Amman: Jordan's leather and garment industry - one of the region's oldest industrial sectors - has significantly broadened its global export footprint, now reaching nearly 90 countries. This milestone underscores the sector's international competitiveness and its reputation for high quality.
According to Jordan News Agency, the industry, which began with the establishment of the country's first tannery in 1921, has long been a cornerstone of Jordan's industrial base. It currently benefits from substantial support from the Jordanian government under the leadership of His Majesty King Abdullah II. The Kingdom's extensive network of free trade agreements with major global economic blocs has further positioned the sector as an attractive destination for foreign direct investment.
In the past decade, the sector has experienced significant growth, with total investment increasing by 150%, from $420 million to over $1 billion. The Economic Modernization Vision of Jordan has set ambitious goals for the industry, including raising value-added output by 10% annually to reach $1.8 billion, boosting total production to $8.8 billion by 2033 from the current $5.5 billion, attracting $3.1 billion in new investments, and creating tens of thousands of new jobs.
The number of businesses in the sector has grown substantially, from 600 at the end of the 20th century to around 1,000 today, aided by a growing network of production branches across various governorates. In 2024, the industry recorded its highest export performance since 2010, with total exports exceeding $2.4 billion, marking a year-on-year increase of more than 24% and accounting for 21% of Jordan's total industrial exports.
Ihab Qadri, representative of the leather and garment industries at the Jordan Chamber of Industry, highlighted the growth as a clear sign of the sector's resurgence in international markets, despite ongoing regional and global economic challenges. Qadri attributed the strong performance to a rebound in demand from the U.S., which accounts for approximately 80% of the sector's total exports, and increased penetration into European markets such as the Netherlands and Belgium.
Qadri noted that the sector's momentum reflects a promising phase that necessitates building on recent achievements by enhancing the competitiveness of local products, expanding into non-traditional markets, and diversifying export destinations. He indicated that the sector still holds untapped export potential valued at over $752 million, as estimated by the International Trade Centre, aligning with the targets set by Jordan's Economic Modernization Vision.
The industry is a significant employment driver, currently providing over 96,000 jobs with 31% held by Jordanians and an annual growth rate of 8% in employment figures. The Vision aims to create 149,000 new jobs within the sector as part of a broader goal to generate one million job opportunities for Jordanians.
Qadri also pointed to progress in establishing an integrated industrial cluster for the leather and garment sector, a project supported by the International Finance Corporation. Feasibility studies are complete, with efforts now focused on finalizing location selection, defining incentive packages, and launching promotional campaigns to attract investment and local workforce engagement.
He emphasized the importance of this initiative given the sector's reliance on imported raw materials, which comprise around 60% of total production costs. The cluster is expected to address key supply chain gaps, reduce lead times, and enhance Jordan's positioning as a competitive manufacturing and export hub.
Qadri further stressed the need for technological innovation, sustainability practices, and deeper integration with supporting sectors such as logistics and transport to maintain the sector's upward trajectory and elevate Jordan's standing in regional and global markets. Achieving these objectives will require the full implementation of the Economic Modernization Vision's initiatives, particularly the sector-specific strategy outlined under Jordan's National Industrial Policy, with a focus on improving productivity, increasing value-added, and fostering public-private collaboration for long-term growth.