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  3. Industry Leaders Advocate Strategic Localization Of Raw Materials To Shield National Economy From Regional Volatility

Industry Leaders Advocate Strategic Localization Of Raw Materials To Shield National Economy From Regional Volatility

19/04/2026 | 12:21:56

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Amman, April 19 (Petra) – Leading figures in Jordan’s industrial sector have identified the localization of raw materials and production inputs as a high-priority strategic imperative. Speaking to the Jordan News Agency (Petra), industry representatives asserted that domesticating these supply chains is essential for fortifying national economic security and ensuring industrial sustainability amidst escalating regional tensions and global logistical instability.

The push for self-reliance aligns with the directives of His Majesty King Abdullah II, who has consistently championed the localization of industries and the deepening of national production as core pillars of the Economic Modernization Vision. By manufacturing inputs locally, the sector aims to insulate itself from the price fluctuations and supply bottlenecks inherent in global shipping and currency markets.

Industrial Footprint and Value Addition Eng. Fathi Jaghbir, Chairman of the Jordan Chamber of Industry, noted that Jordan already possesses a robust manufacturing foundation comprising 18,000 facilities producing over 2,500 products with a total output value of 20 billion dinars. He emphasized that the focus is now shifting toward vertical and horizontal integration within industrial value chains.

Key sectors currently providing domestic inputs include: – Chemicals and Mining: Utilizing phosphate and potash for fertilizers, acids, and intermediate chemicals.

– Plastics and Packaging: Providing critical inputs for engineering and food industries.

– Construction: Sustaining the building sector through domestic cement and steel production.

Efforts are currently underway to expand into textile manufacturing and advanced packaging to further reduce import dependency. Jaghbir noted that while some advanced technologies still require imports, these gaps represent "promising investment opportunities" for deepening intermediate industries.

Agro-Industrial Integration Senator Ahmed Al-Khudari, President of the Jordan Exporters Association, highlighted the critical need for self-sufficiency exposed by recent regional shifts. He pointed to successful initiatives in the food industry, where domestic agriculture is increasingly serving as the primary source of raw materials.

Investors are reportedly showing increased interest in specialized agricultural projects designed to supply factories directly. Crops such as tomatoes for processing, freekeh, and medicinal herbs are being cultivated under direct industrial supervision to ensure compliance with international quality standards and pesticide regulations, thereby enhancing the global competitiveness of Jordanian exports.

Building a "Smart" Industrial Model Eng. Mohammad Al-Smadi, Deputy General Manager for Business Development at Giant Industrial Group, argued that while total independence from imports is unrealistic in certain sectors – such as polymers tied to the oil and gas industry – Jordan must maximize value in sectors where it holds a comparative advantage.

"The current phase requires a swift transition from theoretical frameworks to practical execution," Al-Smadi stated. He called for directing investments toward specific industries that reduce external reliance and advocated for linking government incentives to the level of genuine industrial integration achieved by companies.

The consensus among industrial leaders remains that Jordan’s path to resilience lies in a "smart" industrial model. By leveraging natural resources and geographical positioning, the Kingdom aims to transform regional challenges into an opportunity to reposition itself as a flexible, sustainable, and self-reliant industrial hub.

//Petra// AA

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