Industry & Retail
From The Report: Jordan 2014
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Industry is one of the mainstays of the Jordanian economy with the sector producing roughly one fifth of the country’s GDP and employing around one tenth of Jordanians. The success of Jordan’s current strategy to build higher-value-added industries is reflected in the pharmaceutical sector, which has leveraged both the high standard of human resources in the country and the availability of local feedstocks to establish Jordan as a regional leader in the field. The retail sector has undergone a change in recent years with the arrival of global-quality shopping malls. However the pattern of shopping in outdoor markets or in family-owned mixed retail shops has remained largely unchanged, with Jordan’s top five organised retail brands accounting for just 5% of the market. In e-commerce, Jordan has jumped ahead thanks to the kingdom’s advantage in educated human capital, and the market looks set to be worth more than $2bn by 2016.

This chapter contains an interview with Hatem Al Halawani, Minister of Trade and Industry.

Articles from this Chapter

Overview

On track: A new investment law is expected to consolidate incentives
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The mainstay of much of Jordan’s economy – both in terms of contributions to GDP and employment of the kingdom’s citizens – the industrial sector faces a number of important challenges. Among these is the necessity to remain competitive, while also boosting the value-added nature of the sector’s products, all at a time of rising costs. Natural Advantages Yet, the sector also has a number of clear advantages in a region beset by political uncertainty and security issues. Jordan represents…

Interview

OBG talks to Hatem Al Halawani, Minister of Trade and Industry
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Interivew:Hatem Al Halawani How would you assess current levels of foreign direct investment (FDI) in the industrial sector, and what can be done to increase these levels? HATEM AL HALAWANI: The industrial sector contributes 25% of Jordan’s GDP and is made up of over 1800 industrial firms and 236,000 employees. In 2013 Jordan attracted JD1.3bn ($1.84bn) in FDI, 70% of which was concentrated in the industrial sector. The government is keen to increase the level of inward investment by improving…

Analysis

Ambitious plans are in the works for the expansion of industrial zones
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As Jordan has expanded the global reach of its industrial sector over the years, the kingdom has also developed a range of industrial zones. These aim to give the companies based there important advantages when it comes to both exports and imports, while also aiming to attract more foreign direct investment, international companies and joint ventures. The kingdom is also embarking on yet another ambitious programme to establish industrial zones in each of the country’s governorates, signalling…

Analysis

Still a global player in the potash, phosphate and fertiliser market
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As a key pillar of Jordan’s economy, the potash and phosphate extraction industry and its related fertiliser business has faced challenging times recently. While global output and competition has hiked, power and water costs in the kingdom have also been on the rise, affecting profitability and competitiveness. These challenges have also had their upsides, as the sector looks to install better cost management while broadening the base of its energy suppliers. With the market expected to pick up…

Overview

Consolidating positions: Traditional street stores and modern retail outlets compete for business
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Recent years have seen Jordan’s retail sector grow in both sophistication and diversity, with the arrival of global-quality shopping malls and a range of international brands. The shift from traditional retail outlets to more modern ones is also under way, along with the beginning of destination shopping, with larger out-of-centre stores. The amount of modern retail space is set to grow further, too, with the arrival of a new mall in the Abdali Boulevard development. Existing malls are also heightening…