On 13 October, under
Decision No. 3 of 2026, Jordan’s Minister of Industry, Trade and Supply
approved Afaq Energy’s acquisition of all shares in Advanced Central Gas, known
as ProGas. Days later, Afaq, the Manaseer Group’s oil and fuel arm, announced
that the deal was complete. It builds on Afaq’s acquisition of Central Gas
Technology Company, approved in December 2025.
اضافة اعلان
The timing matters. The
International Monetary Fund expects the Middle East, North Africa and Pakistan
to contract by 1.3% this year as war disrupts energy production, shipping and
trade.
Yet the Fund also finds that the region’s oil importing economies, Jordan among them, have so far
proved more resilient.
Resilience of that kind is not luck; it is built, and
secure energy supply is one of its foundations.
From Supply Chains to Export
Competitiveness
For
Jordan’s export-oriented industries, reliable gas supplies are essential to
maintaining production, controlling costs and competing in international
markets.
This is particularly important for energy-intensive sectors such as
fertilisers, chemicals and other industrial products, where disruptions can
interrupt manufacturing, increase operating costs and undermine exporters’
ability to fulfil contracts and retain overseas customers.
Diversified sources
of supply, adequate storage and efficient distribution are therefore critical
to protecting production continuity and safeguarding Jordan’s export capacity.
Recent
statements by Jordan’s Minister of Energy and Mineral Resources highlight the
importance of strengthening the Kingdom’s ability to withstand supply
disruptions while developing its domestic gas resources.
Alongside efforts to
diversify supply sources and strengthen storage and distribution
infrastructure, plans to expand production at the Risha gas field reflect the
longer-term ambition to enhance domestic supply capacity.
These efforts
underline a fundamental economic consideration: energy security is not simply
about securing gas supplies, but about ensuring that external disruptions do
not translate into interruptions in industrial production and export
performance.
For
Jordanian exporters, the benefits of more resilient supply chains extend beyond
maintaining existing production.
Greater supply reliability can help
manufacturers control costs, meet delivery schedules, preserve relationships
with international buyers and pursue opportunities in new markets.
By reducing
uncertainty, it can also support investment in additional capacity, advanced
production technologies and the development of higher value
products.
These outcomes are particularly important for export-oriented
industries, where reliability, quality and cost competitiveness influence a
firm's ability to expand its international market share.
The
wider significance lies in the potential contribution to Jordan’s economic
complexity.
A more sophisticated export economy depends on more than increasing
the volume of existing exports; it requires businesses to accumulate technical
knowledge, develop specialised skills, adopt new technologies and expand into
products that embody greater productive capabilities.
Reliable energy supplies
can help create the conditions for this transition by supporting industrial
investment and enabling firms to diversify their production.
Over time,
stronger capabilities can broaden Jordan’s export base, increase domestic value
added and improve the economy’s capacity to compete in higher value
markets.
The
real economic value of investment in the gas sector therefore lies not simply
in securing energy supplies, but in protecting Jordan’s export capacity today
and enabling the productive capabilities needed to compete in higher value markets tomorrow.
By strengthening supply chain resilience and supporting industrial development,
such investment can contribute to more diversified exports, stronger trade
performance and a more complex and competitive Jordanian economy.
Capabilities, Not Size
Economic complexity, as
measured by Harvard Kennedy School’s Growth Lab, reflects the productive
knowledge embedded in a country’s exports: the range and sophistication of what
it makes competitively, not export volume alone. Jordan’s task is to turn its
skills and industrial experience into higher-value goods and services.
That
requires investment, dependable energy and inputs, technical capability and
access to regional and international markets.
Mergers and acquisitions can
assemble these ingredients faster than organic growth.
A deal’s value lies in
what it enables that neither party could achieve alone: combining expertise,
deploying technology more efficiently, securing supply chains and developing
higher-value products for new markets. The test is practical: does the combined
business become more productive, strengthen local suppliers and reach markets
it could not previously serve?
What the World Teaches
Japan’s JERA,
established in 2015 as a joint venture between Tokyo Electric Power and Chubu
Electric, progressively integrated their fuel procurement, upstream investments
and power-generation businesses, completing the integration of their domestic
thermal-power operations in 2019.
Consolidating these activities created a more
integrated energy platform spanning the supply chain from fuel sourcing to
power generation.
The case illustrates how scale and integration can support
energy resilience and competitiveness, provided they are accompanied by
appropriate safeguards.
Tata Motors’ 2008
acquisition of Jaguar Land Rover brought engineering capabilities,
manufacturing facilities, intellectual property and established international
sales networks into its portfolio.
The subsequent development of the business
underscores the importance of sustained investment and effective integration in
translating acquired capabilities into commercial value.
Closer to home,
Borouge International, formed in March 2026 through the combination of Borouge
and Borealis and the acquisition of NOVA Chemicals, brings together
complementary technologies, production assets and global market access.
The
lesson across these cases is that consolidation creates an opportunity, not a
guarantee: its success depends on a clear strategic rationale, effective
integration and the ability to turn combined capabilities into sustained
productive value.
A Wider Wave of
Consolidation
Corporate
consolidation can support Jordan’s economic transformation, but its value lies
not in size alone.
The opportunity is to strengthen productive capabilities,
develop specialised skills, improve access to finance and enhance businesses’
competitiveness in regional and international markets.
The Manaseer Group’s
expansion beyond energy illustrates how investment across interconnected
sectors can strengthen Jordan’s economic complexity.
Under the leadership of
Eng. Ziad Al Manaseer, Chairman of the Group’s Board of Directors, the group
has diversified into strategic industries and technical education.
In December
2025, the Ministry of Industry, Trade and Supply approved Manaseer Industrial
Complex’s acquisition of a 50.28% stake in Jordan Cement Factories Company,
creating scope to modernise production, improve efficiency and strengthen
manufacturing competitiveness.
The group’s acquisition of Al-Quds for
Development and Investment Company, which owns Luminus Technical University
College and Luminus companies, further connects investment with technical
education and specialised services. Meanwhile, the Ziad Al-Manaseer Award for
Scientific Research and Innovation offer a potential link between academic
research and commercial application.
Together, these activities could
strengthen industry education partnerships, develop
skilled workers, accelerate technology adoption and support higher-value
production, deeper domestic supply chains and export growth.
Consolidation is
also reshaping Jordan’s financial sector. Bank al Etihad’s acquisition of
INVESTBANK and the merger of Jerusalem Insurance with Arabia Insurance Company
Jordan illustrate the integration of financial institutions.
Such transactions
can improve operational efficiency, broaden services and strengthen financing
capacity, but their economic contribution depends on whether they expand access
to finance for productive businesses and support investment in technology,
skills and innovation.
Ultimately,
consolidation can help businesses and financial institutions mobilise capital,
undertake complex projects and develop capabilities for higher-value
activities. However, larger scale does not guarantee economic progress.
Success
should be measured by gains in productivity, skilled employment, domestic value
addition, advanced manufacturing and export diversification.
Jordan’s priority
is to translate corporate scale into broader economic value while preserving
effective competition and extending the benefits beyond the businesses directly
involved.
Clear Rules, Stronger
Confidence
Growth through
consolidation must go hand in hand with effective competition. Jordan’s
Competition Law No. 33 of 2004, as amended by Law No. 8 of 2026, published in
the Official Gazette on 23 April 2026 and effective 30 days later, strengthened
the framework governing economic concentration.
The amendments established a
Competition Affairs Council, enhanced investigative and enforcement powers, and
replaced the previous market-share notification test with revenue-based
approval thresholds.
Written ministerial approval is required where the annual
domestic revenue of any participating company exceeds JD10 million or the
parties’ combined annual domestic revenue exceeds JD30 million.
Completing a
transaction subject to these requirements without prior written approval
constitutes a violation, invalidates the related actions and requires the
parties to restore the previous position. The violation carries fines ranging
from JD10,000 to JD50,000, while failure to comply may lead to referral to the
public prosecutor.
The approval of Afaq Energy’s acquisition of ProGas
illustrates the application of the amended framework, while the earlier
approvals for Central Gas and Jordan Cement preceded its entry into force.
Reading a Market in One
Number
Regulators commonly screen
concentration with the Herfindahl–Hirschman Index (HHI): square each firm’s
market share and add the results. A monopoly scores 10,000; ten equally sized
firms score 1,000. If four firms hold 40%, 30%, 20% and 10%, the HHI is 3,000.
If the two smallest merges, the score rises to 3,400.
That 400-point increase
flags higher concentration; it does not, by itself, decide whether the deal
should proceed.
The HHI is an indicator, not
a verdict. Its meaning depends on how the relevant market is defined, the
strength of remaining competitors, barriers to entry and the likely effects on
prices, quality, innovation and supply.
For a small, import-dependent economy,
a mechanical reading risks overlooking genuine gains in scale, resilience and
know-how; equally, claimed efficiencies should never excuse a deal that
substantially harms competition. Jordan would benefit from published guidance
explaining how regulators weigh concentration against supply security and
capability gains, so investors know the rules before they deal.
From Fragmented to
Formidable
Jordan does not need bigger
companies for their own sake. It needs companies able to secure inputs, invest
in technology, train people and sell sophisticated products abroad.
The ProGas
and Central Gas acquisitions show how a well-designed deal can strengthen the chain from supply to
production line to export market.
Backed by clear competition rules and
measured by the capabilities it builds, consolidation can carry Jordan’s
economy from fragmented to formidable and give the Economic Modernisation
Vision the industrial base it needs.
