By : Omar Al-Qaryouti
CEO , Jordan Exports
Jordan Daily – Despite Jordan’s small size, limited natural resources, and constrained energy and water sources, it boasts a strategic location at the heart of the Middle East, bridging the Asian and African continents. This makes it a bustling commercial hub, facilitating trade between the neighboring countries.
The flourishing industrial and commercial activities in Jordan, coupled with its young workforce and its stability amidst turbulent borders marked by wars and conflicts, have all been essential factors contributing to the development of Jordanian exports to neighboring countries, spanning from the Levant and the Arabian Gulf to the European Union and beyond.
The Jordanian export sector is a key element in supporting the national economy, providing vital support for maintaining economic stability and achieving sustainable development. The Jordanian economy faces several challenges, including global economic slowdown, unstable regional conditions, and increasing financial pressures. In this context, the importance of Jordanian exports as a lifeline becomes evident, enhancing economic resilience and providing significant revenue sources.
One of the main aspects that make exports pivotal in boosting the Jordanian economy is the expansion of foreign markets. By diversifying and expanding the customer and business partner base, Jordan can mitigate the impact of economic disruptions in domestic markets, achieve a balance between local and global markets, and enhance economic stability and strength.
Moreover, exports serve as a means to increase production and revenues. By expanding export scope, local companies and industries are incentivized to improve the quality and technologies of their products, making them competitive on the global stage. This improvement in production enhances efficiency and contributes to the development of local industries.
Jordan has made remarkable progress in diversifying its exports, with a mix of traditional and non-traditional sectors contributing significantly to the overall economic health. For instance, Jordan has recently become a leading center for pharmaceutical manufacturing in the region, with Jordanian pharmaceutical companies gaining international reputation. In 2023, Jordanian pharmaceutical exports recorded a 19% growth, with the number of exported pharmaceutical items reaching 2,480 varieties valued at 616.3 million dinars, compared to the 2,178 varieties valued at 514.7 million dinars in 2022. The production of generic drugs and medical products has not only increased export revenues but also played a crucial role in meeting healthcare needs in the region.
Additionally, Jordan has succeeded in developing a thriving agricultural sector despite its arid climate and desert soil, with Jordanian agricultural products such as fruits, vegetables, and olive oil finding markets both domestically and internationally. Agricultural exports from Jordan rose by 12.5% compared to 2020, contributing not only to income generation but also supporting livelihoods in rural areas, thereby contributing to social and economic development.
On another front, the Jordanian garment, textile, and leather industry have witnessed continuous growth and development as one of the country’s leading export sectors. Jordanian clothing brands have gained reputation for quality and style among consumers in various international markets. The garment, textile, and leather sector contribute approximately 8% to Jordan’s GDP, with the clothing industry being the largest sector of Jordanian exports in 2021, accounting for 20% of total national exports. By mid-2022, this percentage had reached 17%, indicating sustained growth in this vital industry and the need to support it through various means.
It is worth mentioning that the Jordanian government places great emphasis on encouraging and financing export-oriented companies and industries through providing facilitations, financial, and tax support. This enhances companies’ ability to compete in global markets and encourages the development of new and innovative products. Additionally, there are other programs supporting export activities in the kingdom, such as the USAID Economic Reform Activity , which provides grants and technical assistance to the Jordan Exports Company to support Jordanian exports and solidify its position as a major provider of export services in Jordan.
In conclusion, Jordanian exports serve as a lifeline for the country’s economy, providing stability, growth, and resilience in facing diverse challenges while promoting economic stability and stimulating sustainable development. Despite the geopolitical and economic challenges facing the export sector, government initiatives, coupled with a focus on innovation and technology, position Jordan favorably for continued success on the global stage. With the country navigating through the complexities of the international market, the strength of the export sector will remain crucial in shaping Jordan’s economic trajectory in the years to come.
