Auto Industry Incentives to Boost Manufacturing, Exports, Says Industry Chief

Amman, Oct. 8 (Petra) — 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, Amman Chamber of Industry President Fathi Jaghbir said
Thursday.

The Cabinet on Tuesday approved a package of incentives and
exemptions tied to investment size, local manufacturing and assembly
operations, and job creation for Jordanians, aimed at increasing
local added value and strengthening the Kingdom’s competitiveness.

The decision comes amid growing regional competition to attract
automotive investments, as international companies expand
manufacturing and assembly operations.

Speaking to the Jordan News Agency (Petra), Jaghbir said the
initiative aligns with the Economic Modernization Vision and could
pave the way for an integrated automotive industry extending beyond
vehicle assembly to include supporting industries, technology
transfer and specialized employment opportunities.

He noted that automobile manufacturing has extensive links with
engineering, electrical, metal, plastics, rubber and chemical
industries, creating opportunities for existing Jordanian
manufacturers to enter automotive supply chains and benefit from new
investments.

Jaghbir identified export diversification as a major potential
benefit, noting that Jordan’s established industrial base, export
experience and network of free trade agreements could help locally
manufactured vehicles and automotive components reach regional and
international markets, subject to applicable market access
requirements and rules of origin.

He 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.

Jaghbir stressed that linking incentives to investment size and local
manufacturing levels, alongside encouraging supporting industries,
could motivate investors to expand domestic production and gradually
move from assembly to more advanced manufacturing operations.

He added that incentives covering energy costs, land, logistics
services and taxation could improve project feasibility and
strengthen Jordan’s ability to attract capital-intensive industries
requiring advanced technology.

To maximize the economic and export benefits, Jaghbir called for
attracting internationally experienced manufacturers with strong
technological and marketing capabilities, while developing local
suppliers and training skilled technical personnel to establish a
sustainable and competitive production base.

He said successful investments could provide a model for expanding
into other advanced industries and strengthen Jordan’s position as a
regional industrial hub.

Jaghbir 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.

//Petra// AJ