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    30-Mar-2026

Jordan's construction industry reacts to disruptions in global supply chains

 

The Jordan Times

 

AMMAN — Global pressures on shipping, fuel and raw materials are increasingly burdening Jordan’s construction sector, triggering concerns within the industry and prompting government intervention to alleviate the strain.

 
General-Manager of Kingdom Concrete, Raja Al Alami, said to The Jordan Times, the company has already been notified of price increases and shipment delays affecting imported raw materials used in construction chemicals, some of which are still in transit.
 
He said that these disruptions are likely to cause shortages and push up prices of key products, including concrete admixtures, in the short term.
 
"These delays will surely cause shortages, which will directly impact the price of our products," Al Alami said, noting that the impact on end users will be felt soon.
 
While Jordan benefits from local production in areas such as clinker and gypsum, the sector remains partly dependent on imports, particularly for specialised materials and equipment.
 
This reliance has made it vulnerable to rising shipping costs and global supply chain disruptions.
 
In a statement to The Jordan Times, Chairman of Jordan Chamber of Industry (JCI) acknowledged these challenges, noting that increased maritime freight and insurance costs have placed additional pressure on industrial operating and investment expenses.
 
In response, recent Cabinet decisions introduced temporary measures, including exempting increases in maritime freight charges from fees and taxes for six months and facilitating the entry of goods through land borders.
 
According to the chairman, these steps are designed to reduce logistical costs, accelerate shipments and support the continuity of production.
 
Further efforts may be needed, particularly expanding facilitations to cover essential industrial equipment more directly, in order to strengthen the sector’s competitiveness.
 
Fuel prices are adding another layer of pressure. Al Alami explained that rising energy costs directly impact production, transportation and machinery operations.
 
Suppliers often pass on increases immediately, especially in aggregates and transport, while concrete producers tend to absorb part of the cost due to market constraints.
 
Cement prices are also expected to rise, as production depends heavily on coal and industrial fuels subject to global volatility.
 
To address energy challenges, the government is moving to diversify energy sources.
 
JCI Chairman highlighted ongoing plans to supply industrial cities with natural gas, which is expected to lower costs and provide a more stable energy source.
 
At the same time, there is growing support for renewable energy adoption, including solar projects and energy efficiency measures aimed at reducing consumption.
 
Beyond short-term measures, officials stress that the construction-related industries remain a strategic pillar of Jordan’s economy.
 
The sector is closely linked to multiple value chains, including cement, steel, chemicals, plastics and aluminium, and contributes around 2.2 per cent of GDP, with an estimated annual production value of JD1.7 billion, according to Jaghbir.
 
Under the Economic Modernisation Vision (EMV), the government is prioritising the expansion of industrial capacity and increasing reliance on local inputs.
 
Planned incentives include reducing energy costs, supporting intermediate industries, and enhancing industrial linkages to maximise value-added production.
 
Jaghbir added that major development projects are also expected to play a key role. Initiatives such as the Umrah City project are seen as drivers of demand for construction materials and industrial outputs, with the potential to strengthen domestic supply chains and stimulate economic activity.
 
Looking ahead, he emphasised that while initial steps have been taken to cushion the impact of rising costs, the next phase will focus on accelerating implementation, particularly in reducing production costs, improving infrastructure and providing clearer timelines for investors.
 

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