Jordan Times
Thursday, March 11, 2004
Fakhouri details achievements of Aqaba Special Economic Zone Authority during 2003
By Rami Abdelrahman
AMMAN — A total of 541companies were registered at the Aqaba Special Economic Zone Authority (ASEZA) until the end of 2003. Out of the total, 276 firms introduced new businesses which were not part of economic activity in Aqaba before.According to Deputy Chief Commissioner Imad Fakhouri, JD161 million worth of goods entered ASEZ last year compared to JD136.8 million in 2002, and JD100 million in 2001, the year when Aqaba was transformed into a special economic zone covering 12,900 dunums.
Number of incoming and outgoing flights increased by 65 per cent while incoming air cargo recorded a 72 per cent increase, Fakhouri indicated.
Over the past three years, cumulative building licences shot up by 800 per cent besides approving 540 land purchasing or leasing applications 290 of which were signed for investment purposes.
Licensed or permitted areas for construction projects eased by 11 per cent to reach 203,756 square metres during 2003, compared to an increase of 86 per cent and 117 per cent during 2002 and 2001 increase respectively.
ASEZ's revenues from sales tax on goods and commodities stood at approximately JD6.8 million, JD4.9 million of which were transferred directly to the Treasury. In 2002, the revenues from sales tax reached JD7.5 million.
Fakhouri attributed this decline to the war on Iraq but indicated that other revenues rose by 73 per cent noting that most taxes in the zone were cancelled by ASEZA law.
Income tax collected stood at JD2.4 million during 2003, JD2.06 million of which was transferred to the Treasury.
The manpower employed in ASEZ reached 18,000, 76 per cent of whom are Jordanians. A total of 6,011 visas and work permits as well as 394 residency permits have been issued to foreign workers until the end of 2003.
ASEZA is currently working on several projects towards achieving the 2020 objectives, most importantly by attracting JD6 billion in investments, and creating 70,000 employment opportunities.
During 2003, $22 million were invested to initiate works on establishing the Aqaba International Industrial Estate (AIIE), designed to employ at least 20,000 in direct jobs.
Two factories inside the AIIE — with a total area of 6,000 square metres were leased for 10 years, leaving 32,000 square metres in built-up space to other factories expected to sign leasing deals soon.
Total costs of ASEZA reached JD51.1 million during 2003, as capital costs accounted for approximately JD15 million expected to go up to JD16.5 million by the end of this year. Running costs amounted to JD9 million and are expected to increase JD700,000 this year.
Capital costs funded by grants or aids reached JD51.1 million and are expected to build up to JD66.7 million, according to the deputy chief commissioner.
“With the establishment of the Aqaba Development Company, we are hoping that it could work hand-in-hand with ASEZA to make it a self-financed zone, covering its costs entirely,” Fakhouri concluded.