Amman:New government incentives for automobile manufacturing and assembly in the Zarqa Development Zone could attract high-value investments, expand Jordan's industrial base, and create jobs, according to Amman Chamber of Industry President Fathi Jaghbir.
According to Jordan News Agency, the Cabinet approved a package of incentives and exemptions on Tuesday. These incentives are tied to investment size, local manufacturing and assembly operations, and job creation for Jordanians, aiming to increase local added value and strengthen the Kingdom's competitiveness.
The move comes as regional competition to attract automotive investments intensifies, with international companies expanding their manufacturing and assembly operations. Jaghbir noted that the initiative aligns with the Economic Modernization Vision and could facilitate an integrated automotive industry that goes beyond vehicle assembly to include supporting industries, technology transfer, and specialized employment opportunities.
He highlighted the potential for existing Jordanian manufacturers in engineering, electrical, metal, plastics, rubber, and chemical industries to enter automotive supply chains and benefit from new investments. Export diversification is also seen as a major potential benefit, leveraging Jordan's established industrial base, export experience, and network of free trade agreements to reach regional and international markets.
Jaghbir explained that developing the capacity to manufacture and export vehicles, spare parts, and related industrial inputs would strengthen Jordan's integration into regional and global value chains, while expanding export opportunities across several industrial sectors.
He emphasized that linking incentives to investment size and local manufacturing levels, alongside encouraging supporting industries, could drive investors to expand domestic production and gradually move from assembly to more advanced manufacturing operations. Incentives covering energy costs, land, logistics services, and taxation could enhance project feasibility and attract capital-intensive industries requiring advanced technology.
To maximize economic and export benefits, Jaghbir called for attracting internationally experienced manufacturers with strong technological and marketing capabilities. Developing local suppliers and training skilled technical personnel are also key to establishing a sustainable and competitive production base.
Jaghbir stated that successful investments could provide a model for expanding into other advanced industries and bolster Jordan's position as a regional industrial hub. He affirmed the readiness of the Jordan and Amman chambers of industry to connect investors with domestic manufacturers and facilitate industrial integration, supporting export growth and increasing the industrial sector's contribution to the national economy.