Aqaba: A New Investment Hub and Economic Growth Driver

The Jordanian government has made an important move to support investment in Aqaba. It introduced a set of new decisions to turn the city into a key part of the country’s economic growth. This fits with Jordan’s Economic Modernization Vision (2022–2033) and the city’s development plan.

The new decisions include a smart mix of support for real estate, tourism, and education. These steps aim to attract investors and retirees from Jordan and other countries, helping them settle in Aqaba for the long term. This is especially important now, as the Jordanian economy is facing slow growth and weak private investment. Aqaba can help restart the economy in areas that bring high value.

In real estate, the government is offering more than just tax cuts or help with bringing in cars or furniture. It’s also offering long-term residency for those who invest a certain amount. This shows a shift toward attracting serious, long-term investors rather than short-term visitors.

Focusing on residential compounds helps organize housing projects and makes Aqaba more competitive in the region. The city currently has 1,100 available housing units, and 1,200 more are planned. These changes are expected to boost the quiet housing market and encourage new real estate projects.

The plan also includes launching research and education projects in southern Aqaba. For example, coral farming and marine science labs will be set up. This supports the “blue economy,” a growing sector that can attract international funding and offer long-term economic benefits.

Making the southern coast a center for research and learning will give Aqaba a stronger position as a place of knowledge and innovation. It also helps create new, high-quality jobs in fields like marine engineering, environment, and science.

The government also wants to attract wealthy Arab and foreign retirees by offering special benefits for owning property and providing good services. These retirees usually have strong finances and can support the local economy, including health care, services, and retail.

In short, these decisions show a clear plan to attract investment using financial and legal tools, without hurting public finances. This is a realistic and smart way to support long-term growth.

These incentives come at the right time. Aqaba has many advantages—its location, infrastructure, and special laws. If these plans are supported by good marketing and easy procedures, Aqaba could become a top regional center for investment, living, tourism, and research. This would help Jordan grow its economy, create jobs, and reach its future goals.

Raad Mahmoud Al-Tal is head of Economics Department – the University of Jordan – r.tal@ju.edu.jo