IFC Invests $35.5M in Ayla Oasis Development to Boost Aqaba's Tourism and Economic Growth

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $35.5 million loan to Ayla Oasis Development Company. This investment aims to support the development of Marina Village, a major tourist attraction in Aqaba, Jordan’s only coastal and port city. The goal is to strengthen Aqaba’s position as a regional gateway and to drive economic development and job creation at a critical time.

This IFC investment is part of a larger $81 million multi-currency package, which 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 funds will finance the completion of the company's 76-room sustainable 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," said 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 due to ongoing conflicts in the Middle East. In 2023, tourism contributed 14.6 percent to the country’s GDP, underlining its significant role in the economy, impacting sectors such as finance, manufacturing, construction, retail, and restaurants.

This financing will help create jobs during both the construction and operation phases of the hotel and attract new visitors to the area. IFC will also support the company in achieving its first EDGE green-building certification for the Pulse Hotel and potentially for other 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 in employment opportunities and a boost to the local economy," said Jürgen Rigterink, EBRD First Vice President and Head of Client Services Group.

Official records from Jordan’s Ministry of Tourism and Antiquities indicate a 9.7 percent decline in tourist arrivals in the first quarter of 2024 compared to the same period last year, due to ongoing conflict. To ensure the sector thrives and remains competitive, continuous investments and development of tourist attractions are essential.

Tamer Ghazaleh, CEO of Capital Bank of Jordan, stated, "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 aligns with the recently announced World Bank Group Country Partnership Framework for Jordan, which focuses on creating more and better jobs for youth and women, and 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," said 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 over 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 public-private partnerships (PPPs).