Private sector calls for ‘clear’ export strategy

AMMAN — Private sector representatives have called for “a clear” export strategy as the government has embarked on a mission to increase the global competitiveness of Jordanian products.

The call came during a meeting of the representatives of the private and public sectors on Saturday at the Amman Chamber of Industry (ACI) 

The government is currently developing a national strategy to boost exports for the years 2022-2023, according to a statement by the Ministry of Industry, Trade and Supply. 

“Jordan’s exports are threatened by many factors including high international export costs, limited numbers of exporters in addition to product and geographic concentration,” said Ministry of Industry Acting General Secretary Dana Zu’bi during the meeting. 

Zu’bi noted that Jordan’s exports during 2021 have increased by 20 per cent compared with 2020, reaching JD5.5 billion, adding that although international trade shrunk by 9 per cent during last year, national exports were not affected to that extent. 

“The private sector is not to be blamed for the deficiency in exports,” ACI board member Eyad Abu Haltam told The Jordan Times. 

“We need a clear and structured export policy to be developed and implemented nationwide by both the private and public sector in order to promote and support highly competitive industry sub-sectors,” Abu Haltam said, noting that, “high-tech industry, auto machinery and food technology are booming in Jordan right now and deserve to be supported”.

“Locally manufactured products are highly compatible with international standards, yet some lack fine tuning,” Abu Haltam noted. 

Abu Haltam added that the government needs to cooperate with the industry sector to prioritise marketing efforts. 

“We need intensive strategic market studies for the sector to be able to access new markets, we also need proper positioning for locally manufactured products in international exhibition,” he continued. 

“Extensive participation in international exhibitions is a key market entry point,” said Abu Haltam. 

According to Abu Haltam, it is expensive for a single company to rent out a proper booth at an international trade exhibition so “the government should step up at this point and invest in a well designed booth with a good location that will provide Jordanian exporters with a golden opportunity to enter new markets”.

“What we truly need is a long-term policy, which requires commitment from consecutive governments,” economist Khaled Salameh told The Jordan Times.

Salameh added that one of the top challenges faced by exporters is the consistency of policies and regulations. Each government introduces a whole new package for exporters, which leads to confusion and in many cases withdrawal from the market, Salameh added. 

“The impacts of technological invention and innovation on economic growth are massive,” Salameh noted. 

According to the Department of Statistics, Jordan exports to over 140 countries globally, meanwhile the ministry’s statement states that exports are highly concentrated in a limited number of markets.

“Seventy per cent of our domestic exports reach seven countries,” ACI Board Director Fathi Jaghbeer told The Jordan Times. 

Jaghbeer added that domestic products are highly concentrated in certain markets worldwide “because we lack diversification in our product offerings, as well as complicated customs regulations and high shipping expenses”.