Business Development Mission
Amman, Jordan and Cairo, Egypt:
A Focus on Women and Minority Opportunities
November 15-20, 2008
MISSION DESCRIPTION
The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service is organizing a trade mission to Amman, Jordan and Cairo, Egypt, November 15-20, 2008. The mission will include representatives from U.S. firms offering equipment and services in a variety of industry sectors, including, but not limited to, the following: Aerospace, automotive parts, construction, education and training, energy and power generation, environmental, food processing, franchising, hotel and restaurant, medical, oil and gas field machinery, packaging, petrochemical, pharmaceutical, port development, railroad, real estate development, security, telecommunications, and water and wastewater treatment. The outreach mission will focus on women and minority-owned firms and their key international representatives. All U.S. companies are eligible to apply.
COMMERCIAL SETTING
Jordan
Jordan continues to take steps to transform itself into an outward-oriented, internationally competitive market-based economy, and has made considerable progress toward achieving macroeconomic stability and in implementing economic reform, especially in the areas of privatization and investment. Key reforms have been undertaken in the information technology, pharmaceuticals, tourism, and services sectors. Foreign and domestic investment laws grant specific incentives to industry, agriculture, hotels, hospitals, transportation, recreation projects, convention centers, and pipeline distribution of water, gas, and oil. Having worked closely with the International Monetary Fund and practiced careful monetary policy, Jordan now stands out in its region as a model of sound investor-friendly economic policy.
Jordan’s government liberalized its trade regime to guarantee its membership in the World Trade Organization (April 2000), and the U.S.-Jordan Free Trade Agreement (FTA), which entered into effect December 2001, eliminates virtually all trade barriers between the two countries over a period of 10 years, heightening advantages for U.S. exporters as tariff rates fall year-by-year. Jordan and the United States have also concluded a treaty to protect bilateral investment.
The Jordanian market has enjoyed two years of gross domestic product (GDP) growth averaging 7 percent and is expected to see continued expansion. Reforms to customs, taxation, and investment laws have improved the business climate. Investors continue to show interest in Jordan’s Qualifying Industrial Zones (QIZs), duty-free export portals that, since 1999, have attracted over $450 million in capital investments and created more than 55,000 new jobs, of which about 15,000 are held by Jordanians – 57 percent by Jordanian women. Jordanian imports from the United States reached $857 million in 2007, a 31.8 percent increase over the previous year. Important market opportunities exist for U.S. firms in a variety of sectors, and there are niche markets for pharmaceuticals, laboratory equipment, real estate management services, and renewable energy, among others.
Egypt
At 78.8 million, Egypt is by far the largest Arab country by population and has a reasonably well-educated labor force. Egypt’s economy, traditionally associated with agriculture, has become increasingly diversified. While tourism is its single largest foreign exchange earner, Egypt is also a major oil and gas producer, ranking among the world’s top ten gas exporters. The clothing and textile sector is the largest industrial employer and a major foreign exchange earner. Other leading industries include steel, cement, chemicals, pharmaceuticals, and light consumer goods. Agriculture, although shrinking as a percentage of GDP, still employs almost 30 percent of the population.
Egypt’s economy has improved considerably since 2005, due mainly to a new reformist government that has successfully floated the Egyptian pound, eliminated foreign exchange shortages along with the black market, reduced tariffs and simplified the tariff structure, moved to reform the financial sector, introduced measures to simplify the tax structure while lowering rates, and reduced the red tape necessary to conduct business. Supported by sustained reforms, Egypt’s economy marked a year of impressive performance in 2007, receiving record foreign direct investment (FDI), along with official reserves exceeding $30 billion. The Gross Domestic Product (GDP) grew by 7.1 percent, and is expected to expand at a similar rate in 2008. Most of the FDI has gone into construction and manufacturing, resulting in lower unemployment. The government has also signed agreements with China, Jordan, Russia, Turkey and Qatar to construct industrial zones. Receipts from the Suez Canal and tourism brought in more than $11 billion in the first three quarters of last year. The Egyptian stock market has been one of the best performers in the region.
Egypt’s government is putting in place an institutional framework for private-public partnerships (PPPs). PPP projects in the pipeline include building and maintaining 2,100 public schools, four hospitals, several potable and wastewater stations, and two freeways. Unmet demand for housing construction is estimated to be 200,000 units annually. Telecommunications is another bright spot in the economy. Mobile penetration rates by three mobile operators stand at 28 million, or about 35 percent of the population. The government is expected to grant a second fixed-line license in 2008. In addition, tourism, employing more than 10 percent of Egyptian workers, continues to offer strong possibilities, as expansion of Red Sea resorts and new development along the Mediterranean drive demand for hotel equipment and environmental management services. Airports and other infrastructure projects being built to serve the new resorts represent additional opportunities for U.S. firms offering project management and building systems and equipment.
MISSION GOALS
The mission will assist representatives of U.S. companies responsible for business activity in the Jordan and Egypt with their efforts to identify opportunities and new markets for their respective U.S. companies and to increase their export potential. Results expected from the mission include matches between U.S. participants and potential partners, agents and distributors, and joint venture partners; and market knowledge for future expansion.
MISSION SCENARIO
The mission will include commercial briefings, matchmaking appointments with local firms, and networking receptions in Amman, Jordan and Cairo, Egypt. Activities are scheduled to take place within a single work week, beginning Sunday in Jordan and ending Thursday in Egypt.
MISSION TIMETABLE
Saturday, November 15, 2008
Sunday, November 16, 2008
Monday, November 17, 2008
Tuesday, November 18, 2008
Wednesday, November 19, 2008
Thursday, November 20, 2008
PARTICIPATION REQUIREMENTS
All parties interested in participating in the Business Development Mission must complete and submit an application package for consideration by the Department of Commerce. All applicants will be evaluated on their ability to meet certain conditions and best satisfy the selection criteria as outlined below. A minimum of 8 and a maximum of 15 companies will be selected to participate in the mission from the applicant pool. U.S. companies already doing business in the MENA region, as well as U.S. companies seeking to enter the region for the first time, may apply.
Fees and Expenses:
After a company has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required. The participation fee will be $3,000 for a small or medium-sized enterprise (SME)1 and $3,575 for large firms. The fee for each additional firm representative (SME or large firm) is $300. Expenses for travel, lodging, most meals, and incidentals will be the responsibility of each mission participant. Delegation members will be able to take advantage of Embassy rates for hotel rooms.
Conditions for Participation:
Selection Criteria for Participation: Selection will be based on the following criteria:
Referrals from political organizations and any documents containing references to partisan political activities (including political contributions) will be removed from an applicant’s submission and not considered during the selection process.
TIMEFRAME FOR RECRUITMENT AND APPLICATIONS
Mission recruitment will be conducted in an open and public manner, including posting on the Commerce Department trade missions’ calendar – http://www.ita.doc.gov/doctm/tmcal.html – and other Internet websites, publication in domestic trade publications and association newsletters, direct outreach, and announcements at industry meetings, symposia, conferences, and trade shows. The mission will also be promoted by the ITA ANESA Team members in U.S. Export Assistance Centers.
Recruitment for the mission will begin immediately and conclude no later than October 15, 2008. The mission will open on a first come first served basis. Applications received after October 15, 2008, will be considered only if space and scheduling constraints permit.
CONTACT INFORMATION
Sheryl Maas, Commercial Counselor or
Muna Farkouh, Commercial Specialist
U.S. Commercial Service
American Embassy – Amman
P.O. Box 354 Amman 11118, Jordan
Phone: (962) (6) 590-6632
Fax: (962) (6) 592-0146
Email: Sheryl.Pinckney-maas@.mail.doc.gov and
muna.farkouh@mail.doc.gov
Amer Kayani, Senior Commercial Officer or
Cherine Maher, Commercial Specialist
U.S. Embassy Cairo
8 Kamal El Din Salah Street
Garden City, Cairo, Egypt 11136
Telephone: +20 (2) 2797-2688/2689
Telephone: +20 (2) 2797-2298
Fax: +20 (2) 2795-8368
Email: Amer.Kayani@mail.doc.gov or
cherine.maher@mail.doc.gov
Nyamusi K. Igambi
Senior International Trade Specialist
Houston U.S. Export Assistance Center
1919 Smith Street, Suite 1026
Houston, TX 77002
Phone: 713-209-3112
Fax 713-209-3135
E-mail: Nyamusi.Igambi@mail.doc.gov
1 An SME is defined as a firm with 500 or fewer employees or that otherwise qualifies as a small business under
SBA regulations (see http://www.sba.gov/services/contracting opportunities/sizestandardstopics/index.html). Parent companies, affiliates, and subsidiaries will be considered when determining business size. The dual pricing reflects the Commercial Service’s user fee schedule that became effective May 1, 2008 (for additional information see http://www.export.gov/newsletter/march2008/initiatives.html).