Amman, Dec. 30 (Petra) - Jordan’s industrial sector delivered a strong and sustained performance in 2025, accounting for 39% of overall economic growth in the second quarter, reinforcing its role as a key driver of the kingdom’s expansion, according to the Jordan Chamber of Industry.

Industrial output translated into robust export gains, with manufactured exports rising 8.9% year-on-year in the first nine months of 2025 to 6.4 billion dinars, Chamber President Fathi Jaghbir said. Industrial goods accounted for 92% of Jordan’s total national exports over the period.

Eight out of 10 industrial subsectors posted export growth, underscoring the breadth of expansion and the sector’s ability to respond to external demand. Food manufacturing, construction materials, packaging, and engineering industries recorded notable increases, supported by wider market diversification across Europe, Arab states and Africa.

Jordanian industrial products reached more than 144 export destinations in 2025, including new and non-traditional markets in Asia and Africa such as Ethiopia, Djibouti, Thailand, the Philippines and Pakistan, while maintaining a strong foothold in traditional Arab markets.

Arab countries absorbed about 42% of total industrial exports. Saudi Arabia remained Jordan’s largest partner at 955 million dinars, followed by Syria with nearly 174 million dinars, reflecting a year-on-year increase of about 138 million dinars. Combined exports to Iraq and Lebanon totaled roughly 745 million dinars.

Exports to advanced industrial markets also strengthened, with shipments to India reaching about 859 million dinars and exports to Italy totaling approximately 141 million dinars, signaling rising demand for Jordanian products in high-standard markets.

Data from the Department of Statistics showed the industrial production index rose 1.47% in the first nine months of 2025 compared with the same period a year earlier, with output increasing in six of 10 subsectors. Construction industries led growth at 2.7%, followed by packaging at 2.3% and food and livestock-related industries at 1.7%.

The sector generated more than 6,000 net new jobs in manufacturing during the first nine months of the year, lifting total industrial employment to about 270,000 workers. Nearly half of the new positions were created in food manufacturing, driven by export-led expansion.

Jaghbir said industrial exports remain among the economy’s highest generators of value added, with each dinar invested in production yielding approximately 2.17 dinars in economic value through linkages with employment, finance, logistics and supply chains.

Industrial exports also played a central role in narrowing the trade deficit by improving export coverage of imports, supporting macroeconomic stability and GDP growth.

Investment activity accelerated across multiple subsectors in 2025, particularly in food, agricultural processing, chemicals, pharmaceuticals, mining, textiles and leather, as manufacturers expanded production lines, upgraded equipment and increased capacity to meet rising domestic and external demand.

The sector also benefited from government measures aimed at strengthening competitiveness, including freezing tariff reductions on selected goods while maintaining exemptions for production inputs, reinstating customs tariffs on products with local substitutes, and imposing a 16% customs duty on postal parcels to rebalance traditional and e-commerce trade.

Additional reforms targeting investment facilitation, cost reduction and industrial-zone incentives further supported expansion and export capacity, Jaghbir said.

Looking ahead, the industrial sector aims to build on trade openings resulting from King Abdullah II’s economic diplomacy to access new non-traditional markets and further diversify exports in line with the Economic Modernization Vision.

//Petra// AA