Khaberni - The Jordan Chamber of Industry confirmed that Jordan ranked first in the Arab world and 27th globally in terms of the contribution of the manufacturing industries to the gross domestic product.
According to an analytical paper prepared by the Studies and Policies Department at the Chamber, the ranking comes according to the classification of the United Nations Organization for Industrial Development (UNIDO), reflecting the maturity of the national production base and the depth of industrial value chains compared to many economies relying on low-added-value primary production.
The Chamber noted that the added value of the industrial sector in the Kingdom reached 8.6 billion dinars last year, compared to 4.4 billion dinars in 2010, with a cumulative increase of over 94 percent and an annual growth rate of about 5 percent during the past decade.
It pointed out that this development reflects the improvement in production capacities, higher manufacturing process efficiency, and broader economic linkages of the industry with other sectors, affirming the industrial sector's central role in supporting the economy and enhancing its growth.
The Chamber indicated that the industrial sector contributed 22.6 percent of the gross domestic product for the year 2024, distributed between manufacturing industries at 17.7 percent, extractive industries at 3.3 percent, and electricity and water at 1.6 percent, thereby reinforcing the status of industry as one of the largest and most important pillars of the national economy in terms of its direct and indirect contribution to growth, employment, and exports.
The paper showed variation in the contribution of the sub-industrial sectors to the gross domestic product. The food and provisioning industries took the foremost position with 5.6 percent of the gross domestic product, due to their broad production base and geographical spread across various provinces of the Kingdom, followed by the engineering and electrical industries at 4.8 percent, then the mining industries at 3.3 percent, which play a prominent role in extracting and transforming raw materials into economically valuable products.
For the medium and small contributing sectors, the contribution of the pharmaceutical industries was about 1.9 percent of the gross domestic product, the textile sector contributed 1.8 percent, while the chemical and cosmetic products sector contributed 1.5 percent, reflecting the diversity of the industrial base and the multiplicity of local production chains.
In terms of the added value percentage from the total existing production, the engineering and electrical industries led with 57.2 percent, suggesting a high content of knowledge and technology in this sector, followed by the therapeutic industries and medical supplies at 447.7 percent, then the mining industries at 44.3 percent, which reflects these sectors' capability to produce higher economic added value compared to others.
The Chamber confirmed that enhancing industrial added value contributes directly to providing higher quality job opportunities, expanding production capacities of factories, and increasing the competitiveness of Jordanian products in international markets, especially in sectors with a high local content.
It emphasized the importance of enhancing vertical integration within production chains, reducing operation costs, and facilitating industrial establishments' access to conformity certificates and international standards to open new markets for Jordanian exports, as well as investing in research, development, and industrial innovation as principal tools to increase added value, enhance the competitiveness of the national industry, and achieve sustainable economic growth.
