Industry & Retail
From The Report: Jordan 2018
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The manufacturing, mining, quarrying and construction sectors continue to be pillars of Jordan’s economy, collectively accounting for around one-fifth of GDP in 2016. In recent years stable figures have been achieved despite adverse regional events, including war, border closures, population displacement and global market softening. As the relaxed rules of origin agreement with the EU began to affect more businesses in 2017, the sector anticipated higher growth. The border crossing with Iraq officially reopened in late August that year after two years of closure, and there is hope that the situation in Syria could begin to stabilise. Rebuilding the region after years of conflict is a goal both in Jordan and beyond, with important benefits for the kingdom’s businesses. Meanwhile as one of the least-saturated markets in the MENA region for modern retail, Jordan is set to see a new crop of major malls and outlets open throughout 2018, consolidating its reputation as a growth country for the industry. This chapter contains an interview with Yarub Qudah, Minister of Industry, Trade and Supply.

Articles from this Chapter

Overview

Regional rebound: Government policy and improving conditions are set to boost manufacturing and international trade
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The manufacturing, mining, quarrying and construction sectors continue to be pillars of Jordan’s economy, collectively accounting for around one-fifth of GDP in 2016. In recent years stable figures have been achieved despite adverse regional events, including war, border closures, population displacement and global market softening. This continued expansion and development is a testament to the resilience and strength of local entrepreneurs, workers and policymakers, whose positive reputation…

Interview

Comprehensive progress: Yarub Qudah, Minister of Industry, Trade and Supply, on how government policies are opening opportunities in the kingdom
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Interview: Yarub Qudah How would you assess current levels of foreign direct investment (FDI) in the industrial sector? YARUB QUDAH: In 2016 FDI reached JD1bn ($1.4bn) compared to JD1.14bn ($1.6bn) in 2015. Jordan’s business environment is conducive to attracting new investments, expanding current agreements and encouraging new partnerships across a variety of sectors. Freedom in the trade and investment sphere continues to sustain market openness, keeping the economy relatively competitive.Meanwhile,…

Analysis

Best foot forward: An established segment pushes ahead into new markets
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The textiles, garments and accessories segment has been a success story of Jordan’s industry. The ready-wear, footwear and fabric manufacturers have grown despite difficult business environments. The segment is likely to benefit from a relaxation of the rules of origin (ROO) agreement with the EU, as more companies raise standards to meet materials-sourcing and employment criteria. Companies are set to create agreements with larger suppliers in Europe, replicating the other successful examples.…

Overview

Setting sale: The market is shifting as modern retail grows in influence
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One of the least-saturated markets in the MENA region for modern retail, Jordan is set to see a new crop of major malls and outlets open throughout 2018, consolidating its reputation as a growth country for the industry. Yet, as with other areas of the economy, prospects depend on overall growth, which has slowed amid regional uncertainties and softening markets. Domestic costs – such as for power and transport – continue to be a factor, as well as taxes and import duties. These costs…