Jordan has significantly liberalized its trade activities and has seen strong growth in exports in the past few years.
Free-trade agreement boosting exports to the United States
The country joined the World Trade Organization in 2000 and in 2001 signed an Association Agreement with the European Union and a free-trade agreement with the United States; this was the first bilateral free-trade agreement between the United States and an Arab country.
In 1997, Jordan exported around USD 6.9 million to the United States and trade between the two countries totaled USD 395 million. In 2006, Jordan’s exports to the United States totaled USD 1.42 billion, and trade between the two countries reached USD 2.07 billion. Exports of articles manufactured in Jordan’s Qualified Industrial Zones have been driving the economy since 2000.
Jordan’s key exports in 2006 (which totaled USD 5.17 billion) were phosphates, potash, garments, fertilizers, pharmaceuticals and agricultural products. The main imports (which totaled USD 11.46 billion) were crude petroleum and derivatives, vehicles, machinery and equipment, cereals, fabrics and textiles.
Jordan welcomes more trade links with the United States. Thanks to the terms of the free-trade agreement, American investors in Jordan can count on more open markets in many sectors as well as strict international standards for the protection of intellectual property.
Hikma Pharmaceuticals
“We can represent American companies that want to enter the MENA region.”
Hikma Pharmaceuticals, the market leader in Jordan, has proven the potential of Jordan’s pharmaceuticals sector. The company has achieved success locally, regionally and internationally, and in 1996 it was the first pharmaceuticals firm in the Arab world the Federal Drug Administration accepted for imports to the United States.
Now traded on the London Stock Exchange, Hikma has been expanding its network and recently acquired new companies in Germany and Italy. The company increased its revenues by more than 20 percent in 2006 to reach USD 250 million, with an increase in profits of more than 25 percent.
Ms. Hana Ramadan, Director of Corporate Communication, says that Hikma aims to continue to expand. She explains, “We are the biggest non-multinational pharmaceuticals firm operating in the MENA region, and we are experts in providing both generic and name-brand projects, as well as our fast-growing newest line, injectable pharmaceuticals.”
Hikma has positioned itself as the ideal partner for American drug manufacturers looking for a licensed representative to market and sell their products in the MENA region, where Hikma has established a strong presence in 20 markets.
In the United States, which accounts for around 40 percent of the company’s sales, Hikma works with wholesalers, hospitals, drug-store chains and others, marketing its products under the Westward brand name following Hikma’s acquisition of Westward.
Ramadan foresees exceptionally strong growth for the pharmaceuticals sector in the Middle East, where economies are thriving but where per capita expenditures on pharmaceuticals are much lower than in the United States. Hikma represents an outstanding investment opportunity, particularly given the advantages of Jordan’s tax regime, and most of the company’s institutional investors are funds in the United States and the United Kingdom.
As for the future, Ramadan anticipates continued expansion for Hikma this year and concludes, “We can represent American companies that want to enter the MENA region.”
