page_title: Economy of Jordan
section_title: Industry and manufacturing
hierarchical_section_title: Economy of Jordan / Industries / Industry and manufacturing
caption_attribution_description: English: The photograph was taken during a recycling project in Jordan. The factory in the picture is situated a few km outside Amman and is recycling scrap plastic. The working conditions witnessed through a shop window are quite shocking and put western manufacturing into perspective. These men are usually Egyptian immigrants who work for a few hundred pounds a month in a dangerous working environment, full of toxic fumes where they are required to carry out hard manual tasks.
context_page_description: The economy of Jordan is classified as an emerging market economy. Jordan's GDP per capita rose by 351% in the 1970s, declined 30% in the 1980s, and rose 36% in the 1990s. After King Abdullah II's accession to the throne in 1999, liberal economic policies were introduced. Jordan's economy has been growing at an annual rate of 8% between 1999 and 2008. However, growth has slowed to 2% after the Arab Spring in 2011. Substantial increase of the population, coupled with slowed economic growth and rising public debt led to a worsening of poverty and unemployment in the country. As of 2019, Jordan boasts a GDP of US$44.4 billion, ranking it 89th worldwide.
  Jordan has Free Trade Agreements with the United States, Canada, Singapore, Malaysia, the European Union, Tunisia, Algeria, Libya, Turkey and Syria. More FTA's are planned with Iraq, the Palestinian Authority, the GCC, Lebanon, and Pakistan. Jordan is a member of the Greater Arab Free Trade Agreement, the Euro-Mediterranean free trade area, the Agadir Agreement, and also enjoys advanced status with the EU.
context_section_description: The industrial sector, which includes mining, manufacturing, construction, and power, accounted for approximately 26 percent of gross domestic product in 2004 (including manufacturing, 16.2 percent; construction, 4.6 percent; and mining, 3.1 percent). More than 21 percent of the country's labor force was reported to be employed in this sector in 2002. The main industrial products are potash, phosphates, pharmaceuticals, cement, clothes, and fertilizers. The most promising segment of this sector is construction. In the past several years, demand has increased rapidly for housing and offices of foreign enterprises based in Jordan to better access the Iraqi market. The manufacturing sector has grown as well (to nearly 20 percent of GDP by 2005), in large part as a result of the United States–Jordan Free Trade Agreement (ratified in 2001 by the U.S. Senate); the agreement has led to the establishment of approximately 13 Qualifying Industrial Zones (QIZs) throughout the country. The QIZs, which provide duty-free access to the U.S. market, produce mostly light industrial products, especially ready-made garments. By 2004 the QIZs accounted for nearly US$1.1 billion in exports according to the Jordanian government.
  Jordan's free trade agreement (FTA) with the US – the first in the Arab world – has already made the US one of Jordan's most significant markets. By 2010, it would have barrier-free export access in almost all sectors. A number of trade agreements with countries in the Middle Eastern and North African regions and beyond should also reap increasing benefits, not in the least the Agadir Agreement, which is seen as a precursor to an FTA with the EU. Jordan also recently signed an FTA with Canada. Furthermore, Jordan's plethora of industrial zones offering tax incentives, low utility costs and improved infrastructure links are helping incubate new developments. The relatively high skills level is also a key factor in promoting investment and stimulating the economy, particularly in value-added sectors. Despite the fact that Jordan has few natural resources it does benefit from abundant reserves of potash and phosphates, which are widely used in the production of fertilisers. Exports by these industries are expected to have a combined worth of $1bn in 2008. Other important industries include pharmaceuticals, which exported around $435m in 2006 and $260m in the first half of 2008 alone, as well as textiles, which were worth $1.19bn in 2007. Although the value of Jordan's industrial sector is high, the kingdom faces a number of challenges. Because the country is dependent on importing raw materials, it is vulnerable to price volatility. Shortages in water and power also make consistent development difficult. Despite these challenges, Jordan's economic openness and long-standing fertiliser and pharmaceutical industries should continue to provide a solid source of foreign currency.
  Jordan has a plethora of industrial zones and special economic zones aimed at increasing exports and making Jordan an industrial giant. The Mafraq SEZ is focused on industry and logistics hoping to become the regional logistics hub with air, road, and rail links to neighboring countries and eventually Europe and the Persian Gulf. The Ma'an SEZ is primarily industrial focusing on satisfying domestic demand and reducing reliance on imports. With a national rail system under construction, Jordan expects trade to grow significantly and Jordan will mostly become the trade hub of the Levant and even the Middle East region as a whole due to its geography and natural resources.
caption: A recycling project situated a few kilometres outside Amman.
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