Industry & Retail
From The Report: Jordan 2013
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Industry accounts for about one-fifth of GDP and around 90% of exports. Mining, chemicals, and textiles and garments manufacturing are the top segments, but the kingdom is also the largest exporter of pharmaceuticals in the Arab world. Several new free trade agreements –including one with Turkey – are expected to boost export volumes and revenues. More malls are expected to be added to the three shopping facilities already in place, further adding to the size of the retail sector.

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Overview

Boosting output: Lower costs of materials and new trade agreements support exports to key markets
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One of the mainstays of the Jordanian economy, industry accounts for approximately one-fifth of GDP as well as 15% of the workforce and around 90% of exports. The largest industrial segments are min-ing, chemicals, and textiles and garments manufac-turing; the kingdom is also the largest exporter of pharmaceuticals in the Arab world. The sector is fac-ing significant challenges, such as rising energy costs (that are already high in comparison to regional com-petitors) and difficulties accessing…

Analysis

Seller’s remorse: Opposition to sales of state holdings several decades ago continues to be an issue in parliament
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A large number of privatisations were undertaken in Jordan between the mid-1990s and mid-2000s, includ-ing the sale of several large stakes in major industrial firms, notably in the phosphates and potash sectors. Many years after their completion, such sell-offs remain controversial, facing ongoing opposition from employ-ees of some of the companies in question and also from many members of parliament (MPs), who have made charges such as claiming that the deals were corrupt or represented poor…

Analysis

Providing support: Expanding financing for smaller businesses is crucial for growth
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Small and medium-sized enterprises (SMEs) account for the great majority of Jordanian businesses and industry, as well as for a large share of national eco-nomic output. However, as in many developing coun-tries, the segment faces a number of significant challenges, not least the ability to raise financing for projects, which is an issue for industry as a whole, but especially for small firms. In addition to several long-standing programmes, a number of organisations have recently launched…

Analysis

Ready to grow: Foreign interest is boosting the fertiliser industry
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Strong global demand for fertiliser on the back of high-er international food prices should mean big business for Jordan, which is a major producer and exporter of potash and phosphate rocks, key materials for fertilis-er production. While raw materials currently take up the bulk of exports, the country is also moving up the value chain by becoming an increasingly important manufacturer of intermediate fertiliser ingredients, notably phosphoric acid, with one Jordanian-Indian fac-tory already…

Overview

It’s all at the mall: Major franchises and international supermarkets are playing a growing role
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One of the largest contributors to the national econ-omy and to employment, the retail sector continues to see healthy growth, despite facing a number of chal-lenges. Franchising is well established in Jordan, with a constant flow of international brands entering the king-dom, and another major mall is due to be completed in 2014, the second opening since the end of 2011. SPENDING POWER: According to a regular survey conducted by Bayt.com and YouGov, consumer con-fidence fell to its lowest…