The construction industries sector enjoys high production capabilities, amounting to more than 1.7 billion dinars annually, with the added value percentage from the total production reaching approximately 44%.
اضافة اعلان
According to Alaa Abu Sofeh, a representative of the sector in the Jordan Chamber of Industry, the sector's contribution to the Gross Domestic Product (GDP) is 2.2%, and the total number of workers in the sector is 15,300, with 62% of them being local workers.
Abu Sofeh told the Jordan News Agency (Petra) that the sector has significant contributions to the industrial sector, being classified as one of the largest economic activities in terms of value added, relying on local production inputs and labor. He pointed out the increase in the number of operating establishments, which now exceed 2,000.
He stated that the construction industries sector is one of the most important strategic economic sectors contributing to and shaping the national economy, as it is characterized by a diversity of expertise and its integration with several other sectors related to the construction and real estate industries in the kingdom, such as hotels, restaurants, housing, and others. This makes it highly sensitive to changes in economic activities, as well as demographic and social factors.
Abu Sofeh noted that the construction industries are considered labor-intensive sectors, with specialized technical cadres including engineers, technicians, and laborers, in addition to contributing to supporting national exports due to their high quality.
He highlighted that sector exports amounted to approximately 82 million dinars during the first 11 months of 2024, reaching more than 44 markets worldwide. Saudi Arabia, Palestine, and Iraq accounted for 62% of the sector's total exports.
India, Qatar, the UAE, China, Oman, Kuwait, the United States, and Malaysia are also among the prominent export destinations for the construction industries sector.
Abu Sofeh pointed out that the construction industries sector holds a high share in the local market, as its products are fundamental to several sectors and serve as final products for local consumers. He explained that the average proportion of locally directed production of construction materials within the kingdom is about 90% of the local consumption of construction materials.
Abu Sofeh listed some of the challenges facing the construction industries sector, the most prominent of which are: the limited ability of construction establishment owners to obtain the necessary funding for their activities, in order to expand their facilities, introduce new production lines, or even use renewable energy instead of electricity to reduce energy costs.
He also mentioned a shortage of technical and trained labor and the reliance on foreign labor, which is more expensive than local labor due to the costs of work permits, residency, guarantees, and fees imposed by the government for recruiting foreign workers.
Another challenge is the intense competition from imported products due to the low prices of imported goods, resulting from low production costs in the country of origin. Furthermore, some imported products do not meet Jordanian specifications and standards, and there are no standard specifications for all products, leading to unfair competition.
According to Abu Sofeh, there are additional challenges, including the lack of marketing and promotion strategies in non-traditional export markets, weak utilization of free trade agreements that Jordan is linked to, and high production costs due to rising energy prices. The construction industries sector is one of the highest energy-consuming sectors, particularly electricity.
The following sub-sectors fall under construction industries: building stones, crusher products, sand, materials for construction insulation, plumbing and its accessories, tiles, glass panels, thermal construction products, cement products for construction purposes, reinforcing steel, metal structures, decorative and construction works, and other similar industries.
-- (Petra)
