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Some of Jordan’s most impressive gains have been in the area of Information and Communications Technology (ICT). The REACH program and the Information Technology Association of Jordan (int@j) have helped to establish an internationally competitive ICT industry in that nation – one that attracts foreign and local investment, generates high-value jobs, and positions Jordan in the increasingly important knowledge-based economy. In the words of Craig Barrett, Chairman of the Intel Corporation, Jordan has “set a precedent for change in the Middle East region. It has demonstrated the achievements that can result from strong cooperation between the public and private sectors, particularly in the field of ICT.”

Oman

The U.S.-Oman Free Trade Agreement (FTA), ratified in June 2006, is accelerating the Sultanate’s emerging status as a trade and development center in the Arabian Gulf. Oman is now the second largest LNG exporter in the region and is actively soliciting downstream investment to increase value-added production and create jobs.

One such investment by Dow Chemical, the largest investment in Oman by a U.S. company, will dedicate one billion Omani riyals (about $2.6 billion) to a joint venture to engineer, construct, and operate a petrochemical complex. The new venture, the Oman Petrochemicals Industries Company (OPIC), broke ground recently and will begin operations toward the end of the decade.

Oman – 2007 Forecast Top Ten Manufactured U.S. Imports ($ Billion)

(SOURCE: IRmep)

In 2006, manufacturing made up 5 percent of Oman’s GDP, and the Government of Oman – as part of its Economic Vision 2020 plan – wants to triple this number by 2020. To promote growth in manufacturing, according to the Oxford Business Group, Oman has put in place a number of incentives for investors, including a five-year holiday on taxes on profits, which is renewable for a further five years. There is also a five-year customs duties exemption for manufacturing companies importing machinery, equipment, spare parts and raw and semi-processed materials.

Oman’s private sector is investing more of its own capital into the economy, and this is sending a very positive message to potential business partners in the United States. The FTA with the United States could play a key role in promoting investment by opening the door for partnerships in such leading edge sectors as Information & Communications Technology (ICT), education and training, financial services, insurance, hospitality & leisure, and logistics.

Lebanon

The U.S. signed a Trade and Investment Framework Agreement (TIFA) with Lebanon in November 2006, taking the first steps on the path to a Free Trade Agreement (FTA). The TIFA was signed in Beirut just three months after a cease-fire was struck between Israel and Hezbollah – two rivals who battled it out in Lebanon for a month during the summer.

The fighting resulted in widespread infrastructural damage and drove tourists and investors away by the tens of thousands. The war set Lebanon back 50 years, according to Prime Minister Fouad Siniora. Lebanon’s total public debt to GDP ratio increased to 18 percent according to the finance ministry figures reported in the Gulf Daily News, breaking a half-decade trend of improvement. In September 2006, Lebanon’s total imports fell to $732 million compared to $836 in September 2005.

Despite this challenging investment and trade climate, U.S. exports to Lebanon are expected to exceed $1 billion in 2007. The U.S. Government has pledged more than $230 million toward Lebanon’s reconstruction, and a business community initiative, the U.S.-Lebanon Partnership Fund, was launched in September 2006 to solicit individual and private sector contributions for humanitarian relief. »