Jordan has developed three contingency plans to maintain supply and logistics chains in the event of disruptions at the Bab al-Mandab Strait, Industry, Trade and Supply Minister Ya'rub Al-Qudah said on Wednesday.
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Speaking at a meeting organised by the Jordanian Businessmen Association, Al-Qudah said the government's alternative routes comprise using Syrian ports for transport into Jordan, redirecting goods through other ports, and employing the overland corridor from Europe through Turkey and Syria to Jordan.
Container traffic through Bab al-Mandab toward the Port of Aqaba is currently proceeding normally, Al-Qudah said, adding that the government has put the contingency options in place as a precaution. He noted that container throughput at Aqaba to 1 September this year was more than 5% higher than the same period last year, which he said reflected the port's capacity to handle current pressures.
The meeting was titled "On the Royal Visit to China and New Opportunities for Economic and Investment Cooperation and the Role of the Private Sector under the Free Trade Agreement with the United States."
Al-Qudah said total exports rose 14.5% in the first half of this year, with national exports up 6.2% and re-exports up 44%. He described the figures as significant given Jordan's ambition to establish itself as a regional trade hub.
On new markets, the minister said Jordan plans to sign two preferential trade agreements before the end of the year: one with Rwanda in East Africa and one with Uzbekistan. He also said that during a recent visit to the Russian Federation, Jordan began preliminary discussions on launching negotiations for a free trade agreement, or at minimum a preferential trade agreement, with Moscow.
Regarding US tariffs, Al-Qudah said Jordan entered negotiations with Washington from the day the US administration announced additional tariff measures. He said the arrangement reached is not a new agreement but an addendum to the existing Jordan-US Free Trade Agreement, which remains in force unless both countries choose to terminate it.
Under the arrangement, Jordan secured a 10% surcharge on its exports, one of the lowest rates applied to affected countries, Al-Qudah said. More than 60% of Jordanian exports to the United States will continue to enter under standard tariff terms, with the remainder subject to the 10% surcharge.
The minister said the government plans a series of visits this year and early next year to countries whose companies hold foreign investments in Jordan's garment sector, with the aim of encouraging expansion. The government is also considering creating a dedicated zone with the infrastructure the sector requires.
On the recent Royal visit to China, Al-Qudah said the eight-day trip included meetings with more than 45 Chinese companies and three business-leader forums in the cities visited. The visit focused on attracting Chinese investment to Jordan, opening export opportunities for Jordanian products in the Chinese market, and increasing Chinese tourism to the Kingdom.
The government has started talks with the Chinese side on integrating Chinese electronic payment systems into Jordan before the end of the year, Al-Qudah said. Preparations are also under way for a Chinese New Year celebration at Petra. A direct Royal Jordanian flight to China is scheduled to launch in November, with plans to add a second Chinese city destination later.
Sectors of interest during the China visit included automotive manufacturing, pharmaceuticals, information technology, and infrastructure, the minister said.
In a separate announcement, Al-Qudah said the government has begun work on a group of major projects with an expected combined investment of around $10 billion over the next three to four years, to be implemented in partnership with the private sector under the Public-Private Partnership Law. Projects already within that framework include schools, health centres, and hospitals.
He added that the government will issue a tender before the end of this year for a gas pipeline from the Risha area to the rest of the Kingdom, and anticipates that Jordan will achieve approximately 80% gas self-sufficiency by the end of 2028.
Jordanian Businessmen Association Chairman Ayman Alawneh said the Royal visit to China was particularly important given China's standing as a leading economic, industrial, and technological power. He said the visit created openings in investment, industry, energy, technology, transportation, and logistics, and offered a platform for Jordanian companies to strengthen their presence in Asian markets.
Alawneh also said the Jordan-US Free Trade Agreement has over the years given Jordanian products access to the American market, supported exports, attracted export-oriented industrial investment, and positioned Jordan as a destination for companies targeting US consumers.
This article was originally written in Arabic by Tariq Al-Da'aja for Al Ghad.
