H.E. Dr Abed Shakhanbeh
Acting Jordanian Minister of Industry and Trade
Iraq Development Program
Opening Ceremony
Tuesday 28 June 2005

Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

At the outset, I would like to express my pleasure at joining you today in this august gathering to inaugurate the Iraq Development Program.

Our meeting today is organised as part of a series of exhibitions and conferences that have taken place over the past two years, aimed at creating business opportunities and joint ventures between Jordanian and international businessmen and investors. The series has consistently explored - and underscored - Jordan’s ability to be a successful commercial centre for business in the region, and, particularly, as a development partner to our sister country Iraq.

Now, more than ever, Jordan is realising its potential as a regional hub for doing business. On all fronts, Jordan has made great strides towards strengthening its economy. In line with His Majesty King Abdullah II’s commitment to enhancing Jordan’s role as a center for trade and investment in the region, Jordan has undergone a state of the art reform program - the ultimate goal, of course, being the improvement of every Jordanian citizen’s welfare. As part of this reform, the legal and administrative environments governing business are being rethought and all possible efforts are being made to provide the private sector with an enabling environment where investments deepen and flourish, creating not only prosperity for Jordanians but also for all our partners.

Prudent economic policies leading to fiscal and monetary stability, the reduction of government debt, the increase in foreign currency reserves, the lowering of interest rates, and the privatization of a significant portion of public institutions, have all been the basis and an integral part of the reform. This is not to forget the efforts that have been made towards streamlining government procedures and the development of an e-government system to facilitate transactions related to trade and investment. Our role is more of a facilitator for the private sector to prosper in a well regulated empowering legal environment that is stable and modern.

Today, Jordan is supported by a highly competitive, sophisticated, robust and well-connected infrastructure; a highly trained, regionally renowned and competitive labor force; an efficient, secure banking system; advanced telecommunication networks; and a vibrant IT sector benefiting from the availability of broadband, a fully liberalized telecom sector and a well connected IT cluster.

More importantly, perhaps as part and parcel of its modernisation efforts, Jordan has actively engaged in keeping up with world trends tending towards increased globalisation and the liberalisation of markets. So much so that Jordan’s relatively small geographical boundaries in fact give investors access to over one billion consumers!

Due to the Jordanian Government’s tireless efforts, the Kingdom now has privileged access to major export destinations through preferential arrangements and free trade agreements negotiated with the US, the European Union, the Arab countries, the EFTA countries and Singapore.

One such agreement - that of the Qualified Industrial Zones, has played a pivotal role in attracting foreign investments and joint ventures into the country. As a direct result of the QIZs, Jordan’s textile and garment sector has blossomed into an export-oriented engine of growth that sells top brands to the US, forming the lion’s share of Jordan’s more than one billion dollar exports to the United States last year.

As a result of an open and liberalised trade regime and continuous economic reforms, the domestic economy has boomed. Through the trade liberalising arrangements, and the increased production capacity of the Jordanian economy, exports have more than doubled from 1999 to 2004, and are expected to continue to grow. The GDP growth rate has steadily improved from 3.1 per cent in 1999 to over 7.5 per cent in 2004, demonstrating a constantly improving and expanding consumer base.

We must keep in mind, however, that the healthy and dynamic investment environment that we are working towards could not have materialised, and would not have come so far, without the active participation of the private sector.

While the Government has indeed been an active facilitator in the provision of an attractive legal framework for investors, to excel, we have long realised that we must rely more heavily on the private sector to drive reform. The Government must have, at the heart of its economic development efforts, an effective public-private partnership with an active and outward-looking private sector, offering investment and business opportunities to partners from all over the world. This is what I ask of you - the business community - today, to continue to be an active partner and participant in one of our most significant endeavours - the reconstruction of Iraq.

Ladies and Gentlemen,

Upfront it is important to note that the process of rebuilding Iraq is a joint responsibility that should be shouldered by us all as productive partners. The healing of a nation requires our combined efforts, complementing the will and resolve of the people of Iraq - not supplanting it, to realise a comprehensive infrastructure plan that extends from education to health and food safety, to economic and social development.

More than simply being geographic neighbours, the Iraqi and Jordanian peoples have long been linked by fraternal ties. Our countries have been connected by culture, history, and tradition, as well as by vibrant and strong economic relations. As a testament to the long-standing relationship between the peoples of Jordan and Iraq, the President of Iraq, H.E. Jalal Talabani, chose Jordan as the first country to visit after being appointed to his new post. We are honored to receive His Excellency and are truly appreciative of this gesture.

Jordan’s strategic geographic position, coupled by the ever deepening Jordanian-Iraqi trade relations make Jordan a positive gateway - or stepping stone - to doing business both in Iraq and regionally. We hope to be the beginning of a virtuous cycle that strengthens the drive for developing Iraq.

For the past three years, Iraq has been ranked as Jordan's second largest trading partner with just under $700 million traded in 2003 alone.

As geographic neighbours, and economic partners, Jordan and Iraq have worked over the years to realize partnerships in a variety of sectors and policy areas.Allow me to ponder some examples of recent developments on the institutional level. In July of last year, a Memorandum of Understanding (MOU) was signed between the two nations. A Higher Committee was formed to coordinate policies and efforts in areas of joint interest. Ministerial and Technical Committees were established as a result to explore issues of: Trade; Information and Communications Technology; Education and Scientific Research; Health; Transport; Labor and Training; Energy and Oil; Investment; Security; and Monetary and financial issues.

Last September, to further enhance trade relations, a Jordan-Iraqi Trade Joint Committee meeting was held in Amman, headed by the Ministers of Industry and Trade of both countries. During the Committee meeting both parties agreed to increasing bilateral economic and trade cooperation, and to signing a number of cooperation agreements, including an upgrade of the present trade cooperation agreement with the aim of concluding a bilateral free trade agreement.

In light of this growing economic partnership, the Jordanian Government established a Coordination Office for the Reconstruction of Iraq at the Ministry of Planning and International Cooperation to enhance cooperation and coordination on several levels, including, but not restricted to, security, economic, technical, cultural, and scientific cooperation.

On the levels of our government, businesses, and people, Jordan has been - and intends to continue to be - a key partner in the rebuilding of Iraq. We are the willing and welcoming hosts, organisers, and facilitators of events similar to this one; where people from around the world come together to exchange ideas and truly realize mutual economic benefits that will positively contribute to the reconstruction of Iraq.

For instance, during the World Bank Donors Committee for Rebuilding Iraq which took place in Abu Dhabi in February 2004, it was agreed that the United Nations working groups concerned with rebuilding Iraq be based in Amman. Moreover, numerous international companies, involved in the rebuilding efforts, have established offices in Jordan.

The Jordanian Government and people are committed to continuing their vital role in supporting the rehabilitation of Iraq. We are working, with our most sincere efforts, towards providing the necessary infrastructure and environment for facilitating the reconstruction of the country and achieving stability for the Iraqi people - a country and a people we hold dear.

Jordan will continue to facilitate all humanitarian efforts to Iraq and act as a gateway for the rehabilitation of the country through providing government-to-government assistance (such as the third-country training programs) as well as facilitating private sector involvement through encouraging the formation of joint ventures between international Iraqi and Jordanian firms.

This event marks an ideal forum for discussion, the exchange of ideas, and the creation of mutually beneficial arrangements by both the public and private sectors. In this sense, I would like to stress that it is truly the responsibility of everyone here today to seize the vast opportunities for trade and investment that are within our grasp. I call upon us all to seize the moment and prepare for a brighter tomorrow. And remember that as the spring breaks through the hardest of rock to quench the thirst of land and people, and as the brightest of flowers turn rocks into fertile soil, so should be our resolve, forever giving, forever hopeful and forever cognizant of the generations to come.

I wish you all a successful Summit.

Thank you.