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Business & Economy

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  3. Industrial Sector Records Steady Growth, Strengthening Investment Climate and Job Creation

Industrial Sector Records Steady Growth, Strengthening Investment Climate and Job Creation

19/10/2025 | 12:29:16

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Amman, Oct. 19 (Petra) -- The industrial sector is on an upward trajectory, marking eight consecutive months of growth this year, a performance that underscores renewed investor confidence, economic stability, and the sector’s expanding role in driving national development.

According to data from the Department of Statistics, the industrial production index rose by 1.76 percent during the first eight months of 2025 compared to the same period in 2024, signaling sustained recovery across key manufacturing industries. Experts say the trend supports the objectives of the Economic Modernization Vision, which places the industrial sector at the heart of Jordan’s transformation toward a productive, export-oriented economy.

Ihab Qadri, representative of the leather and garment industries at the Jordan Chamber of Industry, said the growth reflects a genuine increase in factory output rather than price fluctuations. "Jordanian industry is regaining its momentum, operating at higher production capacity to meet rising local and international demand," he explained. He added that the stable monetary and fiscal environment has reinforced investor confidence, encouraging reinvestment and expansion.

The sector’s resilience was evident in August, which saw a 2.07 percent increase in output compared to the same month in 2024. The rise was driven by higher production in chemical, pharmaceutical, food, and engineering industries, supported by strong export demand from Iraq, Saudi Arabia, and regional markets.

Fawaz Al-Shakaa, representing the handicrafts sector at the Amman Chamber of Industry, noted that the industrial index measures real production quantities, offering a more accurate picture of sector performance. He said the growth confirms that Jordan’s factories are expanding their output base despite global challenges such as elevated energy costs and disrupted supply chains.

Industry experts also highlighted that updating the index’s base year to 2018 provides a more realistic reflection of current economic structures and production trends.

Mohammad Al-Samadi, Deputy CEO of Al-Emlaq Industrial Group and board member of the European Chamber of Commerce in Amman, described the steady growth as evidence of "a resilient and adaptive industrial base." He urged policymakers to continue reducing energy and logistics costs and to enhance access to financing for industrial investors, stressing that "the national industry remains a cornerstone of sustainable economic growth." Economist Dr. Ghazi Al-Assaf said the sector’s consistent performance demonstrates its ability to sustain recovery despite regional and global challenges. With the industrial sector contributing around 18 percent of Jordan’s GDP, he noted, it remains a key pillar of job creation, export growth, and macroeconomic stability.

"The continued rise in industrial output sends a clear message to investors Jordan’s economy is stable, its industries are competitive, and its growth outlook is improving," Al-Assaf added.

//Petra// RZ

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