introduction: Kingdom building
Kingdom building
Jordan is aggressively pursuing its long-term development goals with large scale projects and government initiatives aimed to open up the country to foreign investment and create new communities and business centres outside of the capital Amman.
Among these expansion projects, which target both traditional urban locations and resort destinations, are several mixed-use developments, trade zones and the augmentation of existing infrastructure capabilities.
A number of mixed-use residential and tourism developments are underway in Amman, Aqaba and the Dead Sea area and, according to the Oxford Business Group, more than US $18.4 billion worth of investments are committed across the country. Tourism is a vital sector of Jordan's economy, with tourism-related revenues representing approximately 14 percent of the country's GDP. In addition, the country registered one of the highest increases in international tourism arrivals in the Middle East for 2009.
Jordan is continuing its drive to encourage inward investment, and King Abdullah is spearheading the implementation of a master plan outlining land usage across the entire Kingdom in order to make it clear to investors where the opportunities lie. The government is also actively encouraging tourism through its key historical sites including the Dead Sea, Red Sea and Petra.
Infrastructure movement
The US $750 million rehabilitation and expansion works underway at Amman's Queen Alia International Airport (QAIA ) include construction of a new state-of-the-art 86,000-squaremetre passenger terminal which is aiming to service up to nine million passengers per annum upon completion.
Airport International Group is responsible for the project and has confirmed that it expects phase one of the redevelopment to be ready by early 2012 with phase two adding capacity of a further 12 million passengers.
The airport is seeing an increase in interest from regional and international carriers, and already has strong low-cost carrier presence, with several new routes opening up in the last year. QAIA also reported a 15 percent increase in passenger traffic in 2009 with July and August proving to be peak months, bucking the global trend in light of the economic downturn.
King Hussein International Airport (KHIA ) in Aqaba is also to see substantial increase in passenger numbers following an agreement signed by USAID, Jordan Tourism Development Project and the Aqaba Development Corporation in June 2009. The three parties are working together to implement an air services marketing plan and framework to encourage growth of KHIA’s air services network.
KHIA has grown to become an important regional hub for both leisure and business travellers heading to the Red Sea and is the only airport in the country to operate an Open Skies agreement.
The government, through the Aqaba Development Corporation, is also investing US$700 million on a new port at Aqaba and establishing a new free trade and industrial zone around the city as part of its Aqaba Special Economic Zone (ASEZ) project. Abu Dhabi-based developer Al Maabar is developing the Marsa Zayed facility, a US$10-billion mega mixed-use project, which will include a port and a cruise ship terminal. This will be developed in several phases over a period of 30 years. Phase one of construction is scheduled to commence at the end of 2010.
The New Port of Aqaba is one of Jordan's national infrastructure priorities and will constitute a major element of the country's long-term economic growth, as it is part of its sole maritime gateway and a key component of ASEZ's emerging positioning as a leading multi-modal logistical trade gateway for the Levant region on the Red Sea.
Like other countries in the region, Jordan is also looking to develop a rail network and has plans for a US$6.4 billion project that proposes to run the entire length of the country, from Aqaba to the Syrian border, via Amman.
Capital Focus
The capital of Jordan is also undergoing extensive development with several projects running concurrently, the most high profile of which is the Abdali Urban Regeneration programme, which aims to create a new vibrant downtown hub.
Abdali New Downtown is a US$5 billion project and the largest mixed-use under construction development for the country to date. Located in the heart of Amman it comprises residential apartments, office space, commercial and retail outlets as well as entertainment venues, private parks and green areas. Developed on approximately 385,000 square metres of land, the entire Abdali built up area totals more than 1.7 million square metres.
Residents and visitors to the city will see the development taking shape by the end of 2010 when the core of phase one is expected to be operational, with commercial buildings and the Abdali Boulevard. In 2011/12 a number of high-rise towers are set to transform the skyline and by 2014 phase two will be completed.
Abdali Investment and Development PSC is behind the multi-billion dollar development, and has incorporated services that include state-of-the-art infrastructure, technology and security.
The project has already attracted the interest of some of the world’s most prestigious hotel operators, with Starwood announcing it plans to debut a W Hotel as part of the development. When it opens in 2011, the 280-room W Amman also plans to service additional luxury residences in Abdali New Downtown. Elsewhere in the city Rotana and Ibis will both add more stock to the capital by the end of 2010.
Coastal Living
The country’s highly desirable coastline is also set to be transformed with the Red Sea city of Aqaba tipped to become a new world-class business and leisure hub; positioning it as a leading coastal destination within the region.
The Aqaba Development Corporation, which oversees the Aqaba Special Economic Zone (ASEZ), was launched by the government and Aqaba Special Economic Zone Authority (ASEZA) to transform ASEZ into a leading international business and leisure hub.
Among its developments is the 430-hectare US$1.4 billion Ayla Oasis lagoon project - positioned as the ‘Arabian Venice’ - which is being developed on the western boundary of the city of Aqaba.
The development accounts for over 15 percent of the total landmass of Aqaba and will offer upmarket hotels, unique residential communities, Jordan’s first international standard golf course and a town centre encompassing a marina, retail units, cafes, entertainment and recreational facilities.
Under phased development, with several components due to be unveiled next year, Ayla will offer 1,540 additional hotel rooms, 3,000 residential units, a Greg Norman-designed golf course and a town centre encompassing a marina, extensive retail, water park and entertainment and recreational facilities by 2015.
The area is also home to a significant archaeological site called Tal Khalifeh, an Iron Age settlement referenced in the Bible.
Although the project has limited coastline, stretching just 27 kilometres, it will add an additional 17 kilometres through the creation of a series of manmade lagoons, covering 75 hectares, which will be linked in to the Gulf of Aqaba.
The government has also implemented strict environmental guidelines for all future development in and around Aqaba, and the Ayla site has undertaken a series of environmental impact assessments to measure the potential impact of the project on the local community and the environment. A number of energy-saving initiatives will be implemented across the project and a solar power plant is also under consideration.
A second substantial mixed-use development Saraya Aqaba, is situated directly adjacent to Ayla Oasis, and also incorporates a manmade lagoon concept into its master plan.
The 650,000-square-metre site, with an investment value of US$1.6 billion, is located at the western tip of Aqaba and will offer retail, dining, entertainment, cultural activities and freehold residences upon phased completion within the next few years. A specially designed souk will add to the cultural experience while the Dubai-based Jumeirah group is set to manage the Wild Wadi Aqaba water park. For the conference and meeting industry there will also be the Al Maltaqa Convention Center, with capacity to accommodate up to 2,000 delegates with a wide variety of breakout and meeting room options.
A number of international hotel operators have also earmarked the Aqaba project for new properties. Jumeirah will open a trio of hotels - the Al Qala’a Hotel, the Qasr Al Aqaba Hotel, and the boutique Dar Al Masyaf Hotel Р while Starwood Hotels & Resorts is following suit and introducing a 300-room Westin property along with the 200-room Al Manara Hotel, part of its Luxury Collection brand, and the Bab Al Bahar boutique hotel.
The Nikki Beach Resort and Spa, operated by Nikki Beach EMEA Hotels & Resorts Ltd, rounds up the current tally of new high-end room product.
A third development rising from the ground is Tala Bay, the inaugural project by Jordan Projects for Tourism Development (JPTD). Tala Bay, which has a 10-year development plan, is located 14 kilometres south of the city of Aqaba with panoramic views of the Sinai mountains and covers an area of 2.7 million square metres including two kilometres of coastline.
With a combined residential and tourism focus, the developer is targeting both Jordanian residents and international visitors. Tala Bay already boasts a completed infrastructure and offers different districts, each with their own distinctive architectural style.
In its downtown district it will eventually have a 65-berth marina, dive centre, 1,400 guestrooms and a golf course with a golf academy, hotel and country club.
The Marina Plaza Hotel, a Radisson Blu, Jaz Tala Bay and the Movenpick Resort Tala Bay Aqaba have all opened in the last two years, and a further 150 rooms will be added to the Movenpick this year. The Hilton Tala Bay is scheduled to come online at the end of 2011
Dead Sea Promise
Dubai-headquartered Emaar International is also undertaking a master planned mixeduse community within the Kingdom through the Dead Sea Touristic and Real Estate Company, a joint venture between Emaar Properties and a group of regional and Jordanian investors.
The US$1 billion Samarah Dead Sea Golf and Beach Resort is Emaar’s first Jordanian project and the 400-acre mixed-use community will have 850 residential units, several five-star hotels, a golf course, a spa and ‘wellness village’, and 17,000 square metres of retail and entertainment.
The project is being developed by experienced Jordanian contractors after an extensive study of the area, with architects and designers taking inspirational cues from the natural environment of the Dead Sea.
In May 2010, Abu Dhabi-listed Aabar Investments also established a joint venture with the Dead Sea Touristic and Real Estate Company to build a Hilton-managed hotel as part of the Samarah site.
The 285-room hotel will be built adjacent to the existing US$40 million King Hussein Bin Talal Convention Centre, and forms part of its expansion programme. Launch is scheduled for the end of 2013. Hilton will also be responsible for the management of the convention centre under the new agreement.
Banyan Tree Hotels & Resorts also plans to debut an Angsana property at the Dead Sea in 2011 and the Crowne Plaza Dead Sea Resort will also open in 2011, bringing 420 more rooms and a host of meeting facilities to the area.
Construction of the luxury resort community is being fast-tracked in line with sustainable project management practices with the aim of underpinning tourism to the country while creating a new market for luxury residential and leisure property.
Following the mid-2008 announcement by tourism and municipal authorities of a US$12.5 million package aimed at developing the tourism potential of urban centres in five major governorates, and ongoing development and investment interest in key strategic locations, Jordan’s position as a contender on the Middle East conference and meeting scene is looking strong.
