Inside Aqaba ASEZ: The Tax Structure That Makes AI Ops Work in Jordan
By Yousof Almalkawi, Founder
Inside Aqaba ASEZ: The Tax Structure That Makes AI Ops Work in Jordan
When people hear that STEADYWRK is headquartered in Aqaba, Jordan, the first question is always about talent. The second is about infrastructure. Nobody asks about taxes until I tell them the numbers.
Then taxes become the only question.
The Aqaba Special Economic Zone in 200 Words
The Aqaba Special Economic Zone Authority (ASEZA) was established in 2001 to transform Aqaba from a port city into a diversified economic hub. The zone covers the entire Aqaba Governorate — 375 square kilometers — making it one of the largest special economic zones in the Middle East.
For technology companies exporting services outside the zone, the fiscal structure is remarkable:
- 5% corporate tax on profits (compared to 20% standard Jordanian corporate tax and 21% US federal corporate tax)
- 0% sales tax on exported services — and 100% of STEADYWRK's revenue is exported (US enterprise clients)
- 0% customs duty on imported equipment — every server, every monitor, every workstation enters duty-free
- 100% foreign ownership allowed — no local partner requirement
- Free repatriation of capital and profits — no restrictions on moving money out
For an AI company generating revenue from US clients and spending primarily on Jordanian salaries and infrastructure, this means the effective tax burden is a fraction of what it would be in Amman, Dubai, or any US state.
The Math on a 10-Person AI Team
Let us compare three scenarios for a 10-person AI engineering team generating $1.2M in annual revenue:
Scenario A — San Francisco:
- Revenue: $1.2M
- Total comp (10 engineers × $180K avg): $1.8M
- Office (1,500 sqft × $72/sqft): $108K
- Federal + CA state tax (28%+8.84%): ~$260K on profit