Aqaba, March 31 (Petra) -- Commissioner for Economic Affairs and Investment at the Aqaba Special Economic Zone Authority, Mohammad Abu Omar, said the Cabinet’s decision to grant a package of rental-related incentives for tenants in the old free zone (storage warehouses) carries broader economic implications beyond immediate relief, helping to revitalize the market and promote more efficient resource allocation.
The Cabinet approved these incentives during its session on March 28, based on recommendations from the ASEZA Board of Commissioners, as part of efforts to support economic activity and stimulate investment in the city of Aqaba.
Abu Omar said the decision addresses distortions that had limited the efficient use of assets in recent periods and forms part of a broader set of government policies aimed at empowering economic sectors and enhancing their ability to recover and grow.
He explained that the incentives include a full exemption (100 percent) from rental fees for contracts signed before January 1, 2010 some of which date back to before the establishment of ASEZA as well as a 75 percent exemption for contracts signed after that date. The decision also includes full exemptions from rent and repair costs for damaged warehouses, reducing operating costs and preparing these assets to re-enter economic activity.
He noted that eligibility for these incentives is conditional on tenants vacating and handing over the leased properties within the period from the date of the decision until December 31, 2026, in accordance with regulatory procedures that ensure fair implementation and maximize economic impact.
Abu Omar added that the decision enhances Aqaba’s attractiveness as a regional investment destination and reflects an advanced level of public-private partnership focused on supporting economic sustainability and encouraging high-quality investments.
He said one of the key outcomes of the decision is the release of underutilized assets and their reintroduction into new investment opportunities, boosting the dynamism of economic activity in Aqaba in line with the Kingdom’s growth priorities.
//Petra// AF
