UK Export Finance has announced its first deal in Jordan to support the classic fashion garment industry in the construction of four new garment factories and a head office in Aqaba
The development of four new garment factories and a headquarters for Classic Fashion Apparel Industry in Aqaba will be supported by UK Export Finance (UKEF), the UK government’s export finance agency.
The £66m deal will build four factories, including three satellite production facilities in addition to the main site in Aqaba.
Jordan’s already robust textile sector will grow accordingly. By combining direct financing with a buyer credit guarantee, UKEF offered its assistance, allowing Classic Fashion Apparel Industry to continue its project and benefit from flexible repayment terms.
By 2024, the proposed new facility in the Aqaba Special Economic Zone is expected to employ around 4,000 Jordanians. Jobs at various levels are available to locals, with opportunities for advancement and entry into the garment manufacturing industry.
the proximity of the port of Aqaba to this special location increases the export capacity of the classic fashion garment industry.
According to the objectives for the industry set out in the recently unveiled Economic Modernization Vision 2033, this initiative will help increase manufacturing exports and employment.
Over 30% of project services and supplies, including machinery and other construction materials, will be sourced directly from UK suppliers, extending the UK contribution beyond the financial arrangement.
To ensure high quality and on-time delivery, ASGC UK, a leading UK construction company in the region, will manage and oversee all connected components.
Paul Woodman, Managing Director of ASGC UK, said:
ASGC is honored and delighted to be part of this important Jordanian company.
For their help and cooperation in putting in place the commercial and financial arrangements that made this project feasible, we would like to thank Classic Fashion, HSBC and UK Export Finance.
It is an honor for us to have Classic Fashion as a client, and we hope that this project will open new doors for ASGC in Jordan.
Finally, I would like to express my gratitude to the British Embassy and the Department of International Trade in Amman for their assistance throughout the process.
Without their support, we would not have been able to realize this exceptional project.
The largest apparel producer in the MENA region is Classic Fashion Apparel Industry Group. It contributes over 42% of all Jordanian clothing exports and produces approximately 550,000 garments every day.
In 2021, the company produced 130 million pieces of clothing, and this year it expects production to reach 165 million pieces.
Mr. Sanal Kumar, President and General Manager of Classic Fashion Garment Industry, said:
The foundation of my humble life journey and all that I have achieved to date is the realization that “you can rise to your maximum potential and deliver 100% of what you are capable of”.
This simple idea led to the classic fashion we see today.
I would like to say right now that Classic Fashion is dedicated to bringing the best to worthy people in the rural districts of Jordan.
I want to emphasize that Classic Fashion will work tirelessly to help realize Her Majesty’s vision for 2033.
To “bring SMEs into the open-source manufacturing excellence program, Jordanization, vertical expansion and efficiency improvement, to bring the Jordanian apparel industry to its peak.
I appreciate the support of UKEF, the British Embassy in Amman, the Department of International Trade and HSBC as Classic Fashion embarks on its mission to establish GIA Apparels, a wholly owned subsidiary of Classic Fashion, in Aqaba and generate 4,000 additional jobs for Jordanians.
Through UKEF, the UK can help overseas buyers secure financing and insurance where these products are not offered by the private sector.
To help Jordanian buyers get the financing they need to do business with the UK, UKEF has made available up to £3 billion. Jordan’s best projects can be funded with the help of UKEF’s full range of support.
Bridget Brind, OBE, British Ambassador to Jordan, said:
I am delighted to support this historic agreement with Classic Fashion, the first in Jordan to benefit from the support of UK Export Finance and the British company ASGC UK.
It will contribute to the growth and future prosperity of the Jordanian economy by helping to increase exports and create new jobs. For the benefit of Jordan and the UK, I believe it can serve as a model for similar agreements in the future.
The project and launch of a new garment and textile factory in Aqaba, which will generate thousands of jobs in Jordan, was welcomed by UK Minister of State for Asia and the Middle East, Ms Amanda Milling MP, who is now in Jordan as part of a regional visit.
The UK is a reliable partner for Jordan thanks to its open and welcoming business climate, its knowledge of sectors such as manufacturing, services and technology, and its experience in areas such as renewable energy, sustainability water and manufacturing.
In addition, UKEF can offer Sharia (Islamic Sukuk) compliant financing options and support in regional currencies such as the Jordanian Dinar.