Free zone investors awaiting ‘actual opening’ of Iraq border

AMMAN — The reopening of the Karameh-Turaibil border crossing with Iraq has not yet started to reverse the recession in the Jordan Free Zone, a sector leader has said.

President of Jordan Free Zone Investors Association Nabil Rumman said in an interview with The Jordan Times on Wednesday that the reopening ceremony of the crossing after a three-year closure blamed on the deteriorating security condition was “no more than a photo opportunity”, charging that despite the vitality of this “lifeline”, there are forces that are hindering the process. He stopped short of identifying these parties.   

“So far, with the information that I have and through contacting officials, there has been no clear declaration from the customs authorities regarding the Karameh border crossing,” that trade flow can be resumed uninterrupted, Rumman said.

He noted that the border closure has had “negative effects” on Jordan’s investments, economy and exports. 

The duty free zones, which are the main export outlets, have been the “most damaged”, he said.

“We are the main party concerned by the border reopening, as we have Jordanian and Iraqi investors who mainly target the Iraqi market,” he said, adding: “We are talking about investments and exports worth up to $3 billion per year which have decreased by more than 60-70 per cent because of the borders closure.”

Rumman also underlined the threat posed by competition Jordan is now facing from Iran and Turkey.

“If the Iraqi and Arab stakeholders decide to turn to the Turkish market as an alternative for Jordan, our share will not be the same,” as it was before the closure, he noted.

Jordan used to export 70,000-80,000 vehicles (cars, heavy machinery, trucks, tippers, equipment) to Iraq per year. It now exports 2,000-2,500 vehicles per month compared to 11,000-12,000 vehicles prior to the border closure, he said.

“Exporting our goods through Saudi Arabia raises the cost by six times. This is an extra cost on the goods, and investors would relocate to other markets where they pay lower costs,” he warned.

“I have asked the government to announce a specific day for the actual opening. People are waiting, and they are fully ready. We have 3,000 investors, 80 per cent of whom are Iraqis whose exports are directly destined for Iraq,” Rumman added.

According to the Jordan News Agency, Petra, concerned ministers were due to check on the situation at the border crossing on Thursday. 

“We are ready when they are,” said the sector leader. “On our side, we have all set to resume our exports, the customs clearance and logistics companies are waiting for the the go-ahead,” the syndicate’s president stressed.