Jordan’s Leather and Garment Sector Posts 21% Export Growth, Creates 1,500 Jobs in 2024

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Jordan’s Leather and Garment Sector Posts 21% Export Growth, Creates 1,500 Jobs in 2024
Amman - The leather and garment sector in Jordan has maintained a robust upward trajectory since the beginning of the year, supported by substantial increases in exports and employment generation.اضافة اعلان

This growth is underpinned by royal backing and the sector’s rising global standing.

Sector exports jumped by 21% in the first seven months of 2024, amounting to JD 988 million, up from JD 813 million in the corresponding period of 2023.

Ihab Qadri, the sector representative at the Jordan Chamber of Industry, credited the inclusion of the sector in the Economic Modernization Vision as a critical driver for its expansion, establishing a clear roadmap for sustained growth over the coming years.

Qadri highlighted the sector’s resilience amidst regional logistical disruptions, particularly the challenges posed by the Red Sea shipping crisis.

Local manufacturers, he noted, have continued fulfilling export commitments, absorbing additional shipping costs to meet contractual obligations, particularly in the U.S. market via direct shipping routes from Aqaba.

The sector posted a solid 11.8% year-on-year growth in the second quarter of 2024, placing it among the top-performing industrial segments.

Exports to European markets have also expanded, signaling a broader geographical footprint and increased international demand for Jordanian products.

Employment in the sector has also shown a marked improvement, with direct job creation for Jordanians increasing by 4% over the past nine months. This has resulted in the addition of 1,500 new jobs, bringing the total workforce to 29,000 Jordanian employees.

To further enhance the sector's competitive edge, six new professional standards were introduced this year in collaboration with the Technical and Vocational Skills Development Commission, providing a framework for developing a skilled workforce aligned with industry needs. This is expected to further boost local employment opportunities in the near future.

Qadri emphasized the importance of accelerating key initiatives outlined in the Economic Modernization Vision, particularly those aimed at increasing exports and employment.

The industry is also working closely with the government and international organizations to establish an integrated cluster for horizontal and vertical cooperation within the sector, a priority identified within the vision’s framework.

As one of the priority sectors under the Economic Modernization Vision, the garment industry plays a pivotal role in driving growth and creating value.

The vision sets ambitious targets, including an annual 10% increase in value-added production, with the goal of reaching $3.83 billion by 2033, compared to $1.2 billion in 2022.

In terms of employment, the vision aims to increase the sector's workforce by 9.5% annually, projecting a total of 225,000 employees by 2033, with 149,000 new jobs to be created for Jordanians over the next decade.

Qadri also pointed to efforts to attract $3.1 billion in new investments to the sector by 2033, with an annual investment target of $258 million, alongside initiatives to boost labor productivity from $7,900 to $8,300 per worker per year.

The sector is looking forward to further success, particularly with the implementation of the Leather and Garment Industry Strategy, launched by the Ministry of Industry, Trade, and Supply, under the National Industrial Policy.

The strategy aims to position Jordan as a regional hub for fast fashion, with a distinctive presence on the global fashion map. It also includes targeted goals to diversify exports, strengthen value chains, and enhance the sector’s competitiveness.

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