Aqaba, Jordan - Economy

Economy

Benefiting from its location and status as Jordan's special economic zone, Aqaba's economy is based on the tourism and port industry sectors. The economical growth in Aqaba is higher than the average economical growth in the country. Under the special economic zone status some investments and trades are exempted from taxation, as a result, new resorts, housing developments, and retail outlets are being constructed. New projects such as Tala Bay and Saraya al Aqaba are constructed aiming at providing high-end vacation and residential homes to locals and foreigners alike.

Over twenty billion dollars have been invested in Aqaba since 2001 when the Special Economic Zone was established. Along with tourism projects, Aqaba has also attracted global logistic companies such as APM Terminals and Agility to invest in logistics, which boosted the city's status as a transport and logistics hub.

There are numerous hotels that reside in Aqaba but new hotels are also under construction.

Aqaba is the only seaport of Jordan so virtually all of Jordan's exports depart from here. Heavy machinery industry is also flourishing in the city with regional assembly plants being located in Aqaba such as the Land Rover Aqaba Assembly Plant. By 2006 the ASEZ had attracted $8bn in committed investments, beating its $6bn target by 2020 by a third and more in less than a decade. The goal was adjusted to bring in another $12bn by 2020, but in 2009 alone, deals worth $14bn were inked. Some projects currently under construction are:

• Saraya Aqaba, a $700 million resort with a man made lagoon, luxury hotels, villas, and townhouses that will be completed by 2010.
• Ayla Oasis, a $1 billion resort around a man made lagoon with luxury hotels, villas, a 18-hole golf course. It also has an Arabian Venice theme with apartment buildings built along canals only accessible by walkway or boat. A water park is part of the project. This project will be completed by 2017.
• Tala Bay, a $500 million resort with a manmade lagoon, luxury hotels such as the Hilton and villas. It is already completed. It also has a beach club that hosts the annual Distant Heat Festival, a rave held 1 August.
• Marsa Zayed, a $10 billion marina community that is the largest real estate project in Jordan's history, which maximizes frontage on the Gulf of Aqaba to create a vibrant mixed-use community. Part of the Jordanian government's initiative to double its tourism economy by 2010, Marsa Zayed is designed to help fuel the country's growth by providing more than 300 yacht berths in a luxury marina, a cruise ship terminal and a mix of hotels, apartments, villas and townhouses for more than 50,000 people. This project will be completed by 2017.
• The Red Sea Astrarium, the world's only Star Trek themed park, worth $1.5 billion will be completed by 2014. The park will span 184 acres (74 ha) will include "technologically advanced attractions, five-star accommodation, captivating theatrical productions," and night-time spectacles. The project will include four hotels and provide 500 job opportunities in the coastal city.
• Port relocation. Aqaba's current port will be relocated to the southernmost part of the province near the Saudi border. Its capacity will surpass that of the current port. The project costs $5 billion, and it will be completed by 2013.
• Aqaba will be connected by the national rail system which will be completed by 2013. The rail project will connect Aqaba with all Jordan's main cities and economic centers and several countries like Saudi Arabia, Iraq, and Syria.
• The Aqaba Container Terminal (ACT) handled a record 587,530 twenty-foot equivalent units (TEUs) in 2008, an increase of 41.6% on the previous year. To accommodate the rise in trade on the back of the increasing popularity of container shipping and the stabilising political situation in Iraq, the Aqaba Development Corporation (ADC) has announced plans for a new port. The port relocation 20 km to the south will cost an estimated $600m and will improve infrastructure, while freeing up space for development in the city. Plans for upgrading the King Hussein International Airport (KHIA) and the development of a logistics centre will also help position Aqaba as a regional hub for trade and transport.