The importance of Jordan’s industrial sector is considerable. It accounts for about 60% of the total investments benefiting from the Investment Law and contributes significantly to the strength of the Jordanian Dinar and to the exchange rate’s stability through supplementing the Kingdom's official reserves with foreign currency (with more than US$ 8.0 billion a year in 2017). Moreover, the industrial sector contributes to the consolidation of financial stability of Jordan by providing the treasury with more than JOD 1 billion annually in direct or indirect taxes, as each Dinar invested in industry provides the treasury with more than eight pennies of tax revenues.
The Importance of the industry Sector
The importance of the industrial sector can be traced to Jordan’s strong competitiveness for industrial investors. Jordan’s location within the Middle East and North Africa (MENA) region, supported by the variety of free trade agreements (FTAs), offering access to 1.5 Billion U.S Dollars consumer across more than 160 countries, enables the country to be a strategic trade route to many of its neighbouring countries and regions. Continuous efforts have been made to ensure easy access of Jordanian products to international markets. The latest has been the agreement between Jordan and the EU with regards to the Relaxation of Rules of Origin over the next ten years as per July 2016. The agreement covers most industrial products, which are expected to have greater access to the EU market, such as textiles, apparel, electrical and home appliances, chemical products, plastic products, and furniture.
Industrial Sector Indicators
|Direct contribution to GDP (%)||Indirect contribution to GDP (%)||Number of employees ||Industrial exports (Billion US$)||Number of industrial firms||Contribution to the national workforce (%)||Contribution to national exports (%)