Securing jordan's future : The case for a strong industrial base

الملخص EN

Jordan's industrial sector is the heart of a significant process that generates economic growth and has produced the highest living standards in the last two decades.

But today this sector faces serious domestic and international challenges which, if not overcome, will lead to reduced economic growth and ultimately a decline in living standards for future.

The aim of this study is to develop a feasible criterion for determining the most promising industrial sector that should be accorded priority for industrial development. This study will help both local and foreign investors, as well as Jordan government to draw up successful objectives and prepare necessary action plans. The performance of the 24 industrial sectors (according to ISIC 3) has been analyzed with respect to main industrial indicators, namely; value added, employment, productivity, capital formation, and exports.

Analysis based upon the relative importance of each sector for each indicator in total industry and the growth in these indicators. The SWOT analysis then has been derived as a result of the interviews with at least 10 concerned representatives of the best 10 sectors in terms of ranking.

The results of the study shows that the best sectors in descending order are Manufacture of Chemicals and Chemicals Products; Mining and Quarrying; Manufacture of Food Products and Beverages; and Manufacture of Other None- Metallic Minerals Products.

As a result, this sector is considered as the most promising sector.

High cost of fuel and electricity prices, production of low- quality products to meet demands of low- income markets, and unavailability of local raw materials has been considered as the most weaknesses points of the industrial sector.

While the orientation towards brand names together with free market policy, the modern technology that concentrate on high quality and mass production, similar products produced by neighboring countries in terms of quality and price, and the limited size of the local market threats the local industrial sector. Finally some recommendations has been derived to support the competitiveness of the industrial sector on the light of the results.