Representative of the packaging, paper, cardboard, printing, and office supplies industry at the Jordan Chamber of Industry (JCI) Mohammad Safadi has highlighted the significant contribution of the sector to the local market, which holds an impressive 73 percent share of the Kingdom’s total consumption.
Speaking to the Jordan News Agency (Petra) on Tuesday, Safadi noted that the sector’s annual production is estimated to be around JD1.3 billion, making it a vital component of Jordan’s economy, particularly with its distinguished, high-quality, and effective products and the accessibility of skilled labor.
Safadi’s remarks shed light on the substantial impact of the industry on the country’s economic landscape, saying that with its substantial 6.4 percent market share of the total industrial production, the sector’s contribution to the GDP reaches 1.3 percent, with an annual added value of roughly JD414. million.
According to Safadi, the sector consists of 867 establishments that are geographically dispersed across several governorates and employ more than 13,000 male and female workers. These workers make up about 4.8 percent of all industrial sector employees, with 94% of them being Jordanians. The sector’s current investments total JD1.8 billion.
As for international trade, he made note that the industry sells more than 70 products to more than 50 different nations, making up 1.7% of all national exports and 1.8% of all industrial exports.
Speaking of the difficulties facing the industry, Safadi stated that the primary issues include the competition between imported and domestic products, the non-conformity of some imported goods to Jordanian standards, and the lack of adequate protection for domestic products as a result of numerous bilateral agreements with some industrially developed nations, which floods the local market with their fee-exempt products.
“The industry has untapped export potentials of more than $100 million to many other nations, particularly in the areas of barrels, cans, boxes, packaging containers, and paper goods used for domestic or medical uses. The majority of these potentials are focused in Middle Eastern countries, worth over $30 million, followed by exports to the United States at almost $25 million,” he added.
To address these challenges, Safadi emphasized the need to implement measures to protect domestic products, restrict the entry of imports with a local alternative, enact the principle of reciprocity with nations that block national exports from entering their borders, help the sector’s highly competitive products gain access to new export markets, and carry out a thorough analysis of transportation and energy costs.
