Zarqa's free zone becomes magnet for international investments

AMMAN –  Sumitomo Corporation will be joining other international corporations in setting up a large commercial base in Zarqa free zone. 

Nabil Rumman, president of Jordan Free Zone Investors Association (JFZIA), told The Jordan Times over the phone Sunday that the Japanese firm, which has been in the Iraqi market for decades, has decided to operate its businesses in the trouble-hit country through the Kingdom due to deteriorating security conditions there. 

He said the corporation  is to set up a distribution compound in Zarqa's free zone to deliver Toyota cars and auto parts to Iraq and other regional markets with an investment worth nearly $1 billion.

The company has signed an initial agreement to lease a 25,000 square-metre land slot to receive shipments from Japan for the Iraqi market. 

"This investment will give an added value to the Jordanian business climate because Sumitomo is considered as one of the world giants in the auto sector," Rumman said. 

He noted that the company has picked Jordan due to its security and stability in addition to its reputation in logistic services. 

The distribution centre will facilitate the export of around 70,000 Toyota cars a year to Iraq in addition to auto parts and other electric and machinery industries, according to the JFZIA president. 

The centre will also work as a hub for other regional markets such as Syria, Libya and Gulf countries, he indicated. 

The investment by Sumitomo Corporation Rumman said, will be among other international investments in the free zone, citing the factory to manufacture car lubricating oil products by German giant FUCHS. 

The free zone is also home to factories in the sectors of garments, beverages, auto spare parts and food processing.

According to the website of the Tokyo-based company, its car business in Iraq dates back to the mid-1960s when Sumitomo Corporation exported Toyota Motor Corporation's SUV (sport utility vehicles) Land Cruisers for the first time. 

Since then, Sumitomo Corporation has shipped about 270,000 Toyota cars and 10,000 Hino Motors' trucks to the country.