Construction and Building Materials

Growing population and businesses

Significant natural resources 

Competitive Advantages 
Opportunities 

Competitve Advantage

Rising Demand 

• A large number of infrastructure and industrial development projects are currently underway in the Middle East region, with an estimated value of $1 trillion. 
• Both residential (75%) and commercial (25%) markets are growing within Jordan’s construction sector with growth rates in the next 5 years being forecasted to exceed 20% per annum due to growing population, migration, and businesses. 
• Expanding and upgrading infrastructure across the Kingdom such as: mega-real estate projects, transport (rail, airports, port) , municipality developments (Amman Master Plan, Salt Master Plan), Red Sea to Dead Sea Canal and many more.

Raw materials are naturally available in Jordan

• Jordan possesses significant mineral resources used in the construction industry such as building and ornamental stones (including marble), cement raw materials, sand, gravel, crushed stone and natural sand and others.
• Building Stones: extensive production is focused on limestones of Cenomanian, Turonian, Santonian, and Eocene ages. These limestone’s possess desirable properties of good quality dimension stone, uniform in color and texture, free from pyrite, ironoxides, chert, and quartz, low porosity and permeability, and adequate strength.
• Cement Raw Materials: limestones for Portland cement are widely available in Jordan; the reserves are practically unlimited.
• Sand, Gravel, Crushed Stone (Aggregates)
• Natural Sand: Reserves are considered to be unlimited for all the above materials.

Availability of critical mass in sector

• Existence of industry cluster with 4,677 facilities 
• Jordanian exports enjoy a reputation for good quality, reliability, and precision, coupled with good service in Arab markets. 
• Jordan also has a good reputation regionally when it comes to working metal and producing metal structures for various construction purposes. Metal manufacturing production increased by 173% between 2000 and 2006, with value added in Jordan increasing by 162% for the same period. Exports reached 485.5 million USD in 2006, contributing 1.7% to the GDP. Major exports were to Iraq and Saudi Arabia. (workforce 20 K). Manufacturing includes: pipes, tubes, plates, wires, Iron, steel, aluminum, copper, tin, lead, ,Nickel/chrome coating, Metal structures, Welding ,Pipe fitting, Painting, Assembly, Installation, Maintenance ,Design, Engineering, Quality Control.

Cost Competitive Location

• Jordan offers a low cost manufacturing platform and a quicker delivery for building materials serving a regional construction market 
• Tax and duty exemption benefits for entry to Arab markets through Free Trade Agreements 
• Relatively low overall labor costs compared to regional competitors

Large Labor Pool

• Availability of a large number of skilled laborers and technicians, in addition to more than 60,000 engineers 
• There are currently 28,379 students enrolled in engineering faculties in Jordanian universities for the year 2007/2008, 2,400 of which are studying architecture. 
• Jordanian universities produce 5,000 engineers every year 
• 12 engineers join the various engineers’ unions every day. 
• The number of engineers is expected to reach 1 engineer per 83 inhabitants in 2020, and 1 engineer per 50 inhabitants in 2040 
• Availability of training opportunities: Such as work and study programs through the Specialized Training Institute, which allows the industry to train human resources more efficiently 
• Bilingual workforce (Arabic and English) with good command of the required technical English 
• Tradition of good craftsman ship. 

• This qualified labour comes at one fifth the cost of UAE and Israel and has higher quality than Egypt, Morocco and Tunisia with operating costs lower than in these locations:

Policy and regulatory environment

• The policy and regulatory environment around the Jordanian construction industry is relatively light
• Few licenses are required specifically for the trades and support

Supportive structures

Natural Resources Authority

GDP Contribution (%): Construction contributes 4.8% to the Kingdom's GDP

Products: Stone is quarried locally, cement is produced locally and steel reinforcement bars are available locally, as well. Jordan also produces its own ceramic tiles, sanitary fixtures, kitchen cabinets, timber joinery, air conditioning and heating equipment, electrical items, elevators, pipes and wires.

4.5% GDP (11% growth rate)

Exports: Sector exports reached $22.4 million in 2006 ( to Saudi Arabia, Iraq, and UAE)

Cumulative Employment: The construction industry employed over 6000 people in 2006.

There are 202 local companies that produce building materials.

Investments: Large projects are currently taking place such as $ 1 billlion Abdali Urban Regeneration, “Jordan Gateway”, “Royal Village”, Saraya Aqaba, Aqaba Prototype City and many to come such as Aqaba Port Relocation project, Red Sea-Dead Sea Canal, Amman City Development Master Plan projects, and many more.

Industry Players: Al Rajihi Cement, CO., Al Faqeer industrial Company, Petra Engineering, Petra Alumnium, Ready Mix Concrete & Construction Supplies, Jordan Rock Wool World Plastics, Industries Company, Jordan Ceramic Industries, Issa Light Concrete Company, Haddadin & Partners Construction Company International Ceramic Industries, Baton for Blocks & Inter Locking Tiles, Arab Potash, Arab Group for Chemical Products Co. Ltd, Al Quds Ready Mix Concrete Company, Al-Mazar Inc Engineering, United for Metal Industries Ltd., and many more