Like Jordan itself, the city of Aqaba, located at the northernmost point of the Red Sea, sits on the border between nations in turmoil. To the north of Jordan lies Syria, wracked by civil conflict; to the east is Iraq, and across the water from Aqaba, Jordan’s only coastal city, Egypt is also in a state of civil unrest.
On paper, it does not appear a comfortable geographical situation. However, Jordan’s pervading neutrality in regional conflicts is a major factor in its increasing importance in Middle-Eastern trade. Although local business leaders are understandably hesitant to admit it, volumes of cargo heading into Aqaba are increasing dramatically in the wake of the Syria crisis.
The little city is working hard, a local port executive tells Seatrade Global. “There is a lot of Syrian humanitarian aid coming in. Most of the cargo we deal with is local. It goes to the refugee camps,” he explains.
The influx of aid cargo has been a relief, mitigating lost business in the face of a fall in volumes bound for Iraq, hauled north by truck, which has been hit by currency exchange issues at the border.
Nadia Shahin, general manager of Amin Kawar & Sons, part of the Kawar Group, a holding company under whose umbrella a large number of Jordanian companies operate, maintains that Jordanian shipping companies have “not really suffered” following the Syrian crisis. “There have been opportunities for shipping companies. A lot of traders, mainly general cargo traders like timber, steel, that would come from the Mediterranean into Syria and then by land into Jordan, has now diverted into Aqaba.”
Jordan, as a liberalised service economy surrounded by oil producers such as Saudi Arabia, is unusual. While the country does have its own shale oil reserves, with estimations at between 40-70bn tonnes, it does not seep out of the ground as in neighbouring Iraq, and very little of it has been tapped.
One of the country’s biggest exports is Phosphates, owing in no small part to Amin Kawar, who founded the Kawar Group of companies. The country’s national debt was nearly 78% of GDP in 2012 – more than six times that of neighbouring Saudi. Here, there is no easy money.
Public services such as education, however, hold a special place in the Jordanian psyche, and the maritime industry is no exception, however, it is something most in international shipping are aware of. “People do not know Jordan provides maritime education and training!” says Mustafa A Massad, president of the Jordan Academy for Maritime Studies (JAMS), in Amman.
JAMS can, however, boast a number of key votes of confidence from the industry, providing consultation to Oman Drydocks, the Omani government, Abu Dhabi Ports Company (ADPC), Abu Dhabi National Oil Company (ADNOC), Zakher Marine and others. “The qualification of our people is recognised worldwide,” says Massad. “As well as IMO, we have EU recognition – which more than 50% of maritime education providers worldwide do not have – even though they are on the whitelist. Anyone who has got a certificate from here can work on a German ship, or a British ship.
“We have signed an MoU with United Arab Shipping Company (UASC). About 35% of their officers are coming from this academy.” With 550 students currently, the Academy caters to a variety of nationalities, including, surprisingly, Greeks. There are also Pakistanis and Egyptians, despite the world-renowned maritime academy in Alexandria. Perhaps this is not the only way unrest in Egypt is changing the business landscape?
“The crisis has also opened an opportunity for people to look East,” Amin Kawar’s Shahin notes. “Instead of the Suez Canal, maybe they’ve looked into other markets like China and Japan. So we’re finding more cargoes coming from there.”
I ask Shahin how Jordan will attract the maritime investment it needs.“The challenges of Jordan are huge. The energy, the water, the deficit. We need stability. People need to be certain their investments are sustainable. In business you need to have this comfortable environment – assurances. This is what is missing.
“Is it going to go on? This uncertainty is what causes people to step back and be sceptical about investments. People are being cautious about investment, but they’re keeping an eye out for opportunities.
“I think Jordan has great potential,” she notes in closing. With the Arab revolution showing no signs of slowing down, it seems we are about to find out if she is right.
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