Special Economic Zones in the OIC Region:
Learning from Experience
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5.5 Case Study 4: Aqaba Free Zone, Jordan
5.5.1 Overview and Description
As one of the successful Freeports in the region, Aqaba is a case study in mixed use development
with private sector participation and decentralisation at the heart of its success. Aqaba has
successfully leveraged its tourism potential apart from its focus on traditional industrial and
manufacturing sectors to emerge as a leading special economic zone in the region. Aqaba is
ranked amongst the leading international free zones of the future by fDi Intelligence (part of the
Financial Times group).
Table 5-17 – Aqaba Free Zone Overview
SEZ Typology Free Trade Zone
Established 2001
Area ~37,500 ha
No. of firms onsite >5,000
No. of jobs created ~70,000
Authority-in-charge Aqaba Special Economic Zones Authority (ASEZA)
Source: BuroHappold Analysis 2017
The Aqaba SEZ began functioning in 2001 following the introduction of the Aqaba Special
Economic Zone Law No.32 in 2000. It began functioning in early 2001 and was formally
established inMay 2001. The SEZ covers the Kingdom’s only port, Aqaba Port, and its immediate
surroundings including Wadi Rum. The SEZ covers approximately 375 of territory.
Vision and Objectives
The SEZ proposal was developed following a period of weak economic performance within the
Kingdom in the late 1990s. Jordan, at this period, was suffering froma large stock of foreign debt,
high unemployment and a significant proportion of the population living under the poverty line
and was struggling to achieve GDP growth above population growth. To address these issues the
government acknowledged the need to implement structural economic adjustment
programmes.
The Aqaba SEZ was implemented as a means to drive private sector investment within the south
of the Country and to radically transform the city of Aqaba, including its administrative system
and institutions. The primary objectives of the zone were to: