AMMAN - Industrial exports from Irbid Governorate amounted to $334.04 million during the January-August period of this year, 8 per cent lower than the $363.59 million recorded during the same period in 2006.
The $29.54 million drop was attributed by Ismail Dweikat, general manager of the Irbid Chamber of Industry (ICI), to reduced orders from buyers abroad.
He said purchase orders are being shifted to Qualifying Industrial Zones (QIZs) in Egypt where labour, power and other industrial elements are less costly for investors by about 20 per cent.
"Factories operating in accordance with the QIZ agreement at Al Hassan Industrial Estate and Cyber City are working below capacity," said Dweikat.
He expressed hope that exports would not continue to drop until the end of the year, but indicated that as things are now, it seems that the amount is likely to drop.
Asked whether any remedial action can be taken to reverse the downward trend, Dweikat mentioned clothing accessories but wondered if it is not too late to redress the situation.
According to the ICI general manager, clothing accessories are still being imported but if they can be provided locally, the spinning and weaving industry could be embedded with higher efficiency and an advantage over competitors.
Dweikat warned that a decline in purchase orders from abroad may prompt investors to relocate, noting that textile industries need only a slight profitable edge to lure them into shifting production bases.
Had a fuel price increase materialised few weeks ago, it would have been "the straw that broke the camel's back", he said.
Reminded by the free trade agreement which is a better export channel to the United States, Dweikat described this venue as lacking the drive at a time when free trade agreements have become so common that many countries around the world enjoy, or about to enjoy, such deals with the United States.
The ICI data showed that exports of clothing dropped by 8.79 per cent or JD30.09 million during the January-August period of this year. This category accounted for 93.52 per cent of total exports from Irbid.
Other sectors that registered lower exports during the eight months were: Engineering industries, stones and marbles and foodstuffs.
By Samir Ghawi
© Jordan Times 2007
