Economists indicate Jordan possesses promising opportunities to diversify its economic growth by expanding into high-value-added sectors. These include the pharmaceutical, food, technology industries, information technology and the digital economy, renewable energy, mining, specialized tourism, and logistics services. The assessment suggests that focusing on these areas could provide new engines for the country's economic development. Jordan holds several advantages that support this strategic shift, including its geographic location, human expertise, and a network of free trade agreements. The nation also benefits from an existing industrial and service base, alongside its security and stability. These factors are seen as foundational elements for fostering growth in the identified high-value sectors. Economists believe Jordan has promising opportunities to diversify its growth engines by expanding into high-value-added sectors, including pharmaceutical, food, technology industries, information technology and the digital economy, renewable energy, mining, specialized tourism, and logistics services. This strategic focus aims to leverage the country's inherent strengths to cultivate a more strong and resilient economy.
Sector Performance Notes
Jordan's food supply, agricultural, and livestock industries sector experienced a 9% growth during the first half of the year, increasing by approximately 41 million dinars. This strong performance shows the potential within traditional yet high-value segments of the economy. The pharmaceutical sector also demonstrated strong performance, with Jordan's exports of pharmaceutical preparations and medicines rising by 17.6% in the first quarter of this year compared to the same period last year. These exports reached 147 million dinars, up from 125 million dinars in the corresponding period of 2025. This significant increase notes the sector's growing global competitiveness and its contribution to the nation's export earnings.
Tourism revenue showed a significant increase in July 2026, climbing by 24.9% to reach $926.2 million for that month alone. This surge indicates a strong seasonal or specific event-driven boost to the sector. However, the overall performance for the first seven months of 2026 indicated a slight decline, with total tourism revenue decreasing by 0.2% to $4,418.2 million. The monthly surge in July provides a specific highlight within the broader trend for the year to date, suggesting that while there are strong individual periods, sustained growth across the entire year remains a focus. This mixed performance shows the need for continued strategic development within the specialized tourism sector to ensure consistent positive trends.
Leveraging Jordan's Strengths
Jordan's economic strategy focuses on high-value sectors due to their capacity to attract investment, boost exports, and generate quality employment opportunities. These industries capitalize on the country's existing advantages, which include human expertise, its strategic geographic location, established infrastructure, accumulated experience, and a network of trade agreements. Economists speaking to Al Ghad stated, "these sectors have a greater ability to attract investment, increase exports, and create quality jobs, benefiting from advantages Jordan possesses, including human expertise, geographic location, infrastructure, accumulated experience, and trade agreements, stressing that the challenge lies in converting these advantages into investment, production, and exports." Jordan possesses inherent advantages such as a strategic geographic location, a skilled human expertise base, full free trade agreements, an existing industrial and service base, and a strong foundation of security and stability. These elements provide a fertile ground for the development of high-value industries.
Exports from the engineering, electrical, and information technology industries collectively increased by approximately 49 million dinars in the first half of the year. This represents a growth rate of 7.1%, bringing their total value to about 745 million dinars during that period. This growth in technology-driven sectors is particularly encouraging, aligning with the broader strategy to diversify into digital and high-tech areas.
Sectors identified as having the potential to drive new growth engines for the Jordanian economy include high-value industries, alongside the pharmaceutical, food, and chemical industries. Mining, information technology and digital services, medical tourism, logistics services, energy and water, and modern agriculture are also considered prominent areas for development. These prominent sectors are seen as key for generating new economic momentum and creating a more diversified and strong national economy.
Addressing Key Challenges
Jordan faces the challenge of translating its inherent advantages into tangible investment, increased production, and expanded exports. The nation's economic landscape is characterized by several obstacles that hinder growth in high-value sectors. These include elevated energy and production costs, coupled with difficulties in securing appropriate financing for new ventures. Procedural complexities also present a hurdle for businesses. Challenges include high energy and production costs, difficulty securing suitable financing for new projects, and complications in administrative procedures that can deter investment.
Developing skills that align with the specific demands of emerging sectors is another critical requirement. There is a recognized need for increased spending on research, development, and innovation to foster competitiveness. Strengthening companies' capacity to penetrate and succeed in foreign markets is also essential for realizing export potential. The country also faces limited spending on research, development, and innovation, which is vital for maintaining a competitive edge in global markets. Another significant challenge is strengthening the ability of Jordanian companies to access and succeed in foreign markets, which is key for expanding export volumes.
Experts have urged for the swift implementation of measures to stimulate these key sectors. Primary recommendations include reducing production, energy, and transport costs to enhance competitiveness. Simplifying the investment environment and ensuring adequate financing availability are also seen as vital steps. Developing the workforce's skills and boosting research and innovation are consistently cited as priorities. Additionally, linking economic incentives to clear, measurable indicators covering investment, employment, and exports is advocated to ensure effective policy implementation. Experts called for accelerating measures to stimulate these sectors, chiefly reducing production, energy, and transport costs, easing the investment environment, providing financing, developing skills, boosting research and innovation, and linking incentives to clear indicators covering investment, employment, and exports. These full recommendations aim to create a more supportive and dynamic environment for Jordan's high-value-added industries.
