Amman, Oct. 8 (Petra) -- New government incentives for automobile manufacturing and assembly in the Zarqa Development Zone could attract high-value investments, expand Jordan's industrial base and create jobs, Amman Chamber of Industry President Fathi Jaghbir said Thursday.
The Cabinet on Tuesday approved a package of incentives and exemptions tied to investment size, local manufacturing and assembly operations, and job creation for Jordanians, aimed at increasing local added value and strengthening the Kingdom's competitiveness.
The decision comes amid growing regional competition to attract automotive investments, as international companies expand manufacturing and assembly operations.
Speaking to the Jordan News Agency (Petra), Jaghbir said the initiative aligns with the Economic Modernization Vision and could pave the way for an integrated automotive industry extending beyond vehicle assembly to include supporting industries, technology transfer and specialized employment opportunities.
He noted that automobile manufacturing has extensive links with engineering, electrical, metal, plastics, rubber and chemical industries, creating opportunities for existing Jordanian manufacturers to enter automotive supply chains and benefit from new investments.
Jaghbir identified export diversification as a major potential benefit, noting that Jordan's established industrial base, export experience and network of free trade agreements could help locally manufactured vehicles and automotive components reach regional and international markets, subject to applicable market access requirements and rules of origin.
He explained that developing the capacity to manufacture and export vehicles, spare parts and related industrial inputs would strengthen Jordan's integration into regional and global value chains while expanding export opportunities across several industrial sectors.
Jaghbir stressed that linking incentives to investment size and local manufacturing levels, alongside encouraging supporting industries, could motivate investors to expand domestic production and gradually move from assembly to more advanced manufacturing operations.
He added that incentives covering energy costs, land, logistics services and taxation could improve project feasibility and strengthen Jordan's ability to attract capital-intensive industries requiring advanced technology.
To maximize the economic and export benefits, Jaghbir called for attracting internationally experienced manufacturers with strong technological and marketing capabilities, while developing local suppliers and training skilled technical personnel to establish a sustainable and competitive production base.
He said successful investments could provide a model for expanding into other advanced industries and strengthen Jordan's position as a regional industrial hub.
Jaghbir affirmed the readiness of the Jordan and Amman chambers of industry to connect investors with domestic manufacturers and facilitate industrial integration, supporting export growth and increasing the industrial sector's contribution to the national economy.
//Petra// AJ
