Jordan’s wood and furniture industry has drawn about $414.6 million in investments, boosting its role in the national economy. The Jordan Chamber of Industry announced this on September 9, 2025, highlighting the sector’s growth and job creation in Amman and beyond.
Sector Overview and Key Highlights
The wood and furniture sector stands out as a key player in Jordan’s manufacturing landscape. It includes 1,726 industrial establishments that employ over 8,000 people directly. These businesses focus on high-quality products thanks to skilled local workers.
This industry adds real value to the economy with its craftsmanship. Over the past decade, it has shown steady progress, making up about 3 percent of all manufacturing output in Jordan.
Experts point out that the sector’s success comes from blending traditional skills with modern needs. This mix helps it meet both local and global demands.
Investments and Capital Breakdown
Total registered capital in the sector reaches around JD294 million, which translates to roughly $414.6 million based on current exchange rates. This capital supports a wide range of operations, from small workshops to larger factories.
Investments have grown due to strong government support and private interest. Many see this area as a safe bet for long-term returns, especially with rising demand for quality furniture.
| Key Investment Metrics | Details |
|---|---|
| Total Establishments | 1,726 |
| Registered Capital | JD294 million ($414.6 million) |
| Direct Jobs Created | Over 8,000 |
| Annual Output Value | JD350 million |
This table shows the core numbers driving the sector’s strength. Such investments help build better supply chains and improve product quality.
Foreign and local investors find appeal in Jordan’s stable environment. Recent policies have made it easier to start and expand businesses here.
Production Output and Local Market Size
The sector produces goods worth about JD350 million each year. This output includes everything from home furniture to office setups and storage solutions.
Value added in production hits around 40 percent of total output, a high rate that shows efficiency. From 2014 to 2024, this has helped strengthen Jordan’s economy by supporting related industries like logging and design.
The local market for these products totals about JD500 million. Out of this, JD286 million goes to domestic buyers, covering 57 percent of needs.
Demand comes from homes, hotels, and offices across the country. Urban growth in places like Amman drives more sales for modern and custom pieces.
Jordanian makers also supply packaging items like pallets and crates. These practical products play a big role in trade and logistics.
Export Performance and Global Reach
Exports from the sector reached JD38 million in 2024, with a 13 percent compound annual growth rate over five years. Products now ship to 71 countries, showing strong international appeal.
Saudi Arabia leads as the top buyer, taking JD22 million or 57.9 percent of exports. Iraq follows with JD5 million, making up 13.7 percent.
Other key markets include Kuwait and Palestine, each at about 3 percent. This spread reduces risks and opens new doors for growth.
In the first half of 2025, overall national exports rose 9 percent, with industrial sectors like furniture contributing to this uptick. Strong demand from Arab neighbors fuels this trend.
Recent data shows Jordan’s exports to the Greater Arab Free Trade Area climbed 16.9 percent to 1.85 billion dinars in early 2025. Furniture plays a part in this success.
Untapped Opportunities and Future Growth
The sector has export potential worth $21 million still untapped. About $13 million of this targets the US market, focusing on items like upholstered seating and bedroom furniture.
To grab these chances, Jordan needs to boost competitiveness through better marketing and quality standards. World Trade Organization data backs this view, pointing to high-demand areas.
Looking ahead, market forecasts predict growth. The furniture market in Jordan could reach US$730.50 million by 2029, growing at 1.20 percent yearly from 2025.
Global trends also help. The world furniture outlook for 2025-2026 sees rising production and trade in 100 countries, with Jordan well-placed to benefit.
Challenges like raw material costs exist, but opportunities in Africa and Europe could expand reach. Investments in design and tech will be key.
- Boosting exports to new markets like the US and Europe.
- Investing in sustainable wood sources to meet global standards.
- Training more workers to handle advanced manufacturing tools.
- Partnering with international firms for joint ventures.
These steps could drive further growth and create more jobs.
Economic Impact and National Role
This industry supports Jordan’s broader goals of economic self-reliance. It reduces imports by meeting local needs and earns foreign currency through exports.
With urban development on the rise, demand for furniture will likely grow. This ties into housing and tourism sectors, creating a ripple effect.
The sector’s high value added means more money stays in the country. It also promotes skills that can transfer to other industries.
Overall, wood and furniture help diversify Jordan’s economy away from traditional areas. This builds resilience against global shifts.
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