Amman – Jordan’s industrial production continues to grow despite mounting challenges related to production costs, energy, transportation, shipping and supply-chain disruptions. Industrial production volumes rose by 0.62% during the first eight months of the current year compared with the same period last year, reflecting the ability of industrial establishments to maintain production and adapt to changing economic conditions and regional developments.
Industry representatives said that although the growth rate remains modest, it demonstrates the sector’s resilience and ability to maintain business continuity and meet local market needs. They stressed that the next phase should build on these indicators by strengthening the competitiveness of national industries, stimulating investment and improving the efficiency of production facilities, thereby expanding production capacity, increasing the sector’s contribution to the national economy and creating jobs.
In separate statements to Al-Ghad, they emphasized the importance of continuing measures to support national industry, particularly reducing production costs and providing affordable financing to modernize production lines and expand investment. They also called for stronger technological modernization programs, improved energy efficiency, the opening of new export markets and easier access for Jordanian products to those markets.
The developments come as the Department of Statistics recently issued its monthly report on the general index of industrial production quantities. The report showed a 0.62% increase during the first eight months of 2026 compared with the same period in 2025.
Compared with the cumulative index for the corresponding period, production in the manufacturing sector increased by 0.71%. Manufacturing accounts for 88.7% of the overall index. Electricity production rose by 2.14%, with a relative weight of 5.9%, while production in the extractive industries declined by 2.21%, with a relative weight of 5.4%.
The sector comprises approximately 17,000 industrial and craft establishments employing around 271,000 workers. It produces 1,500 goods and exports 1,400 different products out of a total of 5,300 goods produced and traded globally. Jordanian industrial products reach markets in 150 countries worldwide.
Strengthening Industrial Competitiveness
Fathi Al-Jaghbir, president of the Jordan and Amman Chambers of Industry, said the increase in industrial production during the first eight months of the year reflects continued industrial activity in the Kingdom despite economic challenges and regional conditions that are affecting the business environment and placing pressure on production costs, supply chains and trade flows.
Al-Jaghbir said industrial sectors delivered mixed performances, with several industries recording significant growth. Leather and garment industries grew by 20.5%, while wood and furniture industries expanded by 15.9%. Growth was also recorded in several food, packaging, pharmaceutical and engineering industries, while some chemical, construction and mining industries experienced declines.
He explained that industrial production indicators should be assessed alongside a range of factors rather than relying solely on the growth rate, including value added, exports and investment. He noted that the 0.71% growth in manufacturing production, together with a 6.2% increase in the sector’s real value added during the second quarter, highlights the importance of industry in supporting economic activity.
Al-Jaghbir stressed that the next phase requires continued efforts to reduce energy, transportation and logistics costs, stimulate investment, modernize production lines, diversify export markets and strengthen reliance on locally produced goods by replacing imports with national products. These measures would enhance the competitiveness of Jordanian industry, increase its contribution to economic growth and create jobs.
Exports Expected to Rise
Ahmad Al-Khudari, president of the Jordan Exporters Association and a senator, said the rise in industrial production despite the region’s current conditions is a positive indicator of the strength of Jordan’s industrial sector and its ability to maintain production and adapt to surrounding challenges.
Al-Khudari said continued growth in industrial production demonstrates the ability of industrial establishments to sustain their operations, predicting that this would have a positive impact on national exports and that exports would grow this year compared with last year.
He noted that the Jordan Exporters Association is working to open new markets for national products, with a focus on non-traditional markets. This would help expand Jordan’s export base and increase exports in the coming period.
Al-Khudari stressed that increasing national exports is a key factor in stimulating industrial production, as it helps industrial establishments expand their operations and increase production capacity, creating new job opportunities and helping reduce unemployment.
He added that export growth increases foreign-currency inflows into the Kingdom and supports its reserves, while also improving the trade balance and strengthening economic growth. He emphasized the importance of continuing to support national exports and facilitating access for Jordanian products to new markets.
Resilience of National Industry
Saeed Rassas, president of the Association of Industrial Investors in West and North Amman, said the rise in industrial production is a positive indicator of the Jordanian industrial sector’s ability to maintain production and sustain its operations despite economic challenges and regional conditions affecting the business and investment environment.
Rassas said the growth reflects the resilience of national industry and the ability of industrial establishments to adapt to changing conditions, maintain production operations and meet local market needs, while continuing to seek new opportunities in foreign markets.
He said the 0.71% growth in manufacturing production during the same period, in the sector that accounts for the largest share of the industrial production index, confirms its importance in driving economic growth. He noted that strengthening production requires additional incentives and measures to support investment and increase employment levels.
Rassas said the industrial sector’s performance in the coming period will remain linked to developments in regional conditions, the stability of supply chains, energy, transportation and shipping costs, and demand levels in domestic and foreign markets. He added that the sector has opportunities for continued growth, provided that industrial establishments receive a supportive environment enabling them to capitalize on export opportunities.
He called for an integrated package of measures and incentives that respond to factories’ needs, particularly reducing production costs, especially energy, transportation and financing costs, and facilitating access to affordable loans for expansion, production-line modernization and improved operational efficiency.
He also called for expanding support and grant programs for industrial development, technological modernization, digital transformation and energy efficiency, with particular attention to small and medium-sized enterprises. He stressed the need to provide the financial and technical tools required to help them improve their production capabilities and enter new markets.
Rassas emphasized the importance of strengthening exports by facilitating customs and logistics procedures, developing programs to promote Jordanian products, supporting factories’ participation in trade fairs and business missions, opening new marketing channels, simplifying administrative procedures, ensuring regulatory stability and strengthening public-private partnerships.
He concluded that sustaining industrial production growth requires moving toward a phase of expansion and sustainable growth through clear economic policies and incentives aligned with the sector’s needs. Improving the investment environment and reducing production costs would strengthen Jordanian factories’ ability to expand, create jobs and increase exports, thereby supporting industry’s contribution to the national economy.
Source: Al-Ghad
