Industry & Retail
From The Report: Jordan 2016
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Jordan’s industrial sector continues to grow, with phosphates and potash, chemicals and pharmaceuticals, and textiles and garments all seeing expansion in both net profits and volume in 2015. That these segments have grown in the face of global economic headwinds and in a region directly affected by major geopolitical tensions demonstrates the sector’s resilience and ability to adapt. The government, which sees the sector as vital to the kingdom’s long-term development plans, has also been actively helping manufacturers and heavy industry through incentives and promotional campaigns, support that looks set to continue strengthening. Meanwhile the retail sector has shown consistent growth in recent years, with its contribution to GDP reaching JD1.13bn ($1.6bn) in 2015, up from JD11.4bn ($15.5bn) in the previous year, or around 10% of the total.

Articles from this Chapter

Overview

Steady progress: Despite global economic headwinds and regional conflicts, many key segments continue to expand
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The industrial sector continues to show growth. Phosphates and potash, chemicals and pharmaceuticals, and textiles and garments all continued to expand in terms of both net profits and volume in 2015. The fact that these segments have grown in the face of global economic headwinds and in a region directly affected by major geopolitical tensions demonstrates the sector’s resilience and ability to adapt. The government has also been actively helping manufacturers and heavy industry through incentives…

Analysis

Tailored solutions: The garment and textiles segment represents an economic success story for the kingdom
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Garments, accessories and textiles trade has been one of the kingdom’s great success stories, with exports continuing to grow despite the global economic slowdown and enduring regional challenges. Industry players hope that the years ahead will see a major breakthrough in trade with the EU, a development that will not only be good for Jordan’s economy, but will also provide some relief for some of the many Syrian refugees who face continuing hardship in the kingdom. Demand Growth While garments…

Analysis

Industrial jewel: The port city of Aqaba continues to be the kingdom’s key manufacturing and transport centre Industrial jewel
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By leveraging its strategic location on the Red Sea, a short distance from the Israeli, Egyptian and Saudi Arabian borders, Aqaba has become a lively base for manufacturing industries, as well as a transport and tourism centre. The rail and road network for the rest of the kingdom also begins here, connecting industries with the main domestic markets of Amman and the north, as well as a range of other countries beyond. Logistics and tourism have traditionally taken priority in the city, but this…

Overview

Positioned to flourish: With strong fundamentals and many opportunities for expansion, retail remains a sector to watch
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The retail sector has shown consistent growth in recent years, with the Central Bank of Jordan (CBJ) estimating its contribution to GDP at JD1.13bn ($1.6bn) in 2015. This figure is from a GDP of JD11.4bn ($15.5bn), or around 10% of the overall total. Retail is also a major source of employment. The Department of Statistics (DoS) recorded 173,179 private sector employees in the services, shops and market sales segments for 2014, along with 19,077 in the public sector. This figure was out of workforce…