Arabia.com

Jordan's port of Aqaba keen on success

Aqaba is showing its tremendous potential as a flourishing investment base through an aggressive policy of comprehensive reform

By Hussein Mughrabi

AMMAN --- The rapid transformation of the Jordanian port of Aqaba into a regionally competitive hub for investment, trade and tourism is already taking shape with the adoption and implementation of key economic, social and legislative directives.
According to Mr Akel Biltaji, the Chief Commissioner for the Aqaba Special Economic Zone Authority, the young King Abdullah II of Jordan was quick to build upon the vision of his father the late King Hussein who had foreseen the immense potential of the Red Sea coastal city.

This through developing upon the initial blue prints for this strategically important undertaking and setting into motion its relevant requirements.

For that purpose, the Jordanian parliament passed the Aqaba Special Economic Zone law in August of 2000 under which the Aqaba Economic Zone Authority (ASEZA) was established.

Keen on success

In his briefing to reporters participating in a press forum under the name of "Economic Reform and Development..(ASEZA), a Model" Biltaji affirmed that Aqaba was not being detached from the rest of the country or sold off as some may have suggested.

A number of Jordanian economist, parliamentarians and ordinary citizens had voiced concerns that turning Aqaba into a special economic zone may allow Israel to buy lands and control businesses under the cover of foreign investments and thus undermining the sovereignty of the country. Others feared for the moral fabric of the sea port.

Biltaji went on to say that several new investors have expressed their interest in establishing new projects. This in addition to plans for the development of the sea port, the airport and a rail road.
It is hoped that (ASEZA) would bring in up to $6 billion in investments creating some 70,000 jobs over the next 20 years, in addition to a 6% growth level, Biltaji added.

Biltaji said that 687 companies have been registered so far since the declaration of Aqaba as a special economic zone, of which 79% are commercial, 4% industrial and 17% as service sector businesses. Nearly $800 million of investments were under way.

Meanwhile, and inline with ASEZA’s commitment to achieving its goals, the authority has extended the deadline set for the selection of a strategic developer to be responsible for operating the zone, from mid September till the end of January, according to Biltaji.

One of the three shortlisted bidders, selected from a list of 13 has managed to present proposals by the set deadline while the remaining two have requested a six week extension.

The three bidders are Greek based consortiums; Consolidated Contracts International along with the British consortium of ICI Infrastructure Limited, Mercey, Docks, Harbours and Investia in addition to the American enterprise Hillwood Strategic Services.

Self sustaining entity

The Commissioner for Investments and Development Affairs Imad Fakhoury, outlined the importance of the private sector throughout the development process of the Aqaba zone.
Fakhory eloquently reflected upon the vast potentials of the Aqaba zone stressing the need for implementing the appropriate mechanisms that would enable the Aqaba zone to be competitive on a global scale. Tala bay will be the first of its kind in the country aimed at attracting a wider variety of local and international clientele Fakhoury hinted that the presentation of Aqaba as an independent and economical self sustaining entity would help guard it against any potential regional upheavals.

Tala Bay

One of the more ambitious and perhaps daring projects planed for the Aqaba zone is the 'Tala Bay' comprehensive resort project to be located in the southern beach of Aqaba.

Jordan Projects for Tourism Development (JPTD) established in June of 2000 through the collaboration of a group of anchor investors; Abujaber Investment; Orascom Projects for Touristic Development; and Zara Investments, acts as the owner, developer and operator of the project.

Work on the 2.671 million square meter of land has already begun to create a premium vacation destination and an exclusive residential community.

The first phase is to include The 'Marina Town' the marina, a golf course, 1300 hotel rooms, staff housing and the related infrastructure.

Tala Bay will combine day and night attractions such as;

- Cafes, restaurants and shops

– Marina and water sports

– Various hotels

– Night clubs and movie theater

– Aqua park

- Beach club and sports facilities

– Retail/commercial center

– Spa

The US Firm Ellerbee Beckett completed the Master Plan for the Tala Bay project.

The press forum was arranged in collaboration with the Center for Defending the Freedom of Journalists (CDFJ) in Amman.


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