Investments in Aqaba exceed local expectations

The Jordanian government wants to encourage more business investment into the Kingdom and is putting in place measures such as tax incentives to entice companies.

The process began back in 2001, when King Abdullah launched the Aqaba Special Economic Zone Authority initiative, an official independent body that helps investors set up in the region and sort out all their official documentation. Most businesses in the Economic Zone pay an income tax of 5%. The exceptions are hotels and restaurants and 10 types of goods, which pay a 7% tax.

A busy region

Growing investments have transformed Aqaba into a busy area with big ongoing projects. The biggest is Saraya Aqaba, with an estimated capital of $362m. Work commenced on the project in March 2006, and today 60-70% of the infrastructure has been finished Al Majali says. If the project continues at the same pace, it will be completed by the end of 2009.

The project includes an industrial lake that will surround six beach-front hotels, a conference centre, restaurants, entertainment facilities and residential areas. Al Majali explains that such diversity aims at opening space for all types of clients. He adds: "Located in a tourist area, the project targets primarily tourists, but it addresses businessmen as well with the conference centre that is considered the first 12,000 square meter centre in Aqaba."

Partnerships

The project management has signed an agreement with Arab Bank to launch a personal loans program in order to finance clients interested in buying residential properties within the project. The bank was chosen, says Al Majali, because it is one of the main partners in the project and is one of the strongest and oldest banks in Jordan.

"Investors are so familiar with the bank and describe it as credible. Besides, the loans Arab Bank offers are highly competitive and long-termed, and that's what clients look for. In the end, our main goal is to make our clients feel they are part of the project and we will do anything to help them get there."

Deals have also been signed with real estate management company Jumeira and hospitality business Starwood to run some of the project facilities. "Jumeira has an excellent reputation and in addition to running two hotels, the company will be providing services to the villas and Aqaba Wild Wadi.

"What motivated us to deal with the two companies is the quality of their service, the high standards they follow, their great networking, and above all their credibility," Al Majali points out.

Focusing on the community

The project is expected to help south Jordan grow both economically and socially. "Saraya Aaqaba has all that it takes to achieve that. Once the project is completed, around 6,000 people will be employed and of course the majority of them would be from the local community and the neighbouring regions," says Al Majali.

"However, there will also be indirect employment that benefit bakeries, groceries, and butcher [and so on]. Also, through our commitment to the local community, we have launched a scholarship program and 10 students have already been sent abroad to specialise in hotel management and hospitality, in addition to an environmental initiative to develop the bird-watching station in Aqaba."