministerial delegation participating in the meetings, which included: Minister of Economy and Foreign Trade Dr. Muhammad Samer Al-Khalil, Minister of Water Resources Dr. Tammam Raad, and Minister of Agriculture and Agrarian Reform Eng. Muhammad Qatna, and the Minister of Electricity, Eng. Ghassan Al-Zamil, and attended from the Jordanian side, the Minister of Water and Irrigation, Muhammad Al-Najjar, the Minister of Transport, Eng. Wajih Azaiza, the Minister of Industry, Trade and Supply, Eng. Maha Ali, and the Minister of Agriculture, Eng. Khaled Al-Hanifat, and the Energy and Mineral Resources, Eng. Hala Zawati. Relations of cooperation and coordination between Jordan and Syria in many fields, in a way that serves the common interests of the two countries and the two brotherly peoples.

On the other hand, in a statement by the Minister of Industry, Trade and Supply Maha Ali to “The Kingdom” on Monday, she said that the joint Jordanian-Syrian talks dealt with many files of common interest, foremost of which were those related to trade exchange, the movement of entry of trucks, in addition to the procedures required for the purpose of reopening The joint Syrian-Jordanian free zone.

All these rapid developments make us optimistic and wonder what might happen on the other side and on the (Jaber-Nassib) borders, especially since there is a ready experience and a “success story” that was disrupted by events in Syria and the region, so that hope is renewed once again to restore its brilliance and play its role The desired economic cooperation and integration between the two countries, through a reading of the “Al-Dustour Center for Economic Studies” on the economic importance of the (Syrian-Jordanian Free Zone Company), especially since the Jordanian-Syrian Ministerial Committee, which concluded its work in Amman yesterday, has discussed (in the field of trade and industry). ) Executive procedures that must be completed to restore the work of the Jordanian-Syrian free zone, which restores hope for the restoration of commercial and economic activity in general between the two countries, and the reactivation of this company specifically, which was established under Law No. (21) of 1975 in the Syrian Arab Republic and Royal Decree No. (5) of 1976 in the Kingdom Hashemite Jordanian, amended by the economic cooperation agreement between the two countries No. (18) of 2002.

The continuous executive steps to re-strengthen economic and trade relations between Jordan and Syria are the big steps that were achieved in the wake of the historic visit that His Majesty King Abdullah II made last July to the United States of America and his meeting with US President Joe Biden and decision-makers in the United States, which resulted in Jordan being excluded from the “law Caesar », which imposes a blockade and commercial and economic restrictions on Syria.. so that Jordan announces, through the Minister of Interior, the opening of the Jaber-Naseeb crossing, and the Prime Minister, Dr. Al-Khasawneh preached a visit to the Jaber border post last July, directing the need to observe the required security and health measures, then the recent decision of the Minister of Interior to reopen the crossing, starting today, Wednesday, September 29, 2021.

This decision, which was described yesterday by the Syndicate of Owners of Clearance and Goods Transportation Companies (as one of the most important economic sectors benefiting from this decision), is an important step and will benefit the national economy. The decision will revive trade between the two countries, transit trade and reduce Additional costs due to the back-to-back process and the flow of goods from both countries, Lebanon and the Gulf states.

"Al-Dustour Center for Economic Studies" reviews in the following paper the economic and investment importance of this company, which we are still waiting for approvals to start its business, especially after the positive developments witnessed by the sisterly Syria and the reopening of the border crossing (Jaber-Naseeb) between the two countries, where the management of the company was assigned By the general assembly and the joint board of directors on the need to rehabilitate the free zone and develop the necessary plans that guarantee its return to work and the exercise of its investment activity that serves the common interests of the two countries. To allow those concerned to enter and start working in it in connection with its important location on the border between the two brotherly countries, especially in terms of security and ensuring the safety of those who will work in it in a way that serves the interests of the two countries, and this issue and the necessary measures to complete the reopening of the area were discussed during the meeting of the joint Jordanian-Syrian ministerial committee yesterday and yesterday the first .

A strong demand from investors of various nationalities to rent lands in the area in preparation for its revival

(Syrian-Jordanian Free Zone Company)

- The «Syrian-Jordanian Free Zone Company» is considered a successful model for forms of joint Arab cooperation. It was established in order to activate and develop economic cooperation, and as one of the pillars of joint Arab action through attracting and attracting investments and capital, combating unemployment and contributing to activating the role of the accompanying sectors (transportation, Services, ports...).

The following is a review of the most prominent axes - according to the information available to us - through which we highlight the importance of this region and the size of betting on it to support the Jordanian and Syrian economies:

Establishment and capital

- The Syrian-Jordanian Free Zone Company was established under Law No. (21) of 1975 in the Syrian Arab Republic and Royal Decree No. (5) of 1976 in the Hashemite Kingdom of Jordan, as amended by the Economic Cooperation Agreement between the two countries No. (18) of 2002, in which the will was included Ownership No. (5) and based on the agreement on economic cooperation and trade exchange between the two countries as a limited liability joint stock company with legal and legal personality and enjoys all rights and powers to carry out its business in the two countries and enjoy administrative and financial independence.

- Founding capital: (60) million Syrian pounds (equivalent to one million Jordanian dinars at the time) equally between the two countries to activate and develop economic cooperation and as one of the pillars of joint Arab action through attracting and attracting investments and capital, combating unemployment and contributing to activating the role of sectors Escorts (transportation, services, ports...)

Geographical location

- The Syrian-Jordanian Free Zone is located on the common border between the two countries near (Nassib - Jaber) and on an area of ​​​​(6500 dunums) divided equally by the two countries and registered in the name of the Syrian-Jordanian Free Zone Company as a legal entity and characterized by a strategic location that made it a vital and effective land port for the two countries And the neighboring countries.. The Syrian-Jordanian free zone is distinguished by unique advantages, facilities, and incentives for investment, such as customs and tax exemptions, and a decrease in costs, wages, effort, and time, with standards that exceed all expectations.

Company objectives

1- Providing the appropriate climate to attract and employ investments in various sectors (industrial, commercial, service, ...).

2- Contribute to serving the comprehensive investment and economic development project.

3- Contribute to the investment of natural and human resources in the two countries.

4- A true nucleus for the formation of an Arab economic and commercial bloc.

5- Revitalizing and activating the role of the sectors accompanying the investment process (customs, ports, transportation, services, clearance, insurance, banks....)

Incentives offered by the company for investment activity

1- Allowing the entry and exit of various goods to other than the customs area of ​​the two countries, exempted from the provisions of import and export and all fees and taxes.

2- Exempting existing projects in the free zone from income tax on profits.

3- Allowing the transfer of capital invested in the free zone and the profits arising from it without restriction or condition.

4- Exempting existing buildings, facilities and equipment in the free zone from all fees and taxes incurred on real estate ownership throughout the operation period.

The advantages and facilities offered by the company

1 - Equipping investors with public facilities, services and infrastructure necessary to cover their needs.

2 - Granting a national certificate for products manufactured in the free zone that achieve added value of 40% or more from the Syrian Arab Republic.

3 - Provision of services accompanying the investment sector (transportation, clearance, insurance, expenses, customs, agricultural quarantine, specifications and standards, energy,.....etc)

4 - Preparing the appropriate investment structure and developing the spirit of creativity and development in a way that contributes to improving performance and achieving economic development in the two countries and comprehensive Arab development.

Infrastructure

- The Syrian-Jordanian Free Zone is characterized by being surrounded by a concrete wall (cement) with a length of more than 15 km and a height of six meters, surmounted by a barbed wire one meter high, with eight guard towers, and it has two gates on the Syrian side, Gate No. (1) and the other on the Jordanian side, Gate No. (2). There are offices for the police, customs, and free zone employees at each gate to carry out their work. The Syrian-Jordanian free zone is characterized by providing a network of main and secondary roads that serve investment establishments, in addition to a security road parallel to the wall, as well as a sewage network and a water network fed from the wells of the free zone. Inside and from a main tank, as well as an electrical network on both sides and a communication network on both sides - a computer network - six vaults - a Jordanian customs yard surrounded by an external wall and entry and exit gates, and a Syrian customs yard surrounded by an external wall and entry and exit gates, serving the company's management, the activities operating in it and the investment companies.

Number of investment companies operating in the free zone

- The number of investment companies operating in the Syrian Free Zone for the year 2015 reached (560) contracts distributed over various investment sectors (commercial, industrial, service, car showrooms).

And there are many contracts signed after the closure of the free zone by Syrian investors until the work in the region is restored.

The official activities operating in the free zone of the two countries Syria and Jordan are

1.Customs:

- A Jordanian customs center with powers and qualified personnel.

- A Syrian customs secretariat has powers and qualified personnel.

2. Police and public security forces:

- A Jordanian police station

-Syrian police station.

It is responsible for supervising the entry and exit of people to and from the free zone and on the two gates (Street No. /1/ and Jordanian No. /2) and to carry out all the tasks assigned to it to maintain security and inspection.

3. Specifications and standards: representatives from both sides.

4. Agricultural Quarantine: Representatives from both sides.

5. Nuclear energy: representatives from both sides equipped with the necessary equipment to detect radiation.

6. Food and Drug Corporation: representatives from both sides.

manpower

- There are many administrative, service and investment activities in the Syrian-Jordanian free zone as follows:

1. The labor force:

- The number of workers (investors, drivers, workers, employees of official events on both sides, clearance companies...) in the Syrian-Jordanian free zone for investment companies in their various sectors is about (3000-5000 workers) from both countries.

2.Number of trucks carrying goods:

- It reached about 86 thousand trucks during the year 2014, while the number of trucks carrying goods during the year 2009 was (141) thousand trucks from the two countries, compared to 102 thousand trucks during the year 2011, as this decline is due to the events witnessed by the sister Syria, knowing that this sector represents one of the The most important sectors contributing to the investment process in the free zone, and the transport sector from the Jordanian side constitutes about 60% of it.

The reality...and the movement of investment activity

- During the years preceding the closure, the company achieved a remarkable and rapid development characterized by a performance full of activity and vitality in all activities, with positive results and clear indications of the success of investment in it, which made it a pioneering experience for joint Arab action, and this activity reached its climax during the years 2009 / 2010 in various sectors, and the activity of the free zone began to decline by about (15%) until it stopped working, and the total volume of trade is (60%) from the Syrian side and (40%) from the Jordanian side.

- Many investment, economic, commercial, industrial, service and car trade activities are practiced in the Syrian-Jordanian free zone, as the Syrian-Jordanian free zone began to achieve its strategic goals as an economic zone linking east and west through its connection to the ports of Tartous, Latakia, the port of Aqaba and the land ports open to the two countries from Turkey Lebanon, Iraq and Saudi Arabia .... It also achieved an investment of all energies and human and natural resources, combating unemployment, providing job opportunities for the local community and activating the role of the various sectors accompanying the investment process to be a distinguished and pioneering model for successful joint Arab experiences according to the standards of the Arab Organization for Administrative Development in the League of Arab States and Arab academic institutions.

(The table shows the development of the investment activity in it until 2014).

Type of goods (incoming and outgoing).

- Steel of all kinds (billets, coils, sheets, sheet metal, reinforcing steel, angles, bridges...)

- Wood of all kinds.

- Marble of various types (Italian, Turkish, Spanish ...)

- Various feeds (corn, soy, barley...)

- Sulfur, coal, pipes and tubes, machinery and equipment, spare parts, construction materials, sanitary ware, plastics, chemicals, detergents, foodstuffs, furniture, clothes and fabrics, electrical tools, various materials ....)

- Cars (small trucks, buses, locomotives...)

The peak of the investment activity of the Syrian-Jordanian Free Zone has reached its best and highest levels during the years 2009-2010 due to the confidence and stability it gained among investors as a result of the ease of procedures followed by its management... The level of investment activity during that period was as follows .

3. Revenues: There are two types of revenues generated from the investment process in the Syrian-Jordanian free zone.

A. Direct revenues for the management of the company resulting from occupancy allowances, entry allowances and other services provided by the free zone, which were during the year 2009-2010 as in the table below:

The year 2009-2010

Revenue (million dollars) 6,1626,113

B - Indirect Revenues: These are the revenues that are generated as a result of the investment process in the economic development region, such as (clearance, ports, cranes, transportation, customs, and other activities such as specifications, standards, agricultural quarantine, and nuclear energy ...). Activities from the Jordanian side, for example, during 2009 are as follows:

The services and ports sector: $30 million.

Transport sector: 18 million.

Customs and other sectors: $17.5 million.

So that the total revenues generated as a result of the investment process in the Syrian-Jordanian free zone for the activities accompanying it on the Jordanian side amounted to ($65.50 million) and a corresponding value for the activities on the Syrian side. This is in addition to what the investment process can achieve in the Syrian-Jordanian free zone in terms of Profits and revenues for the investors working in it.

Security measures:

Maintaining security within the Free Zone Company campus for members of the Jordanian-Syrian police who conduct patrols within the Free Zone campus to prevent any transgressions, as well as resolve disputes, and deal with traffic accidents. Among the permits that authorize them to enter the free zone, as well as for cars in terms of their validity and safety of their papers, and the police elements from both sides are present jointly at the Jordanian Gate No. (2) and the Syrian Gate (1). In addition, goods entering and leaving the free zone are subject to customs security inspection procedures. As for the Jordanian gate, exits and entrants are subjected to strict security measures and inspection by (X-RAY) device for all goods leaving the free zone towards Jordan.

The «company» addresses the concerned authorities to start work in it

In light of the positive developments witnessed by sisterly Syria and the reopening of the border crossing (Jaber-Nassib) between the two countries, the management of the company has been assigned by the General Assembly and the Joint Board of Directors to rehabilitate the free zone and develop the necessary plans to ensure its return to work and the exercise of its activities In light of this, the company’s management moved and addressed the concerned authorities through the Ministry of Industry, Trade and Supply in order to obtain the necessary approvals to allow those concerned to enter and start working in it in connection with its important location on the border between the two brotherly countries, especially in terms of security and ensuring the safety of those who will work in it In the interest of the two countries, all necessary procedures have been completed, coordination with the concerned committee, and arranging procedures for entering the free zone as of 3/25/2019, and in this context, the management of the company and those in charge of it aspire to reactivate its activity, attract more investors, and attract the case of reverse trade exchange From Jordan towards Syria, especially with regard to reconstruction, and in light of the current positive conditions, the free zone is expected to achieve a quantum leap in the field of its business as a transit, storage, manufacturing and re-export area, and it is expected to witness great investment activity in both directions and in various sectors such as:

Manufacture of various wooden and metal doors and windows and production of metal and glass sheets for cladding government and private buildings (cladding).

Plastic industry to produce various plastic products.

Automotive tire industry.

Production of asphalt and ready-mixed concrete.

Saws of stone, marble, granite, artificial stone, and the production of ceramics, porcelain, and earthenware, due to the abundance of raw materials in abundance.

Production and processing of mineral oils and paints of all kinds.

Production of photovoltaic cells to produce electricity.

Production or assembly of household electrical appliances.

Cardboard and paper recycling industry.

Manufacture of metal mesh and its equipment.

Cement industry with a high production capacity to produce all kinds of cement, gypsum and building materials.

In addition to its resumption of activities before the closure, which are referred to in the previous tables.