Jordan's industrial exports witness 'unprecedented' 23.1% growth in first half of 2021: JCI

The sector is also considered one of the largest sectors that attract direct investments

  
Image used for illustrative purpose. Trucks carrying containers are seen at the Port of Aqaba, 350 km (217 mikes) south of Amman.

Image used for illustrative purpose. Trucks carrying containers are seen at the Port of Aqaba, 350 km (217 mikes) south of Amman.

REUTERS/Abraham Farajian

AMMAN — The Kingdom’s industrial exports in the first half of the year marked a growth rate of 23.1 per cent compared with the same period of 2020, President of the Jordan Chamber of Industry (JCI) Fathi Jaghbir said on Tuesday.

Jaghbir said that this is an “unprecedented” growth that has not been registered for many years, which highlights the impact of resuming industrial activities to their normal levels after the pandemic, according to a JCI statement.

The JCI president added that the Kingdom’s industrial exports in the first six months of the year amounted to JD2.549 billion compared with JD2.071 billion in the January-June period of 2020.

He noted that the increase of the industrial production price index by 18.6 per cent over the first seven months of the year, compared with the same period of last year, highlights the improvement in the industrial sector’s performance.

The industrial sector is among the largest economic sectors in terms of direct contribution to the GDP, amounting to 24.7 per cent, and indirect contributions, amounting to 40 per cent to the GDP. The industrial sector additionally owns 93 per cent of the total national exports, which reach more than 142 countries.

The sector is also considered one of the largest sectors that attract direct investments. Industries accounted for 80 per cent of foreign investments in the country over the past decade and the investment volume in the sector reached some JD15 billion, added the statement.

It is also an important source of income for the Treasury through taxes and fees from production, which are annually estimated at JD1.5 billion. The sector also employs some 254,000 workers, constituting 21 per cent of the total workforce in the Kingdom, 80 per cent of whom are Jordanians.

Jaghbir said that the industrial sector has “big potential and opportunities” inside the local market, especially considering the national alternatives to exported items.

He said that the volume of the national market of goods is annually estimated at JD27 billion. However, the sector’s share of the market does not exceed 45 per cent, despite having exported items with a value of JD5 billion that have national alternatives.

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