JEDDAH: Jordan’s exports to Arab nations surged 13 percent year on year to 2.29 billion Jordanian dinars ($3.23 billion) in the first eight months of 2024, according to a top executive.
Fathi Jaghbir, president of the Jordan and Amman Chambers of Industry, noted that despite various challenges, the country has successfully entered over 144 international markets, demonstrating the resilience and competitiveness of its industrial sector, the Jordan News Agency reported.
Jaghbir noted that while overall exports dipped 2.2 percent compared to the same period last year, Jordanian industries have identified new opportunities in less conventional markets, including Belgium, South Korea, and Ukraine, as well as Norway, Myanmar, Latvia, and Luxembourg.
This comes as a recent World Bank report indicated that Jordan’s economy has shown resilience in early 2024, following real gross domestic product growth of 2.7 percent last year.
This growth is attributed to a broad economic base, with significant contributions from manufacturing, agriculture, and services sectors, particularly in restaurants and hotels.
Jaghbir highlighted that growth in Arab markets was especially prominent in Iraq, Saudi Arabia, and Egypt, with respective increases of 51 percent, 11 percent, and 38 percent.
Exports to North America also rose by over 12 percent, reaching 1.56 billion dinars, fueled by a 14 percent increase in demand from the US market.
The executive noted that the transition to non-traditional markets has yielded promising results, particularly in Ukraine, which saw an increase of 17 million dinars; Belgium, with 19 million dinars; and Norway, with 9 million dinars. Italy and Finland recorded increases of 8 million dinars and 6 million dinars, respectively.
He emphasized that the transition to non-traditional markets has also shown promising results, with European markets experiencing significant growth, particularly in Ukraine, which saw an increase of 17 million dinars; Belgium, with 19 million dinars; and Norway, with 9 million dinars.
Additionally, Italy and Finland recorded increases of 8 million dinars and 6 million dinars, respectively.
Exports to South Korea and Japan rose by 82 percent and 18 percent, respectively, with Jordanian products making inroads into markets such as Myanmar, Latvia, and Luxembourg.
Despite regional challenges and political tensions that could impact trade, the president highlighted the resilience of Jordan’s industrial sector, which has proven capable of adapting to complex global conditions.
Jaghbir highlighted that significant growth was noted across various industrial sectors, with the leather and garments sector leading the way with an increase of over 196 million dinars, marking a 20 percent growth rate. The food and supply sector expanded by more than 125 million dinars, reflecting a 31 percent growth.
The medical supplies and therapeutic products sector maintained strong performance, growing by 52 million dinars, or 16 percent.
Additionally, exports from the plastics and rubber sector rose by over 17 million dinars, translating to a 17 percent growth rate.
Conversely, some sectors, including construction, mining, and engineering, faced export declines due to global price fluctuations and shifting regional demand.
The president concluded with optimism for further expansion into new markets, contingent on overcoming current obstacles and enhancing promotional efforts.
Meanwhile, in a separate meeting, Minister of Industry, Trade, and Supply Yarub Qudah emphasized the government’s commitment to enhancing the competitiveness of Jordanian products and expanding their global reach.
Speaking with members of the Jordan Exporters Association, he reiterated the government’s dedication to supporting national exports and promoting growth across various sectors.
The minister highlighted efforts to capitalize on Jordan’s free trade agreements with numerous countries, aiming to boost exports and overcome sectoral challenges. He noted that these initiatives seek to enhance international market penetration, drive economic growth, and generate additional job opportunities.
He discussed recent Cabinet-approved policies designed to support the industrial and export sectors, including a decision to exempt profits from service exports from income tax, aimed at stimulating growth in service-oriented exports.
Qudah outlined various government support programs for the industrial sector, including an industry support fund and initiatives from the Jordan Enterprise Development Corp. and Jordan Exports Co.
He underscored the government’s dedication to fostering a productive partnership with the private sector, recognizing its critical role in economic activity and its ability to offer innovative solutions to address economic challenges.
Members of the Jordan Exporters Association expressed appreciation for the government’s continued collaboration with the private sector and welcomed the tax exemption on service exports, noting that this decision would positively impact exports and strengthen the national economy.
