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Advances in Social Sciences Research Journal – Vol.7, No.7
Publication Date: July 25, 2020
DOI:10.14738/assrj.77.8184.
Sabahi, S. S., & Alfanatseh A. A. A. (2020). Industrial Clusters in Al-Hassan Industrial Estate Study in Economic Geography. Advances in
Social Sciences Research Journal, 7(7) 686-695.
Industrial Clusters in Al-Hassan Industrial Estate Study in Economic
Geography
Safa Soboh Sababhi
Department of Geography,
Al-Hussein Bin Talal University, Jordan
Abed Alhameed Ayoub AlFanatseh
Department of Geography,
Al-Hussein Bin Talal University, Jordan
ABSTRACT
The industrial estates represent the most prominent forms of support
provided by the state to the industrial sector by achieving external
savings that support the establishment and continuation of industries.
The successive Jordanian governments seek to support the industrial
sector and provide it with all forms of incentives in order to improve the
growth of the Jordanian economy and providing job opportunities.
Therefore, they established (6) industrial estates distributed all over
the Kingdom’s governorates. However, these industrial clusters are still
working within the classic classical conception of clustering, as a place
for grouping industries, and were unable to switch to the concept of
industrial clusters resulting from interaction and integration between
industries, while the industrial clusters turned to be a development
strategy leading to the growth and development of industries. So, this
study aimed to find out if the industries in the Industrial City of Al- Hassan Industrial managed to shift from the traditional concept of
clustering to the concept of cluster, and to know the reasons preventing
this transformation. The study adopted the descriptive analytical
approach and the qualitative analysis of the data collected through the
study tool (the questionnaire). The study concluded that the industries
in Al-Hassan Industrial City were unable to transform into a cluster
based on interaction and exchange, and the interaction between
factories and the local community represented by academic institutions
is at its lowest levels. Therefore, the study recommends restructuring
the industrial estates and technology areas in the Kingdom to shift from
the traditional role of the industrial cluster to the modern concept.
Key words: Al-Hassan Industrial City, economies of scale, external savings,
intermediate industries , industrial cluster,
INTRODUCTION
The ideas of Alfred Weber, arose at the beginning of the twentieth century and specifically in 1909,
are the beginning of the economic geography focus on the importance of industrial clustering as one
of the main factors in choosing the ideal location for a single plant, so industrial clusters are formed
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Advances in Social Sciences Research Journal (ASSRJ) Vol.7, Issue 7, July-2020
due to geographical proximity where economics of scale and economic of scope are achieved leading
to the achievement of tangible and intangible savings, and allowing exchange of information.
Interactions in the industrial grouping are the secret of the grouping success, and they have a higher
capacity to exchange goods and services, and allow companies to access information through
cooperation and competitiveness, and cooperate to solve problems, share inputs, and this is not
available for independent companies. Given the importance of industrial clusters in bringing about
real development, many countries have supported the "industrial clusters strategy" whether to
support regional development or national development based on supporting the industrial sector,
and the establishment of industrial clusters in Jordan began in 1980 by establishing the Industrial
City in Sahab, then Al-Hassan Industrial Estate in Irbid in 1986. (Table No. 1) Also the Industrial
Estates Commission is currently establishing other four estates in Madaba, Salt, Jarash and Tafileh.
Table No. 1: Industrial cities in Jordan
Industrial City Location
Number of
operating
factories
Number of
Labouer
The size of the
investment /
million dinars
Exports /
million
dinars
Abdullah II Industrial City East of Amman 467 15675 1395 419
Al-Hassan Industrial City Irbid 150 31796 485 493
The city of Hussein bin
Abdullah II Karak 39 4114 47 109
Aqaba Industrial City Aqaba 117 2100 426 320
Al Muwaqqar Industrial City Amman 93 3263 471 65
Mafraq Industrial City Mafraq 3 16 .400 ----
Source: Industrial Cities Administration, Strategic Plan, 2017. Department of Statistics, 2019.
Since the middle of the twentieth century, the Jordanian industrial strategy has taken a form to
support the local industry and protect it from external competition. This policy continued until the
end of the eighties of the twentieth century. This policy supported the industrial sector and the
development of substitutional industries through customs protection, but this inward orientated
industrialization policy did not enable the industrial sector to compete abroad, as the industrial
sector continued to meet the basic needs of citizens. Due to the absence of the competition factor,
the local industries did not develop their products.
In the eighties of the twentieth century, the industrial policy shifted from protection to the policy of
exporting and opening to the outward oriented industrialization, and Jordanian industries
experienced a shock it responded to it slowly. It became necessary for the industry to keep able to
compete after stopping the forms of protection provided by the state.
The successive industrial policies tried to distribute industries to the various governorates of the
Kingdom in order to distribute development gains and achieve the desired regional development.
Therefore, they established industrial estates in most of the governorates of the Kingdom despite
the lack of industrial settlement factors in these governorates. They also worked on many financial
support measures, industrial lending institutions and provision of industrial infrastructure.
Therefore, the government support programs support industries to increase their productivity but
they do not focus on networking and interaction between industries.