For many years, the industrial sector in Jordan has been a silent driving force for the national economy, away from the spotlight, yet strongly present in figures and outcomes. It contributes nearly a quarter of the Gross Domestic Product (GDP), forms the backbone of national exports, and provides one in every five job opportunities in the kingdom. Yet, the question remains: why does this economic weight not reflect in bolder policies that position industry at the forefront of leadership?
Recent data indicates that the contribution of the industrial sector ranged between 22 and 25 percent of the Gross Domestic Product (GDP) during the years 2023 and 2024, while the share of the manufacturing industries alone accounted for about 17 to 18 percent, which are among the highest ratios in the Arab world relative to the size of the economy. Most importantly, the added value of the Jordanian industry has increased by more than 90 percent since 2010, despite regional crises and the COVID-19 pandemic, reflecting a real growth in the production base, not just a circumstantial improvement.
On the export front, the importance of the industry becomes even clearer. The industrial exports reached about 7.8 billion dinars in 2024, accounting for more than 90 percent of total national exports, compared to about 5.3 billion dinars in 2015. This growth, although positive, still falls short of available potentials, especially given Jordan’s extensive network of free trade agreements with markets that include hundreds of millions of consumers.
Behind these figures stands a diverse sector, led by high-value-added industries, foremost among them are pharmaceuticals and medical supplies, whose products have reached more than sixty countries, alongside food, engineering, and electrical industries. Conversely, labor-intensive industries such as apparel remain an important export and operational lever, but they need a qualitative shift from an assembly model to one of design, innovation, and brand-building.
Industrial cities spread across various provinces of the kingdom play a pivotal role in this landscape, housing over a third of the organized industrial production and providing ready infrastructure and investment incentives. Yet, these cities have not yet transformed into true platforms of industrial integration, as the links between factories remain limited, and local supply chains are incomplete, forcing many facilities to import production inputs that could have been manufactured locally.
In contrast, the Jordanian industry faces clear and chronic challenges, the most prominent of which are high energy and transportation costs, a limited domestic market, and fierce regional competition from countries that directly support their industries. A significant portion of the sector still operates within medium or low-technology industries, with limited spending on research and development, and weak linkage between universities and factories. This is compounded by difficulties faced by small and medium industries in obtaining long-term financing under suitable terms.
Despite this diagnosis, the available opportunities exceed the challenges. Jordan possesses a strategic geographical location, relative political stability, and industrial experience accumulated over decades. What the sector needs today is a package of practical solutions, starting with a competitive industrial energy policy, particularly within industrial cities, and expanding the use of shared renewable energy to reduce production costs. It also requires redefining the role of industrial cities to become real centers of added value, based on integration between large and small factories and localizing production inputs.
In the same context, supporting innovation and technological transformation becomes a necessity not a choice, through establishing applied research and development centers directly linked to the factories, and providing clear incentives for companies investing in industrial upgrading. On the export front, it is essential to have a strategy oriented towards non-traditional markets in Africa and Central Asia, supported by a strong national identity that enhances consumer confidence in the Jordanian product.
Ultimately, it is not possible to talk about sustainable economic growth without a strong industrial sector leading production, export, and employment processes. The Jordanian industry, despite its long work in the shadows, has all the prerequisites to be the champion of the upcoming economic scene. What it lacks is not capability, but decision.
