The Jordan Chamber of Industry (JCI) has prepared a full study titled 'Production Gaps and Import Substitution Alternatives (Potential Investment Fields),' which reveals a significant import gap within the national economy. This detailed analysis indicated that imports of products for which there are no local manufacturing equivalents reached approximately JOD 9 billion during the year 2025. The core objective of this study is to identify industrial investment opportunities that are viable for localization, building upon a thorough analysis of Jordan’s foreign trade data. This proactive approach by the JCI seeks to pinpoint critical areas where domestic production can effectively replace current imports, thereby fostering economic growth and reducing reliance on foreign goods. The findings show a substantial potential for investors to contribute to Jordan's industrial self-sufficiency.
Scope of the Analysis
The Jordan Chamber of Industry's (JCI) study, 'Production Gaps and Import Substitution Alternatives (Potential Investment Fields),' systematically analyzed trade gaps across ten distinct industrial sub-sectors. These sectors were strategically chosen to represent a broad spectrum of Jordan's industrial landscape and included critical areas such as food, engineering, and therapeutic (pharmaceutical) industries. The analysis also covered the chemical, plastic, leather and garments, mining, and construction sectors, recognizing their significant contribution to the national economy and their potential for import substitution. Additionally, the study extended its scope to wooden industries, alongside packaging, paper, and cardboard, noting the diverse range of products currently imported without local manufacturing alternatives. This full approach aimed to pinpoint specific areas where local manufacturing could effectively replace current imports, offering clear pathways for industrial development and investment. The careful examination of these ten sub-sectors provides a granular view of Jordan's production deficiencies and import reliance.
Future Study Phases
The Jordan Chamber of Industry (JCI) is actively preparing to launch a second phase of its study, which will further detail potential investment opportunities. This subsequent phase is designed to provide full investment profiles, offering in-depth insights for prospective investors. These profiles will build upon the initial analysis of import gaps and production deficiencies identified across the various industrial sub-sectors. The JCI's ongoing work aims to translate findings from the first phase, which quantified an import gap of approximately JOD 9 billion for products without local manufacturing equivalents in 2025, into actionable investment strategies. The detailed profiles will offer specific guidance for investors looking to localize production and reduce reliance on imports, presenting clear business cases and market analyses. This next stage is key for transforming theoretical opportunities into tangible projects, fostering a more strong and self-reliant industrial base in Jordan. The JCI anticipates these profiles will serve as a vital resource for both local and international investors.
Policy Recommendations
In light of its significant findings, the Jordan Chamber of Industry (JCI) has formally called on the Ministry of Investment to thoroughly examine the study's findings. The JCI's call emphasizes the importance of integrating the identified investment opportunities into the National Investment Map. This strategic move aims to translate the study's analysis of a JOD 9 billion import gap into concrete policy actions and investment promotion efforts. Incorporating these findings can guide potential investors towards sectors where local production can substitute current imports, aligning with national economic strategies to foster industrial growth and reduce dependency on foreign goods. The recommendation shows a collaborative effort between industrial bodies and governmental institutions to enhance Jordan's economic resilience and manufacturing capabilities. The JCI anticipates that this integration will streamline efforts to attract both local and foreign investment into critical industrial sectors, ultimately strengthening the national economy and creating new job opportunities. This partnership is seen as essential for maximizing the impact of the study's insights.
