Industrial exports at 10-year record driven by fertilizer demand

industry Exports  Potash Company
(Photo: Arab Potash Company)
AMMAN — Industrial exports shot up to their highest value in a decade as a result of an unprecedented increase in fertilizer exports to fill in a global gap caused by Russia’s war in Ukraine, economists contended.اضافة اعلان

Jordanian industrial exports in the first quarter of the year reached a 10-year record of JD2.38 billion, also marking a growth of 53.7 percent, over the corresponding period in 2021, the Jordan Chamber of Industry reported.

Economist Mazen Irsheid told Jordan News that the primary reason for the increase was “the export of agricultural fertilizer from phosphate and potash companies, which are one of the largest producers of fertilizers in the Arab region and the Middle East.”

Another economist, Zayyan Zawaneh concurred. “Phosphate and potash are the main component of the industrial exports from Jordan,” he told Jordan News.

“This led to the rise in Jordanian exports; coupled with a lack of supply from the global markets (this has) put the Jordanian product at the forefront,” he explained.

Fathi Al-Jahbir, president of the Jordan and Amman chambers of industry, said the growth was the result of efforts made in recent years, starting from cooperation with the relevant authorities, institutions, and international organizations supporting the industry.

Other reasons included the participation in trade fairs, such as the Baghdad Expo held last December, which clearly reflected positively on Jordanian industrial exports, leading to a 35 percent growth during the first four months of 2022.

Jaghbir told Jordan News that Jordanian industrial exports in the first quarter of this year reached 133 markets worldwide, with the US topping the list, receiving 19.5 percent of the total industrial exports, which included clothing and fertilizer products. India came second, with a share of 18.1 percent, he added.

Jaghbir called for the need to reduce the cost of production and provide concessional financing programs by the Central Bank of Jordan to meet rising prices, partly caused by the hiked interest rates.

Considering that the enterprises in the industrial sector originally suffer from insufficient liquidity to finance their production plans, the rises will clearly affect their credit facilities, especially those given to small and medium-sized entrepreneurs, which make up 98 percent of the enterprises operating in the sector.

Irsheid, the economist, said that Jordan’s industrial export growth was expected. He explaining that phosphate and potash reached record levels of production and exports, in addition to clothing and textile manufactured and exported from Al-Dleil Industrial Zone to the US under a free trade agreement between the two countries.

He explained that there is a high demand for industrial fertilizers from countries like Brazil, the US, India, and China. He attributed the rise in demand to geopolitical factors, including the war between Russia and Ukraine, and the subsequent slow supply chains.

Economist Zawaneh said that global inflation, coupled with Western sanctions on Russia, as well as its war in Ukraine halted the export of Russian and Ukrainian fertilizers to world markets, raising the prices of the product globally.

“The opportunity is strong for Jordanian fertilizer and mining exports,” he noted.

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