Economists: Government incentives boost the industrial sector in Aqaba
Amman3 min read
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Economists have confirmed that the package of incentives approved by the Council of Ministers for full assembly and manufacturing projects will strengthen Aqaba's position as an industrial and logistical hub and a gateway for Jordanian exports, by reducing operational and production costs and supporting the competitiveness of industrial projects and their ability to reach foreign markets.
The package includes support of up to 75 percent of the container handling costs at the Port of Aqaba for projects that carry out full assembly or manufacturing operations, which contributes to reducing the costs of transporting and handling production inputs and products, and enhancing integration between industrial activities and port and logistical services in the city.
Economic expert Dr. Firas Al-Rawashdeh told the Jordan News Agency (Petra) that the incentives and exemptions related to industrial projects in Aqaba represent a supporting factor for investment, and contribute to reducing production and operational costs and increasing the attractiveness of industrial projects to investors.
He explained that supporting container handling at the Port of Aqaba by up to 75 percent would alleviate financial burdens on beneficiary projects and enhance their ability to compete in foreign markets, in addition to stimulating port traffic and increasing demand for transport, storage, and logistical services related to industrial activity.
He pointed out that these measures could contribute to attracting new industrial projects to Aqaba and expanding the operations of existing projects, which would reflect on trade, transport, and service movements, and provide direct and indirect job opportunities for the governorate's residents.
He added that the economic impact of the incentives extends to sectors related to industry, which enhances the movement of funds within the local economy and supports Aqaba's role in attracting industrial and logistical investments and expanding their contribution to economic growth and employment.
In turn, economist Hossam Ayesh confirmed that the package carries strategic dimensions for Aqaba, in light of its orientation towards attracting qualitative industrial investments and developing a production base capable of enhancing local value-added and increasing export opportunities.
He explained that the incentives could support the establishment of car assembly and manufacturing projects in Aqaba, including electric vehicles, and provide opportunities to develop supporting industries and related activities, which enhances integration between production and logistical and commercial services.
He pointed to the importance of developing an integrated value chain for automotive-related industries, including spare parts, seats, glass, batteries, and tires, in addition to software and maintenance services, which allows for expanding the scope of economic benefit from industrial investments, rather than limiting it to assembly operations.
He indicated that linking incentives to increasing productivity and value-added and investing the available potential in Aqaba could enhance the economic and social impact of investments, especially in the field of providing job opportunities and developing the skills of Jordanian workers.
He noted that localizing industrial projects in Aqaba would stimulate related sectors and enhance demand for transport, handling, and storage services, in addition to expanding export opportunities to regional and international markets, which supports economic diversification and raises the contribution of industrial activities to the governorate's economy.
He added that the success of this trend is linked to the ability of projects to build production links with local suppliers and service providers, expand reliance on Jordanian labor, and transfer modern technology and expertise, which enhances the sustainability of industrial investments in Aqaba.
