The Aqaba Special Economic Zone Authority (ASEZA) and SIAG Arabian Auto Manufacturing Company on Tuesday (July 31st) signed an agreement to establish an automobile factory in Aqaba at a cost of $447 million in the first phase, The Jordan Times reported.
ASEZA Chief Commissioner Nasser Shraideh said that the project's investment volume in the first five years will reach some $6 billion, with an average annual auto production of 50,000 vehicles.
Shraideh added that the project, the first of its kind in the region, will provide many jobs in its initial phases, the Jordan News Agency, Petra, reported.
He said that the free trade agreement between Jordan and the US contributed to attracting such a "megainvestment", where 70% of its workforce will be local.
The selection of Aqaba to establish the project was based on the proper investment environment in the city, said SIAG Chairman Mosad Abdelhamid Rashed.
Jordan is the only Arab country that has free trade agreements with the US and the European Union, which enables vehicles manufactured in the kingdom to enter these markets, he said.
Initial phases of the project will produce two types of vehicles: an SUV (operating on gasoline and electric) and light-duty pick-ups (both gasoline and diesel).
Targeted markets include the EU, the US, Africa and Arab countries, Rashed said.
