Jordan ranks first in Arab world for manufacturing’s share of GDP, report shows

The Jordan Chamber of Industry (JCI) announced on Saturday that Jordan has topped Arab nations and ranked 27th globally in the share of manufacturing industries contributing to gross domestic product (GDP), according to the latest United Nations Industrial Development Organization (UNIDO) classification.

In a detailed paper, the JCI said the achievement reflects “a mature national production base and deep industrial value chains,” distinguishing Jordan’s economy from others that depend heavily on low-value primary production.

The chamber reported that the industrial sector’s added value reached JD8.6 billion in 2024, up from JD4.4 billion in 2010, marking a 94 percent cumulative increase and an average annual growth rate of around 5 percent over the past decade.

“This progress highlights the sector’s improved productivity, technological advancement, and stronger integration with other parts of the economy,” the paper said, noting that industry remains one of Jordan’s key economic pillars.

According to the report, the industrial sector contributed 22.6 percent to the GDP in 2024, distributed among manufacturing (17.7 percent), extractive industries (3.3 percent), and electricity and water (1.6 percent).

The food and beverage sector was the largest single contributor, accounting for 5.6 percent of GDP, followed by engineering and electrical industries (4.8 percent) and mining (3.3 percent). Together, these industries highlight Jordan’s broad and geographically diverse production base.

The paper also underscored the growing role of small and medium-sized enterprises (SMEs), with pharmaceuticals contributing 1.9 percent, textiles 1.8 percent, and chemicals and cosmetics 1.5 percent to GDP.

The engineering and electrical industries recorded the highest rate of added value at 57.2 percent, followed by medical and pharmaceutical industries (47.7 percent), and mining (44.3 percent), signaling a steady shift toward knowledge-based and high-tech manufacturing.

The Chamber emphasized that increasing industrial added value helps generate higher-quality jobs, boost factory capacity, and improve the competitiveness of Jordanian exports.

It also called for greater vertical integration across production chains, lower operating costs, and wider access to international standards certifications to expand into new markets.

The report concluded by urging more investment in research, innovation, and industrial development, which it described as essential for maintaining growth and positioning Jordan as a regional hub for advanced manufacturing.