Special Economic Zones in the OIC Region:
Learning from Experience
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Licensing, Ownership and Zoning Restrictions
The Aqaba SEZ offers a range of options for potential investors with regards to land ownership
including options for the purchase or lease of land. The SEZ Law includes use or lose it provisions
which enable the ASEZA to repossess land at fair compensation.
Incentives
The range of Incentives offered to companies choosing to locate in Aqaba SEZ includes:
Fiscal Incentives
Fiscal incentives include:
 A 5% tax rate on all net business income (in contrast with a 35% rate for other parts of
the country), except that from banking, insurance and land transport activities;
 No social services tax, or annual land and building taxes on improved property;
 No customs duties on imports into the Zone;
 A limited 7% sales tax on the consumption of selected personal goods and
hotel/restaurant services (as opposed to a 13% levy for other parts of the country);
Non-fiscal Incentives
Non-fiscal incentives include:
 No foreign equity restrictions on investment in tourism, industry, retail and other
commercial services. This includes approval for 100% foreign ownership;
 No foreign equity restrictions on investment in tourism, industry, retail and other
commercial services;
 Availability of land for lease or sale;
 Streamlined labour and immigration procedures – a project may employ up to 70%
foreign labour as an automatic right;
 Full guarantees on rights and ownership; and
 Direct loans and equity investment made by ASEZA in businesses choosing to locate on
site.
5.5.4 Organisational and Administrative Profile
The zone is developed and operated by a single autonomous institution tasked with its planning,
development and operation – Aqaba Special Economic Zones Authority (ASEZA). With its board
of six ministerial-level commissioners, ASEZA is one of the first attempts at decentralisation of
economic development in the Kingdom. As a result, the operating model is attractive to private
investors looking for more efficient and less bureaucratic procedures.