CHAPTERTHREE

BUSINESSII{CUBATIOI{.
THEORETICAL
II\TRODUCTIONAND
BUSINESSINCUBATORS
IN JORDAN
(:HAPI Elt t HRtu

l.INTRODUCTION
The first chapter of this book is a general survey of Jordan as a case-studycountry, while the
second one describes the scope of national and regional planning as a means of controlling
sustainablecountry development.The secondchapter approachesthe main topic of the book by
fbcusing on production sites as Jump-starting'elements,including economic impulses that can be
establishedfor the fomation of proper regional composition.

In this chapter,the topic of businessincubatorswill be elaboratedin generaland focus on a unique

group of that branch,which embodiesthe industrial parks.

Economic activities can be divided into:

. Land-basedactivities;
. Administrati\ely forcedactivities.

2.1LAND-BASEDACTIVITIES
Kaldort differentiatesbetween two kinds of land-basedactivities: 'footloose' and 'foot-bound'.
For the foot-loose activities, the sourcesof materialsneededfor production are not top priorities,
e.g. the case of the electronics industry. Foot-bound activities, such as agriculture and mining,
make thet investmentsclose to where raw materialsare available.

Kaldor desqibes the role of 'resourceendowment areas'in the disffibution of economic activities
in any counfy and calls the industriesconcentratedthere 'land-based'economic activities, such as
agriculture or mineral exploitation. These are clearly conditioned by geological and climatic
factors, the suitability of soil, rainfall, the availability of minerals, and so on. Consequently,he
relies on this fact to explain why some areasare more densely settledthan others,and why there is
a comparative advantagein procuring different products, and what determinesthe nature of their
extemal rade relations.

2.2 ADMINISTRATIVELY FORCED ACTIVITIES

The state, as a representativeof both public and private sectors, carries the responsibility of
planning through public investment in physicat and human capital. Allocating financial capital in
order to provide the physical capital stock, such as buildings and public infrastructure
(transportationnetwork; elecffical and iommunication networks etc.), can be consideredas public
interyention to steerthe country developmentin compliancewith the public strategy.Furthermore,
public decision-makershave a big influence on allocating businessincubators as Jump-starting'
economic elementsthat induce regional planning changes.

1 Article entitled'The Casefor RegionalPolicies'publishedin ScottishJournalof PoliticalEconomy,Nov. I970 [5 I ].

 r'll \Pfhtt I HRt]l

Public authorities, as representativesof social-interests,can influence the country's development

by implementing short- and long{erm developmentprograms.These strategicprogramscan focus
on solving cartain regional or provincial problems by running pafiicular development programs
through administrativelyforced measures.A good exampleof such action is the constuction of an
airport or a highway in a particular parl of the country. This can be achievedby implementing a
land-usemasterplan combined with investmentincentivesfor the targetedregions.

Governments have a big interest in encouraging private enterpdses to establish, enhance and
develop their industdes. By doing so they stimulate entrepreneursto create more jobs and to
increasetheir participation in the national economy.

Regional authorities and local governmentscan and should contribute in creating an appropriate
investmentenvironmentby providing incentivesfor enterprisecreation,to make economic growth
in their own territories possible.

3. BUSINESSINCUBATORS
Industrial areas are business incubators, which are defined by the European commission as
follows2: "A business incubator is a place where newly createdfirms are concentrated in o
limited space. Its ainx is to inprove the chqnce of grotvth and rate of sut-vivalof theseJitms by
providing them with q modular building with commonfacilities (Telefax,computingfacilities, etc.)
as well as with monagerial suppott and back-up semices, The mqin emphasis is on local
developmentand job creation, The technologyorientation is often nrarginal3 [58]."

The establishment of public or pdvate investments passes through almost the same process.
Investors think in four parallel lines of thought when they intend to establishtheir own business
line. and theseare:

. What is to be established?
. Why is it to be established?
. Where is it to be established?
. How is it to be established?

Based on fixed regional policy made by govemments and business associations,which was
discussedin depth in the second chapter, businessenterprisesfind themselvesforced to choose
between plots within a predetermined site instead of choosing a site within a region to be
distinguished for industrial uses. Their traditional role in making their own market studies
regarding inputs4 and outputs is no longer valid under the new circumstances5.The central
planner has taken over their role and given them limited paths along which they can practice their
production. Site selectionhas tumed into plot selectionwithin a predeterminedsite.

Ectey differentiatesbetweenthree kinds of production site which are :

. Foundation of nehtfactories;
. Relocationof factorie.s:
. Branch establishment1601."

This exprcssionis widely used in the USA as being the country with the first tbundeN ol BusinessIncubators.'?rrsire.!.r
incubation caulyzes the prccess of stLtrtinsanl growing companies.A pro|en mo.lel, it provides entrepretleursvith the
expertise,nebt"orks,and tools they need to nake their yentures succesqful.Incubation prognms diversifr economies,
com rerciulizetechnologies,create.iobsantl bui[t] weahlt Tocla-,-,
there ore more than 900 ol theseprograns h tlrc Unitetl
Sxttes,upfrom 12 in 1984[57]."
UN ECE OperalionalAct;vilies: Promoting and SustainingBusinesslncubatofsfor the developmentof Smal] and Medium
Enterprises. Discussionpaperpreparedfor the Experl Meetingon Bcst Practicein BusinessIncubationheld on 3-4 June 1999a1
the PalacedesNalionsin Geneva.
4 tnputs ale [59]: Natural resources;working force; suppliersof goods and services,and acccssibilily10 infomation and ln-
novations.
5 Output [59]: Marke! accessvariegatesstronglyaccordingto locations.
 -! -i
{'lt \l"l l'l{ I llRLll

3.1 BUSINESSINCUBATOR GROUPING

There are thrce major kinds of industrial businessincubators:

1. Scatteredindustrial areas;
2. Free zones;
3. Detachedindusbial areas'Industrial Parks'or 'Industrial Estates'.

3.1.1SCATTEREDBUSINESSINCUBATORS
In order to satisfy the needsof the population, small and medium-sizedmanufacturingfirms, such
as workshops,factories for the manufactdringof food and beverages,carpetsand rugs, footwear,
textiles, etc., began to settle near the agglomeration areas. The establishment of small-size
industrial manufacturing firms has begun in accordancewith the basic processesof economic
growth.

3.1.2FREE ZONES
Free Zones are predetermined areas reserved for practicing certain economic activities under
cefiain economic rules mostly related to tax exemptions.Investors usually take advantageof the
free zones regulations in order to execute export-oriented industrial production. They serve in
general multi-functionally, which can include storage,production, and export of goods. Because
of this wide range of free zones functions, they will be superficially discussedin this book and
will not be included in the ranking model, which will be elaboratedin the coming chapters.

"Tofacilitate Jordan's role as a regionaLhub betweenthe more populous countriesof lraq, Egypt,
Syria, and the Gulf Stcttes,the government of Jordan has establisheda ru4mberof public and
private Jiee zones throughout the country. Goods may pass through these zones, exemptJrom
customs duties or import taxes, and industial facilities may be leasedfrom the govemment .tt
reducedrates".

"The first public free zone was estqblishedin Aqaba on the Red Se.t, concentating on tansit,
freez,ingand cold storageand industri.almanufacturing,The Zaryo Jree zone lies 35 km northeast
of Amman, and offers automobile and commercial sale oppofiunities, plus manufacturing ond
warehousingsites. Thefree zone located at the Sahab industial estatehas beenaLlocqtedfor use
by iwestors in export-orientedindustries. The QueenAlia Intemational Airyort has been selected
to serve as a site for transit trade and the establishment o.f light, high-tech, pollution-free
industries[61]."

Free zonesin Jordancan be assembledin two categories,which are:

. Free Zones Corporationprojects;

. Private free zones.

3.1.2.1FREE ZONES CORPORATIONPROJECTS

"Jordan also has 9 pivate free zones,which are available in Aqaba, Qweira, Qaa' Khana and
Shidieh. Aqaba's private free zones encompassan area of 13.5 nillion sq. m and has been
designatedfor a varietJ of indLtstriesusing phosphatesanclpotash as raw materials, as well asfor
storing and distributing chemicalsuseclin paints and plastics. Thereare four private free zonesat
Qweira, v,hich are engagetl in trading antl storing livestock, estctblishinga meat industry for
re-erporting, as well as producing natural fertilizer. Sheidieh'sprivate free z.oneswere createdfor
the developmentof an industial complex devoted to producing phosphoric acid and .fertilizer
t611."
 CIIAP]'I.]R ]'HRI'I]

The Free Zones Corporation is a govemmental institution that carries the responsibility of the
establishmentof businessincubatorsthat serye a unique kind of commercial investmentunder the
provision of a special law. The corporaiion offers plots with the necessaryinfrastructureswithin
fte boundariesof a predeterminedzone that can ease the operation of private commercial and
indusfiial investment.This arrangementoffers a further investmentopportunity that can benefit the
private sector and can create more workplaces.The Free Zones Corporation aheady operatesthe
following projects:

I. ZNqa Free Zone (seeAppendix E, Plalg E23 a\dE24),

2. Aqaba Free Zone;
3. SahabFree Zone;
4. QueenAlia Intenational Airport Free Zone.

3.I.2.2PRIVATE FREE ZONES

"The council of ministers approved the establishment of five private Free hnes wilh a total
investmentc(tpital of about 264 Million JD [62]." In Jordan, we can find the following pdvate
free zones,which employ about 3,000 workers:

. JordanIndo Chernicals;
. JordanMagnesium Companyo;
. JordanBromine Company;
. Intemational Company for Investments;
. Mwaqar company for private free zone;
. Hijazi and GhoshehGroup;
. Trans- Jordanfor livestock:
. JordanianDuty Free Company Shops;
. Free Media City:
. Almasyeh Intemational Company for Investment;
. Masbokat Alsahra' for Production:
. GhassanGhir and Partners;
. Marshal Iyrosis ofJordan;
. JordanianAiryorts Duty Free Company;
. JordanianCompany for the Reconstructionof Airplane Engines;
. JordanianCompany for Airplanes Maintenance;
. JordanianCompany for Airplanes Provisloning;
. JordanianCompany for Training and Simulation.

3.1.3INDUSTRIAL PARKS
The Industrial parks, as places where severalindustdes are concentrated,affect the entire regional
fabric becauseof their role, which is to act as gravitation points and to induce economic impulses.
People needed for the WorkforceT for running the production wish to settle down near their
'agglomeration'areasnear
WorkplaceS . This kind of normal human behavior leads to congested
Industrial parks. Such action can be induced by developing well-founded territory development
plans and issuing them in the form of legalized masterplans. The implementedplars should come
under continuous evaluation in order to create harmony and diversity to a certain extent. The

6 A joinr ventureof the CanadiancompanyAgra Monencoand the TurkishcompanyAttila Doganthat produceMagnesiumOxide

nearthe Arab potashcompanyindustrialcomplexat the DeadSea.
7 worfforce: The total number of workers employed by a company on d specirtcjob, project, etc., or the tot.tl number of people
who could be employed(source:http://wordreference.com/english/definition,
date;21.07.2002,time: l6:30).
8 Workplace:A place, s ch as a factory or office, wherepeople work (source:http://wordreference.con/english/definition, date:
21.07.2002. time: l6:30).
cHAPTl,tR
'l'lrRFttl
61
altemative option for selectingthe location of industrial parks is to allow the pdvate sector a wide
range of freedom for the selection of the most suitable location according to their feasibility
studies.

"Severalplanned industrial towns were built in the nineteenthcentury. The scale of organization
of large manufacturing operations necessitateda well-organized corps of workers. The English
were the main developersof theselarge-scaleoperations in their textile plants, and the Aruericans
were quick to leam their lessons.A small mill village of workers houseswas erectedas early as
1812in Georgiaville, RhodeIsland [63]."

"Around the Krupp factories of Essen, Germany, a number of communities were built starting in
1863.Called Siedlungen,or worker colonies, by 1925 they amounted to 25,000 housesin about a
dozencommunities.[63 ]."

The logical justification for establishing indusftial parks must be elaborated within the same
context of the previously raised questionsas to 'why they are to be established'which investors
usually make.

The best example of detachedindusrrial areasis rhe Industrial Estateg . The Industrial Estateis an:
"Area of land situated outside the boundaries of Municipalities and designatedas an industrial
'Planning
zone under the provisions of the of Cities, Villages and Buildings Law' in force and
allocated for the accommodation of industries and required services, which the council of
Ministers upon recommendation of the Board ma! consider as an Industrial Estate to be managed
by the Corporation in qccordancewith the provisions of this Law [64]."

Why Industrial Parks?

1, Placasneededfor industry and its ongoing expansiol are usually inadequatewhen located
within the housing areas;
2. Industrial parks reducethe usual complaints about industry and its disturbing effects on the
neighboringpopulation and on the environment;
3. Industrial parks reduce the radical price increaseof land and real estate neededfor pro-
duction within cities;
4. They give freedom of design according to the new production demandsoffered by large-
scaleareasoutsidecities:
5. Provide good connectionsto the national and intemational transportationnetworks;
6. They make use of investment attractionsoffered to industries working in less developed
argas;
7. They contribute to the developmentof the country by investing in the lessdevelopedareas;
8. They decreaseproduction costsby using cheaplabor outsidecities;
9. They facilitate co-operation between various industries and the exchangeof material and
expensI
10. Indusuial parks facilitate the use of modem and efficient services, such as water and
electrical supplies, fire fighting systems, telecommunication, and sewage and sewage
reatment.

3.1.3.1 INDUSTRIAL PARK LOCATION

The main concern of the author in this book is to examine 'where a production site should be
established',becausethis matter is vital and can influence the regional and urbar fabric in the
country concerned. This matter will be discussedin detail in the fourth chapter.

9 IndustrialPark (lP) and lndustrialEstate(lE) are synonyms.The JordanIndustrialEstateCooperationuseIndustrialEstatesto

identify its projects,but the Author prefersto usethe rerm 'Indust al Park'asbeingcomprehensive
and popular.
ir'.,) ('tt,\P l utt .f HRt.it.l

3.1.3.2 INDUSTRIAL PARK SIZE

An industrial park can be consideredas the host lor various kinds of businesses.Large, medium
and small-size enterprisescan benefit from this facility for an effective start-up. The industrial
park as an 'organizationalumbrella' can play the role of an incubator especially for small- and
medium-sizedenterpdses.

"Small- and medium-sizedenterprisesqre consideredto be one of the principal driving forces in

economicdevelopment.They stimulateprivate ownership ancl entrepreneurial skiLls,they generate
employment,help diversifi economic activity and make a significant contibution to exports and
trdde. The "Best Prdctices in Incubator Infrastructure and Innovation Suppott" seminar held in
November 1998 in Espoo (Finland) demonstrated that the busine$ incubator iruLustry is a
poweqful tool for the creation of small- anclmedium-sizedenterprises,:for supporting their startup
arulfor increasing their growth rate."

"Amongst the support institutions, businessincubators, innovation centers, industriql parks and
techno-parks hqve shown themselvesto be effective instrumentsfor assisting entrepreneurs in
stafiing a new business,nurturing young enterprises, and helping them to survive during the
start-up periori when they are most vulnerabLe[ 58]."

3.1.3.3INDUSTRIAL PARK DESIGN

Offering a comprehensivedesign with almost every crucial element is a big plus that can enhance
and suppolt all kinds of industries within one unified compound. "Businessincubators involve
some kind of premises (real estate) infrastructure where national or local governments,
municipalities, or groups of large-scale enterprises provide on-site workhop ffice and
administrati)e services,and assistancein various areas such as technical support seryices,access
to financing, counseling,marketing,accessto equipment,manqgementassistance,etc. [58]."

3.1.3,4INDUSTRIAL PARK SERVICES

Servicesprovidedby lndustrialparks:
. Physicalintiastructure;
. Administrativeservices.

3.I.3.4.IPHYSICALINFRASTRUCTURE
. Roads;
. Water networkl
. Sewagenetwork;
. Electdcity network:
. Telecommunicationnetwork;
. Fire-fighting system.

3.1.3.4.2ADMINISTRATIVE SERVICES

. Generalmanagement;
. Secretarialseryices;
. Telecommunication;
. Planning, assistanceand counseling;
. Advertising, and marketing;
ctt,\Pt |']Rt' l *l ijj
. lnvestmentpromotron:
. Financial advisoryi
. Training;
. Catering:
. Security:

3.2 BUSINESSINCUBATORS IN JORDAN

In the early fifties of the 20rhcentury, workshops were the early shapeof industrial production in
Jordan.According to the recordsof the Ministry of Industry and Trade in Jordan,there were 9,214
factories and workshops registeredby December 2000 in Amman province with a total domestic
and foreign capital of \,635,159,992 JD. This amount form more than 75Eaof the total capital
invested in the whole country, which reflects the imbalance in the distribution of population
among the various provinces(seealso Table 7).

TABLE 7
REGISTERED
FACTORIES,WORKSHOPSAND COMMERCIALNAMES IN JORDAN

Province No. of RegisteredFactories No. of RegisteredWorkshops

Amman 8,783 t6,o'75
At Balqa 441 1,152
Al Z^rqa 919 1 qqq

Madaba 155 3'18

Irbid 734 2,446
Al Maftaq 196 280
Jarash 6l 156
Ajlun 2l 109
Al Karak 6l r60
A1 Tafila 26 61
Ma'an 39 64
Al Aqaba 81 l]9

Source:Ministry of Industry and Trade, Jordan.

Appendix D shows an increasingtendency to establishnew industdal projects in already heavily

populated areas (see Plate 23). Table 7 confinns this phenomenonand justifies the necessityto
conduct regional planning related research and studies which can assist in finding reasonable
regional planning solutions for such growing problems. Appendix (A) presents the official
opinion regarding regional planning matters, where the tendency towards decentralization of
economic activity is obvious, e.g. distributing industrial parks, among the various provinces in the
country (seeAppendix A, answerto questionsixteen).

"Due to the absenceof industrial policy, industrial companiesare growing across lordan quite
haphazardlylike mushroomsand indeed like mushrooms,many of them have a very short life span
165l. " Despite the ongoing effods to link the new industdal investmentsoutside the capital, the
number of the industrial enterpdsesin Amman province alone equals almost the number of all
remaining enterprisesin the other I I provinces (seeTable 8).

Jordan, as a developing country with very limited natural resources,has recognizedthe necessity
to establisha solid infrastructurethat can encouragepdvate enbepreneursto make new industrial
investments.The HKJ realized in the early stagesof its formation the importance of establishing
self-contained,detachedindustrial areas,which are:

. JordanIndustrial EstateCooperationprojects;
. Private sectorprojects;
. Free zones.
:..' i ('t | \ l, l'll lt .l fl lt u ll
i,i''ii

TABLE 8
GEOGRAPHICDISTRIBUTIONOF THE INDUSTRIALCOMPANIESIN JORDAN

Province Number of Enterprises

1994 1997 1998
'1 L<
Amman 6,336 7,160
Al Balqa 610 783
AlZatqa t,740 ) 1)q 2,t49
Madaba 283 32'7 312
Irbid ) o14 1 L1A ) L59

Al Mafraq 394 487 515

Jarash 234 27r 305
Ajloun 144 200 216
Al Karak 297 360 360
Al Tafila 106 131 133
Ma'an 183 223 228
Al Aqaba 150 r70 183

Source:Departmentof Statistics,Jordan.

3.2.1JORDAN INDUSTRIAL ESTATE CORPORATION PROJECTS

The Jordan Industdal Estate Cooperation (JIEC) was establishedin 1980. A special law No 59
passedin 1985 set the framework for the establishmentof the JIEC. Atticle 3 of the law described
the JIEC as being "a corporate entity rrhich shall have financial and administrative aLttonomy
[64]". Article 6 of the samelaw definesthe objectivesof the colporation as follows:

l, "Stucty,plan, establishand mandgeall industrial estatesin the kingdom;

2. Encottragethe establishmentof industrial projects in the indusftial estatesin various parts
of the kingdom;
3. Encouragethe relocation of existing industries in the industrial estates;
4. Take appropriate actions, which may leqd to the development antl complementationof
inclustrieswithin the industial estateantl overcomeany difficulties.facing them [64]. "

In order to fulfill its mission as a public umbrella for industrial parks and as a businessincubator,
chapterthree of the JIEC law equippedthe cooperationin Article 7 with the following powers:

1. " To otvn and buy lands necessaryfor the est.lblishmentof industrial estates;
2. Managementof all affoirs of industrial estates;
3. Notwithstan(li g the provisions stipulated by any other law, the cotporation shall exercise
itspowers within the industrial estate,the .ruthoritiesof the local and the regional planning
committeesfor application of the planning of cities, villages and buildings law;
4. IJndertakeall necessaryconstuction work for the establishmentof industial estatesand
proride them v'ith the required services;
5. Approve the establishmentof licensedindustrieswithin the industrial estates:
6. Exercise the powers and (luthorities of the municipalities in the kingdom tvithin the
industrial estates:
CII,\PTF]R 1'I{RI.]I.] $3
7. EstabLish a basis for renting and/or selling lands and.factory buildings constructed in the
industriql estates to the industriql investors and conclude contracts thereof:
8, Recommendto the authorities concernedto adopt restrictive planning measuresfor areas
surrounding industrial estatesas may be necessaryfor the public imerest;
9. Provid.emanagerial,financial qnd technical advice to the industries within the industrial
estatesand to the industrieswishing to be located on the industrial estates;
10. Conclude contracts r|ith contractors, experts includ.inglawyers and engineersin order to
enable the corporqtion to petform its duties;
11.Borrow funds from local andforeign sourcesprovided that:
. The issue of bonds locally shall be carried out in occordonce with the provisions of a
special regulation to be issuedfor this purpose,
. leans from foreign sources shall be approved by the council of ministers,

12. Cooperatewith other concernedauthorities to provide housing and other servicesfor peo-
ple working on the industrial estates;
13, Take necessarymeasuresto protect environmentagoinst pollution causedby industries on
industrial estc es incluclingpollution ofwater and air;
14. Coordinqte with concemedministries in maftersthat rel.tte to their work:
15. Adopt any other measures towar^ implementing the objects of the corporation in ac-
cordance with the provisions of this law [64]."

Since its foundation in 1985 the Jordan Industdal Estate Cooperation has executedfour projects
and finished the design and tender documents for another seven industrial parks. To facilitate
further elaborationwe will divide the JIEC Droiectsinto:

l. Existing Industrial parks;

2. PlannedIndustrial parks.

3.2.1.1EXISTING INDUSTRIAL PARKS

In the early seventies of the 20th century and during the oil boom, Jordan witnessed the
establishmentof its foremost light industries,which were allocatedin the vicinity of the inhabited
areasin and around Amman ciry. The Jordaniangovernmenthad realized the necessityto gather
these scatteredindustrial sites within an industuialpark that can provide them with the necessary
infrastructure and unified administrative framework. This framework was granted by the formation
of the JIEC, which was establishedby law and gave the authoritiesa wide scope.At the sametime
the JIEC law left a wide range for individualism and freedom for investors within the framework
and general guidelines of the cooperation as a business incubator and facilitator. Since its
formation, the JordanIndustrial EstateCooperationhas erectedseveralindustrial parks, which are:

. Abdullah II Ibn Al HusseinIndustrial Estate:

. El HassanIndustial Estate;
. Al HusseinIbn Abdullah II Industdal Estate;
. Aqaba InternationalIndustrial Estate.

3.2.I.I.I ABDULLAH II IBN AL HUSSEININDUSTRIALESTATE

Sahabis located3 km southof the boundaryof the Municipalityof GreaterAmman.SahablO

IndustrialEstateis theoriginalnameof the first industrialparkin Jordanthatwasbuilt in the early
eightiesof the 20thcentury.The city currentlyhas 345 factoriesemploying 15,000workers,
techniciansand managerswith an estimatedtotal capitalof aboutUSD 1 Billion. Its namewas

l0 District within Anman Province18 km away from the centerof Amman with 32,153personsaccordingro tho 1994nationalcen-
sus(seeAppendixE, Plate832, Locality Number6).
iii.r ctI:\P'lt.ittl llttuu

changedin the year 2001 into Abdullal II Ibn El Husein Industrial Estate(AIHIE), the king of the
HKJ. The location of this estate has the advantageof direct and easy connectionsto all major
regions within the Kingdomll . It is located near the highway to Queen Alia Intemational Airport
(QAIA), leading to the port of Aqaba and the southembordersto Saudi Arabia.

The total area of this estateis 2500 dunumsl2 . By the end of 1995, the estateaccommodated327
industrial entities, of which there were 53 manufacturingfirms with US$ 495 million investment
involved in regional and intemationaljoint ventureprojects,seeTable 9.

TABLE 9
INDUSTRIESHOSTEDBY ABDULLAH II IBN AL HUSSEININDUSTRIALESTATE

Branch Number of Firms

Chernical Industries 51
2. ConstructionIndustries l0
3. WeavinsandCottonIndustries 38
4. EngineeringIndustries 19
5. FoodIndustries 40
6. Paper.Packing.Packagingand Prinlinglndusn-ies 21
7. Pharmaceutical
Industries 2l
8. Plastic and Rubber Industries 53
9. Furniture(WoodenandMetallic) Industries
10. LeatherIndustries t1

Source:InvestorsAssociation
ofAmman IndustrialCity in Sahab.

Being the first operated industrial park in the county, the choice of location approved by the
government can be evaluated in the following Table 10. In summary, the preponderanceof the
advantagesshown in this table that must be read within the context of location-relatedissuescan
be observed.

LocArroNEVALUATToN
oF ABDU;l?iLf;,t"\ or-ru..r,* ,*DUSTRTAL
ESTATE

Advantages Disadvantages
Nearthebiggest
agglOnemtonareas
inthec0untry Withhanddevelopment 'A' provides
area which only25%
exemption
province
center ftominc0me
andsoaial
services
tercs
Nearthemainroadcomecting
lhederrnhigh$dyandpro\incecenlei
0n11J0kmarayiromrhebiggeslinremdriondl
Airyoninrhecounn)
Nearlhemilwaytrack
Appropnate
0nenwion rheprevaring
Egarding \re5lwinddirccLi0n
Withinmoderale
climate
area
Neamesst0theexlsllng
mlrastructure
Possibility
forfuture
extension
A\vay
tromagncultural
area
Awaylromunderyruundwater
Rsources
Inhunonywitipoljtical
andsocial
priorities.

Source:Author.

t 1 SeeAppendixE, PlatesE3l, E32,835andE36.

t2 One Dunumequals1,000sq.m.
 ('t!,\l''l lllt l lIltIl']

3.2.1.1.2EL HASSANINDUSTRIALESTATE

In 1989 the constructionof a secondindustrial park beganin the north pa of the country and was
given the name of Pdnce El Hassan Ibn Talal. El Hassan Industdal Estate (HIE) became the
official name of this industrial park, which was opened for operation in 1991 (see Appendix E,
PlatesEl1 and l2).

Based on a specialized regional planning study made in cooperation between Jordanian and
Japaneseexpertsl3 , the lrbid region was divided into ten developmentareasl4 . The location of
this industrial park was chosenafter long debatesl5. and in the end it was located 2.5 kilometers
east of the Ramtha intenection. In 1985 the final design was completed,with the following main
rearures' :

. EntranceGate:
. Administration Complex;
. Fire ard Police Station:
. StandardFactories:
. Petrol Station:
. Water Tanks, Undergroundand ElevatedWater Reservoirs;
. SewageTreatmentPlant;
. Electric TransformerStation,

Despite presentingcomprehensiveengineeringdrawings, El HassanIndustrial Estate suffers from

location-relatedDroblemsas shown in Table 11.

TABLE 1I
? LOCATIONEVALUATION OF EL HASSANINDUSTRIALESTATE
LocationAdvantases Location Disadvantases
Nearintemationalroadnetworkand Theselectedsiteembodiesa wadi thatsplitstheplot
borders.
intemational intq two parts,whereculvertswereneededto allow
theaccessibilityandmobilityof personsandvehicles
betweenthetwo parts.
Nearagglomemtion
areas. Limitedexpansionareaduel0 scattered pdvate
ownership sunounding plot.
theoriginal

Source:
Author.

The biggest location-relatedproblem facing this estate is the Wadi floods during winter, which
reachedthe factory areasseveraltimesl 7 . In this context. the study made by the Royal Scientific
Society should be mentioned, This study examines the flood problem and makes suggestionsto
preventor to reducethe flooding.

"A big Wadi that is consideredto be an aggregationpoint for severaLwadis splits the estatev)ith a
total length meesuringabout 1,250 m within its borders. The location of this wadi and its neqrness
'ShalaLeh'tumed it into drainage
to the final water aggregation point for rainwater comingfrom
several werlis or streamsor paths. Rainwater over the catchmentarea cqusesa roise in the water

l 3 In March 1976,Late King Husseinof JordanvisitedJapanto starta new ageof coopemtion.On l4'o August 1978an agreement
was signedbetweenthe two countriesto rcflect the political will beingresultingfrom Japanese technicaland financialaid to the
kingdom.
t 4 During the late sixties,Jordanwas divided into five main rcgions,which are JordanValley, Irbid, (Amman and Balqa),(Karak
and Ma'an)and Aqaba.
15 One ofthe main altemativeswasoppositeto the JordanUniversilyfor ScienceandTechnology(JUST),seePlate3 and El2.
t 6 DangroupIntemational-Denmarkmadethe designof the El HassanIndustdalEstate'originally namedIrbid IndustrialEstate'.
The total plot areawas427,383-sq.m and wasdividedinto 17 sectionsincluding 1,14industrialplots [66].
t'7 A dese( watercou$e,which is usually,dry but which may be filled occasionallyafter heavyrainfall in winter and causeflood
ins,
1,;L, CIIAPI'T]RTIIITEE

level of the wadi, which leads to an overflow towards the Lower level in the southem sidc of the
wadi with all collected deposits.As a result of this situation, in 1994, the overflow reached the
buildings located at the southem side of the wadi causing total immersion becauseof the huge
amount of rainfall in that year. In the year 2000, some other locations \4)erepartially immersed
t671."
The 427 dunum reachedits full capacity and neededfurther expansion.Therefore an agreementlS
was signed between the Jordan Industrial Estate Cooperation and the Royal Scientific Society to
preparethe necessary&awings and tender documentsfor the neededexpansionwith a total areaof
395 dunurnl9.

According to the recordsof the Minisry of Industry and Trade in Jordan,there were 783 factories
and workshops registered by December 2000 in Irbid province with a total local and foreign
capital of 80,480,160JD.

3.2.I.1,3 AL HUSSEINIBN ABDULLAH II INDUSTRIALESTATE

Al Karak province is a part of the southem region in the HKJ that hosts 169,770persons,i.e. about
4Vo of the counfty's iotal population. It is a unique area in that it is characterizedby a wide
diversity of landscapes,such as mountains, valleys and desert. This province contains a wide
vadety of natural resources,such as phosphate,potash,oil shale,gypsum, building stone and salt.
These were the incentives for the establishment of land-based industries led by the Jordan
PhosphateMining Company and the Arab PotashCompany.

Before the establishmentof the new Al Hussein Ibn Abddullah II Industrial Estate (HIAIE), Al
Karak province hostedthe following industriesshown in Table 12.

ECoNoMrc AcrrTiiyKll*oo*. * **K

TNDUSTRTAL pRovrNCE

Economic ActiYity Number Numberof Productionin AddedValue Economic

of Enterprises Workers ThousandJD Activity in 7o
Mining Industries lo 2,201 103,238 63,182 96
Food andDrink Industries 49 206 1,340 534 0.8
Textile Indusfiies 6 12 4l l9
Clothing Industries 38 86 19
Wood Industries 27 77 392 209 0.3
Printing and Publishing 4 16 173 86
Non- Metal Products 76 261 2,035 883 l.J

Manufacture
MetalProducts 75 198 1,080 488 0.7
Furniture 6 t4 43 24
Total 297 3,071 108,587 65,564 100
Source:Department IndustrialSurvey1996,Anrman1998.
of Statistics,

The govemment, representedby the Jordan Indusftial Estate Cooperation,establishedAl Hussein

Ibn Abddullah ll Industrial Estate as a new businessincubator in this province in order to induce
an economic impulse that can speed up the establishment of new industries by offering a
well-organizedsite servedwith all the necessaryinfrastructure.

18 AgreementNo.62197.
19 The Author wasthe designingArchitectandurbanplannerlbr this project(seePlate4).
 'I'HRI'F] t"rU
CTIAPI}]R UJ

The location of this industrial park was chosenin the 'Lajoun' area on the main road leading to the
city of Karak, five km west of the deserthighway and 110 km south of Amman (seeAppendix E,
PlatesE89- E92). HIAIE is only 12 km away from Karak, whose population is 21,39120 . Within
the boundariesof HIAIE. there is a Driyatefree zone of 146 dunums.

TABLE13
LOCATIONEVALUATIONOFAL HUSSEINIBN ABDDULLAHII INDUSTRIALESTATE

Location AdYantases Location Disadvantages

Neartheagglomeration areasandprovince center Existingelectrical
hightension
linealongrhesite
Nearthemainroadconnectingthedeserthighway Irregulartopogaphycausing
inappropriate
andprovincecenter levelingcostsandeffort
ApFopriateodentationrcgarding theprevailing Inegulargeometricalshape
westwinddirection
Within moderateclimatearea
Relativeneames\lo lheexistinginfrastructure
Availabilityof natural
resources
in thevicinity
Possibility
forfutureextension
far hom agncultural
areas
Farftomundergroundwaterresources
Wthin development area'C'with75Va
exempiionfrom income-andsocialservicestaxes
In harmonywithpoliticalandsocialpriorines

Source:Author.

The total site areameasures1,886dunums divided into three phasesas following2l :

. PhaseOne 863,192.18sq.m
. PhaseTwo 503,913.44sq.m
. PhaseThree 519,111.90sq.m

The main featuresof the designedAl HusseinIbn Abddullah II Industrial Estateare22:

. Main Gate;
. Industrial Plots;
. Administration Complex:
. SewageTreatmentPlant;
. Police Station;
. Fire Station:
. Primary and SecondaryRoads:
. High and Low Tension Electrical Network;
. SewageNetwork;
. Petol Station and Workshops.

20 Populationprojectionfor the year 2002,seePlate28.

21 Al KarakIndustrialEstate(HLAIE)TechnicalDrawingsNumber(MA 09), seePlare5.
22 Ruqn al Handasa,ArchitectsandEngineersmadethe designin 1998.
 (.1r,\r'fl..lr1 llRlir'l

3.2.I.1.4 AQABA INTERNATIONALINDUSTRIALESTATE

Aqaba Intemational Industrial Estate (AIIE) is located 10 km North of Aqaba town and 700 m
East of Aqaba International Airport. The total project area is 2,750 dunums, where phase one
consrstsoI ) ttl ounums_" .

According to the records of the Ministry of Industry and Trade in Jordan,there were 90 factodes
and workshops registered by December 2000 in Aqaba province with a total local and foreign
capitalof I18,447,500JD.

A 3.5 km service road, which branchesfrom the Aqaba-Dead Sea Road, passesin front of the
Aqaba Intemational Industrial Estate.Another road of 700-m length connectsthe project with the
Al HusseinInternationalAirport of Aqaba.

Plots are designedto serve the various investors demands,where "two industrial buildings were
constructedwith an area of 2235 antl 2726 m2.A 50 m-high elev(ted water tank and a 1,500 mr
ground water reservoir were constucted to ensure a sfficient water suppl!. A 680 sq. m,
administration building, a 300 m2 servicesbuilding, a 250 m2 cafeteria and a 168m2 kindergarten
were built to ensure the availability of thosefacilities which can ease the operqtion of the estate
168t."

3.2.1.2PLANNED INDUSTRIAL PARKS

The Jordan IndustrialEstateCooperationis planning to establish a new industrial park in the

various Jordanianprovincesas follows:

1. Ma'an Industrial Estate:

2. Salt Industrial Estate;
3. Zarqa Industdal Estate;
4. Al M u$ aqarTndus(rial
E\tale:
5. Airport Industrial Estate;
6. Al HesaIndustrial Estate;
7. Tafila Industfial Estatel
8. A1 Mafraq Industrial Estate;
9. Madaba Industdal Estate.

3.2.1.2.1 MA'AN INDUSTRIAL ESTATE

Ma'an province has the largest area in Jordan measuring33,163 sq. km and the lowest population
(88,320 persons)with a population density of 2.7 per km2 (seeTable 5)24. Ma'an province hosts a
foot-bound industry as phosphateis available within its teritories, where 4l mining and quarrying
enterprisesare to be found out of 200 working in the industdal sector25. The proposed site for
Ma'an Industrial Estate (MIE) is located 8 km East of Ma'an city at the road intersectionto Iraq
and Saudi Arabia (see Appendix E, Plate 105). The designersof Ma'an Industrial Estate divided

On 3rd September2001 an agreementwas signedat the JordanIndustrialEstateCooperalionheadquarter in Sahabbetweenthe

JofdantndustrialEslaleCooperationand the AmericancompanyABB.SUSA.INA which allowsthe commencernent ofconsruc-
tion work. The total cost of phaseone is 17 million US $ presentedby the USAID in addirionto a further 5 million US $ lbr
power supply.
24 Departmenlof Stadslicsestimation,1998.
25 Departmentof Statislics,IndustrialSurvey 1996,1998,Table21.
(:H_\P1l.]{ ', {RI._l.l ;i
the 2,430 dunum plot into three phasesand left the remaining 488 for future extensionas follows
(seeplate 7)26 :

. PhaseOne 699 dunum

. Phasetwo 825 dunum
. PhaseThree 418 dunum
. Future Extension 488 dunum

The main featuresof the designedMa'an Industrial Estateare (seePlate 8)27:

. Two Gates;
. Industrial Plots (365 InvestmentPlots distributedover 29 Sectors);
. Adminisration Complex (2,075 m2);
. Office Building;
. SewageTreatmentPlant (STP) Activated Sludge,ExtendedAeration;
. Primary and SecondaryRoads (15,357M-Length and 162,600m2 PavedArea);
. Electric High and Low Tension and Sbeet Lighting Network;
. TelecommunicationNetwork;
. RainwaterDischargeNetworkl
. Road Fire Hydrants;
. Drinking Water Network;
. SewageNetwork:
. Petrol Station Plot;
. Three UndergroundWater Reservoirs,eachwith a 1,500m3 storagecapaciry;
. ElevatedWater Tank (45-m High ReinforcedConcrete,450 mr storagecapacity);
. Plot For Electdc TransformationStation 33/11 KVA;
. Plot For Electonic TelephoneStation (Primary Exchange);
. Green Belt.

TABLE 14
LOCATIONEVALUATION OF MA'AN INDUSTRIALESTATE

Location Advantages LocationDisadvantages

Only8 kmawayfromprovince center Existins
elec.
hishtensionlinewithinthesiteboundaries
Located0nanirtematio0al roadintersection
heading Lackoftrainedindustrial
workers
to haqandSaudiArabia
Appropriateorientationregardingtheprevailing
westwinddirection
Relative
neamess l0 th€existrng
infmstructure
Availability
of naturalresources
in thevicinitv
Posibility
forfuture
extension
BesidetheraiJwaytrack
Farftornagricultural
areas
Withindevelopment provides
area'C'that 7570exemption
liomincome andsocialservices
taxes
ln hamonywithpolitjcalandsocialpriorities

SourcerAuthor.

26 The Author, as being the seniordesigningarchitectand urbanplannerof Ma'an IndustrialEstateand his Ieamat the Royal Sci-
entific Society,suggestedcombiningthe Ma'an Industial Estateprojectwith the housingcompoundof JordanPhosphate Mining
Companywithin one areaas an integratedcombinationof housingand industryand to cut down the infrastructureexpenses. Af-
ter finishingthe masterplan and detaileddrawingsfor 750 villas, two schools,a shoppingcenter,mosque.and an elevatedwater
Iower.fhe two companies 'JordanlndustrialEstateCooperationand JordanPhosphaleMining Company'stopped the cooperation
and frozethe agreements becauseol' llnancialdisparities.The reserved488-dunumplol for this purposewasleft for futureexten-
sion in orderto avoid redesigningthe whole plot onceagain.
27 Royal SciendficSocieIy,Building ResearchCenter,TechnicalReporI,August 1999.
 ( H \t,t r'.lt'l'tlRltl]

The Jordan Industdal EstateCooperationpostponedthe execution of this project for some time in
order to find the funding needed for this project and to ensure the involvement of foreign
investment.

On Wednesday 27th March 2002 an agreementwas signed between the Jordan Industrial Estate
Cooperationand a Chinesedelegationin which a credit of 4 million JD was grantedto finance the
executionof this project. The Chinesecounterpartrequestedchangesin the prepareddesign,which
was made by the Building ResearchCenter at the Royal Scientific Society in order to "give the
estate some of the Chinese architectural image in order to raise its esthetical value [85]",
Regrettably, the Jordan Industdal Estate Cooperation agreed to this request neglecting the
necessity of adopting the design to one which is related to Jordanian architecture and which
reflectsJordanianculture and environment28.

3.2.1.2.2SALT INDUSTRIALESTATE

Al Balqa province is one of the 12 Jordanianprovinces,and stretchesover an area of 1,076 sq. km

(see Table 5) with As-Salt (56,458 persons) as its center. The total population of this province
amountsto 306,820persons.

The province center is a historically well-known.architecturaland cultural site in Jordan. "Sa/t /ies
20 km to the east of the lordan Valley at an altitude of 800 m. It has traditionall! been a trading
mqrket center sening Gilead on the East Bank, with links to Nabus, Jerusalem and the
Mediterranean to the west and Damascus to the north. It is now the administrative center for
Balqa region, only 30 km north-westof Amman with which it has a close intetelationship [69]."

TABLE 15
LOCATIONEVALUATIONOF SALT INDUSTRIALESTATE

LocationAdvantases Location Disadvantases

arcasandproyincecenter
Nearthe agglomeration Hightopographicaldeclination
causing
inappropriate
levelingcostsandeffort
Nearthemainroadconnectingthedeserthighway Lossof hugeareasneededfor rubbleand
andprovincecent€r slopestabilization
Within moderateclimatearea Inappropriate
orientation
regarding
theprevailing
westwind
Relativenearness
to the€xistinpinfrastructure Inegulargometricalshape

Withindeveloprnenl
area'B'with5070exemption Limitedpossibility
forfutureextension
fromincomeandsocialseryices
taxes

In harmonywith politicalandsocialpriorities Within anagriculturalarca

Source:Author.

In order to extend endogenous regional development, the Govemment of Jordan decided to

establish at least one industrial park in each Jordanian province through the Jordan Industrial
EstateCooperationand the private sector.As it is customarily the casein such projects,the matter
of site-selectionfor establishingan industrial park in the Al Balqa province neededmany debates
(see Appendix E, Plate 64). The following obstaclescan be mentioned for hnding the suitable
industrial Dark site:

28 Dr. Murad Kalaldeh,the Author,carriedout the responsibilityof urbanand architecturaldesignand the coordinationbetwecnall
involvedfaculties.
 ii.
( tI \Pll.-R l lIrrlll.-

. Highlands and a sudden drop towards the Jordan Rift Valley mark the topography of this
rcgron;
. Relatively high population density:
. Limited publicly owned land.

The designing firm had to deal with the selectedsite despite its unsuitable topography for such
kinds of projects29.The terrain drops down from a level of 680 m to 635 m within a distance of
220 m. uhich amountsto an averapedecline of 207o10.

3.2.r.2.3ZARQA INDUSTRIALESTATE

The planned site of Zarqa Industdal Estate (ZIE) is located at the highway to Iraq and Saudi
Arabia (seeAppendix E, Ptates72 and 74). The total plot area is 2,500 dunums, 800 for phaseone.
According to the recordsof the Ministry of Industry and Trade in Jordan,there were 951 factories
and workshops registeredby December2000 in Al Zarqa province with a total local and foreign
capitalof (206,922,285)ID.

The Ministry of Industuy and Trade is planning to locate the ZIE within the boundariesof Al
Ha\hemiaUniver5it\becausea sufficientinfrastructure is availablell.

3.2.I.2.4AL MUWAQARINDUSTRIALESTATE

Muwaqar is a distdct within Amman province located 50 km East of the capital. The 309 sq. km
district contains atntt 0.49o of the Kingdom's population. The relative nearnessto the biggest
agglomeration area of the Kingdom and the availability of groundwater male Muwaqar a
gravitation pole for industries so that we can find about 25 private factories hosted there. Further
advantagesof this district are:

l. Availability of cheap saleableland;

2. Lies within development area'B'with 5070 exemption from income and social services
taxesl
3. Direct accessto the highway headingto Iraq and Saudi Arabia;
4. Appropdate topographyfor industrial uses;

The above-mentionedadvantageshave motivated the managementof the Jordan Industrial Estate

Cooperationto plan the establishmentof an industrial park that can ease the preisure away from
Sahabtowards the eastempart of the counhy. Al Muwaqar Industrial Estate (AMIE) can benefit
from the above-mentionedadvantagesand can provide the local and neighboring labor force with
new job opporlunities.

The planned AMIE is located at the highway to Iraq and Saudi Arabia 50 km East of the capital
and 50 km away from Queen Alia International Ai{poft (QAIA) see Appendix (E), plates 83 and
84. The total plot areais 6,000 dunums, 800 reservedfor phaseone.

3.2.1.2.5AIRPORTINDUSTRIALESTATE

Queen Alia Intemational Airport (QAIA) is located at Zizya 32 km south of Amman" . As with
other intemational airports, the QAIA offers a lot of utilities to serye passengers and cargo.

29 ConsolidatedConsultantsfor Engineeringand Environment(CCEE).

30 CCEE, Salt IndustdalEstate,TenderDrawings,A0-1, 1996.
3l Pressdeclarationfor the Jordanianministerfbr industryand tradein Al- Rai daily Newspaper,17 the Apdl 2002,p. 17.
'Marka InternationalAirport' by its operationon May the 25th
32 QAIA suppoftthe existingfirst JordanianIntemationalAirport
1983.
JI { ll.\l, l'1.]t IttLI..

Furthermore, it hosts a 2O-dunumfree zone administratedby the Fee Zone Cooperation for the
purposeof serying transit trade of goods transportedby air (seeAppendix E, Plate 82).

Within this context, the JordanIndustrial EstateCooperationplannedto establisha small industdal

park that can benefit from this facility in order to offer the investors a unique site directly
connectedwith air transporlation.

The planned 250-dunum Queen Alia Intemational Airport Industrial Estate (QAIAIE) is located
within the borders of QAIA and is intended to host light export-orientedindustries (see Plate 6).
The selectedplot is almost flat with a slight decline of 19oto the south. The designersof QAIAIE
divided the plot into I I sectionsoffering a total number of 74 single industrial plots33.

The designersproposedthe erectionof the following facilities:

. Entrancegate;
. Indusftial plots;
. Adminishation complex;
. Sewagenetwork to be connectedto the existing SewageTreatmentPlant;
. Primary and secondaryroads;
. Elec. High and low tension and streetlighting network;
. Telecommunicationnetwork;
. Rainwaterdischargenetwork;
. Road fire hydrants;
. Drinking water network:
. Undergroundwater reservoirs,
. Elevatedwater tank;
. Greenbelt.

The design could provide the maximum exploitation of the plot in which the percentagesare
shownin Table l6:

TABLE 16
SHAREOF AREA AND FUNCTIONIN AIRPORTINDUSTRIALESTATE

Function Plot Share in 7o

InvestmentPlots 7'.7
Roads,Shoulders,Pavements t9
Administration,
ServiceBuilding
andMonument 2.3
Car Parking 1.1
Green Areas 0.6

Source:Royal Scientific Society [70].

A close look to this project can summarizethe evaluationin the following Table 17.

33 Technicaldlawingsand tenderdocumentswerepreparedby fte Building ResearchCenIerat the Royal ScientificSociety.

('l I \ I'',fl,.tt I HRI..l._

TABLE 17
LOCATIONEVALUATION OF AIRPORTINDUSTRIALESTATE

Location Advantages Location Disadvantages

Withinacceptable distanceto thecapital(40km) Veryrestrictive lor theheighlofbuildings

limitations
Withintheborders ofthe biggest intemational Airport-related
hrghsecunty
Jordanian airport restrictions
causing mobilityprovisions
Nearthe mainroadconnectingthedeserthighway Limitedpossibility
for futureextension
andprovince centers
Within moderat€climatearea Highrentandsealplotprices
Fullexoloitation of existinsinfrastructure
Fartromagncultural area
Farfromunderground waterresources
Withindevelopment area'B'with5070exemption from
incomeandsocialservices taxes
Availabilityof trainedlaborforce
In harmony withpoliticalandsocialpriorities
Source:Author.

3.2.1.2.6
AL HESAINDUSTRIALESTATE

A1 Hesa is one of the localities within Al Tafila province which has 9,629 personsand is located
on the deseft highway about 50 km away from the province's center Tafila (seeAppendix E, plate
96)14 . This area is largely used by Jordan PhosphateMining Company for mining phosphateraw
material.

The total plot area of Al Hesa Industrial Estate (AHIE) is 4,064 dunums, and is to be erectedin
phases.This Estatefacesthe following challenges:

l. Repellentenvironmentand climate;
2. Great distancesto country boundariesl
3. Small amount ofpersons in a relatively wide area;
4. Lack of trained labor force.

3.2.1.2.7T AFILA INDUSTRIALESTATE

Tafila is a city located in the southernpart of the Kingdom, about 180 km away from the capital.
Al Tafila is alsoa provinceof2,l l4 sq.km with 69,920citizensrslsee AppendixE. Plate100).

This province embodies various kinds of natural resourcessuch as phosphatel6.It is also well
known as a fertile agricultural land where the availability of water makes it suitable for cultivation
and stockbreeding.The Industrial Labor Force (ILF) in this province is employed in the field of
mining and quarrying3T. According to the recordsof the Ministry of Industry and Trade in Jordan,
there were 27 factories and workshops registeredby December2000 in A[ Tafila province with a
total local and foreign capital of 5,742,000JD.

The high rate of unemployment is one of the reasonsfor the establishmentof Tafila Industrial

Accordingto thc2002projection.
35 SeeTable5. Depanment of Statisticspopulation
census199.[.
36 JordanPhosphate MiningCompany udlizeIhephosphatein AL Hesamines.
to theindustrial
3 7 According survey,whichwasconducted in theyear1996by theDepartment thereare5,123persons
ofStatistics,
employedin thcindustrial
seclorwhere4,859areemployed in Ihefieldofminingandquaryingin ninedifferententerprises.
 t1t.\P.IER l HRIil..

Estate(TIE) close to the province center.The selectedsite of 1,020dunums is located in Qufayqif

(seePlate 77) only 16 km away from Tafila city.

3.2.1.2.8
AL MAFRAQINDUSTRIALESTATE

Al Mafraq is one of the 12 Jordanianprovinces and lies in the north region with a total area of
26,435 sq. Km. Mafraq city is the province center with a population of 38,393 citizens. We find
the following naluralresourcesin rhispror ince:

. Basalt and building rock;

. Natural gas;

Despite low rainfall ratesin Al Mafraq province, there are about 431 wells used for irdgation and
household usage38. Generally spealing, Al Mafraq province has a big potential that can be
exploited by industry for the following reasons:

l. Strategiclocation betweenSyria, Iraq and Saudi Arabia;

2. Spaciousnessand extent of its lands;
3. Availability of basic infrastructure;
4. Availability of building material;
5. Availability of natural gas;
6. Availability of groundwater;
7. Lands suitablefor agricultural use39;
8. Climate suitablefor animal breeding;
9. Lies within developmentarea'C'with 7570tax exemption;
10. Few archeologicaland toudst sites.

The proposed site of Al Mafraq lndustrial Estate (ALMIE) is located at the highway to Iraq and
Syria (see Appendix E, Plates 6l-64). Total plot area is 2,250 dunums, 800 for phase one.
According to the records of the Ministry of Industry and Trade in Jordar, 207 factories and
workshopswere registeredby December2000 in Al Mafraq province with a total local and foreign
capitalof 86,518,100JD (seePlate9).

3.2.1.2.9MADABA INDUSTRIALESTATE

Madaba is one of the twelve Jordanianprovince located to the south of Amman and occupies an
area of 2,008 sq. km with 119,140persons(seeTable 5)40 . Madaba is a well-known historic city
known for its famous Madaba mosaic map that was made around 560 ADar . The proposedsite of
Madaba Industrial Estate (MADIE) is located 13 km from Madaba city to the south of Amman
(seePlate 86) with a total plot areaof 500 dunums.

3.2.2PRIVATE SECTOR PROJECTS

In contrast to the public-operated industuial parks, the location of private-owned and
private-operated industrial parks is selected according to their intemal priorities and direct
interests inspired by the pdvate-sector philosophy of 'Minimum Expenditure In Exchange For

38 Lessthan200-ml per year.

39 'MafraqProvinceis consideredto be the secondbiSgestagriculturalProvinceafter lrbid, which makesit eligiblefor estahtishing
food industriesbecauseof theplentifuLnessol itsprodLtction[71]."
40 Departmentof Statistics,populationprojection1998.
4l The MosaicMap depictingthe biblical landswas discovercdin a Byzantinechurchin Madabain 1896.The city lies in centrat-
southernJordan30 km southof Amman.The city, built on a naturalelevalionol the Transjordanian Plateau,commandsthe sur-
roundingferlile countrysidethat extendsto the north,southand east. "During the Roman-B)aantine period (ll-Vll CenturyAD),
the cit\Jforme.l part of the Provincia Arabia setup b)r the Roman Emperor Tmjan to replace the Nabathean Kingdom of Petra.
Durinq the Islamic epoch under the Omaylad dlnast /, it was part of the southen Jund of Palestine [72]."
 CH.\Pl liR I Hlt[1.. rr
Maximum Profit'. The Jordanianprivate sectorhas establishedthe following Industrial parks42:

l. Al TajamouatIndustrial City;
2. Ad-Dulayl Industdal Park;
3. Cyber City;
4. JordanGateway43;

3.2.2.1AL TAJAMOUAT INDUSTRIAL CITY

Specialized Investment Compounds Company 'Al Tajamouat Industrial City, is a public

shareholdingcompany located in Sahab44. "I&e maln objecrivesof the companyare to myest m,
arul to develop various plots of land into intiustrial, commercial, housing and tourist compouruls
for sale, rent or investment t731." Al Tajamouat Industrial City occupies a 300-dunum total
construction area and is located adjacentto the 60 meters highway 20 km away from downtown
Ammar (seeAppendix E, Plate 78). The choice of location representsthe flexibility of the private
sector investmentand it's ability to collect the biggest advantagesin one spot, which matchesthe
characteristicsof Abdultah II Ibn El Husein Industial Estatelisted in Table 10.

3.2.2.2AD-DULAYL INDUSTRIAL PARK

Dhlilar is part of Al Zarqa province and is located to the east of Zarqa city with 15,355persons
according to the 1994 census4o. Projection for the year 2002 (seeplate 34) shows an increasero
17,001persons,which reflects the availability of sufficient labor force located in investmentarea
C with 757o tax and income exemption. Ad-Dulayl Industrial park (ADIp) enjoy having further
advantageswhich attractprivate investorsto establishtheir industriesin this areawhich are:

. Being in the middle of a road intersection;

. Availability of trained labor force;
. Acceptabledistanceto severalprovincecenters;
. Availability of groundwater;
. Moderateclimate;
. Flat topographyt
. Availability of naturalresources,such as building stone and natural gas;
. Availability ofcultivable 1and47;
. Suitability for livestock;

The location of Ad-Dulayl Industrial Park is only rwo km away from Dhtil city and about 2l km
away from Zarqa (seeAppendix E, Plate 68).

Only the majorexistingpdvatesectorindustrialpar* in Jotdanare mentionedin this section.

43 Therearefurthersmall industdalparksspreadall over the countrythat werenot listedabovebecauseof their small impacton tne
urbanfabric in the country.Among them is the DiamondInternationalInvestmenlCompanywhich js a small privati industrial
park locatedin Shoneh,southoflhe JordanRiver Valtey, with a total areaof83 dunums,whire about 120personsare employed-
41 "The companyv)as reSisteredat the Ministry of lwlustry and Trade on August 7,h,1994 and commencidbusinessat'thi be-
ginningof 1995[73]."
Differentspellingreferstotheuseoftheofficiattocalitynameof'Dhlil'inthedisserrarionaslistedinDepartmenrofStatistics
tatrles,while the invesroruseddifferenrspellingaccordingro his ownjudgmenr.
46 Differentspellingcan be noticedoftentimesbetweenthe recordsof Depaitmentof statisticsand the indLrstrial park given names.
,In.suchcasestheuieofbothwaysofspellingwereusedaccordingtotheofficialrecordsofeachpartyconcemid.'
47 Inigated land in Mafraq Provinceequals6 70,not irrigated t6 7,, cultivableland 79 7oofthe totil land, source:Royal Scientific
Society,suggested projectsfor industrialparksin the Jordanianprovinces,Feb. 1999,p. 53
 (.ll1l"Ll'llt I llRIrl'j

3,2.2.3CYBER CITY INDUSTRIAL PARK

"The 4 sq. km Cyber City is strategicqlly located near Amman, Jordan and has Israel at its We[L
Syria at its North, Iraq at its North East and Saudi Arabia at its SouthEast. Moreover, it is within
closeproximity to the Jorclan University oJ Scienceand Technology(JUST University) in the town
of lrbid. This ensures that Cyber City has a good and ample source of professionals in
engineering,informetion technologyand metlical scienceat a competitiverate [61 ],"

Starting srategy of Cyber City was the developmentand promotion of infomation technology.
Meantime, any interested investors are welcome to establish their industry in other branches.
About 700 are actually employed in this industrial park compared to 60,000, according to
company records,which were expectedto be employed.

3.2.2.4JORDANGATEWAY
"The Jordan Industrial Joint Gatewqy Project is actually composed of th)o industridl complexes
on either side of the Jordan River betweenIsrael and Jordan. WhiLethe Israeli project will be
smalL and is meant mainly for offices, warehouse[ and export and trade-related activities, the
Jordanian side will be a full-fledged industrial cotnplexflanking the Jordqn River. The project
will permanently aLter the character of the Jordan River Valley, which is overwhelmingly rural
t741."
The Jordan Industrial Joint Gateway ProjectsCompany planned the constructionof an industrial
park that straddlesthe Jordan River between Israel and Jordan (see Appendix E, Plate 56 and
58)4E. "The Jordan Gatewayproject, a 50-50joint venturebetweenIsraeli anclJor(lqnian private
sector interests, was conceived to straddle the Jordan River just south of the Sheikh Hussein
Br lge, one of two border crossingswith Israel. Environmentalistsin Israel voiced concernsthat
industDrmaj pose a threet to the already scarce watersflowing in the Jordan River and threaten
the local Lushecosystems.rnd downsteam environs[75],"

"Opposition to the Jordan Gateh'ay Project is based on its location. The Jordan Ri.ver Valley is a
relatively pristine and undevelopedarea, one of the few remaining such places in the region, In
addition, it is a well-known nature and heritage site. Erecting an indu[trial project within close
proximity to the river will change the Landscapeand the character of the area .for the worse,
regardlessof how careful the sponsorsare in implementingenvironmentalmedsures.The region's
major environmentalNGOs are all opposing the site [76]."

An environmental impact assessmentwas made by a pdvate company in order to evaluate this

project and its impact on the enyironment.The author took advantageof this oppo unity in order
to evaluatethe location-selectionfor this park. For further information pleaseseeAppendix (B).

48 A joint venrurecompanyfrom AmmanResources

Companyand Middle EastGatewayPmjects.

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