weighted score 4.6 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Jordan
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Jordan as a sourcing destination.
Labour cost competitiveness
6
Moderate manufacturing wages — higher than South Asia but competitive within MENA. QIZ factories offer duty-free US access, partially offsetting labour cost.
Supply base depth
3
Narrow supply base concentrated in garments, pharmaceuticals, and extractives (potash, phosphates). Limited manufacturing ecosystem breadth compared to major sourcing origins.
Logistics & infrastructure
5
Aqaba port provides Red Sea access. Road infrastructure adequate but no rail freight network. Landlocked feel for northern industrial zones relying on road transport to port.
Workforce skills
6
High education attainment and strong English proficiency. Engineering and pharmaceutical graduates in good supply. QIZ factory workforce is predominantly migrant labour.
Scalability
5
Small economy (~11 million population) limits production scale. QIZ capacity is meaningful for garments but cannot absorb large-volume diversification programmes.
Ease of doing business
5
Regulatory environment is relatively transparent by regional standards. Foreign investment is welcomed in most sectors. Bureaucratic processes can be slow but are navigable.
Trade access & tariffs
4
EU Association Agreement and US FTA provide preferential access to two major markets. QIZ programme enables duty-free US entry for qualifying goods. Limited regional trade integration beyond bilateral agreements.
Sustainability baseline
4
Extreme water scarcity — Jordan is one of the most water-stressed countries globally. Renewable energy investment growing (solar potential is strong) but grid capacity remains constrained.
Innovation & IP
3
Limited domestic R&D investment. Pharmaceutical sector has established IP and regulatory capabilities. Patent activity low outside pharma. University-industry linkages underdeveloped.
Quality standards
5
Pharmaceutical manufacturers meet FDA and EU GMP standards. Garment sector quality is adequate for mid-market. Broader manufacturing quality management systems less mature.
Labour, Cost & Workforce
Labour, Cost & Workforce
- Garment sector (QIZ)
- Jordan operates Qualifying Industrial Zones (QIZs) under a US-Jordan-Israel trade agreement. Garments produced in QIZs enter the US duty-free, making Jordan one of the few Middle Eastern countries with meaningful apparel export capacity to the US market.
- Workforce profile
- Population approximately 11 million. High literacy rate and strong English proficiency relative to regional peers. University enrolment is among the highest in the Middle East, producing a steady pipeline of engineering and pharmaceutical graduates.
- Labour cost position
- Manufacturing wages are moderate — higher than South Asia but competitive within the MENA region. The small domestic labour force means QIZ factories rely heavily on migrant workers from South and Southeast Asia, which creates both cost and compliance dynamics.
Trade Access & Strategic Position
Trade Access & Strategic Position
- EU Association Agreement
- Jordan has an EU-Jordan Association Agreement providing preferential tariff access to the EU market. Simplified rules of origin under the EU-Jordan Compact (2016) further reduce barriers for Jordanian exports, particularly in sectors employing Syrian refugees.
- Pharmaceuticals
- Jordan has a well-established pharmaceutical manufacturing sector. Several Jordanian pharma companies hold FDA and EU GMP approvals, making Jordan a credible source for generic pharmaceuticals and active pharmaceutical ingredients for Western markets.
- Strategic location
- Jordan sits at the crossroads of the Levant, bordering Saudi Arabia, Iraq, Syria, Israel, and the Palestinian Territories. This location provides strategic access to Gulf and Levantine markets, though proximity to conflict zones is a double-edged sword for supply chain planning.
- Economy scale
- Jordan is a small open economy — GDP approximately USD 47 billion. Scalability is limited compared to major manufacturing hubs, but the country offers niche strength in garments, pharmaceuticals, and potash/phosphate exports.