Industrial equipment trade in Jordan

Industrial equipment trade in Jordan: reality and analysis

1. Importance of the current market

The Jordanian market for industrial tools and equipment (Tools & Machines) includes hand tools, power tools, and small machinery, and is part of both the direct selling and e-commerce sectors. The market size is estimated at approximately US$159.5 million in 2025, with projected compound annual growth of around 1.8% through 2029.

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2. Imports

• Jordan’s imports of hand-operated rotating pneumatic tools amounted to approximately $802.3 thousand in 2022, most of which were imported from China, followed by Türkiye, Japan and the United Kingdom.

• Regarding interchangeable hand tools, they have seen a decline in both quantity and value in recent years, with China continuing as a major source.

• China is the largest supplier of hand tools in the Jordanian market, accounting for more than 60% of total imports, followed by Germany and the United States.

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3. Opportunities and Challenges

Opportunities:

• Increased demand for building materials and industrial equipment as a result of medium and large construction projects.

• The existence of trade agreements such as the Comprehensive Economic Agreement with the UAE and the Free Trade Agreement with the United States facilitates exports without customs duties.

• Qualified industrial zones, such as the Al-Hassan Industrial Zone in Irbid, allow the export of Jordanian products to the United States without customs duties, provided that the product contains a certain percentage of local manufacturing.

Challenges:

• High operating costs in Jordan, such as electricity prices, salaries and taxes, lead to a reduction in profit margins.

• Bureaucracy and the complexity of customs procedures when importing industrial equipment and machinery in commercial quantities.

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4. Who works in this field?

Several local companies operate in the import and distribution of industrial tools in Jordan, including hand tools, power tools, and spare parts. Some companies also export to neighboring markets such as the Gulf. Local manufacturing, however, remains limited, often confined to assembly or packaging.

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5. Tips for starting an industrial tools business in Jordan

• Make sure the company is officially registered with the Chamber of Commerce and Industry and has obtained the required import licenses.

• Utilize Qualifying Industrial Zones (QIZs) to facilitate export operations to international markets.

• Choose suppliers carefully, and try to negotiate prices and shipping.

• Use digital marketing to reduce costs and reach a larger customer base.

• Monitoring the laws and regulations related to the trade and industry sector in Jordan on a regular basis.

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