Jordan’s Strategy for the Chemical Industries and Cosmetics Sector for 2027–2029 has identified six integrated strategic programs aimed at driving a qualitative transformation in the sector. The programs focus on improving production efficiency and reducing costs, deepening industrial value chains, expanding specialized high-value products, strengthening export presence, developing an enabling environment for industrial growth, and ensuring sustainability and compliance with global requirements.
اضافة اعلان
According to the strategy recently prepared by the Ministry of Industry, Trade and Supply, the programs aim to reduce energy costs by more than 15%, increase worker productivity by around 20%, raise the share of high-value products in sector sales from approximately 15% to more than 25%, and increase exports to more than JD2 billion by 2029.
The six programs cover operational excellence, energy and digital transformation; the shift toward specialized knowledge-based manufacturing; deepening industrial value chains; building an enabling environment for industrial growth; expanding markets and strengthening exports; and sustainability and readiness for global markets.
The strategy shows that the sector comprises around 744 industrial establishments with registered capital of JD784 million and provides more than 17,000 direct jobs. Its exports reach 112 countries worldwide, with a value of approximately JD1.54 billion.
The sector is one of the Kingdom’s largest industrial export sectors and one of its fastest-growing in recent years, recording cumulative growth of more than 15% over three years.
The strategy said the sector possesses competitive advantages that are difficult to replicate regionally, including globally significant reserves of phosphate, potash and bromine, a strategic location connecting Middle Eastern, African and European markets, and an extensive network of trade agreements providing access to more than one billion consumers worldwide.
However, it noted that a significant portion of industrial activity remains focused on exporting raw materials or traditional products with low added value, while global markets are increasingly moving toward specialized products, green technologies and advanced environmental compliance.
Improving Production Efficiency and Reducing Costs
The first program, focused on operational excellence and energy and digital transformation, seeks to improve industrial processes and reduce production costs through the adoption of smart manufacturing technologies, advanced control systems and predictive maintenance, while maximizing energy and water efficiency.
It also includes expanding the use of renewable energy and connecting industrial cities to natural gas networks.
The program aims to reduce energy costs by more than 15%, increase worker productivity by around 20%, and raise the share of factories adopting automation and smart manufacturing to more than 5% by 2029, strengthening the competitiveness of Jordanian products in local and international markets.
Expanding High-Value Products
The second program, focused on the transition to specialized knowledge-based manufacturing, seeks to move the sector away from traditional low-margin products toward specialized and advanced products based on knowledge, technology and innovation.
It includes developing specialized intermediate chemicals, smart fertilizers and biopesticides, technical paints, advanced detergents and high-value Dead Sea products.
The program aims to increase the contribution of high-value products from around 15% of sector sales to more than 25%, while increasing the number of newly registered products and industrial patents.
It also seeks to position Jordan as a regional hub for specialized chemical products serving the pharmaceutical, agricultural, construction and cosmetics industries.
Deepening Local Content
The third program, focused on deepening industrial value chains, addresses one of the sector’s key structural challenges: heavy reliance on imported inputs.
It seeks to develop intermediate industries and link manufacturing industries with national mineral resources.
The program includes establishing specialized industrial complexes near phosphate and potash sources, strengthening integration with the agricultural and construction sectors, and establishing nationally accredited laboratories with international recognition.
It aims to raise the share of local content in the sector to more than 15%, reduce the import bill for intermediate materials, and transform Jordan’s mineral resources into high-value finished and specialized products rather than exporting them in raw form.
Doubling New Investments
The fourth program, focused on building an enabling environment for industrial growth, seeks to provide affordable financing and smart investment incentives, promote innovation and technology transfer, develop human capital, and modernize the legislative and regulatory environment.
It includes establishing a national industrial innovation system, providing specialized training for the chemical industries, developing dual education and training programs, and simplifying licensing, registration and inspection procedures.
The program aims to double the volume of new investments in the sector, increase spending on research and development, and train thousands of specialized Jordanian professionals capable of leading the sector’s future industrial transformation.
Expanding Global Markets
The fifth program, focused on market expansion and strengthening export presence, aims to diversify export markets and shift from price-based competition toward competition based on quality and specialization.
It includes targeting specialized agricultural and construction markets, developing exports of cosmetics and detergents, entering high-value global markets, and activating trade agreements and smart logistics corridors.
The program aims to increase the sector’s exports to more than JD2 billion by 2029, expand the number of new export markets and strengthen the market share of Jordanian products regionally and globally, particularly in Europe, North America and advanced Asian markets.
Sustainability and Environmental Compliance
The sixth program, focused on sustainability and readiness for global markets, seeks to align products and industrial processes with global environmental and regulatory requirements, particularly the European Carbon Border Adjustment Mechanism and advanced international standards for quality and sustainability.
It includes establishing an integrated system for measuring carbon footprints, financing green transition and emissions-reduction projects, developing quality systems and international accreditation, and launching a unified sector brand to strengthen the global image of Jordanian products.
The program aims to ensure continued access to international markets, reduce future regulatory risks and strengthen Jordan’s position as a regional hub for sustainable chemical industries that comply with the highest global standards.
The strategy identified several structural challenges limiting the sector’s ability to generate greater added value, most notably continued reliance on imports of a significant portion of the intermediate chemicals used in production.
Other challenges include limited spending on research and development, which remains below 1% of sales, as well as high energy costs, which account for a significant share of production costs in some subsectors.
The strategy also pointed to the low contribution of specialized and high-value products to total sales, alongside growing global environmental compliance requirements and the new challenges posed by the European carbon mechanism to the competitiveness of Jordanian exports.
At the same time, the strategy identified growth and expansion opportunities over the coming decade, including untapped export opportunities and major national projects capable of increasing local content and stimulating demand for Jordanian industrial products.
These opportunities also include those associated with regional reconstruction in Iraq and Syria, as well as rapid global growth in green markets and specialized products.
The strategy noted growing global demand for smart fertilizers, precision agricultural chemicals, advanced construction materials and natural Dead Sea products. These are areas in which Jordan has competitive advantages that could position it as a regional hub for specialized and high-value chemical industries.
Economic Targets Through 2033
The economic projections included in the strategy indicate that full implementation of the six programs would lead to a structural transformation of the sector, including doubling the industrial added value generated from national resources and gradually shifting from exporting raw materials and traditional products toward producing and exporting specialized, high-value chemical products.
The strategy’s performance indicators include increasing exports from JD2 billion to JD3.20 billion in 2029, eventually reaching JD5.4 billion by 2033.
They also include increasing the sector’s contribution to gross domestic product from JD294 million to JD337 million in 2029, reaching JD420 million by 2033.
Investment in the sector is targeted to increase from JD144 million to JD155 million in 2029 and eventually to JD210 million by 2033.
In terms of employment, the indicators call for increasing the number of jobs in the sector from 17,999 to 21,741 by 2029, reaching 27,969 jobs by 2033.
Source: Al-Ghad
