Seminar explores investment incentives in Mediterranean region

AMMAN — The Organisation for Economic Cooperation and Development (OECD) and the European Union (EU) on Monday flagged off a two-day regional seminar on "Improving the use of Investment Incentives in the MED region" in Amman.  

In his opening remarks, acting chairman and Secretary General of the Jordan Investment Commission Faridon Hartouqa said the seminar is dedicated to the subject of incentives that are vital to attract investments. 

International reports rank incentives differently, based usually on the stability of the country, the accessibility to markets, infrastructure and the labour, all of which are priorities for any investor, he said, noting that each country has different conditions and, therefore, the significance of incentives is different from one country to another.

"One of the most important things about this workshop is the presentation that each country will give about their incentive mechanisms, and I think this is very important for us, especially in the Mediterranean region, because there are so many similarities between our markets to a degree, so we will learn from each other how we are addressing this issue," he said.

He added that peer learning is crucial to enhance mechanisms and think outside the box to find new incentives and different ways to attract investments, especially as competition in the region is rising. 

The secretary of state to the Moroccan minister of industry, investment, trade and the digital economy, in charge of investment, Othman El Ferdaous, shared his country’s experience in providing incentives and exemptions in different sectors, like housing and automobile, and how the concerned entities worked to resolve these issues and refresh the economy. 

For her part, head of the EU Delegation to Jordan’s economic section  Sirpa Tulla said the seminar is part of a programme in the EU that promotes investment in the Mediterranean region.

The EU and its partners have a common objective to promote inclusive economic growth, investment, entrepreneurship and employment, she said, highlighting how countries are usually “in a hurry” to take decisions regarding investments and incentives as the competition is getting tough both globally and in the Mediterranean region.

"There is little time for the governments to do proper analysis, to really assess the costs and benefits of different incentive options and also there is little capacity to do that," Tulla said.

The objective of the seminar is to explore the use of tax and financial incentives to attract investment in the Mediterranean region and gauge their effectiveness and potential adverse effects, in addition to governance and institutional coordination, according to organisers.

Participants include senior policymakers from the ministries of finance, investment and other relevant ministries, IPA practitioners, business representatives, international experts and multinationals operating in the Mediterranean region, all of whom shared their country's experience in using tax incentives and in seeking alternative strategies to attract investors. 

The participants represent many countries, including Jordan, Morocco, Lebanon, Libya, Palestine and Tunisia among others. 

The EU-OECD Programme on Promoting Investment in the Mediterranean was launched in October of 2016 in Tunis, aiming at implementing sound and attractive investment policies and establishing effective institutions in the southern Mediterranean region, with a view to attract quality investments and support job creation opportunities, local development, economic diversification and stability, according to its organisers. 

Three sessions and an interactive session took place on Monday while the fourth and fifth session plus a second interactive session are scheduled from 9am to 5pm on Tuesday.