More than Enough

The Aqaba Special Economic Zone Authority’s slogan ‘Turn sand into gold’
appears to be coming true, thanks to Aqaba’s strategic location and top-class
infrastructure

When the Aqaba Special Economic Zone Authority (ASEZA) launched Aqaba Special Economic Zone (ASEZ) in 2001, it set out to earn Jordanian Dinars (JOD) 4.2 billion (US$6 billion) from investors by 2020. By 2006, however, it had already raked in JOD 5 billion (US$7 billion), thanks to an aggressive marketing campaign and interest from around the region, particularly Kuwait, UAE, Qatar and Bahrain.

The project’s new goal is to reach an additional JOD 2.1 billion (US$3 billion) by 2010. With land borders shared by the Kingdom of Saudi Arabia and Israel, and territorial waters reaching Egypt, ASEZA’s 375 sq kilometres are highly strategic. ASEZ also sits on Jordan’s only coastline, a mere 27 kilometres.

Aqaba Development Corporation, which owns Aqaba’s seaport, airport and main parcels of land, is working hard to not only promote Aqaba’s tourism and manufacturing industries, but also its logistics infrastructure.

ADC is expanding the container port and industrial port. The general cargo operations in the main port are being relocated to the industrial port, so the area can be redeveloped towards tourism use. In 2006, 405,660 TEUs of general cargo passed through the port, a four per cent increase on the previous year.

BENEFITS

• Five per cent income tax on net profit
• Exemption from taxes on land, property, social services and the distribution of profits and shares
• Exemption from customs duties on all imports, except for cars
• No restrictions on foreign properties
• No foreign currency restrictions
• Ability to hire up to 70 per cent foreign labour

King Hussein International Airport (KHIA), which operates under an ‘Open Skies’ policy, boasts a brand-new state-of-the-art cargo terminal which has more than enough capacity, as it is still trying to lure regular international flights to Aqaba.

Sitting across the road from KHIA is Aqaba Industrial Estate (AIIE), a 60 hectare free zone development ideal for everything from logistics and warehousing to paper-based packing and printing to metal and engineering industries.

The Southern Industrial Zone, which touches the border of Saudi Arabia, is also being expanded for future development for heavy agrochemical industries.

An 8,000 kilometre highway stretches across Jordan, connecting Aqaba to bordering countries and Europe via Syria and Turkey. The Hijaz Railway also connects Aqaba to several Jordanian cities, with planned further expansions.

Within the zone, registered enterprises are subject only to a flat five per cent tax on net profits and enjoy duty-free imports, including capital equipment and raw materials. Foreign investors are allowed 100 per cent ownership and are entitled to employ up to 70 per cent foreign labour.

Investors on board include Mercedes, which is developing a 10 sq kilometre truck maintenance and mechanical centre, and Agility, which manages Aqaba’s logistics village, a 10,000 sq metre container freight station only minutes from the main port.