Jordan’s Aqaba Special Economic Zone (“ASEZ”) offers a prime destination for investors looking to establish and grow their businesses in a favorable and competitive environment. With streamlined processes, tax advantages, and a strategic location, ASEZ is a thriving hub for various sectors such as tourism, real estate, services, and industry. Below are the key reasons to consider ASEZ for your business venture:

1. Streamlined Investment Processes

Aqaba Special Economic Zone Authority (“ASEZA”) simplifies business registration and licensing through a Unified Investment Window, allowing investors to handle all formalities efficiently. This centralized system assists in acquiring essential permits, including work and residence permits for non-Jordanian employees, and enables swift approval for land applications. Foreign investors can establish Jordanian companies or institutions with ease through the Ministry of Industry and Trade’s representative at the Directorate of Investment Services.

2. Tax Benefits and Financial Incentives

ASEZA provides attractive tax incentives to enhance business profitability:

• Customs Duty Exemptions: All imports are exempt from customs duties (excluding vehicles).
• Exemptions from Other Taxes: Businesses enjoy exemptions from social service taxes, building and land taxes, as well as taxes on dividends distribution.
• Reduced Income Tax: Projects are subject to a 5% tax on net income, except for banks, insurance, and land transport services.
• Sales Tax Benefits: Most goods and services are exempt from sales tax, except for a 7% tax on select items like hotel services and 12 specific goods. Exports outside Jordan benefit from a 0% sales tax rate.

3. Non-Jordanian Ownership and Labor Flexibility

Non- Jordanian investors enjoy full ownership rights in most sectors, including tourism, industry, and agriculture. ASEZA places no restrictions on non-Jordanian ownership, ensuring businesses have the flexibility to grow. In terms of workforce, companies can employ up to 70% non- Jordanian employees, with the possibility of exceeding this threshold under certain conditions. Additionally, there are no restrictions on repatriating profits or transferring capital abroad, providing full financial flexibility.

4. Global Market Access

ASEZA’s strategic location offers businesses access to international markets, supported by Jordan’s membership in the World Trade Organization (WTO) and free trade agreements with countries like the U.S., the European Union, and several Arab states. This makes it easier for goods produced in Jordan to enter global markets competitively.

5. Land and Property Opportunities

Investors can lease land for up to 50 years, with an option to renew for an additional 50 years under certain conditions. Land purchases are permitted for specific purposes, such as building hotels, residential and commercial projects, or health and educational facilities. ASEZA provides infrastructure ready for rapid project development, offering facilities for light and medium industries, warehousing, and residential uses.

6. Compliance and Permitting Support

ASEZA assists businesses with necessary certifications and permits, ensuring full compliance with public health, safety, and environmental standards. Investors can rely on the Investment Directorate to expedite processes related to regulatory approvals and ensure smooth operations.

7. Prohibited and Restricted Activities

While ASEZA offers substantial benefits, certain activities are restricted or prohibited. Manufacturing or trading in hazardous materials, such as weapons and radioactive substances, is not allowed. Specific sectors like legal, auditing, and medical services are subject to additional regulations.

8. Why ASEZA?

Beyond its tax and financial incentives, ASEZA provides a low-cost business environment, skilled labor, and modern infrastructure. As a regional multimodal transport hub, Aqaba offers access to a full-service port, an international airport, and a comprehensive road network. These advantages, combined with Jordan’s free trade agreements, make ASEZA a gateway to Middle Eastern, North African, and Asian markets.

To learn more about launching your business in ASEZA, connect our expert legal team for personalized guidance and strategic advice tailored to your needs.