Jordan’s industrial sector continues to strengthen its position within the national economy, not only through production and employment but also through its growing financial and investment influence. The sector led growth on the Amman Stock Exchange with a remarkable 42 percent rise, accounting for 40 percent of the total market capitalization of listed companies. These indicators reflect strong confidence from both local and foreign investors in the sustainability of industrial profitability, positioning the sector as one of the main pillars of Jordan’s capital market.

 

The centrality of industry is further demonstrated through the implementation of strategic projects aimed at reducing production costs and enhancing competitiveness. The government has started supplying natural gas to five industrial cities, as part of a plan to cover all industrial zones within the next three years. This initiative is expected to lower energy costs one of the most significant challenges facing the sector. At the same time, the Industrial Support Fund has provided more than 65 million dinars in financing to 630 industrial firms, helping to expand production capacity, create jobs, and open new markets. A more transformative step would be converting such funds into a specialized development bank dedicated to supporting industry and exports.

 

Yet, the most significant transformation in Jordan’s industrial sector extends beyond financial support or quantitative expansion. It lies in technological progress. Over the past two decades, the share of medium and high-tech industries in total value added has increased from 10 percent to nearly 25 percent, signaling a structural shift toward more technologically advanced production. This evolution opens the door for greater investment in artificial intelligence, renewable energy, and circular manufacturing, key areas aligned with the Economic Modernization Vision, which aims to reduce Jordan’s reliance on imported energy by 20 percent by 2030.

 

Expansion into international markets also reflects the changing nature of industrial production. Today, Jordanian industrial exports reach over 150 markets worldwide, an increase of 39 percent since the COVID-19 pandemic. If directed strategically, this global outreach can strengthen Jordan’s presence in Asian, African, and Latin American markets, while reducing dependence on traditional destinations. Success in this endeavor depends on diversifying products and building a strong industrial identity, where “Made in Jordan” becomes synonymous with quality, innovation, and competitiveness.

 

The broader economic impact of this transformation is equally significant. Industry now contributes around 25 percent to Jordan’s GDP the highest rate among countries in the region—and accounts for roughly 40 percent of total economic growth. With about 18,000 industrial establishments across the Kingdom, industrial activity is becoming more geographically balanced. Combined with Jordan’s highly skilled workforce and strong global ranking in labor competitiveness, the path toward a knowledge-based, innovation-driven economy is becoming more attainable.

 

These developments position Jordan’s industrial sector at the heart of the country’s modernization journey. It serves as the vital link between reform, growth, and social equity. With continued progress in smart manufacturing and clean energy, the industrial sector can become a genuine national success story, one that embodies the spirit and ambitions of Jordan’s Economic Modernization Vision as the nation moves into its second centennial.

 

Raad Mahmoud Al-Tal — Department of Economics — The University of Jordan