Visualization of smart city projects centering on the capital Amman and the port of Aqaba
It is necessary to consider entry through partnerships with local companies.
Amman, the capital of Jordan, and Aqaba, a logistics cluster, recently declared a change to a smart city and started to establish detailed projects with external experts. In addition, the smart city concept is being realized through green city projects that are already in progress. We look at the smart city-related policies and project details of each city in Amman and Aqaba, as well as the plans for Korean companies to advance.
Amman – Smart City Promotion Background and Progress
Amman, the capital of Jordan, has not been able to keep up with the demand for its existing urban infrastructure due to rapid population growth and consequent urban expansion due to the influx of refugees over the past decade. According to consulting firm CDM Smith, Amman is home to 10 million people, or 42% of Jordan's population, and the city's annual vehicle registrations are growing at an annual rate of 462%. In addition, Amman suffers from a chronic lack of transportation infrastructure due to insufficient parking space and an increasing number of traffic accidents. In addition, due to a saturated population, there is an increasing demand for improvements in wastewater and desalination treatment, city power grids, and various utility distribution systems.
Accordingly, since 2017, the Greater Amman Municipality and the European Bank for Reconstruction and Development (EBRD) have been promoting the 'Smart City Amman' plan to efficiently manage Amman's scarce infrastructure resources and assets. With the support of the EBRD, several short- and long-term investments are being made to reduce the burden of traffic jams in Amman City and to provide better services to Amman citizens.
In particular, since 2019, the city of Amman has partnered with CDM Smith, a multinational engineering company, and Engicon, a Jordanian company that is a sub-consultant of CDM Smith, to establish a strategy for solving urban problems using artificial intelligence (AI) and big data. The strategy will include preparing a smart city roadmap and building an architecture for a traffic monitoring platform. For reference, the U.S. Trade and Development Administration (USTDA) provided $90 in support for this strategy.
As of February 2022, the development of the Amman Smart City Roadmap is in its final stages. The roadmap includes 2 mega projects, and it is reported that not only the transportation sector but also information related to weather conditions such as the establishment of an early flood warning system will be included. In addition, a smart city pilot program is planned to be implemented in downtown Amman to relieve chronic traffic congestion in hospital-density areas.
Amman 'Green City Action Plan' and Smart City Project
Meanwhile, in 2019, Amman City and EBRD adopted the 'Amman Green City Action Plan 2021' developed by AECOM, a multinational consulting firm, as a mid- to long-term eco-friendly city realization strategy. The plan included 2021 projects (by 37) for the sustainable growth of Amman City, the details of which are in each public sector such as transportation, health and well-being, agriculture and education using IT using eco-friendly resources as well as transportation. It is also connected with the smartization of Therefore, the 'Amman Green City Action Plan 2025' includes a number of smart city-related projects, such as the improvement of Amman's transportation system through the introduction of smart systems.
<'Green City Action Plan 2021' Priority Project (Smart City Related)>
(Unit: million dollars)
[Source: Meed Project, EBRD, Amman City officials interview summary]
<Amman Smart City Project to be promoted in the future>
[Source: Amman City “Amman Green City Action Plan 2021”]
Aqaba – Smart City Progress
In November 2021, the Aqaba Special Economic Zone Authority (ASEZA) announced that it is currently developing a comprehensive plan for 2022-2024 to transform the entire Aqaba into an environmentally friendly and energy-efficient smart city.
Apart from the establishment of this plan, work to make Akabashi smart is in progress. In December 2021, a total of four contracts were signed between Aqaba Development Corporation and Abu Dhabi Ports Group to support the development of digital infrastructure, tourism, logistics and transport in Aqaba. The contract included ① development and modernization of multi-purpose port ② development of cruise terminal ③ development of advanced digital port community system ④ modernization of Aqaba King Hussein International Airport.
At this time, in relation to ③, Maqta Gateway, a digital sector company of the Abu Dhabi Port Group, and Aqaba Development Corporation agreed to establish a joint venture, Maqta Ayla, for the development and operation of PCS (Ports Community System), a state-of-the-art port operation system. The joint venture will establish a comprehensive port ICT infrastructure linking Aqaba Port, terminal operators, Aqaba Special Economic Zone Authority, Aqaba Development Corporation, Jordan Maritime Commission and others.
Jordan's major smart city-related companies
Jordan's major companies operating in the IT and digital transformation industries are shown in the table below.
<Major IT companies in Jordan related to smart city>
[Source: KOTRA Amman Trade Center in-house investigation]
How foreign companies participate in projects
Foreign companies can participate in public and private projects in Jordan if they meet the necessary qualifications. However, foreign companies can only participate in projects that have been allocated so that foreign companies can participate in the bidding. The three websites below are written in English, making it easy to navigate. However, in general, foreign companies are encouraged to cooperate with local partners for project participation.
<Jordan's main bidding-related websites>
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Prospects and Implications
According to the KDB Future Strategy Research Institute, the global smart city market is expected to grow from $2021 billion in 4,500 to $2026 billion in 8,700, growing at an average annual rate of 14%. Jordan also started smartization in major cities such as Amman and Aqaba based on partnerships in the public/private sector in line with this change. Accordingly, it is expected that opportunities for competitive domestic related companies to enter the market will increase in the future.
However, Mr. Jordan, the head of the bidding department of the Digital Economy Startup Department. According to Al-Neimat, it is worth noting that projects that foreign companies can participate in are generally limited to projects funded by international financial institutions and development organizations. In addition, it is expected that Korean companies will be able to enter the Jordanian market more easily through strategic partnerships with major IT companies in Jordan mentioned above. (If you are interested in participating in the Jordan Smart City Project, please contact KOTRA Amman Trade Center (kotra3@kotraamm.com).)
Source: Comprehensive data from Amman City website, EBRD, Meed Project, official interviews and KOTRA Amman Trade Center