Economic modernization priorities in the industrial sector

Jordan Times

25-05-2025

The recent Royal visit to three factories in Al-Muwaqqar Industrial City underscored the growing importance Jordan places on the industrial sector as a key engine of economic growth. This focus aligns with the objectives of the Economic Modernization Vision, which serves as a national roadmap for sustainable development and job creation.
The visit sent a clear economic message: it represents direct support for existing investments—both local and foreign—and reflects core priorities of the vision. These include stimulating investment, boosting exports, empowering the Jordanian workforce, and increasing value-added production within supply chains.
The diversity of the factories visited—ranging from food production to packaging and garment manufacturing—demonstrates the vision's goal to diversify the production base and reduce reliance on traditional sectors. Supporting such manufacturing activities contributes to higher growth rates and the expansion of export markets.
Equally important is the sector's capacity to employ Jordanians. These factories currently employ over a thousand Jordanians, with high representation in both administrative and technical roles. This highlights the commitment to human capital development and increasing private-sector employment, especially outside the capital, which helps address imbalances in the labor market.
A notable feature of these factories is their strong export orientation. They rely heavily on access to regional and global markets, reinforcing the vision's strategic objective of doubling industrial exports and enhancing the competitiveness of Jordanian products. This export-driven approach is essential for increasing foreign currency earnings, reducing the trade deficit, and supporting broader macroeconomic stability.
The visit also reflects a clear policy direction toward promoting industrial decentralization. By encouraging investment in industrial cities beyond Amman—such as Al-Muwaqqar, which benefits from modern infrastructure and attractive incentives—the vision seeks to distribute economic activity more equitably across the country and foster more inclusive growth.
Particular attention is being paid to industries that generate high value, whether through food processing, specialized packaging, or manufacturing sports apparel for export. These sectors support the development of industrial value chains, promote integration between small and large enterprises, and encourage innovation and the use of modern technologies—critical components of the vision's competitiveness pillar.
The royal visit delivered a strong message of national support for the industrial sector as a key driver of economic transformation. It emphasized the need to continue improving the business environment, streamlining procedures, and expanding investment incentives. It also highlighted the importance of collaboration between the public and private sectors in implementing development projects that generate employment and contribute to social and economic stability.
More than a ceremonial tour, the visit was a strategic signal that industry will remain central to Jordan's national policies. Supporting productive enterprises is essential to driving growth and achieving the broader goals of economic transformation.
Raad Mahmoud Al-Tal is head of Economics Department – the University of Jordan – [email protected]