The development of four new garment factories and a corporate office for Classic Fashion Apparel Industry in Aqaba will be supported by UK Export Finance (UKEF), the export financing agency of the UK government.
The £66 million agreement will make it possible to construct four factories, including three satellite production facilities in addition to the main site in Aqaba.
Jordan’s already robust textile sector will grow as a result. By combining direct finance and a buyer credit guarantee, UKEF has offered assistance, enabling Classic Fashion Apparel Industry to carry forward with their project and take advantage of flexible repayment terms.
By 2024, it is anticipated that the new proposed facility in the Aqaba Special Economic Zone will employ about 4,000 Jordanians. Jobs at various levels are provided for the local population, with opportunities for advancement and entry into the apparel manufacturing industry.
proximity of the Aqaba port to this special location increases the Classic Fashion Apparel Industry’s ability to export.
According to the objectives for the industry set forth in the newly unveiled Economic Modernization Vision 2033, this initiative will help to increase manufacturing exports and employment.
More than 30% of the project’s services and supplies, including machinery and other building materials, will come directly from UK suppliers, extending the UK’s contribution beyond the finance arrangement.
To guarantee high-quality and on-time delivery, ASGC UK, a prominent British construction business in the area, will project manage and supervise all connected components.
Paul Woodman, managing director of ASGC UK, stated:
ASGC is honored and thrilled to be a part of this significant Jordanian undertaking.
For their assistance and cooperation in putting together the business and financial arrangements that have 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 customer, and we are hopeful that this project will open up new doors for ASGC in Jordan.
Finally, I want to express my gratitude to the British Embassy and the Department for International Trade in Amman for their assistance during the entire process.
Without their support, we would not have been able to secure this outstanding project.
The largest apparel producer in the MENA region is Classic Fashion Apparel Industry Group. It contributes to more than 42% of all Jordanian garment exports and produces about 550,000 garments each day.
In 2021, the company produced 130 million garments, and this year, it anticipates production to reach 165 million outfits.
Mr. Sanal Kumar, Chairman & Managing Director of the Classic Fashion Apparel Industry, said:
The foundation of my humble life’s journey and everything I have accomplished to date is the realization that “you can raise yourself to your utmost potential and provide 100% of what you are capable of.”
This straightforward idea led to the classic fashion we see today.
I’d like to say right now that Classic Fashion is dedicated to providing the best to the worthy people in Jordan’s rural districts.
I want to underline the fact that Classic Fashion will work tirelessly to help realize His Majesty’s vision for 2033.
To “Bring SME Units into Open-Source Manufacturing Excellence Program, Jordanisation, Vertical Expansion, and Efficiency Enhancement, to Take Jordan Apparel Sector to Its Pinnacle.
I appreciate the support of UKEF, the British Embassy in Amman, the Department for 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 an additional 4000 employment for Jordanians.
Through UKEF, the UK can assist foreign buyers in obtaining financing and insurance when those products are not offered by the private sector.
To assist Jordanian buyers in obtaining the financing they require to conduct business with the UK, UKEF has made up to £3 billion accessible. Jordan’s top projects can be financed with the help of the complete range of UKEF support.
Bridget Brind, OBE, the British ambassador to Jordan, said:
I’m excited to support this historic agreement with Classic Fashion, the first in Jordan to have the support of UK Export Finance and British firm ASGC UK.
It will contribute to the growth and future prosperity of Jordan’s economy by helping to enhance exports and create new jobs. For the benefit of Jordan and the United Kingdom, I believe it can serve as a model for similar accords in the future.
The project and the launch of a new garment and textiles plant in Aqaba, which will generate thousands of employment in Jordan, were praised 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, knowledge of industries like manufacturing, services, and technology, and experience in fields like renewable energy, water sustainability, and manufacturing.
Additionally, UKEF can provide financing options that adhere to Shariah (Islamic Sukuk) and assistance in regional currencies like Jordanian Dinars.