Aqaba Development Corporation structure

The Aqaba Development Corporation (ADC) was launched in 2004 by the government of Jordan and the Aqaba Special Economic Zone Authority. Its mandate was to oversee the development of Aqaba, Jordan’s only port city and the 375 square-kilometre surrounding area into the Aqaba Special Economic Zone (ASEZ). ASEZ is a duty-free, low-tax multi-sectoral development zone.

ADC owns Aqaba’s existing seaport, the airport and strategic areas of land, as well as the development and management rights for these assets. It is a private shareholding company governed by a board of directors.

Aqaba Development Corporation operations

ADC’s main objective is to unlock Aqaba’s economic potential by encouraging foreign investment. ADC’s mandate is to develop ASEZ, build new infrastructure and expand existing facilities, as well as operate and manage the zone.

ADC is responsible for implementing the ASEZ masterplan that aims to transform Aqaba into a leading business and leisure hub, capitalising on its location on the Red Sea. The masterplan involves encouraging investors to set up heavy industries and services such as storage, logistics, offices and housing. ADC aims to do this by attracting private sector developers and operators through public-private partnerships (PPP).

The population of Aqaba is growing and the region’s infrastructure will need to be improved to accommodate the growth.

The southern industrial zone is a major focus for ADC within ASEZ. It is spread across 12 sq km and is located next to the site of the New Aqaba Port, which is being developed by ADC. 

ADC is relocating Aqaba’s port to the southern part of the city. The strategy behind the industrial zone is to allow the development and growth of existing industries and provide a competitive world-class industrial park that will allow new industries to emerge.

The zone will comprise industrial clusters and will also be connected by inter-modal transport links, such as rail, to ensure rapid transfer of goods and cargo. The zone will have dedicated clusters for phosphate, potash and natural gas industries, as well as Jordan’s existing fertiliser industry.

Aqaba Development Corporation ambitions

ADC has set a new ambition to attract a further $3bn in new investments to ASEZ by the end of 2020, with a particular focus on the industrial sector to create new job opportunities.

Several projects are already under way at Aqaba that are being overseen by ADC. As Jordan’s sole maritime access, the development of New Port of Aqaba is a major priority for ADC and is expected to contribute to the country’s long-term economic growth as a trade gateway for the Levant region.

Aqaba’s contribution to the economy has already increased due to the investment it is attracting. Its contribution to Jordan’s gross domestic product was about 6.3 per cent in 2005 and was expected to rise to 10 per cent in 2010.

A new phosphate terminal is under construction and planned to be completed by 2013 as part of an agreement with local Jordan Phosphate Mines Company (JPMC). A memorandum of understanding for the expansion of the industrial terminal for fertilisers is due to be signed with JPMC and local Arab Potash.

Negotiations are under way over the development and expansion of the existing oil jetty on a 30-year concession basis. The port development also includes construction of a new grain terminal.

Aqaba’s ferry terminal that currently transports passengers to Egypt is also undergoing an expansion as the city seeks to increase tourism in the region. By 2011, the terminal will be able to accommodate three passenger ships at one time. Another project that is well under way is the $240m expansion of the Aqaba Container Terminal. It is due for completion in the first quarter of 2012 and will have an initial capacity of 1.5 million 20-foot equivalent units (TEUs) a year.

A key part of ADC’s vision for Aqaba’s new port is intermodal transport. A planned railway will transport phosphates in Jordan and across the region.

Currently, about 30 per cent of the cargo arriving in Aqaba goes to Iraq and this is a key market for ADC. Saudi Arabia is developing a North-South minerals railway and there are tentative plans to continue this line up to the Jordanian border so that it can link up with the phosphate terminals in Aqaba.