With a mandate to implement Aqaba’s Master Plan for growth, which aims to maximize successful development, ADC has used a calculated approach in the development of each area of ASEZ. From tourism and recreational services to transport, industry and light manufacturing, ASEZ offers investors 375 square kilometers of investment opportunities with attractive incentives packages aimed at increasing operating efficiency and providing for all investment needs.
His Excellency Engineer Imad Fakhoury, Chairman and CEO of ADC, reveals more about the corporation and what’s in store for Aqaba.
What are the main assets of the Aqaba Special Economic Zone that attract investors?
The ASEZ is strategically located at the crossroads of four countries and three continents. Situated at the Gulf of Aqaba leading to the Red Sea, the ASEZ extends to the land borders of Israel and Saudi Arabia and the territorial waters of Egypt. Its strategic location, infrastructure and multi-modal transport network, unique natural and human assets, broad market access, and business-friendly environment offer investors a springboard to a variety of regional markets and the global economy.
In its continuous efforts to create the most suitable and attractive environment for businesses wishing to locate in ASEZ, ASEZA has put forward a competitive set of incentives that include:
- A flat 5% corporate tax on net profit
- Exemption from taxes, including social services, annual land and building taxes on utilized property, and taxes on distributed dividends and profits
- Duty-free import of goods in commercial quantities from the National Customs Territory and overseas.
- No foreign equity restrictions on investments or foreign currency restrictions
- Full repatriation of profits and capital
- Streamlined labor and immigration procedures through the one-stop-shop
- 100% foreign ownership and up to 70% foreign labor
- Availability of land for lease or sale
- Full guarantees on rights and ownership
What partnerships with industry stakeholders has ADC fostered, and why?
ADC has, for example, privatized the water company and signed contracts with world famous companies to manage the Container Terminal (APMuller) and the Air Cargo Terminal (NAS). ADC has also set up joint ventures with renowned real-estate development companies to develop various projects, particularly in warehousing and logistics.
Through such partnerships, ADC encourages private sector participation in development efforts, maintains its right to supervise the project-specific development of the Zone, and focuses its efforts on creating the necessary environment to support the large investments it is attracting, which act as catalysts to creating the resources needed by these mega projects to operate a sufficient business.
What initiatives and techniques are being used to promote Aqaba’s commerce and tourism opportunities?
What we used to call ‘the sleeping city’ has now awakened. ASEZ offers investors a wide range of competitive advantages in order to maximize private sector participation and build Aqaba into a world class business and leisure destination. The success of ASEZ to date is attributable to a host of initiatives, in addition to its strategic location, which shaped significant competitive advantages, including:
- Projects packaged for fast-track startup and accelerated approval processes.
- Low cost of doing business and investorfriendly regulations and business environment.
- Full-service utility networks including power, telecommunications, natural gas and global international communications connectivity through FLAG.
- Free zone storage supported by a full-service seaport, an openskies international airport and world class air cargo facilities.
The above and many more incentives were conveyed in an effective marketing approach which aggressively communicates with our target market through various media in addition to physical participation in world renowned conferences and exhibitions.
What challenges does ADC face in competing within other regional destinations to attract investments?
ADC is striving to promote the ASEZ as an emerging business destination vis-a-vis the other established destinations in the region. The real challenge is the fact that the Zone is still a project in the making,
What plans are in store for the development of the Aqaba port and airport?
The current main port sits at the heart of the major urban and tourism development sites, surrounded by mountains and in close proximity to the city, which greatly limits the potential for a muchneeded expansion of its facilities. The port will be relocated close to the Saudi Arabian border, and this should be completed by 2012. This move is expected to increase Aqaba’s handling capacity from 30 million tons per year to approximately 60 million tons per year over the next 25 years. The new world class, modern and deep water port with multi-purpose berths will be constructed and operated over the next 30 years. The environment is also a great incentive for the port relocation and redevelopment initiative. All projects being implemented in Aqaba are based on meticulous and thorough environmental impact assessments. The studies have proven that the relocation of the port will have a positive impact on the environment: reducing air pollution in the north and decreasing water pollution in the whole bay.
As for King Hussein International Airport, ADC has undertaken to turn it into a profitable business unit and smoothly transition it froma public organization to a private company while ensuring that airport operations are not disrupted. In a first step towards providing Aqaba with a modern, high standard and fully equipped airport that can support the city’s development and ambitious future plans, ADC established the Aqaba Airports Company. Also, in partnership with ADC, National Aviation Services (NAS) Jordan, a ground handling company, is to equip, operate and transfer the Air Cargo Terminal at the airport. NAS Jordan currently provides ground handling services to charter and scheduled cargo aircraft and terminal handling for all freight transiting through the airport. NAS Jordan aims to develop the facility into a major regional hub and gateway for the Levant, Middle East and Africa, encompassing air, road and sea freight services.
Which of the projects taking place in Aqaba over the next few years do you think will have the greatest impact on the character of the city?
The biggest impact on the image and feel of the city which will be sensed by anyone who knows Aqaba, in my opinion, is the relocation of the main port, and the redevelopment of the area on which it stood.
What do you think Aqaba will be like in ten years from now?
Ten years from now Aqaba would have achieved the majority of developments set forth in the Master Plan. It would become a world class business and leisure destination providing top of the line services to businessmen and tourists alike.