Jordan’s leather and garment industry — the oldest in the region — has significantly expanded its export footprint, now reaching around 90 countries globally. This growth reflects the sector’s competitiveness and high quality standards.
اضافة اعلان
The industry, which dates back to the establishment of the first tannery in 1921, has received considerable support from the Jordanian state under the leadership of His Majesty King Abdullah II. This support, along with Jordan’s trade agreements with major global trade blocs, has made the sector attractive to foreign investors.
Over the past decade, the sector has seen a remarkable transformation, with investments increasing by 150%, from $420 million to over $1 billion today.
Jordan’s Economic Modernization Vision has set ambitious goals for the sector, including:
Increasing employment levels
Raising value-added by 10% annually to reach approximately $1.8 billion
Boosting production from $5.5 billion to $8.8 billion by 2033
Attracting $3.1 billion in new investments in the coming years
The number of operational enterprises has surged from 600 at the end of the 20th century to 1,000 today, with production branches spread across several governorates.
In 2024, the sector achieved a record-high export growth of over 24% compared to 2023 — the highest since 2010 — reaching $2.4 billion, which accounts for 21% of total industrial exports.
Eng. Ihab Qadri, representative of the leather and garment industries sector at the Jordan Chamber of Industry, told the Jordan News Agency (Petra):
“This growth clearly reflects the sector’s development and its regained momentum in foreign markets, despite the regional and global economic challenges over the past two years.”
He attributed this growth mainly to the gradual recovery in demand from the U.S. market, which accounts for 80% of the sector’s exports, along with export expansion into European markets, particularly the Netherlands and Belgium.
Qadri emphasized that the sector is entering a promising phase, and stakeholders must build on recent achievements by boosting product competitiveness and diversifying exports into non-traditional markets.
He also noted that the sector still has untapped export potential worth over $752 million, according to World Trade Center estimates — a key factor in achieving the ambitious goals set in the Economic Modernization Vision.
Qadri highlighted that the sector holds the largest share of employment opportunities, with over 96,000 workers, an 8% growth, of whom 31% are Jordanians.
The Vision also sees the sector playing a vital role in job creation, with a target to generate 149,000 job opportunities out of the one million total aimed for in the coming years.
Qadri also pointed to progress on the establishment of a fully integrated industrial cluster for the leather and garment sector, supported by the International Finance Corporation (IFC). The project has reached an advanced stage, with feasibility studies completed and work underway to finalize incentive packages and determine the geographic location. Promotional campaigns are also being prepared to attract investment and Jordanian labor.
The establishment of this integrated industrial cluster is one of the key initiatives supporting the Economic Modernization Vision, especially in light of challenges such as the scarcity of raw materials, which represent nearly 60% of total production costs.
Qadri explained that the cluster aims to fill supply chain gaps and reduce delivery times, enhancing the sector’s ability to expand globally and increase exports.
He emphasized that sustained progress in the sector depends on its ability to adopt technological advancements, implement sustainable practices, and enhance integration with supporting sectors like transport and logistics — all of which would help position Jordan as a competitive industrial and export hub in the region.
Qadri concluded by stressing the importance of effectively implementing the initiatives outlined in the Economic Modernization Vision, particularly through the upcoming sector-specific strategy under the national industrial policy. This strategy aims to enhance the sector’s competitiveness, productivity, value-added, and product/export diversification through public-private collaboration.
(Petra)
