Special Economic Zones in the OIC Region:
Learning from Experience
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5.5.6 Summary Success Factors
Governance
5.5.6.1 Strong vision and government support
The King was personally involved in establishing and promoting the zone. Despite some strong
domestic opposition the King’s support was critical in enabling the zone to be established.
5.5.6.2 Creation of an effective legal, institutional and regulatory framework
Throughout development of the zone a series of feasibility studies were undertaken to examine
the potential legal, regulatory and institutional frameworks for the zone. This involved detailed
organizational audits of the existing government bodies to determine their relative strengths
and weaknesses and institutional capacity. These studies were undertaken with the vision for
an integrated overarching authority which ultimately resulted in the formation of ASEZA.
The design of ASEZA was undertaken through an exhaustive analysis of every interface between
Government and the private sector and a consideration of which parts of government in which
they should be integrated. This resulted in the formation of partnerships between the Jordan
Investment Board and the Jordan Tourism Board to ensure coordinated and collaborative
marketing.
5.5.6.3 Creation of a ‘One Stop Shop’
The extensive process of establishing the institutional framework allowed Jordan to create a
truly effective ‘one stop shop’ and resulted in US$450 million in investment, 310 land sale/lease
agreements, an 800% cumulative increase in licensed construction, a 63% increase in
employment and Government revenue increases of 835% for sales tax and of 430% for income
tax within ASEZA’s first three years of operation.
Financial and Economic Climate
5.5.6.4 Fiscal and financial incentives
The Aqaba SEZ offer special fiscal incentives which have created an attractive business
environment for global investors. This includes duty free imports of goods from the National
Customs Territory and overseas, exemption from social service tax, exemption from sales tax on
the majority of goods and services and exemption from annual land and building tax as well as
no foreign equity restrictions on investments and 100% foreign ownership allowed.