The Industrial Sector in Jordan: Challenges and Opportunities

Industry Definition 

Industry is one of the most influential economic activities in a country's economy and includes all complex activities and processes in converting raw materials into consumable products or developing services that are provided in an organized and institutional manner for a certain profit. Industry plays a pivotal and major role in the economy of countries and most cases constitutes the primary engine of their economy and power. Industrial progress is an important factor in indicating the country's national and local products.

In light of the expansion of global trade concepts, industrial sectors are expanding their production to export and expand into global markets. This step has increased competitiveness in reaching consumers and providing them with different goods, which affects the quality and price elements. Industries also depend on three main classifications: primitive manufacturing, which depends on manual skills, that began to be worked on like family industries to increase income, and simple manufacturing, which involves the process of converting raw materials simply and requires simple tools and is linked to the habit of agriculture or the simple manufacturing industry of tools, and modern manufacturing, which aims primarily to convert raw materials into products using lines. Complex production relies on technical, purification, and technological expertise aimed at developing consumer products.

Hence the importance of focusing on and improving national industries to make them a bridge for countries’ development and global distinction.

The importance of national industry

The national industry works to increase the development and economic indicators of countries, which in turn helps in finding solutions to the problems of unemployment and the gaps between the percentage of graduates and the available jobs in the market. The value of the national industry in developing countries increases as it is a major driver for improving their conditions and having a positive impact on the economic environment.

The importance of the national industrial sector can be summarized in the following points:

1. Achieving the principle of self-sufficiency and increasing the state's strategic stock of goods and products
2. Operating public hands, especially if the industries are multiple and diverse
3. Developing the pillars of economic activities such as agriculture and trade
4. Diversifying the state's sources of revenue and increasing the ability to collect hard currency
5. Building an integrated economic system, promoting digital transformation, and integration into the Fourth Industrial Revolution

Jordan: A strategic key to industrial growth and the move towards globalization!

Jordan is one of the distinguished countries for industrial growth in the Middle East region, due to its multiple advantages that make it a strategic key for investors in expanding globally and developing products that are adaptable to all consumer requirements. The most prominent features of the industrial sector in Jordan can be summarized as follows:

1. Availability of infrastructure supporting investment through industrial cities.
2. The political and economic position of Jordan and the strength of Jordanian foreign relations.
3. Security and political stability in Jordan.
4. Jordan's strategic location in the Middle East.
5. Jordan's membership in the World Trade Organization.

All of this and more enhances the strength of the industrial sector in Jordan. We can also focus on the focal point and the most frequently mentioned point in talking about the industry in Jordan, which is the geographical and strategic location of Jordan in the middle of the Middle East and North Africa region, which makes it a link between Europe, Asia, and Africa. It is an important point in reaching more than a billion consumers. In addition, the Jordanian leadership is working to build a strong strategic network of relationships in the field of global trade and attracting many foreign investments. On the other hand, the economic diversification of multiple industries in Jordan has reshaped the investment incentives granted within industrial and development zones, and the tax and customs exemptions imposed by the new Investment Law No. 30 of 2014.

Jordan industrially: Opportunities and Challenges

Jordan has a distinguished presence in many industries, the most important of which are:

• Mining industries
• Chemical industries
• Leather and textile industries
• Engineering, electrical, and information technology industries
• Food, catering, and livestock industries
• Therapeutic and medical supplies industries
• Construction industries
• Wood Industries
• Plastic industries
• Packaging
 

Industrial sectors are critical in identifying opportunities and facing challenges, which can be summarized as follows:

Opportunities for the industrial sector in Jordan: -

Studies issued by many government agencies indicate that the industrial sector includes approximately one-third of the workforce in Jordan and contributes 25% of total income. The industrial sector is an important focal point due to the opportunities surrounding it, which are: -

1. Technology development and supporting infrastructure for digital transformation in the industrial sector.
2. Jordanian qualifications and human resources.
3. Diversity of local industries that can provide an integrated link for sufficiency between industries.

Challenges in the industrial sector in Jordan:-

Despite the improvement in indicators of the Jordanian economy regarding industries, it faces many challenges that will determine the growth process, such as: -

1. The need to renew legislation in line with the data of the industrial sector today.
2. Geopolitical events in the region that could harm investment in the Middle East.
3. Difficulty in financing small and medium enterprises.

Conclusion
Opinions differ in the industrial sector, and it can be said that the process of building a prosperous industrial sector begins with looking at the challenges and seizing opportunities from them to create the desired and desirable development. The industrial sector constitutes an important focal point for the Jordanian economy and the Arab region, and it works to attract many investments to advance and move towards the next step of investment in an expanded manner in which the Jordanian product can compete locally, regionally, and internationally.