Chemical industries strategy aims to increase the percentage of products compliant with international standards
Amman4 min read
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The national strategy for the chemical and cosmetics industries sector aims to increase the percentage of products compliant with international standards to 85 percent by 2029, compared to a baseline of 65 percent for 2027, as part of efforts to develop the sector's products and enhance their compliance with international standards.
According to the strategic performance indicators contained in the document prepared by the Ministry of Industry, Trade and Supply, with support from the Economic Reform Program and in partnership with the Jordan Chamber of Industry and relevant public and private sector entities, the strategy also aims to increase the percentage of new or developed products out of the sector's total products from 8 percent in 2027 to 15 percent in 2029.
The targets include increasing the number of patents or new formulas registered annually from 5 in 2027 to 15 in 2029.
These indicators fall within the strategy's direction toward developing the sector's products through the (High Value) program, which aims to develop innovative products, new formulas, and distinct production lines.
The program portfolio also includes the (Compliance) program, which aims to ensure alignment with international standards, including the Carbon Border Adjustment Mechanism (CBAM), the requirements for Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), and the adoption of sustainability certifications.
The strategy defines six programs within the initiatives portfolio, including (Efficiency) to increase productivity through technical modernization, energy rationalization, and operational digitization; (High Value) for product development; (Integration) to link factories in integrated industrial zones and enhance logistics infrastructure and supply chains; (Empowerment) to provide concessional financing, build human capacity, and simplify the legislative framework; (Access) for smart regional expansion, market-oriented exports, and strategic supply contracts; in addition to the (Compliance) program.
The strategy identified opportunities for developing natural cosmetics, eco-friendly products, and specialized chemicals with higher profit margins, in addition to leveraging innovation in packaging to enhance product value and competitiveness.
Regarding the value chain in the sector, the strategy showed that the availability of local inputs such as phosphate, potash, and Dead Sea minerals forms a base for basic chemical industries, fertilizers, and some cosmetic products, while manufacturing industries, including detergents, paints, and cosmetics, rely on imported intermediate materials and industrial components.
It pointed out that limited development in some subsequent stages, such as packaging, marketing, and brand building, limits the deepening of local value-added, and that weak integration between the production of intermediate materials and distribution and marketing stages reduces opportunities for maximizing value across the production chain.
To address these challenges, the strategy included directions for developing products and enhancing innovation, building export brands, and developing intermediate and final industries, in addition to establishing a research, development, and innovation center focused on the value chain related to potash and phosphate, and linking scientific research to industrial needs.
The strategy also proposed establishing a national fund for industrial research and development and linking universities with factories, with the aim of addressing the weakness in research and development and enhancing product innovation, in addition to working on launching a unified Jordanian brand program in the field of cosmetics and specialized chemicals.
The strategy linked the success of the transformation in products to the development of industrial, marketing, and research capabilities, which enhances the ability of companies to transition to higher-value specialized products and supports the sector's competitiveness in local and foreign markets.
The Ministry announced at the beginning of this month the launch of three sectoral strategies for the years (2027–2029), including engineering, food, and chemical and cosmetics industries, as part of efforts to develop the industrial sector and enhance its competitiveness and productivity, in a way that supports the targets of the high-value industries engine within the Economic Modernization Vision, in addition to developing targeted sectors by identifying priorities, initiatives, and projects with economic impact and linking them to clear performance indicators and targets, to enhance the sector's contribution to economic growth, exports, investment, and employment.
