What's Happening?
The Jordan Chamber of Industry has announced that Jordan ranks first in the Arab world and 27th globally in terms of manufacturing industries' contribution to the gross domestic product (GDP). This ranking is based on a classification by the United Nations
Industrial Development Organization (UNIDO), which highlights Jordan's mature national production base and deep industrial value chains. The industrial sector's added value reached JD8.6 billion last year, marking a cumulative increase of over 94 percent since 2010. The sector contributed 22.6% to the GDP in 2024, with manufacturing accounting for 17.7%, extractive industries 3.3%, and electricity and water 1.6%. The report emphasizes the industrial sector's pivotal role in supporting the economy, enhancing growth, and contributing to employment and exports.
Why It's Important?
The industrial sector's significant contribution to Jordan's GDP underscores its importance in the national economy, providing direct and indirect benefits such as job creation and increased export potential. The sector's growth reflects improved production capacities and efficiency, which are crucial for economic stability and development. The emphasis on manufacturing and industrial value chains positions Jordan as a competitive player in international markets, particularly in sectors with high local content. This development is vital for sustaining economic growth and enhancing the competitiveness of Jordanian products globally.
What's Next?
The Jordan Chamber of Industry stresses the need for further investment in research, development, and industrial innovation to increase added value and competitiveness. Enhancing vertical integration within production chains, reducing operating costs, and obtaining international standards certifications are identified as key strategies to open new markets for Jordanian exports. These steps are expected to create higher-quality job opportunities and expand factory production capacities, contributing to sustainable economic growth.
Beyond the Headlines
The focus on industrial innovation and research highlights the potential for long-term economic transformation in Jordan. By prioritizing sectors with high knowledge and technology content, Jordan can enhance its industrial capabilities and foster a more resilient economy. This approach may also lead to increased collaboration with international partners, further integrating Jordan into the global economic landscape.
