Amman, Nov 8 (Petra) – The Jordan Chamber of Industry said on Saturday the Kingdom ranked first in the Arab world and 27th globally in the contribution of manufacturing industries to gross domestic product (GDP).
The ranking, based on a United Nations Industrial Development Organization (UNIDO) classification, reflects "a mature" national production base and deep industrial value chains, compared to many economies that rely on primary production with low added value, according to a paper released by the chamber.
It indicated that the industrial sector's added value in the Kingdom reached JD8.6 billion last year, compared to 4.4 billion dinars in 2010, a cumulative increase exceeding 94 percent and an annual growth rate of nearly 5 percent in the past decade.
This development reflects advancement production capacities, increased efficiency of manufacturing processes, and expanding economic links between industry and other sectors, it pointed out, stressing that the industrial sector continues to play a pivotal role in supporting the economy and enhancing growth.
The paper indicated that the industrial sector contributed 22.6% to the GDP in 2024, distributed as follows: manufacturing (17.7%), extractive industries (3.3%), and electricity and water (1.6%).
It underscores the industrial sector's status as one of the largest and key pillars of the national economy in terms of direct and indirect contributions to growth, employment, and exports.
The report also revealed a disparity in sub-sectors' contribution to GDP as the food and beverage sector led the way with 5.6% of GDP, due to its extensive production base and geographical distribution across the Kingdom's governorates.
It was followed by engineering and electrical industries, at 4.8%, and the mining industries, at 3.3%, which are key in extracting and transforming raw materials into economically valuable products.
The report also revealed that the industrial sector contributed 17.7% to GDP, distributed as follows: manufacturing at 17.7%, extractive industries 3.3%, and mining industries 3.3%.
Regarding the contribution of small- and medium-sized enterprises (SMEs), the pharmaceutical industry accounted for about 1.9% of GDP, textiles 1.8%, and chemical and cosmetics 1.5%, reflecting a diverse industrial base and multiple local production chains.
On the percentage of added value from total output, the engineering and electrical industries led with 57.2%, underlining a high level of knowledge and technology content in this sector. It was followed by medical and pharmaceutical industries, at 447.7%, and then mining industries at 44.3%, reflecting these sectors' ability to generate higher added economic value compared to others.
The Chamber stressed that enhancing industrial added value directly contributes to creating higher-quality job opportunities, expanding factory production capacities, and increasing the competitiveness of Jordanian products in international markets, particularly in sectors with high local content.
It emphasized the need to boost vertical integration within production chains, reduce operating costs, and ease industrial facilities' access to international conformity and standards certifications to open new markets for Jordanian exports.
The report also stressed investment in research, development, and industrial innovation as key tools for increasing added value, enhancing the competitiveness of national industry, and achieving sustainable growth.
//Petra//SS
