Mohammad Al-Safadi, the representative of the packaging, paper, cardboard, and office supplies sector in the Jordan Chamber of Industry, revealed that the sector’s exports reach 44 markets worldwide, while its products cover 77.2% of the domestic market's needs.
اضافة اعلان
According to Al-Safadi, Saudi Arabia and Iraq account for 66% of the exports, while the UAE, Palestine, Yemen, Lebanon, Syria, Kuwait, Qatar, and Libya are among the key export destinations for the sector’s products.
Al-Safadi stated that the sector's exports amounted to 123 million Jordanian dinars during the first 11 months of last year, compared to approximately 131 million dinars for the same period in 2023.
He added that the sector boasts high production capabilities, reaching nearly 1.14 billion dinars annually, with the value-added percentage of total production standing at 37%, while its contribution to the GDP is 1.3%.
The sector is one of the largest employers in the country, with a total of 12,070 workers, 89% of whom are local workers.
He pointed out that the sector has achieved growth within the Jordanian industrial index, published by the Jordan Chamber of Industry, with an increase of 0.5% during the third quarter of last year compared to the same period in 2023, which is the highest value reached in the last five years.
The number of establishments operating in the sector has increased over the past two and a half decades, reaching more than 812 establishments today.
Al-Safadi explained that the packaging, paper, cardboard, and office supplies sector is one of the prominent industrial sectors that plays a crucial role in the national economy due to its various contributions to production, employment, and exports, as well as its interconnections with other sectors.
He noted that the sector has a high production diversity, as its products are not only used as a means of protecting and transporting goods, but also form a direct link between the product and the consumer by enhancing the attractiveness and image of the products and influencing consumer decisions.
Al-Safadi also emphasized that the sector’s products are an essential component for various industrial sectors, serving as a major input for many industries and as a final product for local consumers. He pointed out that more than 16% of production costs within the industrial sector (excluding raw materials) are from packaging products.
However, he highlighted several challenges facing the sector that limit its ability to increase its share in the local market, including high production costs, especially energy and raw material costs, fierce competition from imported products due to lower prices resulting from lower production costs in the country of origin, and non-compliance of some products with Jordanian specifications, particularly those intended for food contact.
Other challenges include weak marketing and promotion strategies in non-traditional export markets, some countries' non-compliance with Arab trade agreements, and a shortage of skilled labor, with the sector needing specific technical expertise.
