Falcon powers – Jordan revealed a US-backed strategy aimed at growing investment in its Red Sea coastal city of Aqaba on Wednesday, with an emphasis on environmental protection, as the country battles the economic effects of the war in Gaza.
The kingdom is one of the top three recipients of US aid and has a defence pact with Washington. Consecutive US administrations have pledged support for Jordan, which has a peace treaty with Israel, to maintain its stability in the region.
Richard Chen, an official at the US Agency for International Development in Amman, said that Washington played a significant role in developing the strategy as part of its support for further economic reforms in Jordan.
“Aqaba is Jordan’s gateway to markets and to the global economy,” he said at the launch of the 2024-2028 Strategic Plan of the Aqaba Special Economic Zone Authority, held at Ayla, one of the main property developments in the city
The Jordanian economy has been stagnant for more than a decade.
The International Monetary Fund expects it to grow by 2.4 per cent this year, compared to 2.6 per cent in 2023. The fund attributed the economic slowdown towards the end of last year to the war in Gaza, which began on October 7.
The war has decreased tourism to Jordan and has hindered business appetite in the region.
The proposals seek to position Aqaba as a destination for tourism and investment. Previous plans have been announced but officials said the one revealed on Wednesday is different because it prioritises protecting the environment.
Aqaba’s marine life has been harmed by large amounts of fishing, as well as damage from shipping or oil spills. The strategy aims to end the degradation of the coral reef on its 27km shoreline.
