Dr. Hamad Kasasbeh

The partnership between the Arab Potash Company and the Jordan Phosphate Mines Company to establish a joint industrial complex in Aqaba and Shidiya represents an important step in the development of Jordan’s industrial sector. Jordan has built a strong base in mining, and this partnership opens the door to a deeper phase of industrialisation focused on increasing value added and diversifying products and exports. The project’s importance rests on the fact that its success will be determined not by the size of the investment alone, but by the amount of value retained within the Jordanian economy.

Within this framework, the project’s value lies in its ability to combine phosphate and potash inputs, production expertise, financial capacity, and marketing networks within a single industrial chain. This means moving the resource from extraction and primary processing towards specialised manufacturing, research and development, and market access. The partnership could therefore support the production of purified phosphoric acid, fertilisers, and specialised products, while strengthening Jordan’s presence in markets linked to agriculture and food security.

However, the availability of raw materials and expertise does not automatically guarantee success. Jordan’s phosphate and potash resources provide a natural advantage, but sustaining competitiveness requires turning that advantage into an industrial capability built on technology, quality, efficiency, and flexibility. For this reason, establishing a joint company should be accompanied by clear responsibilities, timely decision-making, and effective coordination across production, investment, marketing, research and development, and infrastructure.

Accordingly, commercial success begins with careful product and market selection. Priority should be given to products in which Jordan can compete effectively, that enjoy sustainable demand, and that offer margins proportionate to the scale of investment. Building new production capacity on independent market studies, actual demand indicators, and, where possible, advance sales arrangements would reduce the risk of creating large capacities and only later searching for markets able to absorb them.

Alongside product selection, flexibility in implementation is equally important. A phased approach would allow the project to test markets, review costs, and adjust its product mix as prices and demand change. It would also reduce the risks of expanding too quickly in a sector influenced by energy and transport costs, agricultural demand, and global trade conditions. Phasing, however, should be tied to a clear timetable so that it does not become open-ended delay.

By the same token, the project should not be assessed solely by the size of its facilities or production capacity. Spending on equipment and construction does not remain entirely within the economy, particularly when a large share is imported. A more accurate measure is the value generated after operations begin through new exports, skilled jobs, wages, local procurement, taxes and returns, in addition to the indirect impact on suppliers, services, and economic activity created by higher local incomes.

This highlights the importance of local content as an integral part of the project model. The complex could become the nucleus of a broader industrial ecosystem if Jordanian companies are given meaningful opportunities in engineering, maintenance, packaging, transport, laboratories, and technical services. Developing local suppliers and involving small and medium-sized enterprises would expand the project’s impact and help retain a larger share of its returns within the economy rather than allowing them to leak through imports and external services.

To deepen this impact, the project should build partnerships with universities and training institutions to develop skills in industrial chemistry, engineering, operations, safety, and quality. Major technical contracts should also include clear knowledge-transfer programmes. Morocco and Saudi Arabia offer useful lessons in linking mining with manufacturing, research and development, and infrastructure, while energy and water efficiency and effective waste management have a direct bearing on costs and access to global markets.

In conclusion, this partnership represents an important economic and industrial opportunity for Jordan. The observations made here are not intended to diminish its significance, but to maximise its impact and safeguard its prospects for success. Progress can be measured through clear indicators covering local procurement, technical employment, new exports, specialised products, resource efficiency, and adherence to cost and schedule. The real test is whether the complex becomes an integrated industrial system linking national resources with production, knowledge, and markets.