Auto Incentives Open New Investment Prospects In Zarqa

Zarqa, Oct. 8 (Petra) -- New government incentives for the automotive manufacturing and assembly industry in the Kingdom are opening promising investment and industrial prospects, strengthening the industrial sector's ability to attract high-quality investments, increase added value, expand production and export capacity, and ultimately reinforce Jordan's position on the global automotive industry map.

President of the Zarqa Chamber of Industry Fares Hammoudeh told the Jordan News Agency (Petra) that the package of incentives approved by the government to attract investment in automotive manufacturing and assembly in Zarqa represents one of the most important investment-supporting decisions, particularly as it takes into account the specific nature of the automotive industry and its production requirements. He said the incentives give Jordan an opportunity to establish an automotive industry with a global presence as part of its economic and industrial system.

He noted that investment in the automotive sector can absorb large numbers of local workers across various job levels and specializations, particularly technicians and engineers, both men and women. He pointed out that the rapid technological development of modern automotive manufacturing requires qualified human resources capable of working with advanced technologies, thereby enhancing employment opportunities and contributing to lower unemployment rates.

Hammoudeh added that the nature of the incentives encourages investment toward full-scale manufacturing and assembly rather than limiting operations to semi-knockdown assembly, which would increase the industry's added value and maximize its impact on the national economy, while also supporting key economic indicators, promoting further growth, and strengthening the capacity to increase exports.

He explained that global automotive manufacturers operating in the Kingdom will be able to benefit from free trade agreements concluded with major countries and economic blocs, enhancing the ability of locally manufactured products to access global markets and creating opportunities to expand and diversify Jordan's export base.

He noted that the incentive package has been designed as an integrated system, covering benefits associated with the Zarqa Development Zone, handling services at Aqaba Port, infrastructure and labor costs, as well as tax exemptions on vehicles produced and sold in the Jordanian market and exemptions granted to supporting industries. The package also includes other incentives covering various stages of the value chain and production processes.

Hammoudeh stressed that the integration of these incentives enhances the attractiveness of Jordan's investment environment to global companies and paves the way for establishing an integrated automotive industrial ecosystem encompassing manufacturing, supporting industries, and the various links of the production chain, thereby maximizing the sector's economic and investment impact.

//Petra//WH

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