Abu Gheida boasts $18b of investments in Aqaba

By Khalid Neimat

AMMAN – Investments in the Aqaba Special Economic Zone (ASEZ) have reached $18 billion, 300 per cent more than the $6 billion targeted by 2020, Chief Commissioner Hosni Abu Gheida said this week.

According to Abu Gheida, industrial investments in Aqaba account for 10 per cent of the total investments in the Red Sea port city.

He declined to predict figures as to upcoming investments in the city, but said: “New investments, particularly in the industrial sector, are under discussions now with certain investors, but we will not announce any of them unless we reach final agreements.”

The development plan for Aqaba indicates that tourism projects form 50 per cent of the total investments in the city, Abu Gheida indicated in a lecture at the World Affairs Council.

“Environment in Aqaba is a redline, as any violation would kill the economic activities in the city that undergoes development plans and focuses on attracting tourism projects, to become a leading coastal city on the Red Sea,” he said.

Abu Gheida, who heads the Aqaba Special Economic Zone Authority (ASEZA), welcomed environment-friendly projects in the industrial sector but rejected we reject any industrial project that harms the environment in the city.

He pointed to the Aqaba International Industrial Estate provides as a platform for industrial investments.

“Sea and water are under ASEZA’s control around the clock,” he said, noting that protection of coral in the sea is governed by very strict regulations.

Abu Gheida said the planned nuclear plant, which will be located close to the ASEZA area, is a national project. He dismissed claims that the plant would leave environmental impact on the resort in Aqaba.

“Major nuclear projects in Europe take place within cities or very close to towns,” he remarked.

The reason behind building the plant near Aqaba is that such projects need huge quantity of water for cooling, but the project is under a study to determine its impact on ASEZA and adjacent areas, Abu Gheida said.

Noting that Aqaba’s population now is around 130,000 and is expected to double in the next 10 years, he stated that there are 20,000 Egyptian nationals working in Aqaba, while 6,000 of local people are unemployed.

He indicated that the average income in Aqaba is three times more than that in any other city in the Kingdom.

Abu Gheida mentioned that two of the major real estate projects in Aqaba will be ready in mid-2011.

“However, we need to increase number of hotel rooms in order to compete with neighbouring resorts on the Red Sea,” he said, noting that at present, there are only 3,300 hotels rooms in Aqaba, while in Sharm El Sheikh there are 44,000 rooms.

“We want to reach 7,000-8,000 rooms to be able to compete,” Abu Gheida stressed, pointing out that the Islamic Bank of Jordan and the Arab Bank are both carrying out two different real estate projects in the city.

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