Amman, Oct. 20 (Petra) -- The national engineering industries sector aims to increase its total exports to JD 2.5 billion by 2033 and create 15,000 direct jobs by 2031 under a strategy designed to strengthen industrial competitiveness, expand domestic production and attract investment.

The Engineering Industries Sector Strategy for 2026–2029 also targets increasing exports from core engineering industries to JD 1.043 billion by 2029, alongside efforts to boost local value added and attract industrial investment.

Prepared by the Ministry of Industry, Trade and Supply with support from the Economic Reform Program and in partnership with the Jordan Chamber of Industry and relevant public- and private-sector stakeholders, the strategy provides an implementation framework for advancing the objectives of the Economic Modernisation Vision and the National Industrial Policy.

The engineering industries sector is an important contributor to industrial growth and economic competitiveness. It comprises approximately 4,800 establishments and provides around 35,200 direct jobs. In 2024, exports from core engineering industries reached JD 639.2 million, while total sector exports amounted to JD 1.3648 billion, highlighting the sector’s established production base and potential for further expansion.

A central priority is to increase domestic manufacturing value added by strengthening local content and replacing imported products with locally manufactured alternatives. The strategy also seeks to double gross fixed capital formation in the metal products and electrical equipment subsectors by 2029, while ensuring that women account for at least 20 percent of newly created jobs.

The strategy identifies several challenges facing the sector, including high energy costs, limited export financing options, gaps in quality assurance and certification, vulnerable supply chains, weak links between manufacturers and local suppliers, and the concentration of some exports in a limited number of markets.

At the same time, it highlights opportunities arising from changes in global supply chains, the benefits of free trade agreements, domestic demand generated by major national projects and regional reconstruction efforts, particularly in Syria. Preparing Jordanian manufacturers to meet environmental and trade requirements in international markets is another key priority.

The strategy’s vision is to position Jordan as a trusted regional partner in high-value engineering products that meet recognized quality standards. It aims to strengthen product quality, precision and technical reliability while enhancing manufacturers’ ability to serve domestic, regional and international markets.

Implementation is organized around three main pillars. The first focuses on strengthening local value chains, developing domestic suppliers, increasing local content and promoting import substitution in major national projects. The second aims to build institutional and workforce capabilities, upgrade technical infrastructure, improve skills, and promote innovation and applied research and development.

The third pillar focuses on diversifying export markets and strengthening the international positioning of Jordanian engineering products. Priorities include capitalizing on reconstruction opportunities in Syria, maximizing the benefits of free trade agreements, recovering markets and expanding access to overseas destinations.

The implementation portfolio includes five interconnected initiatives: a local content program for major national projects; the Zarqa Engineering Innovation Centre; a green industry program supporting compliance with the European Union’s Carbon Border Adjustment Mechanism (CBAM); a "Made in Jordan" brand for engineering industries, alongside a Syria reconstruction corridor and measures to safeguard the benefits of free trade agreements; and initiatives to attract specialized investment in engineering industries.

Metal products, electrical equipment and metal furniture are given particular priority because of their contribution to exports, import substitution, domestic value added, investment and employment. Targeted measures will also address other subsectors, including electronics, machinery, basic metals and jewellery, according to their respective opportunities and challenges.

The strategy emphasizes that achieving its targets will require coordination among government agencies and institutions involved in industrial development. This cooperation will support the implementation of initiatives, monitoring of performance indicators, stronger industrial competitiveness, increased investment and a broader international presence for Jordanian engineering products.

Earlier this month, the Ministry announced the launch of three sectoral strategies for 2027–2029 covering engineering industries, food industries, and chemical industries and cosmetics. The initiative forms part of broader efforts to improve industrial productivity and competitiveness and advance the high-value industries pillar of the Economic Modernisation Vision.

The strategies aim to develop the targeted industries by identifying priorities, initiatives and projects with significant economic impact and linking them to clear performance indicators and measurable targets. The overall objective is to increase the industrial sector’s contribution to economic growth, exports, investment and employment.

//Petra// WH