Tuesday, 02 January 2024 12:17 GMT

Jordan's Leather And Garment Industry Expands Global Reach, Exports To 90 Countries


(MENAFN- Jordan News Agency)


Amman, June 10 (Petra) -- Jordan's leather and garment industry - one of the region's oldest industrial sectors - has significantly broadened its global export footprint, now reaching nearly 90 countries. This milestone underscores the sector's international competitiveness and its reputation for high quality.
Established with the launch of the country's first tannery in 1921, the industry has long been a pillar of Jordan's industrial base. Today, it enjoys strong backing from the Jordanian government under the leadership of His Majesty King Abdullah II, further reinforced by the Kingdom's network of free trade agreements with major global economic blocs positioning the sector as a magnet for foreign direct investment.
Over the past decade, the sector has witnessed robust growth, with total investment surging by 150%, from $420 million to over $1 billion.
Jordan's Economic Modernization Vision has outlined ambitious targets for the industry, including:
- Increasing value-added output by 10% annually, aiming to reach $1.8 billion;
- Boosting total production to $8.8 billion by 2033, up from $5.5 billion today;
- Attracting $3.1 billion in new investments over the coming years; and
- Creating tens of thousands of new jobs.
The number of enterprises operating in the sector has also seen a dramatic increase, rising from 600 at the end of the 20th century to around 1,000 today supported by an expanding network of production branches across various governorates.
In 2024, the sector posted its highest export performance since 2010, with total exports exceeding $2.4 billion a year-on-year increase of more than 24% accounting for 21% of Jordan's total industrial exports.
Speaking to the Jordan News Agency (Petra), Ihab Qadri, representative of the leather and garment industries at the Jordan Chamber of Industry, described the growth as "a clear indication of the sector's resurgence and revitalization in international markets, despite ongoing regional and global economic challenges."
Qadri attributed the strong performance to a rebound in demand from the U.S. which accounts for approximately 80% of the sector's total exports as well as growing penetration into European markets such as the Netherlands and Belgium.
"This momentum reflects a promising phase for the industry," Qadri noted, "one that requires building on recent achievements by enhancing the competitiveness of local products, expanding into non-traditional markets, and diversifying export destinations."
He highlighted that the sector still holds untapped export potential valued at over $752 million, according to estimates from the International Trade Centre a figure that aligns with the targets set by Jordan's Economic Modernization Vision.
The industry is also a key driver of employment, currently providing over 96,000 jobs with 31% held by Jordanians and an annual growth rate of 8% in employment figures.
The Vision targets the creation of 149,000 new jobs within the sector as part of a broader goal to generate one million job opportunities for Jordanians.
Qadri also pointed to significant progress in the establishment of an integrated industrial cluster for the leather and garment sector a project supported by the International Finance Corporation.
Feasibility studies have been completed, and efforts are now focused on finalizing location selection, defining incentive packages, and launching promotional campaigns to attract investment and local workforce engagement.
He emphasized that this initiative is especially crucial given the sector's reliance on imported raw materials, which represent around 60% of total production costs.
The cluster is expected to address key supply chain gaps, reduce lead times, and enhance Jordan's positioning as a competitive manufacturing and export hub.
Qadri further stressed the importance of technological innovation, sustainability practices, and deeper integration with supporting sectors such as logistics and transport, to maintain the sector's upward trajectory and elevate Jordan's standing in regional and global markets.
Realizing these goals, he concluded, will require the full implementation of the Economic Modernization Vision's initiatives particularly the sector-specific strategy outlined under Jordan's National Industrial Policy with a focus on improving productivity, increasing value-added, and fostering public-private collaboration to drive long-term growth.

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