Construction Products Cover 53% of Domestic Consumption

25-Apr-2019

Statistical data for the Jordan Chamber of Industry revealed that the products of the construction sector cover 53 percent of domestic consumption and the rest is done by imports. 

The sector's representative in the Chamber of Industry, Alaa Abu Sufa, said at a press conference on Wednesday that the construction sector accounts for 16 percent of the total industrial establishments with 2,813 establishments and a registered capital of 315 million dinars, representing 70 percent of the total registered capital in the industry. 

The head of the Jordan Chamber of Industry, Eng. Fathi al-Jaghbir, said that the exports of the sector, most of which go to Arab countries, increased last year by 14 percent to reach 138 million dinars, compared with 121 million dinars in 2017. 

The sector accounts for 3.3 percent of gross domestic product and 3 percent of total industrial exports, while paying about 150 million dinars a year as taxes on production. It also accounts for 13 percent of the total production of the industry and employs 18,000 workers. 
He said: "The exports of the construction industry has untapped opportunities estimated at more than $ 100 million in several products to different countries of the world, with the same volume of operations and investment, but it needs to open new export markets. 
He pointed out that the most prominent sectors are the iron industry, which employs 150 establishments with a capital of 150 million dinars and provided 6 thousand jobs followed by cement and gypsum industry, which operates 40 establishments with a capital of 120 million dinars, employing 2000 workers. 

He pointed to the challenges facing the sector, including the high cost of production, as the cost of energy about 40 percent of the total cost of production requirements and unfair competition from imports, especially Arab, in addition to the lack of conformity of some imported products to Jordanian standards and standards, and the absence of standard specifications for all products Leads to unfair competition and constant change in construction regulations and laws. 

He called on Abu Sufa to provide energy sources for owners of factories and factories for the construction industries at subsidized prices and appropriate as in neighbouring countries and give the local industry of the construction sector a price preference of 30 percent instead of 15 currently, especially large projects. 

He stressed the promotion of investment opportunities available in the construction sector, especially reconstruction projects and support exports and products of the sector and the opening of new export markets and participation in international exhibitions to introduce the products of national industry. 
Al-Jaghbair pointed out that the construction sector achieved remarkable results over the past years despite all the challenges facing the Jordanian economy and the economic sectors in general due to the regional unrest and the decline in economic growth rates in the Kingdom. 

He called for studying the production costs borne by the industrial sector, which is now a burden on industrialists, especially with regard to canceling the item of fuel price difference from the electricity bill, explaining that this will be support and incentive for industry to increase investments and exports and provide more job opportunities. 









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