Aqaba
Though a town of only 100,000 people, Aqaba is setting an example of how to attract investment. In a decade, domestic and foreign investment into the Aqaba region has increased dramatically and the town’s population is set to double over the next 10 years. Certainly, the town benefits from some natural advantages. Located at the southern tip of the country, between Saudi Arabia and Israel on the shores of the Red Sea, the city is close to the Suez Canal, with easy access to key trade centres in both the Middle East and Africa. Aqaba is also the kingdom’s only deep-water port town, taking up most of Jordan’s scant 27 km (17 mi) of coastline. The Aqaba Special Economic Zone (ASEZ) has been responsible for most of this development since it opened in 2001.
It covers 375 km2 and offers a basket of tax and tariff incentives, as well as full repatriation rights and more flexible operating regulations. There is a 5% flat tax on most economic activities, no tariffs on imported goods, no currency restrictions and no property taxes for corporate land. Additionally – and somewhat controversially, given Jordan’s past issues with unemployment – companies based in ASEZ are allowed to employ up to 70% foreign workers in their operations. Jordan’s investment profile has been growing nationally, but according to the Jordan Investment Board (JIB), the ASEZ has exceeded investment targets by 33%. By 2006 it had already brought in around $8bn in investment, some $2bn more than the original target of $6bn by 2020. ASEZ expects to attract a further $12bn spread across a number of sectors, including tourism, finance and industry. The Development Law of 2008 set in place a universal framework for special development areas based on the Aqaba model.
Read more about this topic: Economy Of Jordan