Jordan’s Aqaba project lures investors

Jordan’s Aqaba Development Corporation (ADC), responsible for developing the port city of Aqaba, has unveiled a US$11bn tender initiative to lure international investors to the area.

The two-phase project has invited private investors to partner with ADC to relocate the existing port facilities 20km to the south while developing the vacated seafront with residential, commercial and tourism developments.

The main port facilities that currently occupy land on urban development projects will be relocated to the southern border with deeper waters and upgraded services. This will also allow it to expand handling capacity for the country’s only port facilities. Aqaba port currently handles approximately 21 million tonnes of cargo a year. The vacated land represents prime waterfront property on the Aqaba town corniche.

The vacated land incorporates all that Aqaba has to offer as an age-old city as well as a world-class ‘special economic zone’ to present residents and tourists with a vibrant and engaging city centre, and investors with lucrative, flexible and unique investment opportunities. The area is currently granted a low-tax and duty-free status, features a coastline and terrain and is surrounded by historic sites including Petra and Wadi Rum.

The objective of the new development area will be to create a new mixed-use waterfront neighbourhood and business district – a magnet for businesses and tourists – as well as creating new easy to access, residential suburbs. The 200-hectare redevelopment will support new and existing businesses as well as the hospitality sector to provide a service core for tourists and new area residents.

On the hillsides of Shmesani, a new business park will attract compatible economic uses to the redevelopment district and goes some way to highlight the flexibility of the investment package. “We have been developing the Aqaba region for some time and this final phase will enable institutional investors to develop one of the most sought after parcels of real estate in the world,” said Imad Fakhoury, chairman and CEO of ADC.

“Our track record speaks for itself with US$2bn in real estate public private partnerships already underway. We have shown that we’re willing to offer levels of flexibility and freedom as well as government support to any private development initiative. With its location Aqaba is the most beautiful blank canvas that any developer could ever wish for.”

The new hotel and hospitality zone, with at least three world-class beach resorts, will support approximately 1000 rooms of new development with generous open space and common facilities. An essential part of the redevelopment plan will be new freehold housing to support a residential population that will take advantage of the site’s amenities and make this new district a lively place throughout evenings and weekends.

“We intend for the redevelopment to be sustainable and environmentally friendly in terms of energy use, conservation, and outstanding design. It will transform the core of the city and will capture much new development due to its exceptional setting and the advantages of its location,” added Fakhoury.

ADC was established in 2004 and is the central development company for the Aqaba Special Economic Zone (ASEZ). It is a private shareholding company owned jointly by the government and the Aqaba Special Economic Zone Authority (ASEZA). ADC owns the port, airport and strategic parcels of land as well as the development and management rights for these assets and for key infrastructure and utilities in ASEZ. It is mandated to develop ASEZ, build new and expand existing infrastructure and required superstructure and manage and operate its key facilities by attracting private sector developers and operators through public-private-partnerships. It is also responsible for the implementation of the ASEZ masterplan in a manner that ensures integrated development and transforms Aqaba into a leading business and leisure hub on the Red Sea.

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