Jordan’s engineering sector expanded by 19.2 percent in 2023, making it the country’s second-fastest growing industrial segment.
Despite contributing just 5 percent of GDP and 4.1 percent of manufacturing exports, its rapid growth has drawn attention as a potential linchpin for Jordan’s transition toward greener, more resilient industrial practices. The EU-funded Green Forward Industry (GFI) project, launched in partnership with UNIDO, the Ministry of Industry, Trade and Supply, the Ministry of Environment, and Jordan’s Royal Scientific Society (RSS), aims to embed circular economy models into this dynamic sector—to improve resource efficiency, reduce environmental impacts, and sharpen competitiveness in external markets.
Yet translating growth into sustainable industrial performance poses multiple obstacles. One immediate challenge is the readiness of small and medium-sized engineering firms to adopt new design, remanufacturing, and resource-efficiency practices. Many lack access to green finance, both in terms of capital and favorable terms, and often face technical constraints linked to existing equipment, waste handling, and energy costs. Regulatory and policy frameworks are supportive in rhetoric but uneven in execution, with pilot programmes and mapping studies preceding pilot projects rather than large-scale roll-out.
The GFI project, running until 2028, plans to bridge some of those gaps. Its first phase involves a sectoral mapping exercise, led by RSS, to identify value chain segments with the highest circularity potential—areas where water and energy use, waste generation, and design inefficiencies are particularly large. Based on those findings, pilot business models will be launched in early 2026 focusing on reducing waste, energy and water footprints, and improving material reuse. Support for SMEs includes technical assistance, capacity development, and guidance in securing green finance.
Historical precedents such as Jordan’s participation in the EU-funded SwitchMed programme have contributed learnings about integrating circularity into SMEs: gains in export competitiveness, innovation in design, and small reductions in environmental externalities. But scaling these successes relies heavily on systemic enablers. Effective regulation, standards, enforcement, and quality control are needed, especially if remanufactured, reused, or circular products are going to be accepted in regional and global supply chains. Infrastructure, particularly in waste sorting, energy efficiency retrofits, water recycling, and material recovery, will need investment beyond what many SMEs can muster themselves.
Another dimension is workforce capacity. To deploy circular models at scale, firms will need employees with skills in industrial design for reuse, sustainable materials, life cycle assessment, remanufacturing, and green finance negotiation. Jordan’s existing skills development programmes are relevant but need to be tailored around the engineering sector’s evolving needs—both technological and regulatory.
Finally, competitiveness in regional/global markets depends not only on cost efficiency but on avoiding dependencies in raw material importation and energy. Circular models can offer cost savings via resource reuse, lower waste disposal costs, and improved energy/water use—but only where cost structures, supply chain linkages, and regulatory consistency allow. The GFI project’s aim to strengthen local resilience, reduce dependencies, and improve exports reflects that dual economic-environmental imperative.
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