Abdali Investment & Development Company, which is behind the creation of Abdali, a 1.8 million-square-metre new downtown area of Amman, has started approaching investors for $2bn in funding for the project’s second phase, says Joseph Helou, chairman of Abdali Investment & Development Company.

“For phase two, we have to prepare for 800,000 sq m of built-up area. We’re almost finished with the masterplan, zoning and regulations,” Helou tells MEED following the launch of the project’s Boulevard on 11 June..

“We don’t have any commitment [from investors yet], but once we start infrastructure work we will begin our campaign with potential investors. We’ll be looking to bring in new investors to the mix, including from the Gulf, We’ve started talking to Saudi investors and hope this will materialise soon.”

It is also likely to include some of the investors forming the joint venture behind phase one, which is of government-owned real estate developer National Resources & Development Corporation (MAWARED), Horizon International for Development, owned by Lebanese Sheikh Bahaa Rafic al-Hariri, and United Real Estate Company – Jordan, part of Kuwait Projects Company (Kipco).

The $5bn mixed-use  development project aims to create a modern city centre and attract Jordanian expatriates, business people and wealthy tourists.

While the project shows similarities to Beirut’s reconstructed downtown, Amman’s project is being built from scratch.

Phase one focuses mainly on offices and commercial buildings, with nearly a third already leased. The firm is hoping it will have commitments for 100 per cent by the end of the year. Phase two is primarily centred on the residential sector.

The development signals Jordan’s desire to create a high-end market for regional tourists, positioning itself as a safe haven among turmoil in neighbouring countries such as Syria and Iraq.

With the tourism sector under pressure, because of road closures and dwindling numbers of tourists from Western countries amid spillover from Syria’s war, the country is aiming to strengthen its ties with the Gulf.

In 2013, the number of visitors from the GCC to Jordan rose 20 per cent, and this year it is forecast to rise another 10 per cent, says Aqel Biltaji,  the mayor of Amman. “We are definitely hoping to attract a growing number of wealthy tourists,” he says.

The main challenge during the construction of phase one has been to include measures that can help Jordan tackle its water and energy issues, says Helou. The high price of energy and water, much of which is imported, is a major burden on the country’s public finances.

The Abdali development is obliging developers to embrace green technology and incorporates a range of energy-efficiency measures, including the treatment of wastewater to reuse for irrigation and the establishment of centralised power generation instead of installing separate chiller units.

That formed a challenge at the start of the project, as it required new regulation and construction permits, according to Helou.

He adds that the project was also hit by the turmoil in Egypt, which meant Egyptian construction workers were unable to travel back to Jordan for three to four months in 2013, but these issues are now sorted.