Jewellery Cluster in Jordan

8/7/2019 Jewellery Cluster in Jordan

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The Jewelry Cluster in JordanCurrent Facts and Future Prospects

Tamer Al-Nasser ([email protected])

Talal Abu-Ghazaleh College of Business (TAGCB)The German Jordanian University

The Jewelry Cluster in JordanCurrent Facts and Future Prospects

Tamer Al-Nasser ([email protected])

Talal Abu-Ghazaleh College of Business (TAGCB)The German Jordanian University



� This presentation is based on apaper created at MoC course at:Talal Abu-Ghazaled College of Business

On behalf of:

* Anne Babieh* Huzama Fakher * Tamer El-Nasser



AgendaAgenda

� Country Overview� Overall Economic Performance� Cluster Analysis

� Cluster Diamond� Cluster Map� SWOT Analysis� Current Challenges

� Recommendations



Country OverviewCountry Overview

Population: 6,053,193 (July 2 007 est.)

Land Area: 89,34 2 sq km

Labor Force: 56% of the population

Total GDP: $15, 83 2

Unemployment: 13 .1 %

Median Age: 20 .3Sources: www.worldatlas.com ,

Central Bank of Jordan,

Ministry of Foreign Affairs



E conomic PerformanceE conomic Performance

Source: Central Bank of Jordan



� Jordan ranked 49 out of 131 economies on the Global CompetitivenessIndex (GCI) , and ranked 4 8 on the Business Competitiveness Index (BCI)in the Global Competitiveness Report 2 007 -200 8.

Jordan¶s Performance on the twelve pillars of the Global Competitiveness Index, 2007-2008


Source: Global Competitiveness Report 2008



E ase of Doing Business ± A global Rank by the WB


Source: World Bank, Ease of Doing Business Report



Cluster MapCluster Map



Cluster AnalysisCluster Analysis

� Integral part of the culture (not luxury)� Financial Security

� High disposable incomes and highpopulation growth rates� Very low transparency� Family owned business.



S WOT AnalysisS WOT Analysis

S trengths:� A growing rate of exports , reaching 18.2 % during

the years 199 8-2005� Consensus to enhance the cluster and increase

exports by increasing quality and targeting newmarkets

� Culture creates an almost steady local demand� High caliber workers; although in small numbers

� Good understanding of the Local and regionaltastes� The country¶s political stability.




Weaknesses:

� Low number of highly skilled labor force

� Training programs are incapable of providing themarket the needed number and level of workers

� Difficulty to attract skilled foreign labor

� Although the Jordanian Jewelers Syndicate wasestablished in 1973, its role is still modest.




Weaknesses:

� High fees by the Jordan Institute for Standards and

Measurements (JISM)

� The Ministry of Interior Affairs demands a bank

guarantee of JD 5000 ($705 2) on each workshop .



Opportunities:

� Governmental approach towards supporting

growing industries and entrepreneurship (The

Ministry of Industry and Trade , JEDCO , etc..)

� Proximity to GCC markets and ease-of-entry to

other regional and international markets create an

enormous opportunity for exporting

� Growth in the tourism industry - ³Eco-jewelry´.




Threats:

� High competition from international jewelry

production; especially from Italy

� Increases in Gold prices on a global level , affected

by the record increase of crude-oil prices , the weak

US dollar ,

and fears of recession.




Cluster DiamondCluster Diamond



E co-Jewelry Design S amplesE co-Jewelry Design S amples

Source: Nadia Dajani web site



Current ChallengesCurrent Challenges

� Transparency

� Fluctuating demand on Gold

� Skilled labor challenges

� The current role of the Jordanian JewelersSyndicate is still moderate



Current ChallengesCurrent Challenges

� Child Labor

� Jordan Institute for Standards and

Measurement (JISM)

� Environmental issues� Copyright and IP



RecommendationsRecommendations

Bigger role for the Jewelers S yndicate

More international exposure

Target new markets

S trategic partners and an IPONew niches (state gifts, men items, baby

jewelry)



RecommendationsRecommendations

Training

Implement code of ethics

Local products (religious related)

S pecialized security companies



Thank You!

Questions?

Contact:[email protected]

Jewellery Cluster in Jordan

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