< Previous134 NOVEMBER 2018 SI T E S E L E C T IO NThe Special Economic Zone covers 145 sq. miles (375 sq. km.) of land.Photos courtesy of ASEZA e idea is to be a hub that is unique to the area.”— Ghassan Ghanem, CEO, Aqaba Development Corporation S I T E S E L E C T I O N NOVEMBER 2018 135“Despite all the instability that neighboring countries tragically went through,” says Shraideh, “Jordan’s unwavering commitment and belief in a better future, a peaceful and prosperous one, are evident in the Kingdom’s nonstop efforts to build for the future, not only Jordan’s future but the region’s as a whole.”With the Syrian border having re-opened in mid-October, and with the Iraqi border re-opened in 2017, prospects for resumed cross-border commerce loom large. “If you’re trying to ship goods to Syria and Iraq, the best way is to go through Aqaba,” MIT’s Sheffi tells Site Selection. “Someone will have to rebuild Syria, and this will take decades, so a lot of stuff is going to flow into Syria.”Before the conflict in Syria began in 2011, cross-border commerce with Jordan was estimated at nearly $600 million per year. Trade with Iraq was far greater.“Our transportation of commodities between Aqaba Port and Iraq as a whole can be huge,” says ADC’s Ghanem. “At one time it was 40 percent of our total throughput from the ports. As the borders are re-opened, that means that we can expect our ports to begin working overtime.”SalalahAl GhaydanAl MukallaIstanbulIzmirYerevanBakuAl ManamahDjiboutiTbilisiTehranBaghdadAmmanKuwaitMuscatAd DawhahBucharestRiyadhAnkaraAshgabatAbuDhabiSanaaNicosiaWest BankCairoAqabaTel AvivGazaBeirutDamascusBULGARIATURKEYCYPRUSETHIOPIAERITREASUDANEGYPTSOMALIADJIBOUTIJORDANISRAELLEBANONARMENIAAZERBAIJANRUSSIAKAZAKHSTANKAZAKHSTANGEORGIAKUWAITQATARBAHRAINU. A. E.YEMENSYRIAIRAQIRANOMANSAUDI ARABIAAFGHANISTANPAKISTANTURKMENISTANUZBEKISTANCreteL. VanBlue NileDanubeEuphrates R.NileRiver NileTigris R.White NileArabian SeaAral SeaBlack SeaCaspian SeaGulf of AdenGulf of OmanPersian Gulf Mediterranean SeaRed SeaStr. ofHormuz136 NOVEMBER 2018 SI T E S E L E C T IO NIraq has set a goal of exporting 4 million barrels of oil per day in 2019, one-fourth of which it plans to ship through the Port of Aqaba.“We are proud to report,” says Shraideh, that Aqaba is ready and willing to function as a gateway to Iraq.”Transportation and LogisticsThe Ports of Aqaba consist of 12 terminals stretching over 32 specialized berths. In 2017, the general cargo port handled 20 million tons of cargo. Aqaba Ports Community is comprised of Aqaba New Port (general cargo, dry bulk, roll-on/roll-off), the Middle Port (general cargo/dry bulk) the Ferry Terminal, Cruise Ship Harbor, Liquids Terminal, Aqaba Container Terminal (ACT), the Industrial Terminal, Phosphate Terminal, Oil Terminal, Liquid Petroleum Gas Terminal and Liquid Natural Gas Terminal. Aqaba Ports Community has deep berths ranging between 40 ft. (12 m.) and 46 ft. (14 m.) and is equipped with state-of-the-art handling equipment. The ports include serviced storage space and are well-connected via modern road networks with logistics centers and industrial estates in the Zone.The imposing Aqaba Container Terminal (ACT) is a joint venture between ADC and APM Terminals, part of the mammoth Maersk group. APM assumed management in 2004 and promptly halved berthing times by computerizing and streamlining port operations. APM has invested some $300 million in the terminal and employs more than 1,000 people there.ACT handled 804,000 TEU in 2017 and has the capacity to take on more. With its deep draft and state-of-the-art facility, ACT has been able to handle ever-increasing vessel sizes, going from 5,500 TEU in 2014 to more than 14,700 TEU today. The 10 largest global shipping lines — jointly controlling more than 80 percent of global container line capacity — all call on ACT. Aqaba’s King Hussein International Airport (KHIA) is poised for growth, as well. KHIA has an annual capacity of 2 million passengers and a 9,840-ft. (3,000-m.) runway capable of handling all types of aircraft. It also has an air cargo terminal managed by National Aviation Services. Plans call for construction of an Aerospace Industrial Park, Logistics Park and Airport Business Park.KHIA is currently served by Royal Jordanian Airlines, which runs daily service between Aqaba and the Jordanian capital, Amman. Turkish A warehouse at Aqaba Logistics Village: “ALV was built to be a hub not only for Jordan but for the region, including Iraq.”Photos courtesy of Aqaba Logistics Village S I T E S E L E C T I O N NOVEMBER 2018 137Airlines operates three flights per week between Aqaba and Istanbul. As of November, low-cost carrier Ryanair offers flights between Aqaba and several European cities. EasyJet is launching service to Aqaba from London and Berlin. Officials say that ASEZA plans to launch Fly Aqaba Airline to ensure additional connectivity to the city. Logistics and industry being key components of Aqaba’s ecosystem, the National Real Estate Company Jordan (NREC) was established in 2006 as a private shareholding company owned by ADC and National Real Estate Company, a Kuwaiti company. NREC Jordan is responsible for developing South Aqaba Investment Park located seven miles (12 km.) southeast of Aqaba city center and four miles (6 km.) from Aqaba Container Terminal. The park sits on the main highway that connects Aqaba with Saudi Arabia, Iraq and Syria. South Aqaba Investment Park offers 645,835 sq. ft. (60,000 sq. m.) of warehousing units and more than 5 million sq. ft of serviced and developed land plots available for companies seeking to leverage Aqaba’s strategic location for regional storage, import and export activities, as well as light and medium industries. With a footprint of more than 16 million sq. ft. (1.5 million sq. m.), the project has been developed as a gated business park with abundant support services such as 24/7 security, customs service and advanced telecommunications. Investors currently operating at the Park include tobacco processing, food processing, automotive, and chemicals. Situated adjacent to Aqaba Container Terminal, Aqaba Logistics Village (ALV) offers warehousing, logistics and cargo support services, and is a key component of the effort to establish ASEZ as a regional logistics center. “ALV was built to be a hub not only for Jordan but for the region, including Iraq,” says general manager Hakam Abul Feilat. “We provide facilities for storage and warehousing in addition to providing value-added services for customers like cross docking, packaging, office rental services and whatever any customer requests for their cargo,” Feilat tells Site Selection.With a footprint of 1,030 acres (417 hectares), ALV is being developed in phases. Phase I, covering 1.5 million sq. ft. (140,000 sq. m.) and completed in 2008, consists of two warehouses for container freight and distribution, plus an open yard for storing imported vehicles and other large equipment. Phase II, completed in 2015, has roughly 100,000 sq. ft. (10,000 sq. m.) of warehouse space and additional open yard storage. A third phase is in the planning stage.Also next to the General Cargo Port, the $28.2-million Golden Triangle Logistic City includes a 2.8-million sq.-ft. (260,000-sq.-m.) building and 1.5 million sq. ft. (140,000 sq. m.) of land for customs services, making it the biggest project of its kind in the region, according to the project’s CEO Mohammad Shwaikini.Infrastructure: Opportunities for InvestmentThe ASEZ offers businesses and residents a planned environment consisting of high-quality core infrastructure built to international standards. Electricity is provided from a 600-megawatt thermal power station and a national grid. Water is abundantly supplied from nearby aquifers, with expansion plans for desalination plants to meet future needs. Businesses locating in Aqaba have access to the Fiber-Optic Link Around the Globe (FLAG) that passes through the ASEZ. Telecommunications services are available at The proposed dry port at Ma’an is to reduce congestion at Aqaba Port, allowing for increased volume. Source: ASEZA138 NOVEMBER 2018 SI T E S E L E C T IO Nregionally competitive rates.With its mandate to expand existing infrastructure, the Zone has launched projects of far-reaching potential, perhaps none more consequential than the Ma’an Land Port, 80 miles (130 km.) northeast of Aqaba. The Port is envisioned as a means to ease congestion at the Ports of Aqaba and to spread the benefits of Aqaba’s success to other parts of the country. The new port at Ma’an, projected to create needed jobs for the city, will connect with Aqaba Port through the Aqaba Railway. The project aims to rehabilitate existing railway infrastructure and connect Ma’an Land Port with both Aqaba Container Terminal and Aqaba General Cargo Port .Other major projects on the drawing board include Aqaba-Ma’an Crude Oil Pipeline transporting crude oil from Aqaba Oil Terminal to Ma’an Land Port and Al Quweira Industrial and Logistics Zone.There are incentives offered to boost Aqaba’s logistics sector such as:• 40% Discount on Handling of Transit Goods• 50% Discount on Containers Exported From ASEZ• 50% Discount on Suez Canal Fees for Goods Shipped to ASEZ.In addition, high-end real estate projects are underway in Aqaba to accommodate the city’s growing population and an expected influx of tourists from Jordan and abroad. Abu Dhabi-based Eagle Hills Properties is developing Marsa Zayed, a $10-billion project featuring apartments, villas, commercial spaces and a cruise ship terminal.Eagle Hills is also behind Saraya Aqaba, a $1.5-billion mixed-use project that envisions a total of 850 residential units, four 5-star hotels and a conference center. The $1.2-billion Tala Bay resort features hotels, apartments, retail and a marina.Ayla Oasis Development Company, a private Wadi Rum, “The Valley fo the Moon,” is an hour’s drive from AqabaPhoto courtesy of ASEZA S I T E S E L E C T I O N NOVEMBER 2018 139The ancient city of Petra forms Jordan’s “Golden Triangle” with Wadi Rum and Aqaba. Photo: Getty Images140 NOVEMBER 2018 SI T E S E L E C T IO NAQABA SPECIAL ECONOMIC ZONE• 5% income tax on income generated from activities inside the ASEZ or outside Jordan except for banking, insurance and land transport services• A multi-sector special economic zone offering tax incentives, import of goods in commercial quantities from the National Customs Territory and overseas (except automobiles and petroleum)• Exemption from Social Service Tax• Exemption from Sales Tax on vast majority of goods and services• Exemption from annual land and building taxes on utilized property• Exemption from taxes on distribution of dividends and profits on activities in the ASEZ and outside Jordan• No foreign equity restrictions on investment in tourism, industry, retail, and other commercial services (100% foreign ownership allowed)• No tariffs or import taxes on imported goods for individual consumption and registered enterprises• No foreign currency restrictions and full repatriation of profits and capital• Streamlined labor and immigration procedures (a project may employ up to 70% in foreign labor as an automatic right) S I T E S E L E C T I O N NOVEMBER 2018 141shareholding company owned by the Saudi Astra Group and Bahrain’s AlMaserah Co. has invested close to $ billion in Ayla Oasis, another ambitious mixed-use development. Ayla Oasis enjoys ft. ( m.) of Red Sea frontage and miles ( km.) of waterfront created along a system of three lagoons.Attractions include a beach club and a championship golf course designed by Greg Norman. When complete, the development will cover more than million sq.-ft. ( . million sq. m.) of residential and commercial space.“Ayla will be developed in stages over the course of years,” says Eng. Saul Dudin, Managing Director, Ayla Oasis Development Company. “We are seeking a balance,” Dudin tells Site Selection, “which means residential, commercial, and hospitality and leisure to create a destination. e growth will re ect the demand. At the moment the demand is on residential.”Alya presently has residential units, percent of which have been sold, and a new Hyatt Regency Hotel with rooms. Total investment upon completion is expected to be $ . billion.“ e project is designed to handle around , people when it’s fully developed,” says Dudin. “We should have more than , residential units and around , hotel rooms for tourists.”Dudin is bullish on Aqaba’s future as a destination for travelers. e coral reefs of the Gulf are renowned among divers. Aqaba’s sandy beaches are known throughout the Middle East. And the otherworldly desert landscape of Wadi Rum and the rose-red city of Petra, along with Aqaba, form Jordan’s “Golden Triangle.”“We’re only hour from Wadi Rum,” says Dudin. “We’re an hour and a half from Petra. We’re two hours from the baptism site of Jesus Christ and two-and-a-half hours from Jerusalem. We’ve spent close to a billion dollars here at Ayla Oasis. Obviously, we are con dent in our investment.” This Investment Report was prepared under the auspices of PBI Aqaba and the Aqaba Special Economic Zone Authority. For more information, visit www.pbiaqaba-jo.com and www.aqabazone.com.Obviously, we are con dent in our investment.”— Eng. Saul Dudin, Managing Director, Ayla Oasis Development CompanyDestination Aqaba: Billions of dollars worth of real estate investments include Ayla Oasis, a mix of residential housing, hotels, retail and leisure.Photo courtesy of Ayla Oasis Development CompanyINVESTMENT REPORT:AQABA, JORDANPhoto courtesy of ASEZA S I T E S E L E C T I O N NOVEMBER 2018 143Return to the WaterfrontAn engineering pioneer brings a unique perspective to the Empire State’s infrastructure needs.Malcolm McLaren is founder, president and CEO of McLaren Engineering Group, whose portfolio of more than 14,000 projects over 41 years has included landmark infrastructure projects in New York. Known for professionalizing the job of engineer divers, the firm’s clients have included the city’s ferry system and NY Waterway, which the firm has served via terminal expansions as well as at times of crisis such as Hurricane Sandy and 9/11. Today, his firm is helping clients and partners find new value in abandoned waterfront sites.“We had divers in the water around the World Trade Center and the Battery when it all happened,” he says of 9/11, owing to the work his firm does with the ferry system in New York and NY Waterway. “They were witnesses. We were getting calls from them until the phones went out.” Private boats and ferries played a crucial role, as they tied off at Battery Park City and evacuated thousands of people. His firm helped the Port Authority of New York and New Jersey establish a temporary ferry landing at Pier A, enabling the system to move 25,000 to 30,000 people a day for about three weeks.That ferry landing went into operation because railways, subways and bridges were shut down after the attack. It’s just one of many times McLaren has seen the importance of infrastructure become palpable, rather than its usual “almost subliminal” role.“People don’t realize how important it is, but they realize it when they don’t have it,” he says. When it comes to site selection for companies or families, the principle is the same: “You’re seeing people flee the places that are not kept up, but going to places that are.”McLaren’s firm recently constructed the “GlassBarge” to help Corning celebrate the 150th anniversary of its HQ move from New York City (where it originated as Brooklyn Flint Glass Company) to Corning, New York, by retracing the journey up the Hudson River and through the Erie Canal system.by ADAM BRUNSadam.br uns @ site s ele c tion.c omST A TE SPO TLIGHTNew YorkMcLaren Engineering Group provided design and engineering services to the Township of Weehawken, New Jersey, for a new $3.1-million recreational pier located directly opposite the Empire State Building on the Hudson River. Photo courtesy McLarenNext >