Aqaba — Economists said the package of incentives approved by the Cabinet for full-assembly and manufacturing projects will strengthen Aqaba’s position as an industrial and logistics hub and a gateway for Jordanian exports by reducing operating and production costs and enhancing the competitiveness of industrial projects and their ability to access foreign markets.
The package includes support covering up to 75% of container handling costs at Aqaba Port for projects carrying out full assembly or manufacturing operations. The measure is expected to reduce the costs of transporting and handling production inputs and finished products while strengthening integration between industrial activities and the city’s port and logistics services.
Economic expert Dr. Firas Al-Rawashdeh told the Jordan News Agency (Petra) that incentives and exemptions linked to industrial projects in Aqaba provide support for investment and help reduce production and operating costs, making industrial projects more attractive to investors.
He said subsidizing container handling at Aqaba Port by up to 75% would ease the financial burden on beneficiary projects and strengthen their competitiveness in foreign markets. It would also boost port activity and increase demand for transportation, storage and logistics services associated with industrial operations.
These measures could help attract new industrial projects to Aqaba and expand existing businesses, he added, stimulating trade, transportation and services while creating direct and indirect employment opportunities for residents of the governorate.
Al-Rawashdeh said the economic impact of the incentives would extend to industries and sectors linked to manufacturing, supporting the circulation of funds within the local economy and strengthening Aqaba’s role in attracting industrial and logistics investments and expanding their contribution to economic growth and employment.
Economist Hossam Ayesh said the package carries strategic significance for Aqaba as the city seeks to attract high-value industrial investments and develop a productive base capable of increasing local value-added and expanding export opportunities.
He said the incentives could support the establishment of vehicle assembly and manufacturing projects in Aqaba, including electric vehicles, while creating opportunities to develop supporting industries and related activities and strengthening integration between manufacturing, logistics and commercial services.
Ayesh highlighted the importance of developing an integrated value chain for automotive industries, including spare parts, seats, glass, batteries and tires, as well as software and maintenance services. Such an approach would broaden the economic benefits of industrial investments rather than limiting them to assembly operations.
Linking incentives to higher productivity, greater value-added and the utilization of Aqaba’s available potential could enhance the economic and social impact of investments, particularly by creating jobs and developing the skills of Jordanian workers, he said.
He added that locating industrial projects in Aqaba would stimulate related sectors and increase demand for transportation, handling and storage services, while expanding export opportunities to regional and international markets. This would support economic diversification and increase the contribution of industrial activities to the governorate’s economy.
Ayesh said the success of this approach depends on projects’ ability to establish productive links with local suppliers and service providers, increase reliance on Jordanian workers, and transfer modern technologies and expertise, thereby strengthening the sustainability of industrial investments in Aqaba.
Source: (Petra)
