Amman, Jordan, July 1, 2024— IFC, a member of the World Bank Group, is providing a $35.5 million loan to Ayla Oasis Development Company to support the development of the Marina Village, a major tourist attraction in Aqaba, Jordan's only coastal and port city, to strengthen its position as a gateway to the region and to drive economic development and job creation at a critical time.
IFC's investment is part of a larger $81 million multi-currency package that includes a $35.5 million loan from the European Bank for Reconstruction and Development (EBRD) and a $10 million loan from the Capital Bank of Jordan (CBoJ). The package will help finance the completion of the company's 76-room sustainable hotel, Pulse Hotel, and extend the tenor of existing loans.
"This collaboration reflects the confidence world-renowned investors have in Ayla and Aqaba as destinations committed to sustainability, good governance, and environmental friendliness," says Sahl Dudin, Managing Director of Ayla Oasis Development Company. "This investment underscores confidence in our vision for sustainable tourism and development in Jordan and Aqaba's appeal as a premier tourist destination."
Tourism, a key contributor to Jordan's economy, has seen a downturn because of the ongoing conflict in the Middle East. In 2023, tourism contributed 14.6 percent to the country's GDP – demonstrating its key role for the country's growth as it also impacts other sectors such as finance, manufacturing, construction, retail, and restaurants.
This financing will help create jobs during the construction and operation phases of the hotel and attract new visitors to the area. IFC will also help the company achieve its first EDGE green-building certification for the Pulse Hotel, and potentially for other existing and future projects.
"We are delighted to partner with the IFC and CBoJ in developing this futuristic project. The development of the Ayla Marina Village aims to establish the city's waterfront as a sustainable destination for tourism, contributing to an increase of employment opportunities and a boost to the local economy," says EBRD First Vice President and Head of Client Services Group, Jürgen Rigterink.
According to official records from Jordan's Ministry of Tourism and Antiquities, tourist arrivals declined by 9.7 percent in the first quarter of 2024 compared to the same period last year because of the conflict. For the sector to thrive and stay competitive, investments and continuous development of tourist attractions is needed.
Tamer Ghazaleh, CEO of Capital Bank of Jordan: "We are proud to support the Ayla Marina Village project, which aligns perfectly with our commitment to sustainable development and economic growth in Jordan. This initiative enhances Aqaba's appeal as a premier tourist destination, creates significant employment opportunities, and fosters skills development in the local community. By collaborating with EBRD and IFC, we are investing in a brighter, greener future for Aqaba and the entire nation."
IFC's investment is aligned with the recently announced World Bank Group Country Partnership Framework for Jordan, which focusses on creating more and better jobs for youth and women and to boosting economic resilience and sustainability by investing in green infrastructure projects.
"Driving sustainable growth in Jordan requires attracting more foreign investments and strengthening the private sector's capacity to create jobs, especially for women and youth, in key industries such as tourism and associated sectors," says Khawaja Aftab Ahmed, Regional Director for the Middle East, Pakistan and Afghanistan. "This financing will also help improve the resilience of the tourism industry and the overall Jordanian economy at a critical time."
For half a century, IFC has been a steadfast partner of Jordan, supporting the private sector with investments and advice that help increase competitiveness, create jobs, build sustainable infrastructure, and improve financial inclusion. IFC has invested more than $2 billion across sectors and has helped create and maintain 18,000+ jobs per year on average, out of which more than 3,300 are held by women.
IFC also established its office in Amman as a regional hub for the Middle East, Pakistan, and Afghanistan. IFC's priorities include creating a supportive business environment by empowering women, fostering entrepreneurship, investing in skills development, and leveraging a greener economy while creating a pipeline for more PPPs.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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