HANDICRAFT SECTOR in AQABA ... - Aced-jordan.com

HANDICRAFT SECTOR in 

AQABA – DIAGNOSTIC, 

STRATEGY and ACTION PLAN 

AQABA COMMUNITY and ECONOMIC DEVELOPMENT (ACED) 

PROGRAM 

August 23, 2008 [Revised as of September 24, 2008]- Final 

This publication was produced for review by the United States Agency for International 

Development. It was prepared by Rana Akhal, Ahlam Shabaneh and Carol Tyroler for AECOM 

International Development under the Aqaba Community and Economic Development (ACED) 

Program. 

Aqaba Community and Economic Development (ACED) Program –i 

Handicraft Sector in Aqaba – Diagnostic, Strategy and Action Plan

HANDICRAFT SECTOR in 

AQABA – DIAGNOSTIC, 

STRATEGY and ACTION PLAN 

DEVELOPMENT (ACED) 

PROGRAM 

AQABA COMMUNITY AND ECONOMIC DEVELOPMENT (ACED) 

PROGRAM 

DISCLAIMER 

The author's views expressed in this publication do not necessarily reflect the views of the 

United States Agency for International Development, AECOM International Development 

or the ACED Program. 

Aqaba Community and Economic Development (ACED) Program –ii 


CONTENTS 

EXECUTIVE SUMMARY .................................................................................................................................1 

I. OBJECTIVES AND METHODOLOGY.............................................................................................3 

A. STUDY OBJECTIVES.......................................................................................................................................3 

B. APPROACH AND METHODOLOGY ....................................................................................................................3 

II. DIAGNOSTIC OF HANDICRAFT SECTOR ..............................................................................5 

A. OVERVIEW OF HANDICRAFTS IN JORDAN ..........................................................................................................5 

B. OVERVIEW OF HANDICRAFTS IN AQABA...........................................................................................................9 

I. ORGANIZATIONS WORKING IN CRAFTS ...................................................................................................10 

II. OVERALL FAILURE OF PAST INITIATIVES ....................................................................................................11 

C. VALUE CHAIN PARTICIPANTS.....................................................................................................................14 

III. PRODUCT DEVELOPMENT AND PRODUCTION DIAGNOSTIC ..................................16 

A. OVERVIEW................................................................................................................................................16 

B. PRODUCTS CURRENTLY PRODUCED IN AQABA .................................................................................................16 

C. CORE STRENGTHS IN PRODUCT POTENTIAL ....................................................................................................20 

D. RESULTS FROM TOURIST PREFERENCE SURVEY................................................................................................20 

E. SWOT ANALYSIS PRODUCT DEVELOPMENT AND PRODUCTION..........................................................................21 

IV. MARKET DIAGNOSTIC ................................................................................................................26 

A. DESCRIPTION OF MARKET IN AQABA..............................................................................................................26 

B. MARKET SIZE, EXISTING OPPORTUNITY AND DETERMINANTS............................................................................28 

C. SURVEY METHODOLOGY AND ANALYSIS.........................................................................................................29 

i. Survey Methodology........................................................................................................................30 

ii. Foreign Tourists Survey Analysis.......................................................................................................30 

iii. Jordanian Tourists Survey Analysis ....................................................................................................32 

D. SWOT ANALYSIS REGARDING HANDICRAFTS MARKETING.............................................................................34 

V. ORGANIZATIONAL AND HUMAN RESOURCE DIAGNOSTIC......................................38 

A. MANAGEMENT OF THE SECTOR IN AQABA......................................................................................................38 

B. PRODUCERS’ CAPACITY................................................................................................................................40 

C. ENABLING ENVIRONMENT...........................................................................................................................44 

i. An Encouraging Legislative Environment...........................................................................................44 

ii. Access to Finance............................................................................................................................44 

D. KEY ORGANIZATIONAL CHALLENGES ............................................................................................................47 

E. SWOT ANALYSIS INSTITUTIONAL CAPACITY....................................................................................................49 

Aqaba Community and Economic Development (ACED) Program –iii 


VI. SECTOR STRATEGY..................................................................................................................... 51 

A. INTRODUCTION......................................................................................................................................... 51 

1. Vision and Overall Objective............................................................................................................. 51 

2. Strategy.......................................................................................................................................... 51 

B. STRATEGY FOR PRODUCT DEVELOPMENT AND PRODUCTION ............................................................................. 51 

1. Priority Product Analysis................................................................................................................... 52 

2. Strategy Components ...................................................................................................................... 53 

Pillar I: New Product Development and New Designs................................................................................... 54 

Pillar II: Training and Learning Initiatives...................................................................................................... 56 

Pillar III: Horizontal and Vertical Linkages Created ....................................................................................... 58 

C. MARKETING STRATEGY............................................................................................................................... 59 

1. Overall Marketing Strategy .............................................................................................................. 60 

Pillar I: Increase Market Access ................................................................................................................... 60 

Pillar II: Branding and Promotion ................................................................................................................. 62 

D. INSTITUTIONAL DEVELOPMENT ................................................................................................................ 63 

PILLAR 1: Business-Enabling Environment .................................................................................................... 65 

PILLAR II: Producer’s Capacities................................................................................................................... 66 

PILLAR III: Handicrafts Sector Regulation and Management.......................................................................... 66 

VII. ACTION PLAN ................................................................................................................................68 

VIII. ANNEXES.......................................................................................................................................... 89 

ANNEX 1: SCOPE OF WORK ....................................................................................................... 90 

ANNEX 2: LIST OF INTERVIEWS ............................................................................................... 93 

ANNEX 3: ILLUSTRATIVE PROJECT COSTS......................................................................... 95 

ANNEX 4: METHODOLOGY FOR SELECTION OF PRODUCT AREAS........................ 106 

ANNEX 5: HISTORICAL PRODUCTS ONCE PRODUCED IN AQABA ......................... 109 

Aqaba Community and Economic Development (ACED) Program –iv 


ACED Program Frequently-Used Acronyms and Abbreviations 

(Not all of the following will appear in every ACED Program document) 

ACDF Aqaba Community Development Fund 

ACED Aqaba Community and Economic Development program (USAID) 

ACT Aqaba Container Terminal 

ADC Aqaba Development Corporation 

ADS Automated Directive Systems 

AEGP Afghanistan Economic Governance Project 

AGDTF Aqaba Garment Development Task Force 

AI AECOM International 

AIDAR Acquisition Regulation (USAID) 

AIIE Aqaba International Industrial Estate 

AMIR Achievement of Market-Friendly Initiatives and Results project (USAID) 

APC Aqaba Ports Corporation 

ASDC Aqaba Skills Development Center 

ASDP Aqaba Skills Development Program 

ASEZ Aqaba Special Economic Zone 

ASEZA Aqaba Special Economic Zone Authority 

ASRI Aqaba Skills Readiness Index 

ASYCUDA Automated System for Customs Data 

ATASP Aqaba Technical Assistance Support program (USAID) 

AUC Aqaba University College 

AVC Audiovisual Commission of Jordan 

AZEM Aqaba Zone Economic Mobilization project (USAID) 

B.A. Bachelors of Arts 

B.S./B.Sc. Bachelors of Science 

BA Business Association 

BAFO Best and Final Offer 

BB&T Branch Banking and Trust 

BDC Business Development Center 

BDS Business Development Services 

CAB Community Advisory Board 

CAD Computer-aided Design 

CBO Community Based Organization 

CCN Cooperating Country National 

CDC Community Development Councils 

CEDAW Convention on the Elimination of All Forms of Discrimination Against Women 

CEO Chief Executive Officer 

CGAP Certified Government Auditing Professional 

CHF Cooperative Housing Foundation International 

CIDA Canadian International Development Agency 

CMT Cut-Make-Trim 

CO Contracting Officer 

Aqaba Community and Economic Development (ACED) Program –i 


COB Close of Business 

COO/CFO Chief Operating Officer/Chief Financial Officer 

COP Chief of Party 

COTS Caribbean Open Trade Support project 

CP Cost Proposal 

CRM Customer Relationship Management 

CSO Civil Society Organization 

CSP Community Service Program 

CSR Corporate Social Responsibility 

CTO Cognizant Technical Officer 

D & G Democracy and Governance 

DCA Development Credit Authority 

DCAA Defense Contract Audit Agency 

DQA Data Quality Assessments 

ECI Environmental Compliance Index 

EG Economic Growth 

EGRA Early Grade Reading Assessment 

EIA Environmental Impact Assessment 

EJADA Euro-Jordanian Action for the Development of Enterprise Program 

EJEP Euro-Jordanian Export Program 

EO Economic Opportunities Office 

EOI Expression of Interest 

EPC Executive Privatization Commission 

ERfKE Education Reform for a Knowledge Economy (USAID) 

ERPS Enterprise Registration and Permitting System 

ETF European Training Foundation 

EU European Union 

FAR Federal Acquisition Regulation (US Government) 

FDI Foreign Direct Investment 

FDR Fixed Daily Rate 

FHR Fixed Hourly Rate 

FTA Free Trade Agreement 

FZC Free Zones Corporation 

GDA Global Development Alliance 

GDP Gross Domestic Product 

GEM Gender Entrepreneurship Markets 

GIS Geographic Information System 

GOJ Government of Jordan 

GPS Global Positioning System 

GSP Global Supplier Program 

HO Home Office 

HR Human Resources 

HRD Human Resource Development 

HRM Human Resource Management 

ICDL International Computer Driving License 

ICT Information and Communications Technology 

IFC International Finance Corporation 

Aqaba Community and Economic Development (ACED) Program –ii 


IFS Integrated Financial System 

ILO International Labor Organization 

IMF International Monetary Fund 

INJAZ Economic Opportunities for Jordanian Youth Program (formerly USAID) 

IPR Intellectual Property Rights 

IQC Indefinite Quantity Contract 

IRR Internal Rate of Return 

ISEP Industrial Skills Enhancement Program 

ISP Internet Service Provider 

IT Information Technology 

IZDIHAR Iraq Private Sector Growth and Employment Generation Project 

JD Jordanian Dinar 

JEDCO Jordan Enterprise Development Corporation 

JHPA Jordan Handicrafts Producers Association 

JHTA Jordan Handicrafts Traders Association 

JIB Jordan Investment Board 

JIEC Jordan Industrial Estates Corporation 

JITOA Jordan Inbound Tour Operators Association 

JNA Jordan National Agenda 

JNCW Jordanian National Commission for Women 

JOHUD Jordan Hashemite Fund for Development 

JREDS The Royal Marine Conservation Society of Jordan 

JSCED Jordan Standard Classification of Education 

JRF Jordan River Foundation 

JSSD Jordanian Society for Sustainable Development 

JUMP Jordanian Upgrading and Modernization Program 

JUSBP Jordan-United States Business Partnership 

JUSFTA Jordan-United States Free Trade Agreement 

KOJ Kingdom of Jordan (the country within its physical boundaries) 

LAC Latin America and the Caribbean 

LCDC Local Community Development Center 

LCDD Local Community Development Directorate 

LECP Local Employee Compensation Plan 

LLB Bachelor of Law 

LLM Master of Laws 

LOE Level of Effort 

LTTA Long Term Technical Assistance 

M&E Monitoring and Evaluation 

M.A. Masters of Arts 

M.S./M.Sc. Masters of Science 

MASAQ The Rule of Law project (USAID) 

MBA Masters of Business Administration 

MDA Master Development Agreement 

MENA Middle East and Northern Africa 

MFI Microfinance Institution 

MIS Management Information System(s) 

MNC Multi-national Corporation 

Aqaba Community and Economic Development (ACED) Program –iii 


MOF Ministry of Finance 

MOL Ministry of Labor 

MOPIC Ministry of Planning and International Cooperation 

MOTA Ministry of Tourism and Antiquities 

MOU Memorandum of Understanding 

MPA Masters of Public Administration 

MSME Micro, Small and Medium Enterprise 

NAHDAT NAHDAT Al-Aqaba program (former name of the ACED Program) 

NCHRD National Center for Human Resources Development 

NDA Neighborhood Development Activity 

NDC Neighborhood Development Council 

NET Neighborhood Enhancement Team 

NGO Non-Governmental Organization 

NHF Noor Al-Hussein Foundation 

NICRA Negotiated Indirect Cost Rate Agreement 

NTS National Tourism Strategy 

PACE Participatory Action for Community Enhancement 

PAIS Post Audit Information System 

PEP-MENA International Finance Corporation Middle East Technical Assistance Program/Facility 

PITA Palestine Integrated Trade Arrangement 

PMIS Project Management Information System 

PMP Performance Monitoring Plan 

PPP Public/Private Partnership 

PR Public Relations 

PRA Participatory Rapid Appraisal 

PRIZM Promoting Industrial Zones and Investment Mobilization 

PSA Public Service Announcement 

PSD Private Sector Development 

PWG Planning Working Group 

QA Quality Assurance 

Qa Quarter of the ACED Program year, where "a" is the numbers of the quarter (1-4) 

QC Quality Control 

QIZ Qualifying Industrial Zone 

QUDORAT Near East Foundation Consortium 

R&D Research & Development 

RFA Request for Applications 

RFP Request for Proposal 

RFQ Request for Quotations 

RIAL Re-use for Industry, Agriculture and Landscaping 

RSCN Royal Society for Conservation of Nature 

SABEQ Sustainable Achievement of Business Expansion and Quality (USAID) 

SB/SDB Small Business/Small Disadvantaged Business 

SEPAP Second Emergency Public Administration Program 

SEZ Special Economic Zone 

SFU Satellite Factory Unit 

SIYAHA The Tourism Project (USAID) 

SME Small and Medium Enterprises 

Aqaba Community and Economic Development (ACED) Program –iv 


SOW Scope of Work 

SPIRA Streamlining Permits and Inspection Regimes Activities 

STTA Short Term Technical Assistance 

SWOT Strengths, Weaknesses, Opportunities and Threats 

TA Technical Assistance 

TATWEER Business & Export Development Project for Jordanian Enterprises (USAID) 

TBD To Be Determined 

TCBS Trade Capacity Building Support project 

TFCB Trade Facilitation and Capacity Building project 

TMG The Mitchell Group, Inc. 

TO Task Order 

TOT Training of Trainers 

TP Technical Proposal 

TRIDE Trilateral Industrial Development 

TSG The Services Group, Inc. 

TVET Technical and Vocational Education and Training 

UNDP United Nations Development Program 

UNESCO United Nations Educational, Scientific and Cultural Organization 

UNIDO United Nations Industrial Development 

UNIFEM United Nations Development Fund for Women 

UNRWA United Nations Relief and Works Agency 

USAID United States Agency for International Development 

VP Vice President 

VTC Vocational Training Corporation 

WB World Bank 

WEDAT Women’s Access to Entrepreneurial Development and Training 

WEPIA Water Efficiency and Public Information for Action 

WTO World Trade Organization 

WTTP Workforce Technical Transformation Program 

Yb 

Year of the ACED Program contract duration, where "b" is the member of the project 

year (1-5) 

Aqaba Community and Economic Development (ACED) Program –v 


Executive Summary 

This document examines the Handicraft Sector in Aqaba, Jordan, the stakeholders that operate in 

it and the nature of the relationships among them. A team consisting of three external consultants 

-Carol Tyroler (International Handicraft and Business Consultant), Rana Akhal (Local Management 

Consultant), and Ahlam Shabana (Local Marketing Consultant), were hired to conduct a diagnostic, 

create a strategy and draft an action plan. 

Over the past decade, tourism has become one of the world’s largest and fastest growing 

industries, and destinations like Jordan are capturing a significant share of the growing market. 

Petra has become one of the “Seven Wonders of the World,” and Jordan was recently ranked as 

one of the safest countries in the Middle East in which to live or vacation. Handicrafts are not only 

an integral part of the tourism experience, but money spent on handcrafts can play a major role in 

lessening poverty in handicraft producing countries. 

In stores throughout Jordan, Bedouin weavings, rugs, camel accessories, jewelry, pillowcases and 

leather products compete with cheap imports from India, Pakistan, Egypt, China, and other Middle 

Eastern nations. “Jordanian Handicrafts” are not well known outside of Jordan, due to insufficient 

inputs in innovative and creative product development and design, and lack of branding efforts. All 

of this makes it hard for tourists to decipher what is actually made in Jordan, resulting in tourists 

investing little in handicrafts sales. 

The Government of Jordan, aided by external donors, has begun to recognize the enormous 

impact that tourism is having on the economy and the potential impact handicrafts can have on 

local economies. However, investment and leadership in the sector has been split among different 

public authorities, NGOs, voluntary societies and cooperatives that are competing for the same 

funds and duplicating efforts. There is no official body that is responsible for developing crafts in 

Jordan, and this has left the handicraft sector marginalized, without vision and not functioning to its 

potential. External donors such as the European Union (EU) and United States Agency for 

International Development (USAID) have also invested in handicraft programs in Jordan without 

synergy, alignment or a comprehensive plan. 

With the exception of several key players, the overall quality of Jordanian handicrafts is poor with 

little or no differentiation or innovation in terms of designs, styles and dimensions. For the most 

part there has been little effort to associate products with specific regions, producers, or cultural 

heritage, leaving Jordan without a distinguished, unique handicraft industry. 

Even though tourism in Aqaba continues to grow and continually attract new investment, 

handicrafts as a sub-sector of tourism, remains relatively underdeveloped. Six core NGOs have 

played a role in handicraft development in Aqaba, and there has been marginal private sector 

involvement. Past handicraft projects in Aqaba have faltered, due to this having been weak and 

insufficiently targeted, because of a number of core constraints. This has affected the sector’s 

ability to compete and move forward. 

The selection of handicraft products found in Aqaba is limited, overall quality is mediocre, and 

products lack uniqueness. Exceptions to this are products made by the Noor al Hussein 

Foundation (NHF), Jordanian Society for Sustainable Development (JSSD), and those designed by 

Aqaba Community and Economic Development (ACED) Program –1 


the Royal Society for Conservation of Nature (RSCN). While there are almost 30 bazaars and 

souvenir shops in Aqaba, only a few sell locally produced products. 

Market and product development surveys were conducted to better understand the targeted 

market. Tourists from Western Europe and Jordan make-up the largest segment of visitors to 

Aqaba. Their preferences vary, as do their purchases of souvenirs. 

A detailed (SWOT) analysis was conducted for each of the three core components: product 

development and production, marketing, and organizational capacity and human resources. This 

analysis is further described in detail in the main body of this document. Based on the diagnostic, 

strategy and draft action plans were then developed for the sector. 

Key findings indicate the need for a well-structured, supportive governing entity within the Aqaba 

Special Economic Zone (ASEZ) that should take the lead in developing the sector. The business 

incubator, a producer’s association, a taskforce, a design and exhibition center, and a certification 

system for handicrafts produced in Aqaba will further aid in the development of the sector. New 

innovative products should be developed and guided by experienced designers who will use the 

cultural heritage and unique motifs of the area to create market-driven products. Study tours and 

design competitions will stimulate peer learning and entrepreneurship. Core areas of training for 

producers will include strategic planning, business planning, marketing strategies production, pricing 

and costing, entrepreneurial skills, business basics, accounting, and marketing. 

Sales of handicrafts continue to be confronted by obstacles in meeting the quantity, quality, and 

cost demands of different segments of the market. For producers to be able to take advantage of 

new economic opportunities and capture new market segments they need assistance to expand 

their production capacity, upgrade the quality of their products to the standards demanded by 

buyers, and overcome the many obstacles they face in meeting the requirements of the targeted 

markets. Marketing efforts will focus on branding and promotion of market-driven and welldesigned 

products. 



I. OBJECTIVES and METHODOLOGY 

a. Study Objectives 

This document examines the Handicraft Sector in Aqaba, Jordan, the stakeholders that 

operate in it and the nature of the relationships among them. It is based on qualitative and 

quantitative primary and secondary data collected and analyzed during April, May and June 

of 2008. The objectives of this analysis were to: 

1. Conduct a diagnostic of the handicraft sector in Aqaba, identifying potentialities and 

opportunities for the development of the sector, as well as its threats and 

challenges. 

2. Design a detailed strategy and action plan for the handicraft sector in Aqaba that 

includes: 

i. A Product Analysis Plan; 

ii. A Marketing Plan; 

iii. A Human Resources Capacity Building Plan; and 

iv. Recommendations to key decision makers and stakeholders within ASEZ 

and stakeholders in Jordan necessary to upgrade to a favorable environment 

for the development of the sector. 

b. Approach and Methodology 

A team consisting of three external consultants, Carol Tyroler (International Handicraft 

and Business Consultant), Rana Akhal (Local Management Consultant), and Ahlam Shabana 

(Local Marketing Consultant), were hired to conduct a diagnostic, and create a strategy and 

draft an action plan. Along with these consultants, Diala Al-Alami, Taher Ben Amor and 

Qasem Nazzal, core team members for Component 2 of the Aqaba Community and 

Economic Development (ACED) Program, helped with initial networking and setting-up of 

interviews, as well as provided invaluable insight into the local context and inter-firm 

dynamics. The team initially met on Sunday April 20th in Aqaba to discuss methodology and 

begin outlining a work plan. From April 20 to April 24th, the analysis team conducted 

qualitative interviews with key informants from current and past craft projects and 

programs. Interviews were held in Aqaba and Wadi Rum. Overall work was divided 

according to core areas of expertise: Product Development (Carol Tyroler), Market 

Analysis (Ahlam Shabana) and Institutional Capacity (Rana Akhal) with team members 

adding their insights and expertise in the other areas where applicable. The two local 

consultants returned to Amman to continue with desk research, phone and in-person 

interviews, and tourist and retail surveys. 



Carol Tyroler continued qualitative interviews in and around Aqaba, desk research and 

coordinated efforts with the other two-team members. A work plan was devised, noting 

key milestones, deliverables, team meetings and conference calls. The team synthesized 

information from its research and met again on May 18-22 in Aqaba to share draft 

diagnostics of the sector and discuss next steps in development of the strategy and action 

plan. A second meeting was held in Aqaba May 31-June 2 to discuss further development of 

the strategy and action plans pieces. From this meeting, a draft action plan was devised, an 

initial log frame produced, discussion of strategy components finalized, and key deadlines 

for completing the document were agreed upon. Drafts of the diagnostic, strategy and 

action plan were sent to the International Consultant to formalize into the final document 

to be delivered on June 20, 2008. 



II. Diagnostic of Handicraft Sector 

a. Overview of Handicrafts in Jordan 

Over the past decade, tourism has become one of the world’s largest and fastest growing 

industries, and destinations like Jordan are capturing a significant share of the growing 

market. Tourism in Jordan is a major driver of economic growth and has significant 

potential for continued growth. More visitors are coming to the region and specifically to 

Jordan to explore treasures like Petra, Wadi Rum, Aqaba and even Amman. Official figures 

from the Ministry of Tourism revealed that 101,311 tourists on package tours visited 

Jordan between January and March of 2008, compared to 68,279 in the same period in 

2007. This represents a significant increase of 48.4% 1 . 

Petra and Wadi Rum are gaining recognition as unique, interesting destinations. Petra has 

become one of the “Seven Wonders of the World” and Jordan was recently ranked as one 

of the safest countries in the Middle East in which to visit and vacation. Aqaba, too, is 

gaining fame and is being developed and marketed as one of the region’s central beach 

resort destinations. All of these developments are impacting the influx of tourism to the 

country. 

Handicrafts are an integral part of the tourism experience. Whatever the type of tourism 

(local or international), the tourist rarely fails to take home a souvenir. Handicrafts 

represent local traditions and indigenous populations, and for tourists they symbolize the 

places they visited, the experiences they had, a core memory they shared, a souvenir to 

take to their friends and loved ones. The richness of handicrafts not only creates great 

potential for tourism development in general, but also provides significant financial 

opportunities for local artisans, cultural renewal and sustainability. Across the globe, 

cultural destinations and associated purchases are winning more and more of tourists' 

hard-earned cash. Worldwide handicrafts have played a significant role in job creation, 

community advancement and the reduction of poverty. It is difficult to assess global 

statistics for handicrafts, because the economic and social importance of the sector at a 

national or global level is based on estimations and compilations of scattered, insufficient, 

often unreliable and unsystematic data or on data that is not even comparable among 

countries. 

Previous experience proves that handicrafts can play a major role in lessening poverty in 

developing countries. Most handicraft production use local, simple technology, as well as 

locally found raw materials. Most handicraft production requires only small capital 

investments compared to industrial products, and the producers face few barriers to entry. 

Moreover, handicraft production can be done in homes where it fits into individual 

lifestyles and time constraints of the family unit. 

Around the globe, handicrafts have promoted countries’ identities and helped to boost the 

development of their tourist sectors. In Tunisia for example, handicrafts were practically 

non-existent 40 years ago. Now, the industry amounts to more than 1 billion US dollars 

annually. A national handicraft holiday celebrates the importance of producers in the 

1 Jordan Times, Monday May 26, 2008 



country and now the most important clients of handicrafts in Tunisia are Tunisians 2 . In 

Vietnam, handicraft products have now become one of Vietnam's top ten export items, 

adding more than US$1*10 9 annually to the country’s GDP, of which US$45 million are 

exported to Japan alone. The sector generates jobs for thousands of workers from rural 

areas who might not have other opportunities 3 . With the right mix of ingredients, Aqaba 

can follow in these footsteps. 

In Jordan, handicrafts are also part of the tourist’s experience. Interesting Bedouin 

weavings, rugs, camel accessories, jewelry, pillowcases and leather cushions are items found 

in souvenir shops and boutiques throughout Jordan. And while Jordan does have a heritage 

of producing traditional handicrafts, handicrafts are not something that Jordan is uniquely 

recognized for internationally. Like many other countries with a booming handicraft 

industry, skills in weaving, pottery, sewing, crochet, embroidery, mosaics, jewelry, and 

ceramics are found throughout Jordan. Yet due to insufficient inputs in innovative and 

creative product development and design, and lack of branding efforts, “Jordanian 

Handicrafts” are not well known outside of Jordan. This could change with additional 

investment in creative product design and product development and with support by 

integrated branding and marketing efforts. 

When a tourist comes to Amman there is no central location to purchase handicrafts, and 

one really has to explore to find such locations. While several handicraft stores exist, they 

are not easy to find, nor listed in all of the travel guidebooks. Moreover, what one finds in 

the stores are often imports from India, Pakistan, Egypt, China, or other Middle East 

nations and it is hard to decipher what is actually made in Jordan. Key competing countries 

and core products found in Jordan’s markets (tourist and regular) include products from 

Syria: mother of pearl inlet furniture and accessories; Lebanon: hammered trays with 

arabesque designs; India: pashmina shawls and scarves, inexpensive rayon and cotton 

dresses; China: cheap shells, jewelry, clothing and toys; and Yemen: Jewelry. 

The government of Jordan, aided by external donors, has begun to recognize the 

enormous impact that tourism is having on the economy and the potential impact it can 

have on local economies. In efforts to link tourism to potential poverty reduction and 

income generation at the community level, handicrafts have begun to gain recognition as a 

mechanism for such growth. 

Lack of an overall plan and strategy has led to a fragmented and disconnected sector. 

Investment and leadership in the sector has been split among different public authorities, 

Non-Government Organizations (NGOs), voluntary societies, and cooperatives that are 

competing for the same funds and duplicating efforts. As a result, there is no official body 

that is responsible for developing crafts in Jordan, thus leaving the handicraft sector 

marginalized and without vision. The Ministry of Industry and Trade, Ministry of Tourism 

and Antiquities, Ministry of Social Development, and Ministry of Culture, all have funded 

crafts programs in the past, but without alignment, documentation of lessons learned or 

the fostering of horizontal and vertical linkages. 

External donors such as the European Union and USAID have also invested in handicraft 

programs in Jordan without synergy, alignment or a comprehensive plan. Currently the 

Government of Jordan with funds from USAID has invested resources in handicraft 

linkages to tourism in Karak, Irbid, Madaba, Petra, and Wadi Rum. The SABEQ program, 

funded by USAID, is working to develop handicraft products in Karak and Irbid. Their 

2 Discussion with Taher Ben Amor from the ACED Program 

3 Embassy of Vietnam website and Vietnam Business Exporters (http: vnexporters.com) 



overall strategy is focused on product development first, followed by fostering marketing 

opportunities based on the products developed. The Siyaha Program, also a USAID funded 

initiative, focused its current efforts in Petra and Wadi Rum. Siyaha was a three-year, $17 

million project working with the Jordanian government, local communities, and tourismrelated 

institutions to develop a dynamic, competitive tourism industry. A 5-year follow on 

project has been defined and was released for proposal submission at the time of preparing 

this strategy. In Madaba, the Siyaha Program worked with local and national government 

entities and businesses to create the Madaba Tourism Development Strategy and 

Enterprise Development Program, whose main goal was to develop Madaba into a premier 

tourism location. The strategy aimed to create a tourist destination "cluster" in the 

governorate by capitalizing on the area's unique archaeological, natural and religious sites. 

Handicraft development, while not the entire focus, was a core part of this strategy. The 

European Union did a Tourism Marketing Strategy for Aqaba through 2010, but failed to 

link handicraft development as a key area to be developed. 

In addition to the above, there are two associations working to establish horizontal 

linkages with the sector: a) The Jordan Handicrafts Traders Association (JHTA) which is 

registered under the Ministry of Tourism and Antiquities (MOTA), and b) The Jordan 

Handicrafts Producers Association (JHPA) which is registered under the Ministry of 

Culture. 

The mandate of JHTA, established in 2002, is the trading of handicrafts and souvenirs for 

tourists regardless of their origin. The association is the official body for licensing 

handicrafts producers and traders (factory, stores, or artisans) in cooperation with MOTA. 

This is done through a committee composed of three members including Ministry 

personnel charged with deciding what type of business their members’ fall under and 

associated membership fees. Currently, the annual membership fee is 300 JD for factories 

and stores, and 10 JD for artisans. 

JHTA is producing an annual directory that contains information about manufacturers, 

souvenir shops, and artisans including their contact information. In addition, they advertise 

exhibitions and events in which their members can participate, both within and outside of 

Jordan. Overall, the association is not providing significant support to their members in 

production or marketing, and it has no lobbying power. 

On the other hand, JHPA was established in 2005 under the Ministry of Culture Law 

Number 33 of 1966 for Societies and Social Entities. It is a voluntary, nonprofit entity. 

Membership in this association is restricted to handicraft business owners who have a 

formal workshop or employees in a formal handicraft business. Those who do not have 

formal handicraft businesses or are not employees in formal handicraft businesses can be 

accepted as honorary members upon the Board's approval. Currently, it has 280 members 

mostly from Amman, and the rest from Madaba, Irbid and Jerash. Members make 

handicrafts in the areas of pottery and ceramics, rugs, olive wood products, daggers and 

swords, and straw and reed products. The association is in its early stage of development 

and is marginally functioning with external donor support. It provides a number of services 

to its members, including help in marketing through pushing official entities to purchase 

giveaways from producers and through participating in national, regional and international 

exhibitions, as well as providing training courses in handicrafts and nomination of its 

members to attend international training courses. 

In addition to the Ministries and above associations, NGOs have played a major role in 

developing and reviving crafts in Jordan as part of social and economic development in rural 

areas by initiating income-generating projects. Their production operation is not based on 



a business model, but rather on securing jobs for the beneficiaries and increasing their 

salaries or wages to improve their living standards. In essence they are playing two roles. 

The first is to help generate income and employment, and the second is to act as 

entrepreneurs – the latter in which NGOs have virtually no expertise. This has resulted in 

programs that continue to rely on donor financing and funding periods, programs that are 

not run as businesses but charities, and products that do not reflect market needs and 

preferences. 

The major players in handicraft development in Jordan have been the following: 

1. Royal Society for the Conservation of Nature 

The Royal Society for the Conservation of Nature (RSCN) is an NGO whose mandate is 

conserve wildlife and natural habitats while at the same time integrating conservation with 

economic development. It has done this successfully through an integrated communitybased 

plan, development of quality products targeted to specific markets, branding of their 

products, and use of an overall business approach. 

Participants in RSCN initiatives have successfully marketed and sold handcrafted silver 

jewelry, organic jams and fruit leathers, soaps, painted ostrich eggs, sandblasted frames, 

environmental board games, and goat leather nature boxes. All of these initiatives are tied 

to a strong promotional concept, which uses the “reserve address" and the conservation 

philosophy as the main selling points. 

2. Noor Al Hussein Foundation 

The Noor al Hussein Foundation (NHF) is an NGO that works on a variety of different 

programs, one of which has been handicraft development. It started the Jordan Design and 

Trade Center to promote crafts. In the ‘80s and ‘90s, the Center had successes in product 

development and design, but experienced problems finding skilled designers to continue 

product development. This, coupled with funding issues, forced it to close. NHF is 

represented in Aqaba through a small workshop. 

3. Jordan River Foundation 

The Jordan River Foundation (JRF) was established in 1995 as an NGO to initiate socioeconomic 

projects for women and to provide employment opportunities by developing 

their knowledge and skills in handicraft production and entrepreneurship. It maintains a 

showroom on Rainbow Street in Amman and is easily accessed by tourist. This facility is 

stocked with some interesting quality products, but they are expensive compared to other 

similar products made in other countries. 

4. Jordan Hashemite Fund for Development 

The Jordan Hashemite Fund for Development (JOHUD) has a network of more than 50 

Community Development Centers that are providing a mixture of services to 

entrepreneurs in design, business training, and credit access. It is represented in Aqaba by 

the Princess Basma Community Center. 



In addition to the above, a few private sector companies in Jordan produce handicraft 

ceramics, glassware and embroidery. Overall, prices tend to be high due to casual and low 

volume production, poor management and lack of proper costing skills. Throughout Jordan, 

regardless of their area of craftsmanship, artisans tend to produce the same products, with 

the same designs and are not encouraged by clients or others to produce unique 

handcrafted items. There has been little effort to associate products with specific regions, 

producers, or cultural heritage. This has resulted in products that lack a story, a history, or 

a unique association. This is not because these stories do not exist, but because products 

have not been marketed in this manner. The few exceptions to this overall trend are the 

sand bottles made in Petra and Aqaba, the mosaic tiles made in Madaba, many of the 

products made by the JRF, the NHF, JOHUD and the RSCN’s simple, yet elegant line of 

jewelry and handcrafts soaps, jams and herbs found at the Dana Nature Reserve. 

b. Overview Of Handicrafts In Aqaba 

The tourism sector is especially important to the economy of Aqaba, as large investments 

are planned and being made to develop Aqaba as a major tourist destination in the Middle 

East. Forecasts made by the EU expect that visitors coming into Jordan will increase from 

270,000 in 2002 to 544,000 in 2010 experiencing an annual growth rate of 8.7%. Despite 

challenges to the Aqaba market, the forecasted growth rate in Aqaba is expected to be 

higher than that for the country as a whole. 4 An estimated 300,000 people (both Jordanians 

and internationals) currently visit the city annually, and this is planned to increase to over 

1/2 million people by 2010 5. This influx of visitors has the potential to translate into income 

generated over the long-term for local populations. 

While tourism in Aqaba continues to grow and attract investment, handicrafts as a subsector 

of tourism remain relatively underdeveloped. Handicrafts are available from 

souvenir stores, hotel boutiques, traditional market places, small shops, and informal street 

vendors. However, what little there is actually made in Aqaba has a hard time making its 

way into stores. Storeowners find the handmade products too costly, of inconsistent 

quality and unable to compete with the sales from other items. Therefore, most souvenir 

shops will not put locally-made products in their stores. 

Moreover, store owners do not display items in such a way that reveal the individuality of 

the handicrafts, but display them bunched together – imports, products from various 

regions of Jordan, and those found locally. Displaying in this way diminishes the perceived 

value of the handicrafts themselves, leaving little room for branding or product 

differentiation. Storeowners and their hired help have minimal knowledge at best about the 

items they are now selling, nor really understand what a tourist wants in a product. Via 

informal interviews, tourists stated that it was hard to find interesting handicrafts and that 

there was no central place to buy them. Many stated that they had to search for stores 

listed on the tourist map, and that tour guides did not include these places in their tours. 6 

In addition Aqaba is an economic free zone, wherein imported products from places like 

Egypt, India, Pakistan, and China, are exempt from custom duties. This translates into there 

being an abundance of cheap imported products in the souvenir stores, confusion amongst 

4 Tourism Marketing Strategy for Aqaba 2005-2010, European Union 

5 Tourism Marketing Strategy for Aqaba 2005-2010 ASEZA, 2005 

6 Informal interviews conducted by consultant Carol Tyroler over the course of 8 weeks. 



tourists as to what is really from Aqaba, and price competition for real handcrafted items 

from Aqaba. A good example of this are cheap shell bracelets and necklaces from China 

that are sold as “from Aqaba” which sell for pennies compared to handmade jewelry from 

a local producer that cost more. Inexpensive shawls and dresses from India are found 

everywhere and detract from potential purchases of locally-made traditional Jordanian 

dresses and scarves. 

A few of the shops such as the Moevenpick Hotel, InterContinental Hotel, and the Noor 

Al Hussein shop sell products made in Jordan with some locally-produced in Aqaba. For 

example, The Intercontinental Gift Shop does some local sourcing of products from Aqaba 

producers who previously worked with the Noor Al Hussein’s Aqaba Women’s Center. 

The owner of the store gives them the materials and tells them what to make. The designs 

and items are what they used to make (small bags, purses, eyeglass cases, and cell phone 

holders), and the overall quality is good. Most of the souvenir stores in Aqaba, however, 

sell a variety of products from Jordan, few if any from Aqaba (mainly sand bottle art), and 

many imported goods. 

i. Organizations Working in Crafts 

There are a handful of organizations, community-based and otherwise, as well as individuals 

that are producing handicrafts in Aqaba for local and tourist markets. The personnel 

managing the product development and design lack expertise in these areas and thus the 

products that are produced reflect this deficiency. There are over a dozen past handicraft 

projects and approximately six major players in terms of handicraft development currently 

in Aqaba. Some of the more notable ones are discussed following. 

The Jordan National Forum for Women produced palm products, mostly baskets, for local 

markets. These were useful baskets, but the organization did not have significant success. 

These activities are not currently functioning. 

The Aqaba Women’s Association has a variety of handicrafts that it produces with no 

target market in mind. Overall their products are low quality and sell to targeted specific 

markets. It is selling to some venues in Amman; however, its success is minimal and 

activities are dependant on external funding. 

The Noor Al-Hussein Foundation has been an active player in handicraft development over 

the past 10 years, developing some interesting, quality products. It has not, however, 

invested in continued design and product development, and so it is making the same 

products it did 10 years ago. They produce some new products not seen in Jordan, such as 

tie-dyed clothes and wall-hangings depicting local scenes. 

The Jordan Society for Sustainable Development, in corporation with Aqaba Coastal 

Women’s Association and Al-Rahma Association, which is a recent addition to the sector 

in Aqaba, had the most unique and high quality products discovered during this consultancy 

for Aqaba. It is working with a local designer, Doris Ghneim, who is quite skilled in product 

development and design and who is a trainer. They are producing unique handcrafted 

boxes, bags, ostrich lamps, leather candleholders, and handmade paper items. However are 

“running on a shoestring budget” and it is reported that they only have funds for the next 

few months, at the time of the research. 



The Princess Basma Community Center holds quarterly local bazaars, aimed at local 

buyers, whereby producers and producer groups are able to market and sell their goods. 

The center is a part of the operation of the JOHUD; however, it operates on a shoestring 

budget with no target market identified. Some of the products are of good quality for local 

markets and could be upgraded for tourist markets. 

Al-Thagher works with the disabled to produce beaded jewelry. The designs are mainly the 

designs of Felasteen Awad, a local consultant based in Amman. She trained the girls on the 

production techniques and designed interesting products. Currently some of the new 

designs are copied from what is available in the market or viewable from the internet. The 

production reflects the efforts still being at the training stage, under the supervision of two 

of the center supervisors and two volunteers, who help ensure that the products are done 

correctly. While some of the products and designs are nice, there are problems with 

quality control and consistency, as well as lack of business savvy. Like the other NGOs, the 

people running the operation do not have business training and therefore are treating 

activities as a charity operation. 

The above organizations and their associated projects are functioning at margin levels, at 

best. There are also a handful of individual producers working in areas such as wood, 

crochet, embroidery and sewing that sell in local bazaars or to individual clients, but are 

not affiliated with any particular organization, and are not fully supporting themselves or 

families the what they generate from sales. A full description of the team’s notes on the 

organizations that were visited is found in Annex 2. 

Overall production capacity is currently limited due to two issues: funding and retention. 

Because all of the handicraft projects are running on a shoestring budget and without either 

a medium or long-term plan (or often no short-term plan), there is no funding currently 

available to expand production capacity. Retention of employees after even finding suitable 

candidates is also an issue. While overwhelmingly the majority of handicraft producers are 

women, many of whom have no other option for work, organizations said it was hard to 

keep workers. The women got bored or found the work tedious and lost interest. The 

average wage that the producers were getting from the JSSD ranged from 60-80 JD a 

month. Whether this was also part of the retention issue is certainly a possibility. 

To date, the private sector in Aqaba has not played a major role in handicraft production. 

There are many small stores that sell handicrafts, but little effort has been made to source 

products from local vendors, with the exception of a few retailers. This has resulted in the 

Aqaba market flooded with products from all over Jordan (and international sources), 

growing stagnation of product choices, and yet little incentive to purchase locally. 

ii. Overall Failure of Past Initiatives 

Past handicraft projects in Aqaba have faltered, been weak, and insufficiently targeted. This 

is the case for several key reasons: 1) lack of clarity on target market; 2) stagnation of 

products produced; 3) lack of vision by the associated organization in regarding a 

sustainable strategy for the project; 4) lack of business capacity; 5) lack of a sufficient level 

of start-up funding to see projects through to self-sustaining levels; 6) insufficient 

coordination at vertical and horizontal levels; 7) inability to be creative and be innovative in 

product development; 8) competition from other handicrafts in Jordan as well as those 

being imported; 9) no prior treatment of handicraft as an important sub-sector of the 

growing tourism industry in Aqaba; 10) treatment of craft projects as charity and not as 

business ventures; and 11) lack of critical thinking and design ability among producers. 



1. Lack of clarity on target market 

Overwhelmingly, craft projects have developed products without adequate planning visà-vis 

for the target customers. Not only do they not know what their target market is, 

they lack information on the tastes and preferences of their target customer. With few 

exceptions, products have been made, based solely on local aesthetics, with the hope 

that they will sell. 

2. Stagnation of products produced 

While a few projects have had designers help them in product development, there is 

no investment in continuation of design efforts or investment in fostering artisans to be 

creative themselves. Products, while not “mass” produced, are repeats, which are 

produced without any creative spirit of the individual artisan. Designs that were 

innovative 10 years ago are still showcased, but sales remain flat at best. 

3. Lack of vision by the associated organization regarding a sustainable 

strategy for the project 

Overwhelmingly, the organizations assisting producers and producer groups lack 

medium to long-term strategies for success. This has translated into the following 

scenarios: 

• Products being produced, but not sold, or sold at very low prices 

• Lack of money to hire qualified designers 

• No funds allocated to marketing or business planning 

• The project runs out of money, project ends, products are left to collect 

dust 

4. Lack of business capacity 

Neither the associated agencies that are sponsoring the handicraft projects nor the 

producers themselves are savvy about business. Most critically this is seen in their lack 

of ability to price products according to real costs plus a realistic profit margin. In a few 

cases, such as with the JSSD, the designer is the one who costs and prices the 

products. While she appears to be doing this correctly, there is no transfer of 

knowledge to the producers. All of the business-level issues and knowledge (if they 

have it) is kept within the higher management levels of the organization. 

5. Lack of a sufficient level of start-up funding to see projects through to 

self-sustaining levels 

None of the projects are sustainably functioning as businesses, and so funding received 

is used for immediate needs. Products are not priced according to real costs or market 

situation, but pulled out of the sky and therefore can not and do not support the 

project. One project the JSDC at the time of the initial review in May 2008 had only 

funds left for 3 more months. While its products are the most sellable, they had not 

sold anything yet because they believe their workers are still in training. With one 

month of funding left they conducted a exhibition in July and sold around 80% of their 

products, as well as received some promises for future sales. They wanted to fully 

train the workers to ensure consistent quality before marketing products. While this 

makes sense on one hand, from a financial standpoint, it is unrealistic to plan a business 

venture in three-month intervals. In a second project at the women’s center, funding 

was utilized for training of women on palm weaving, but no products ever made it to 

market on a continuous basis. 



6. Insufficient coordination at vertical and horizontal levels 

There is virtually no coordination of efforts at either a vertical or horizontal level 

amongst stakeholders. This has translated into handicraft projects that have failed, poor 

investments, unmotivated workers, products sitting on shelves, and an overall inability 

to take advantage of the money spent by the influx of tourists in Aqaba. 

7. Inability to be creative and be innovative in product development 

Most projects have relied on local managers and community leaders to do product 

development. This has resulted in products that are not saleable to the tourist market 

and only marginally saleable to the local markets. Producers are taught to produce, not 

to innovate or be creative. This is true even in projects that have had outside designers 

guide product development. 

8. Competition from other handicrafts in Jordan as well as those being 

imported 

The few products produced in Aqaba still have to compete in price, style, and 

aesthetics, with those from other areas of Jordan, as well as imports found throughout 

the souvenir stores in Aqaba. This raises the competition bar, yet has not resulted in 

innovative or unique Aqaba products. 

9. No prior treatment of handicraft as an important sub-sector of the 

growing tourism industry in Aqaba 

There has been no treatment of the handicraft sector as an important sub-sector 

within the growing tourism industry in Aqaba. Few, if any, vertical or horizontal 

linkages have been made to build success for the entire industry, including the local 

community. The handicraft sector needs to be looked at as an integral part of the 

tourism industry. 

10. Treatment of craft projects as charity and not as business ventures 

Handicraft projects have and continue to be run as charity operations, not as 

businesses. This is a critical issue that must be addressed if a robust, sustainable 

handicraft industry encouraging tourism is desirable. 

11. Lack of critical thinking and design skills among producers 

Producers are not taught to be critical thinkers in product development or design, but 

rather they do exactly as they are told, repeating steps and processes. While not 

everyone is a designer, this limits innovation and product development potential. 



c. Value Chain Participants 

This section briefly explores the actors of the Aqaba handicraft sector from a value chain 

perspective. Emphasis is placed on the relationships between participants, current 

bottlenecks in information flows, and horizontal and vertical linkages that need to be 

established or strengthened. 

The value chain participants in Aqaba currently include input suppliers, independent 

producers, producer groups, intermediary agents and traders, government officials, retailers 

and wholesalers, tour operators, and tourist consumers. Contributing value chain problem 

areas include the following: 

1. Producer Groups 

Producer groups and individual producers are marginalized, with very little if any 

interaction among them. There are no associations or cooperatives formed in 

Aqaba to share available information or reduce risks. The only producers 

association in Jordan is based in Amman, and it is newly formed and working out its 

own organizational issues. 

2. Inter-firm Relations (Vertical Linkages) 

Vertical linkages are currently non-existent with the exception of a few individual 

producers who are doing everything from making their own product lines, to 

designing products, to production, and to marginally marketing their products. 

3. Cooperative Relations (Horizontal Linkages) 

There is very little, if any, cooperation between NGOs and producer groups. The 

only linkages observed were the sporadic craft fairs in which several producers sold 

their wares at the same venue, such as, the quarterly Princess Basma Community 

Center in Aqaba Bazaars and the current products being produced with the JSSD 

and some local community-based organization (CBO) involvement. 

4. Individual artisans 

Individual artisans usually work alone to produce their products with no linkages to 

NGOs. These artisans were hard to identify in Aqaba, except for a wooden boat 

maker and several women who make children’s clothes and other crocheted and 

knitted items. Marketing is done on their own through networking, with some sales 

through local bazaars. 

5. Intermediary agent/traders and NGO/Agents 

The different intermediary agents function with very little funding and virtually no 

interaction. No shared lessons or aggregate grouping of risks, marketing, or other 

areas of cooperation were visible during this consultancy. 



6. Support market 

Tourist Market – This is growing and strong. Consumers are looking for products 

to buy; however, they are buying primarily imported products. 

Local Market – There is a growing local market that is looking for home 

accessories. Primarily they buy cheap Chinese products, and other items that are 

less expensive than in Amman. There is potential to serve this client base. 

7. Shipping services - non-existent 

At point of sale handicraft locations, there are no producer-based or retail outlet 

based shipping services though DHL, ARAMEX or postal office services. The 

customers must arrange for these separately, as retailers do not know cost of 

shipping, terms, or how to pack for international shipments. 



III. Product Development and Production 

Diagnostic 

a. Overview 

The selection of handicraft products found in Aqaba is limited, overall the quality is poor, 

and products lack uniqueness. In spite of a fair number of handicraft projects over the 

years, there is no single product or product line that represents “Aqaba.” Handicraft 

products found in Aqaba range from items made for the local market (dried flower 

arrangements, prepared foods, children’s clothes and uniforms, and traditional dresses) to 

products aimed at potential tourist markets (bags, boxes, jewelry, dolls, etc.). Handicraft 

products currently found in Aqaba are a mix of products from other regions of Jordan, 

cheap Chinese, Egyptian, Pakistani and Indian imports, and some local items (sand bottle 

art, corral from the Red Sea), and a few other miscellaneous products. 

b. Products Currently Produced in Aqaba 

The following provides a snapshot of what handicrafts are currently produced in Aqaba and 

the quality of these products. All of the products that were reviewed are listed below as 

well as in Table 1 and photos of them are placed in an accompanying CD, titled “Core 

Documents” which is available through the ACED Program. 

Description of products and product lines 

1. Textiles (embroidery and woven products) 

Embroidery (both by hand and with the use of sewing machines) is produced by a number 

of producers in Aqaba. Traditional embroidery is used as an adornment for traditional 

clothes and has been used for new products such as pillowcases, wall hangings, tablecloths, 

cushion covers, and more recently on bags and purses. Woven items are used in traditional 

pieces – camel accessories, rugs and Bedouin cushion covers. The bulk of embroidered 

and woven products varies in their quality and is mainly consumed locally. Wider 

application of embroidery and woven methods could be introduced at minimal levels to 

create new products and designs which could be attractive to the tourist consumer. 

2. Baskets 

Banana leaf and palm basket products have been tried with little success. The baskets were 

of the wrong shapes and sizes, and the quality was inconsistent. Most of the baskets never 

made it to the shops, but remain sitting on the shelves of the organizations that produced 

them. There is ample opportunity to explore this area, as baskets have a cultural history in 

Aqaba, the resources are available locally, and tourists like easy-to-carry items such as 

these. 



3. Jewelry 

Jewelry found in Aqaba is a mixture of low quality beaded necklaces and bracelets made 

from plastic, glass and seeds. In terms of the real handmade products, the overall quality is 

inconsistent, exhibiting very poor finishing. These products have not found their way to the 

souvenir shops. There is a group in Wadi Rum that is making simple, elegant silver and 

copper jewelry designed by the RSCN with similar designs to those from Wild Jordan. 

These are sold in the visitor’s center in Wadi Rum. What the souvenir shops do sell is 

higher quality coral, other precious stones, and gold and imported jewelry from Indonesia, 

China and other places. Souvenir shops produce the necklaces and bracelets, utilizing 

precious stones and imitating Bedouin and other designs. With upgrades in design and 

technical inputs, jewelry has the potential to be a leading area of craft production in Aqaba. 

4. Wood 

There is one woodworker in Aqaba that makes wooden boats, which he sells on the street 

in front of his house, as well as via word-of-mouth. The overwhelming majority of his sales 

are local sales. His woodworking skills are basic, but with some training in new techniques 

and the aid of a designer – he has the potential to make almost anything. There is also a 

plethora of carpenters whose skills could be upgraded and used to produce high quality 

wood products, furniture, home and giftware. 

5. Sand Bottle Art 

Sand bottle art is made by a number of individual artisans who mostly sell on the street. 

They are all producing the same product and little, if any, innovation is taking place. With a 

change in bottles and design there is potential to create other more interesting products. 

An annual design competition might be a great motivator. 

6. Local Food 

All kinds of local foods are made – but not sold to tourist markets. Frozen peas, dumplings, 

cookies and breads are made and sold to local families with some success. Whether they 

are making a profit is unclear. Their success here is minimal for the tourist markets. Jams 

and syrups (dates) could be made and sold as small tourist items, but must be packaged 

correctly and with proper hygiene. 

7. Soaps 

Soaps made from olive oil are being made by a group in Wadi Rum. The JSSD is planning on 

making recycled soap from corn and Soya oil gathered from local restaurants and hotels. 

An initial costing has been done, but no testing of the recipe or marketing has been done 

to date. If soaps could be made, this represents a great potential for continued sales within 

the local economy. 

8. Clothing – sewing, crochets and knitted products 

The Noor Al Hussein Foundation is making tie-dyed clothing, mostly geared for the beach. 

They are using the same designs they used 10 years ago and basically have “given up” on 

product development. Other organizations, such as the Princess Basma Community Center 

in Aqaba are producing clothing geared towards local markets – traditional dresses, 

uniforms for school, and baby items. The products are basic in terms of design, with color 

schemes and patterns that fit more of a local style than those for a tourist market. Sizes 

overall are inconsistent and again geared for local consumption. 



9. Other Products 

With the exception of the ostrich lamps, recycled boxes, leather lamps and candleholders, 

(which still have not yet been officially marketed), none of the current products made in 

Aqaba stand out as “unique.” Many of the better quality items that were designed and 

minimally produced never went to market due to the supporting project running out of 

funding, a typical status of previous initiatives evaluated during this consultancy. 



Table 1: Matrix of Organizations, Products and Marketing Efforts 

Type of 

Handicraft 

Organization 

Currently 

Working 

Quality Marketing 

Beaded Jewelry Al- Thagher Yes Inconsistent Non-existent 

Burda Women’s 

Cooperative 

Yes Fair In Visitor Center 

Silver Jewelry Wadi Rum Yes Basic In Visitor Center 

Embroidered Princess Basma Yes 

Poor 

Local Bazaars 

pillowcases, bags 

and purses 

Community Center 

Aqaba Women 

Association 

Yes Poor Local Bazaars 

Sewing 

Aqaba Women’s Yes Good, but same Have store, and 

Association 

designs as 10 years 

ago 

weak marketing 

Clothes Noor Al-Hussein Yes Good, but same Have store, but 

designs 

not actively 

marketing 

Princess Basma Yes Good, but little Locally to 

Community Center 

design change companies 

Crochet Aqaba Women’s Yes Good, but poor Locally to 

Association 

designs and raw 

materials 

housewives 

Clothes, baby Forum for Women Yes Good, but poor Locally to 

items 

Individual Producers 

designs and raw 

materials 

housewives 

Boxes, paper Jordan Society for 

Sustainable 

Development 

Yes Good Starting to market 

Ostrich Lamps Jordan Society for 

Sustainable 

Development 

Yes Good Starting to Market 

Baskets Red Crescent No but thinking 

of restarting 

Poor No 

Forum for Women 

Poor Weak marketing 

Individual Producers Yes 

Princess Basma 

Poor 

No 

Community Center Yes 

Leather lamps Jordan Society for Yes Good Starting to Market 

and candle Sustainable 

holders 

Development 

Woven Camel 

Accessories 

Burda Women’s 

Cooperative 

Sand Bottle Art Individual artisans, 

informal sector 

Yes Good Some 

Yes Good, yet not 

unique 

Dolls, Animals Red Crescent No Good None 

Soap Burda Women’s Yes Fair Some 

Cooperative 

Stores, On street 



c. Core Strengths in Product Potential 

In spite of Aqaba’s relatively nascent and previously unsuccessful handicraft history, there 

are some core strengths from which the sector can draw. To start, skills exist in 

embroidery, crochet, sewing, woodworking, jewelry, papermaking, sand bottle art, and 

weaving. There are also a handful of painters, such as Abdullah Manzallawi, the town’s 

librarian and self-taught historian, who are painting but not selling their work. Other skills 

found in Aqaba include welding, carpentry, construction, and masonry. There is clearly a 

tradition of working with one’s hands, which suggests that people here are trainable in 

handicraft production. People are making handicrafts - they just aren’t making sellable 

handicrafts. According to Abdullah Manzallawi, 7 Aqaba was once well-known for palm 

baskets and other products, most of which were used for utilitarian purposes. These 

included palm leaf baskets and brooms, fishing nets, musical instruments, and coral 

necklaces. These skills and traditions can be drawn from to produce new products for 

identified target markets. 

The fact that Aqaba is in the process of being developed as a major tourism area is one of 

its core competitive advantages in future development of its handicraft sector. In addition, 

an approximate 11% of the population is unemployed and close to 30% of the population 

range in age 20 to 39 8 - ages when most people are potentially active members of the 

workforce. This is a large percentage of the local population that is in need of jobs and who 

can be drawn upon by encouraging entrepreneurship as crafts workers, storeowners, tour 

operators or managers within the sector. These opportunities translate into viable local 

jobs and creation of potential income generation over the long-term. 

d. Results from Tourist Preference Survey 

During May 8-10, 2008 a survey was conducted to assess the types of products that 

tourists bought and were seeking to buy. A sample of 50 Jordanian tourists and 51 foreign 

tourists were surveyed in the hotels, on the street, near the souk and in restaurants. 

Results from the survey showed that the most popular foreign tourist items bought in 

Aqaba were: jewelry (24.4%), sand souvenirs (12.2%), water pipes (also called “Hubbly 

Bubbly”) (9.8%), scarves (4.9%), and camel toys (4.9%). Other products that foreign tourists 

bought included ceramics, cups, head covers, lanterns, masks, scarves, bowls, Dead Sea 

products, and some miscellaneous clothing items. The only item somewhat related to 

Aqaba is the sand bottles. 

These results show that products made in Aqaba are not reaching the stores, and that the 

few “Aqaba products” that do exist are not being marketed to tourists. The foreign 

tourists stated that they planned to buy other products, primarily jewelry (25%), scarves 

(12.5%) and camel toys (8.3%). Other products mentioned included Dead Sea products, 

carpets, silverware, water pipes, traditional scarves for men, Bedouin historical products, 

7 Abdullah Manzallawi is an Aqaba-born Jordanian, currently working as a librarian, who has written several books 

on Aqaba history and heritage. One is called Heritage and Handicrafts in Aqaba. 

8 Jordan Department of Statistics website 



clothes, handbags, sand bottles and mosaic tiles. Many also mentioned that they might buy 

olive oil, spices and Turkish coffee. Of the Jordanian tourists, only 22% of the sample 

bought souvenirs from Aqaba of which 36.4% were sand bottles and 27.3% were personal 

or household accessories. The other items local tourists bought were seashells, wooden 

boats and home furnishing items. 

e. SWOT Analysis Product Development and Production 

The handicraft sector in Aqaba is severely limited in terms of available products, currently 

skilled producers, design ability and production capacity. The following documentation 

outlines a detailed SWOT analysis of the sector in terms of product development and 

production issues. 

Strengths 

• There is a cultural heritage and tradition to draw from. This can result in 

new products being developed, as well as the development of themed events for 

tourist such as an annual date festival, the opening of the historical fishing season, a 

za'tar and nut festival, etc. There are still some “old timers” who can help revitalize 

products that were once produced for utilitarian uses, and this can be used as a 

core asset for branding Aqabite products. 

• Growth in Tourism in Aqaba. There are substantial investments being made in 

branding and building Aqaba as a leading tourist destination. Growth expectations 

are significant. According to the EU’s Tourism Strategy for Aqaba, an estimated 

300,000 people currently visit the city annually, and this is planned to increase to 

over 1/2 million people by 2010 9 . 

• There are established skill sets to draw from. Various handicraft areas 

already exist in embroidery, tailoring and sewing, wood working, basic jewelry 

(beading and simple silver smithing), welding, and weaving. These skills can be 

drawn from to produce new, marketable products for identified target markets. 

• There is a potentially large pool of workers to draw from to raise 

production levels. Statistics show that 11% of the Aqaba population is 

unemployed and close to 30% of the population range in age from 20 to 39 10 - ages 

when most people are active members of the workforce. With minimal 

expenditures required for training, barriers to entry are low for the handicraft 

sector. 

• There is growing community interest in handicraft development. As local 

populations see a steady influx of tourists to Aqaba, they are eager to benefit from 

the revenue that they potentially bring. Handicrafts are one mechanism for 

capturing part of this increased revenue flow, and many locals are beginning to take 

notice. 

9 Tourism Marketing Strategy for Aqaba 2005-2010 ASEZA, 2005 

10 Jordan Department of Statistics Website 



• Handicrafts overall have a low capital investment and high ratio of value 

addition. Handicrafts usually require utilization of readily available raw materials 

and simple machinery, ensuring low capital investment. Once sold, the added value 

in a handicraft item usually is high. 

Weaknesses 

• There are no unique exceptional skills found in Aqaba that have not 

been seen in other places. While skill-sets exist, without innovative design and 

product development and upgrades of skill levels, products will remain stagnant, flat 

and uninteresting, particularly for the tourist buyers. 

• There are significant training needs. To date there have been inadequate 

production, vocational and business development training programs. All of the 

artisans and organizations need training in basic business skills, including product 

design, pricing and costing, production, marketing and management. 

• Nothing to draw from in terms of lessons learned. There is no handicraft 

documentation or lessons learned in Aqaba to help pave the way for future 

initiatives. Prior product assessments have not been documented or shared with 

others. This means that all projects basically have to start from scratch. 

• Products have not been demand-driven or focused on a target market. 

No effort has been made to think of “what does the customer want?” or 

moreover, “who are our clients?” 

• Tour operators are not linked to handicrafts. Currently tourism operators 

are generally not connected to producer groups. Tour operators may take bus 

groups to the general Souk, to the castle or Noor Al-Hussein’s shop. 

• Lack of design sense for target market. This was true of all producers unless 

there was some guidance from a designer. There is also an unawareness of 

international standards by many players in the market and a lack of specialization. 

Poor quality or lack of packaging further decreases the salability of the items that 

are produced. 

• Fragmented, unstructured and individualized production systems. 

Projects that have or are supporting artisan initiatives overwhelmingly lack vision, 

are not run as businesses, lack adequate funding, have no business or marketing 

plan documented, and are running their projects on “shoestring” budgets resulting 

in low production levels 

• Limited access to, and inadequate supply system of, raw materials. This 

translates into inconsistent products and untimely product production. 

• No consistent input on new designs and product development. Without 

consistent input on new designs, designs will be copies or remain the same; thus 

leading to stagnation and a reduction in any potential repeat customer sales. 



Opportunities 

• There is a cultural heritage and tradition to draw from. There are some 

cultural heritage products that were made and used for utilitarian purposes in 

Aqaba that can be revitalized and made for the tourist market. Based on this and in 

coordination with good designer, there is a plethora of potential products that 

could be developed for the tourism industry. 

• There is a large pool of skilled and unskilled labor that can be drawn 

from to produce products. With a high percentage of unemployed women 

reaching 25% and unemployed men at 12% according to the Department of 

Statistics Census of December 2007, this large pool could be effectively mobilized 

to produce handicrafts. 

• Growth and investment in the tourism market in Aqaba presents 

potential to bring benefits back to community. Growth and investment in 

the tourism market in Aqaba presents huge growth and development potential 

which could bring benefits back to community over the long-term. 

• Opportunities for vertical and horizontal collaboration. There are store 

owners who said that they would like to source locally. There are also producers, 

who, with proper training in business, could be successful entrepreneurs. There are 

roles for the private and public sectors to link together to create a more 

sustainable handicraft sector. 

• Opportunities to get private sector involved in handicraft value chain. 

The private sector would benefit from sourcing unique products locally. 

• Rising appreciation for handicrafts by consumers in the developed 

countries. As more tourists seek cultural destinations, they are also looking to 

take home with them a product that represents their experiences. This can 

translate into local growth in handicrafts. There are widespread “novelty seeking” 

and growing discretionary incomes at the disposal of consumers from developed 

countries. 

• There is a growing trend in retail chains in major importing countries for 

suitable products and reliable suppliers. This is true of stores such as Pier 

One, Target, major department stores, etc. It speaks of consumers’ interest in 

“cultural” items. 

Threats 

• Competition of other handicraft products. There are many products 

(imported and other Jordanian-made) that Aqabite products will have to compete 

with. Any development must be aware of the global marketplace, as well as national 

and regional competition. 

• Labor in Jordan is more costly than in other places, such as India, Syria, or 

China from which many tourist items are currently sourced. 



• Irregular and expensive inputs and inconsistent availability will not help 

Aqabite products compete over the medium to longer term. 

• No large pool of recognized Jordanian designers to draw from is resulting 

in talent from abroad staying abroad and not transferring skills to local designers. 

• Better quality products produced by competitors from Jordan, Asia, 

Latin American and other parts of the world. This includes better packaging, 

more competitively priced products and unique products from other areas. 

• Stricter international standards. Such standards are requiring the sourcing of 

more products that are “lead-free,” eco-friendly, fair trade, etc. Handicraft 

producers will need to adhere to these standards if they want to sell outside of 

Jordan. 



Table 2: SWOT Matrix of Product Development and Production 

Strengths 

• Cultural heritage and tradition to 

draw from 

• Growth in tourism in Aqaba 

• Established skill sets to draw from 

• Potentially large pool of workers to 

draw from 

• Growing community interest in 

handicraft development 

• Low capital investment and high ratio 

of value addition 

Opportunities 

• Cultural heritage to draw from 

• Large pool of skilled and unskilled 

labor 

• Plethora of potential products that 

can be produced 

• Growth and investment in tourism 

market in Aqaba presents potential 

to bring benefits back to community 

• Opportunities for vertical and 

horizontal collaboration 

• Opportunities to get private sector 

involved 

• Rising appreciation for handicrafts by 

consumers in the developed 

countries 

• Large discretionary income at 

disposal of consumer from developed 

countries 

• Growing trend in retail chains in 

major importing countries are 

looking for suitable products and 

reliable suppliers 

Weaknesses 

• No unique skills 

• Significant training needs 

• No lessons learned to draw from 

• No shared documents 

• Products have not been demand driven 

• Tourism operations not linked to 

handicrafts 

• Lack of design sense for target market. 

• Projects lack vision, not businesses 

oriented, lack adequate funding, have no 

business or marketing plan and are 

running on a “shoestring” budget 

• Lack of awareness of international 

standards by many players in the market 

• No access to capital 

• Lack of specialization 

• Inconsistent product standardization 

• Inadequate production, vocational and 

business development training 

• No consistent input on new designs and 

product development 

Threats 

• Competition of other handicraft 

products 

• Labor in Jordan is more costly than in 

other places, such as India, Syria, or 

China 

• Irregular and expensive inputs and 

inconsistent availability 

• Not a large pool of recognized Jordanian 

designers to draw from 

• Better quality products produced by 

competitors from Jordan, Asia, Latin 

American and other parts of the world 

• Stricter international standards 



IV. Market Diagnostic 

a. Description of Market in Aqaba 

There are almost 30 bazaars and souvenir shops in Aqaba. Most of them are scattered all 

over the city. They range from the very basic Souk-type stores that have a mixture of 

quality items, to the Moevenpick and InterContinental Hotels, and the Noor Al-Hussein 

Store, all of which offer some of the best handicrafts one can find in Aqaba, as well as 

represent handicrafts found throughout Jordan. Most of the products are sourced from 

Jordan wholesalers, primarily from Al-Afghani, Zalloum, and Za’tary, or are being imported 

directly by the souvenir shops. 

In order to understand the current market situation from a retailer’s perspective, a survey 

was conducted May 8-10, 2008. A total of 19 souvenir stores were visited in the Al-Awqaf 

Building, the downtown area, the area opposite the Arab Bank and a few other locations 

around Aqaba. Retailers were asked a series of questions, and their responses were noted 

by the surveyors. The following represent the key findings: 

• The majority of the retail businesses in Aqaba are shops that have been in business 

for over 10 years; only one was fairly new, having been in business for only three 

years. 

• All the visited handicrafts retail shops reported that they mainly deal with imported 

souvenir products. Ten out of the 19 shops in the Aqaba handicrafts (souvenir) 

retail market reported that they mainly source their imported products from 

Amman, as well as direct imports from other countries - mainly China and India 

and, to lesser extent, Syria, Egypt and Turkey. 

• Eight retail souvenir shops in Aqaba source their products only from Amman 

wholesalers without any direct imports, while only one souvenir shop relies solely 

on the direct imports of their goods from Turkey, China and India. 

• Al-Afghani, an importer and wholesaler based in Amman, is the major supplier of 

imported goods for the Aqaba stores, followed by Khan Al Khalili, Zaloum, Za’tary 

and Zoghoul. Some products are being sourced through peddlers who mainly sell 

embroidery products made by women in homes. 

• Only 30% of the surveyed shops reported buying locally-produced items, including 

rugs, musical instruments, accessories, embroidery, sand bottles, and silver. Noor 

Al-Hussein Foundation was the only organization mentioned as a source for some 

products, while the other NGOs supposedly active in this sector in Aqaba were 

not mentioned. 

• Although some of the products were sourced from local suppliers, the retailers 

highlighted the following as weaknesses in the handicrafts sector in Aqaba: 

o Aqaba is not known as being a producer of handicrafts products (89.5% of 

respondents). 

o Inconsistent supply (10.5% of respondents). 

o Prices of the available handicrafts are high, which limits their retail sales 

(10.5% of respondents). 



Frequency 

6 

5 

4 

3 

2 

1 

0 

Dead Sea 

Products 

o No trust in Aqaba produced products (5.3% of respondents). 

• As for the best-selling items from the point of view of retailers, Dead Sea products 

were ranked first, followed by embroidery, sand bottles and silver products as 

shown in the following chart. 

Figure 1 : Distribution of products according to number of times identified by retailers as 

best selling product 

Embroidary 

Sand Bottles 

Source: Souvenir Shops Survey 

Silver 

Hand Made 

Products 

Indian Type 

Clothes 

Jordanian 

Traditional 

Products 

Product Type 

T-Shirts 

Islamic 

Copper 

Products 

• According to retailers, most of the customers to the souvenir shops are Western 

European tourists coming to Aqaba. Arab tourists, as well as Jordanians coming to 

Aqaba from other geographical regions, represent a marginal share of the market at 

just fewer than 8% and just fewer than 5%, respectively. 

Greeting 

Cards 


Handicraft Sector in Aqaba – Diagnostic, Strategy and Action Plan 

Jewelry 

Mosaic 

Wooden 

Boxes

Figure 2: Distribution of Customers of souvenir shops according to nationality 

Others, 23.1% 

Aqaba Citizens, 2.1% 

Jordanians, 4.9% 

Arabs, 7.9% 

USA, 8.7% 

Source: Souvenir Shops Survey 

Western Europe, 

53.3% 

• As for what the tourists are seeking, about 65% of the retailers agreed that tourists 

are looking for traditionally handmade, made-in-Jordan products. This indicates a 

high potential for the development of a traditional handmade crafts market. Some 

84% of the retailers said they believe tourists would prefer to buy products made in 

Aqaba. 

• The main determinants that might persuade retailers to buy products made in 

Aqaba in order of importance were quality, price and timely delivery. 

b. Market Size, Existing Opportunity and Determinants 

The survey revealed an inconsistency between markets and producers that can be 

addressed to enhance the current situation, the following outlines some of the results: 

• From the survey, four of the shops disclosed their annual sale amounts, which 

averaged around US$21,000 annually. If these figures are spread and taken as the 

average for every shop in Aqaba, then the estimated overall souvenir market in 

Aqaba would be around US$600,000 annually. 

• From our meetings with the handicrafts producers in Aqaba, we found that they 

are not selling a lot to the souvenirs shops, and the selling amount of the whole 

NGO sector does not reach US$10,000. This handicraft-selling amount represents 

less than 2% of the market opportunity that exists; the imported oriental products 

are occupying the remainder of the market (as will be discussed later). 

• The main customers for the retail shops are tourists, where the tourism sector in 

Aqaba is considered one of the most important sectors alongside the real estate 

sector. This sector is economically important to Aqaba, as it forms one of the main 

tourist attractions in Jordan and it employs many of Aqaba’s resident workforce. If 

highly utilized, it could be one of the main long-term economic drivers for the city 

of Aqaba. 

• The tourism market in Aqaba witnessed a remarkable growth during the past five 

years. The number of tourist arrivals increased by about 25% in 2006 above its level 



in the year 2003. However, note that only 4.9 % of souvenir shop sales are to 

Jordanians, while an overwhelming 53.3% of such sales were to Western 

Europeans. 

Table 3: Number of Tourist Arrivals to Aqaba, 2003- 2007 according to their 

nationality 

Nationality 

Arrivals 

2004 2005 2006 2007 

Jordan 224,291 221,453 287,137 241,574 

Europe 87,048 122,035 89,685 93,552 

Other 

Countries 

45,865 77,483 46570 97,019 

Grand Total 357,204 420,971 423,392 432,145 

Source: ASEZA Tourism Department 

• Jordanians constitute the largest portion of Aqaba’s “tourists”; they made almost 

68% of all the arrivals to Aqaba in the year 2006, followed by European tourists 

who constituted about 21% of all the tourist arrivals to Aqaba as shown in the table 

above. 

• Most of the arrivals to Aqaba are coming by land, while about (22.6%) are coming 

by air and (10.4%) are coming by cruise ships. 11 

• Based on the above, the average annual increase (almost 6.8%) is expected to be 

maintained through the coming 4 years, reaching about 526,000 tourists in the year 

2010. The number of foreign tourists is expected to reach about 232,000 by the 

year 2010, while the number of Jordanian tourists is expected to reach almost 

294,000. 

• This rising influx of tourists will positively affect the demand on the handicrafts 

sector. Our survey revealed that 40% of the foreign tourists bought souvenirs from 

Aqaba, while 16% of the Jordanian tourists bought handicrafts from Aqaba. The 

average amount of money that the foreign and Jordanian tourist is putting as budget 

for the handicrafts is almost US$50 per family. 

c. Survey Methodology and Analysis 

To assess Aqaba’s market opportunity and how to capture it, the different tastes of the 

tourists coming to Aqaba and what is the main target market for the Aqaba handicrafts 

sector, a survey targeting a sample of foreign and Jordanian tourists coming to Aqaba from 

different regions was implemented. The following sections describe the survey 

methodology, as well as detail the findings of the survey from respondent groups. 

11 The source of figures is the ASEZA Tourism Department and it only includes the stated classifications. 



i. Survey Methodology 

To conduct the survey, a well-designed questionnaire was developed to capture the most 

important characteristics of the market from the tourist point of view (See CD for Core 

Documents, listed as “Questionnaire”). A team of three researchers was sent to Aqaba 

during a 2-day weekend in May 8-10, 2008. The researchers targeted different tourist areas 

inside Aqaba, including five-star hotels, the beach, downtown, tourist restaurants, etc. The 

survey targeted a random sample of foreign tourists including Europeans, Americans, Far 

Easterners and Arabs, including Jordanian tourists not living in Aqaba but coming to the city 

as “tourists.” The survey collected the opinions of 51 foreign tourists and 50 Jordanian 

tourists. An excel sheet was used to display the data of the two sample groups: a sheet for 

each group was designed and the data inserted. 

The following sections describe the output of the survey analysis where the findings from 

each group are explained separately, since there are clear differences in the preferences of 

each group in regard to handicrafts products. 

ii. Foreign Tourists Survey Analysis 

In the survey sample, at least 17 nationalities were interviewed to get the most important 

characteristics these nationalities are looking for in a made-in-Aqaba handicraft product. Of 

further interest was what budget they are allocating for such products to buy from Aqaba. 

The German, Holland, Russian and British nationalities were the major groups interviewed. 

From the Arab countries only tourists from Qatar and Kuwait were represented in our 

sample. 

Table 4: Distribution of Tourists in the sample of the survey according to their nationality 

Country Number % of Sample 

Germany 10 19.6% 

Holland 9 17.6% 

Russia 5 9.8% 

British 4 7.8% 

Bangladesh 3 5.9% 

Serbia 3 5.9% 

Australia 2 3.9% 

Austria 2 3.9% 

Hungary 2 3.9% 

Qatar 2 3.9% 

Others 9 17.9% 

Total 51 100% 

Others : Finland France, Ireland, Italy, Kuwait, Denmark, Ukraine and unspecified 

• Most of the foreign tourists were in the age group below 50 years (80.4%), and all 

of them came to Aqaba for tourism. The sample has an almost equal percentage of 

male and female tourists. Some 88% of the sample surveyed said that they would 

stay in Aqaba for less than a week. 

• About 40% of the tourists surveyed said that they bought souvenirs from Aqaba, 

while only an additional 18% said that they are planning to buy products from 

Aqaba. Most of the tourists did not have an exact budget for their purchases from 

Aqaba; though 11.8% set their budget at about US$100 per tourist. 



Table 5: Distribution of tourist's sample according to allocated budget for their 

purchases from Aqaba 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Tradition Made in 

Jordan 

Budget for Handicraft (US$) 

% of Jordanian 

Tourists Interested in 

Buying Handicrafts 

0 33.3% 

20 9.8% 

25 7.8% 

50 5.9% 

70 2.0% 

75 2.0% 

100 11.8% 

200 3.9% 

300 2.0% 

400 2.0% 

Unlimited 19.6% 

Total 100.0% 

• The main characteristics for the handicraft product that foreign tourists were 

looking for were tradition, made-in-Jordan and size. 

Figure 3: Distribution of handicraft characteristics requested by tourists as per the survey 

Size Price Gifts To be used 

as 

Accessory 

Something 

that is not 

Fragile 


Interesting 


Unique 

• As for locally-produced food items that have the most potential to be sold to 

tourists, the traditional sweets were ranked first, followed by olive oil, spices and 

Turkish coffee. 

Others 



Figure 4: Distribution of locally-produced food items according to foreign tourist’s 

willingness to purchase 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Nuts Turkish 

coffee 

Spices Traditional 

Sweets 

Dates Cheese Jam Olive Oil 

• Finally, the survey of these tourists revealed that Aqaba souvenir shops are not 

displaying anything unique or directly representative of Aqaba, as only 3 out of the 

51 foreign tourists said that they found something unique to Aqaba in these shops. 

iii. Jordanian Tourists Survey Analysis 

• As for the Jordanian tourists, most were youth and below 50 years of age, while 

only one tourist was above 50 years of age. Most were male (about 86%) and 

almost 92% of were in Aqaba for tourism, the remainder in Aqaba for work 

purposes. The majority of the sample had been in Aqaba for three days or less 

(92%). 

• Only 16% of the Jordanian tourist sample bought souvenirs from Aqaba, but an 

additional 26% were planning to buy such products during their stay in the city. 

• As for the most important characteristics the Jordanian tourist was looking for in 

handicrafts products, price came first, followed by tradition and the made-in-Aqaba 

or made-in-Jordan. 



Figure 5: Distribution of handicrafts characteristics favored by Jordanian tourists 

16 

14 

12 

10 

8 

6 

4 

2 

0 

Price Made in 

Jordan, 

Made in 

Aqaba 

Tradition To be used 

as 

accessory 

• Most of the Jordanian tourists (50%) had a small budget for handicrafts, US$50 or 

less, while about 25% did not specify a budget for buying handicrafts. 

• As for the most popular traditional food items that the Jordanian tourists would be 

willing to buy, nuts took first place, followed by Turkish coffee and spices. 

Table 6: Distribution of Jordanian tourists in percentage according to their allocated 

budget for handicrafts 

Budget for Handicraft (US$) 


that has an 

interesting 

story 

Size Something 

Unique 

% of Jordanian Tourists 

Interested in Buying 

Handicrafts 

8 5.0% 

15 10.0% 

22.5 15.0% 

30 10.0% 

40 5.0% 

50 5.0% 

70 15.0% 

150 5.0% 

200 5.0% 

Unspecified 25.0% 

Total 100% 


that is not 

fragile 

Gifts for 

friends, 

family, 

loved ones 

Others 



Figure 6: Distribution of traditional food items according to number of Jordanian tourists 

willing to buy them 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Nuts Turkish 

coffee 

Spices Traditional 

Sweets 

Dates Cheese Jam Olive Oil 

It is obvious from the analysis of the foreign and Jordanian tourists’ preferences and 

willingness to buy certain handicrafts products from Aqaba that Jordanian and foreign 

tourists tastes differ strongly, and therefore the strategies to target each segment 

should be different, including the product types, prices, promotional and marketing 

activities, as well as how to target each of these groups. 

d. SWOT Analysis Regarding Handicrafts Marketing 

The following SWOT analysis emphasizes the significant core marketing issues. 

Strengths 

• The market has a collection of products that appeal to tourists and 

locals: The sand bottle arts, the wooden boats and some embroidery and textile 

items were some of the products made in Aqaba and demanded by foreign and/or 

local tourists. These products are unique to Aqaba and if modifications to design 

are made and good marketing techniques are used, they will represent a winning 

segment in the handicrafts market. 

• Some distribution channels in Petra, Aqaba and Dead Sea are exploited: 

Noor Al-Hussein Foundation was able to display its products in different outlets in 

the Dead Sea, Petra and some souvenir shops in the city of Aqaba. Other products, 

especially the embroidery, found their way to the shelves of the souvenir shops in 

the city as well. 

• Direct selling to tourists exists: Noor Al-Hussein Foundation has its own 

handicrafts shop near Aqaba Castle. The shop displays handicrafts products that are 

made by the NGO and other producers working in Aqaba and elsewhere in Jordan. 

However, the shop is hard to find, as it is located out of the normal tourist walking 

area. 



• Arrangements with tour operators is one way that is used to market 

handicrafts products to tourists: Noor Al-Hussein Foundation is the only 

producer who managed to have arrangements with tour operators/ guides to bring 

tourists to their shop near Aqaba Castle. Tour operators charge a fee on the 

overall sales of the shop to tourists they bring, and since the NGOs are not pricing 

their products properly, they consider these arrangements necessary though 

limiting to their profit margins. 

Weaknesses 

• No understanding of the market needs: The assortment of the handicrafts 

products available in Aqaba is not what the market is requesting: it consists of the 

products that were being produced many years ago, and all are similar to what is 

produced in other places in Jordan. None of the producers is aware of its targeted 

segment within the market or what this segment is looking for in the handicrafts 

products. Therefore, the collection is a mish mash with no production line theme 

or style. 

• Production is not consistent either in quantity or in quality: Selling 

products to retailers and souvenir shops requires a sustained quantity and quality of 

production. Aqaba handicraft projects are all managed by NGOs that lack business 

know-how and thus the ability to maintain a sustainable flow of funding generated 

from the project resources. Therefore, most of the projects face problems with 

securing funds and with other obstacles that affect their production sustainability. 

As a result, their image in the market is one of a non-dependable source of varying- 

quality products. 

• Products are not well designed or produced to satisfy a targeted 

segment of the market: The producers in Aqaba do not consider the needs of 

the different market segments (international tourists, tourists from other parts of 

Jordan, Aqabites, etc.) when they produce their products. All the products are 

similar, and no special characteristics are considered when produced for different 

segments. 

• Marketing/sales efforts are absent: None of the producers interviewed in 

Aqaba has a brochure, website, leaflet, or any other promotional or marketing 

tools. The sales of products are being made either by the NGO management or 

production personnel without expertise in these areas. The only sales and 

promotion method that is popular in Aqaba is the arrangement of bazaars in which 

the NGOs display and sell their products directly to the public. 

• No story telling/ branding: The handicraft products available in the market do 

not have a brand or story associated with them: they are just a copy of products 

made in other parts of Jordan. Sand bottle arts, although unique, started as a 

product of Wadi Rum. The only product that may be linked to the sea environment 

is the wooden boats produced by one of the artisans in Aqaba. 

• The pricing is being set haphazardly: From all the projects sampled, none of 

them is sustainable. Sustainability is impossible due to their not knowing the real 

costs of their products and thus their being unable to price their products correctly 

with a satisfactory profit margin. If this sector is to be developed and sustained, 

costing and pricing of products should be a cornerstone of any development 

efforts. 



Opportunities 

• A booming tourism market: The Aqaba tourism market has experienced a 

tremendous increase during the last five years. This pattern of increase is expected 

to be maintained and further expanded as the tourism department in ASEZA notes 

that the number of rooms within the zone will increase by 20 fold during the 

coming ten years. This increase in activity with tourists coming to Aqaba with high 

spending power represents an opportunity for the handicraft sector to develop and 

capture a share from this sustainable and expanding market segment. 

• Existence of a souvenir retail shop market: Aqaba currently has more than 

30 souvenir shops that sell an assortment of products which are currently mainly 

imported. ASEZA can issue regulations that force these shops to guarantee to 

display a minimum percentage (say 30%) of products from Aqaba-made handicrafts 

producers, which could form a huge market opportunity for Aqaba handicrafts 

producers. 

• Availability of a corporate gifts market: ASEZA, ADC, the big hotels and 

companies in Aqaba keep a good portion of their budgets set aside for gifts and 

give-aways (initial budget for one entity is US$50,000) which represent a huge 

market for a well-established, local handicrafts sector. 

• Handicrafts Incubator: The ACED Program is in the process of establishing an 

incubator with one of the NGOs in Aqaba that is active in the field of handicrafts. 

This could provide the sector with collective marketing activities that would help 

unleash the potential of developing marketable handicrafts products that respond 

to the market demand. 

• The establishment of an old Souk: ASEZA’s Local Community Development 

Directorate is assessing the establishment of an old Souk that may provide a direct 

selling outlet for handicrafts products. Further, the Saraya Aqaba Project have 

designated an area called Souk Saraya Aqaba, which will include market retail 

outlets in a traditional design and may allocate areas for high quality handicraft 

products. 

Threats 

• Aqaba as a duty free zone: Aqaba is a duty free zone, which eases the import of 

products without custom duties, and thus affects the competitiveness of the locallyproduced 

handicrafts products vis-à-vis oriental sourced products. Furthermore, 

Aqaba is considered a custom zone, which means custom duties must be paid on 

any product leaving Aqaba to other parts of Jordan, which complicates the export 

opportunities of Aqaba-produced handicrafts for wholesale export. 

• Tour trip tourists: Many of the tourists coming to Aqaba are coming as part of a 

tour that includes Israel and Egypt. Since the products found in Aqaba are similar to 

those found in these two other countries, tourists will be less enthusiastic to buy 

Aqaba-made souvenir products. 

• No central location to buy souvenir/ handmade products: Souvenir shops 

are scattered all over Aqaba without a central handicrafts Souk or area where the 

tourists can go to buy Aqaba-made products, which makes it more difficult to 

locate and buy these products. 



Table 7: SWOT Marketing Matrix 

Strengths 

• Some of the products have nice designs 

• Distribution channels in Petra, Aqaba 

and the Dead Sea are exploited 

• One of the NGOs has its own shop 

• One of the NGOs has an agreement 

with tour operators to market its 

products to tourists 

Opportunities 

• Tourism market is booming in Aqaba 

and the number of tourists is increasing 

• Aqaba has almost 30 souvenir shops 

that represent a potential market for 

handicraft producers 

• Huge corporate gifts market 

• The ACED Program will establish an 

incubator which may provide huge help 

in marketing efforts of Aqaba 

handicrafts products 

• ASEZA Local Community 

Development Directorate is discussing 

possibility of establishing an old Souk 

that may provide a direct selling outlet 

for handicraft products 

• Saraya Aqaba is planning a special Souk 

Weaknesses 

• No understanding of the market needs 

• No sustained production quality or 

quantity, which limits his or her accessibility 

to some selling channels 

• No segmentation of the target markets 

• No marketing and/or sales efforts and plans 

• No story telling or branding 

• The pricing is set haphazardly 

• Charity and NGO producers depend on 

fund raising rather than a sustained profit 

generating business 

• No efforts whatsoever to export 

Threats 

• The status of Aqaba as a duty free zone 

• Major portion of the tourists coming to 

Aqaba are coming through a tour trip that 

includes Israel and Egypt 

• Souvenir shops are scattered all over Aqaba 

without a central handicrafts souk or area 

where the tourists can go and buy Aqabamade 

products 



V. Organizational and Human Resource 

Diagnostic 

The organizational and human resource diagnostic addresses: 1) the management of the 

sector in Aqaba; 2) the types of producers available in Aqaba; 3) the capacity of the 

producers in producing demand-driven handicrafts and managing the production 

successfully; 4) an analysis of the supporting environment; 5) the key challenges facing the 

sector's organizations and human capital; and 6) a SWOT analysis which is used as the basis 

of the strategy and action plan. 

a. Management of the Sector in Aqaba 

There is no management structure or main governing body that has taken the lead in 

solidifying and unifying the sector. The obvious choice in Aqaba would be to establish a 

governing body for the sector where ASEZA has a role with the private sector. 

ASEZA was formally founded in 2001 as the statutory institution empowered with 

regulatory, administrative, fiscal and economic responsibilities within the Aqaba Special 

Economic Zone (ASEZ). 

It is a financially and administratively autonomous institution responsible for the 

management and regulation of the ASEZ. There are six ministerial – level commissioners, 

responsible for major areas of regulatory or operational activity, who govern the ASEZ. 

Vision Statement of the ASEZ 

“The Aqaba Special Economic Zone is a world class Red Sea business hub and leisure 

destination, enhancing the quality of life and prosperity of the community through 

sustainable development, and is a driving force for the economic growth of Jordan.” 

ASEZA’s Mission 

• To improve the quality of life for all community members 

• To create, regulate and sustain a globally competitive investor friendly environment 

• To optimize the efficient utilization of entrusted resources in harmony with the 

ASEZ Master Plan to internationally recognized practices 

• To affect a transparent and accountable corporate structure, governance and 

culture that synergizes the activities of the ASEZA team 

The main quality objective of ASEZA is to consistently satisfy the specified needs and 

expectations of ASEZA's customers in all its activities. 

Within ASEZA, there are five main Commissions: the Investment Commission, the 

Customs Commission, the Financial Commission, the Infrastructure Commission and the 

Environment Commission. The most relevant to the handicraft sector is the Investment 



Commission, currently having three sub-directorates: the Local Community Development 

Directorate, the Tourism Directorate, and the Investment Directorate. 

Community involvement is an integral part of the development process and of the creation 

of strong, sustainable and cohesive communities. Focusing on the future of the ASEZ local 

community through a human resource development perspective, the Local Community 

Development Directorate in ASEZA is currently mandated to develop policies and 

strategies for community development in the fields of education, health, low-income 

housing and poverty alleviation. Furthermore, the directorate facilitates vocational training 

of the workforce to meet market needs, and participates in planning youth programs. 

Central to the mandate of the Local Community Development Directorate and part of its 

objectives are: 1) supporting capacity development of small and medium sized enterprises 

(SMEs); and 2) coordinating fundraising and donor activities with national and international 

entities. Both objectives are highly relevant to community-based NGOs that produce 

handicrafts in Aqaba. 

It is understood that ASEZA is supporting an ACED Program review of ASEZA’s 

community development interface. This review should encompass this handicrafts 

document. 

Aqaba Development Corporation (ADC) 

Another institutional player in Aqaba is the Aqaba Development Corporation (ADC). The 

ADC is a private sector company aimed at accelerating the development of the Aqaba 

Special Economic Zone by maximizing public-private sector partnerships and investment. 

The ADC owns strategic assets including the Aqaba ports, both air and sea, along with 

strategic parcels of land, as well as the development and management rights in key sectors 

of the ASEZ economy. By leveraging its existing assets, ADC will accelerate the 

implementation of the ASEZ plans and projects. 

ADC’s mission is to develop the ASEZ and implement the ASEZ Master Plan in a manner 

that ensures integrated development. 

ADC’s strategy is focused on the following: 

• Building new infrastructure and required superstructures; expanding on existing 

ones 

• Creating business enablers for ASEZ by investing in education and business enablers 

• Packaging new investment projects in the transportation, tourism, and services 

sectors in partnership with local and international operators/ investors; maximizing 

attraction of private sector developers/operators 

ADC's priority projects are based on analyzing, synthesizing, and prioritizing Aqaba's 

development needs according to several key factors. Its main focus currently is on 

infrastructural investments in the city. Yet, ADC has a community development program 

which is mandated to implement developmental initiatives in the city as part of ADC's 

Corporate Social Responsibility (CSR) initiative. 

Handicraft Leadership Void 

At the moment, neither ASEZA nor ADC list the handicraft sector in Aqaba clearly in their 

mandate, and do not consider it an area of priority. At the macro-management level, the 



sector is void of management or regulatory oversight by any specific entity and is not 

considered as a priority to any substantive insitution. There are no resources dedicated to 

manage the sector whatsoever, and it is not linked at all with tourism in an institutional 

manner. 

The institutional set up of the sector is weak and fragmented, and it is split among a 

number of semi-government entities (royal non-profit organizations), NGOs, charity 

societies and cooperatives which are not coordinating or cooperating in a structured 

manner, and are duplicating their roles at the same time. 

Tourism can be a vital and sustainable source of support for handicrafts producers, if the 

producers were linked with tourism-related entities such as tour operators, hotels, 

restaurants, and authorities responsible for historical places (or tourist/archeological 

authorities). The diagnostic revealed that there are currently no institutionalized 

cooperation links between handicraft producers and any governing body in Aqaba and that 

there are no linkages or cooperation between handicraft and tourism sectors. 

b. Producers’ Capacity 

The capacity of the producing organizations to sustainably exist in the market and compete 

were diagnosed against five main organizational criteria: 1) the availability of a vision and 

strategy; 2) the way in which such organizations handle the capital allocated for investment 

in handicrafts production; 3) the aspiration of the organizations' management and 

leadership towards handicrafts; 4) the availability of the organizational knowledge and skills 

related to production; and 5) the availability of supporting management policies and 

systems. 

i. Vision and strategy 

Organizations producing handicrafts lack vision and strategy: they don't have a clear vision 

towards what they want to achieve, what their production potential is, or what their future 

plans are. When they were asked what they want to achieve they responded with vague 

statements such as: "We want to keep helping the women," or "We hope to sell more 

next year.” Some of the organizations had a clear idea about what they wanted to achieve 

this year and the following year, but had no substantial documentation to support their 

direction. 

One example is the Jordanian National Commission for Women, which wanted to produce 

soap from used cooking oils. They have marginal information about costs, no recipe, and 

no business or marketing plan. In the majority of cases, producers are donor-driven, and 

their production is in response to funding. None of the producers interviewed were able 

to provide expectations in figures or justifications based on concrete analysis of their 

targeted market. 

ii. Human resource capacities 

Organizations producing handicrafts in Aqaba have two main levels of human resources: a) 

technical personnel who serve as project managers, designers, trainers, and marketers; and 

b) staff who produce the products, either at home or at a workshop. 



Management of the producing organizations was centralized in most organizations, but lack 

solid business or marketing expertise. Decisions related to product quantities, prices, and 

distribution was mainly the responsibility of the management alone. Several organizations 

mentioned that they are adopting a participatory approach in choosing designs and in 

identifying marketing activities such as bazaars and exhibitions. All of the organizations 

interviewed stated that management personnel were multi-tasking and holding many 

responsibilities, such as product design, marketing, pricing, managing the workers, training 

employees, coaching new employees, supervising the production process, quality control, 

product development and handling daily book-keeping and documentation. The number of 

technical personnel at the producing organizations varied from 1 to 5 persons per 

organization. 

Table 8: Distribution of technical personnel and working labor in the main handicraft 

producers in Aqaba 

Organization Technical Personnel Working labor 

Al Thagher 2 supervisors – fulltime 

Princess Basma Community 

Center 

Noor Al Hussein Foundation 

– Women's Center in Aqaba 

Jordanian National Forum for 

Women 

2 assistants - volunteers 

2 (the Center's manager and the 

sewing teacher) 

12 disabled young girls 

5 permanent workers 

(handicrafts committee – 

volunteers) 

Un-known number of home- 

based women paid by piece 

1 (head of tailoring unit section) 3 fulltime home-based women 

paid by piece 

3 (the manager, the women and 

child center manager, and the 

food processing person) 

Aqaba Women Society 2 (the manager and the sewing 

teacher) 

Red crescent 2 (the manager and the 

embroidery and sewing 

supervisor) 

Jordan Society for Sustainable 

Development (incorporation 

with Aqaba Coastal Women’s 

Association and Al-Rahma 

Association) 

40 home-based women 

(divorced or wives of 

prisoners), paid by piece 

5 home-based women, paid by 

piece after selling (the society 

charges 10% on each piece) 

6 fulltime working women 

from the “old town” in Aqaba 

1 (the manager, the trainer) 6 fulltime working women 

The working labor of handicrafts-producing organizations is mostly made up of women 

working from home or at a workshop. Those who produce at home either receive 

subsidized wages, or a portion of sales when their pieces are sold. Women work as 

volunteers or full-time; volunteers were paid very humbly to cover their transportation 

and one meal a day. Full-time workers on the other hand, have flexible working hours and 

are paid less than the market price (average 70 JD/ month) for their efforts. It was noted as 



well that skills transfer from the management and technical personnel to the working labor 

is minor, and there were no systematic efforts evident in this area. 

Very little incentives exist for producers to increase their skills or capacity. One exception 

to this case was found in the JSSD, where the basic salary starts at 60 JD/month, and then 

goes up to 80 JD/month, and can rise up to 100 JD/month based on performance and 

workmanship. This process is based on the personal judgment of the supervisor, and the 

supervisor’s own evaluation of labor performance, rather than on set criteria. 

iii. Capital management 

All organizations interviewed started their handicrafts production using project grants, and 

they still depend on grants and other donor assistance for the most part. The exception to 

this is the Noor Al Hussein Foundation. All of the organizations were unable to provide 

documentation on how they calculated their revenues, costs or return on investment. In 

addition, none of the organizations have a clear plan for increasing their capital. 

iv. Organizational knowledge 

The majority of organizations producing handicrafts had no internal organizational 

knowledge management system. They historically jump from one product area to another, 

without having a consistent production growth path, and thus were unable to accumulate 

vertical learning experiences and proper documentation. In addition, none had a business 

or marketing plan - preferring to deal with handicrafts production merely as a charitable 

project. 

v. Availability of supporting policies and systems 

All of the handicrafts producing organizations lack clear policies and systems. These include 

policies on pricing, marketing and quality control, and systems for selling, producing, and 

assuring quality control. The majority of these organizations conduct informal quality 

checks, and this procedure is usually carried out by the designer as in the case of the 

Jordan Society for Sustainable Development and Noor Al Hussein Foundation, or a 

committee such as in the case of the Princess Basma Community Center. Table 9 following 

summarizes the organizational capacity of the handicraft producing organizations, based on 

the information collected during the interviews. 

The capacity of interviewed organizations was measured against the following: 

1- The availability and clarity of a vision and a strategy for the organization. 

2- The existence of a capital management procedure (how they manage their 

capital and plan for their cash flow). 

When an organization has no clear procedure for budgeting and capital 

investment, this competency was considered very weak. When the organization 

has some kind of a system but it is not documented, they were considered 

existing but in an informal way. 

3- HR capacities in place. 



This competency refers to the capability of the existing management and 

supervisory structure to manage the work well in an institutional manner, while 

not being soley based on just one or two persons. 

4- Organizational knowledge captured and shared. 

This competency refers to the market knowledge and the accumulated knowhow 

available in the organization. 

5- Availability of supporting systems and policies for handicraft production and 

marketing, including pricing policies and key staff replacement policies, 

budgeting and accounting systems and documentation for sales systems. 

Table 9: Organizational capacity of the handicraft producers interviewed 

Organization 

Vision 

and 

strategy 

Capital 

manag 

ement 

HR capacities 

Organizational 

knowledge 



Availability of 

supporting 

systems/polici 

es 

Al Thagher None None Very weak None Very weak 

Princess Basma 

Community 

Center 

Noor Al Hussein 

Foundation – 

Women's 

Center in Aqaba 

Jordanian 

National Forum 

for Women 

Aqaba Women 

Society 

Red Crescent 

Society 

Jordan Society 

for Sustainable 

Development 

None Very 

vague 

Long experience in 

textiles but not in other 

products 

None Weak Professional for technical 

personnel and skilled 

labor 

Strong in textiles Informal 

(undocumented) 

Concrete organizational 

knowledge but should be 

transferred so as not to 

be lost 

None None Very weak Distracted, scattered 

experiences, responsive 

to donors, cannot be built 

on 

Policies are 

undocumented 

Systems are 

basic 

None 

None None Very weak Very humble Informal policy 

(work as 

retailers to 

artisans) 

Undocumented 

None None Not applicable as the 

production is not in 

It has a 

vision, but 

it is a 

short 

term one 

No clear 

strategy 

Very 

vague 

action 

Centralized knowledge 

and skills in the technical 

level (very skillful) 

Weak labor, follow 

orders and steps (weak 

thinking skills) 

sales 

Unidentified Not applicable 

None, the organization is 

new, and knowledge is 

concentrated in two 

people - the manager and 

the supervisor 

Basic 

documentation 

Informal pricing 

policies

c. Enabling Environment 

A supporting environment is necessary for producers to flourish and production to grow. 

Aspects of a supportive environment for producers are listed and elaborated below. 

i. An Encouraging Legislative Environment 

There are no protecting or encouraging pieces of legislation currently enforced in Aqaba to 

support local products in favor of the imported products. The local community entities of 

Aqaba producing handicrafts are of limited financial capability, and while ASEZA encourages 

investment in the ASEZ, its laws do not readily apply to these historically smaller 

producers and thus do not benefit them in the end. 

National laws and regulations that govern local MSMEs are the same throughout Jordan, 

and do not provide any competitive advantage to Aqaba entrepreneurs. Current laws are 

not encouraging to home-based businesses due to professional licensing requirements, 

which include locating the business in a commercial area. This affects the cost of running 

the business on one hand, and encourages the increase of informal businesses and prevents 

formal tracking on the other. 

ii. Access to Finance12 Several micro-credit institutions and banks which could potentially provide capital to 

handicraft producers were found operating in Aqaba and Amman as follows: 

1. Islamic Jordanian Bank, 

2. Industrial Development Bank, 

3. Development and Employment Bank UNRWA, 

4. Jordan Hashemite Fund, 

5. Amman – Cairo Bank, 

6. Tamweelcom, and 

7. The Middle East Micro-Credit Company. 

There are several options for financing opportunities for small businesses in Aqaba. 

However, conditions and requirements, such as salary transfer, represent hindrances, 

especially because the majority of craft producers are not “employees.” In addition, the 

upper ceiling of loans does not generally provide sufficient operating capital for start-ups in 

the handicrafts industry to reach a secure stage allowing sustainability. Access to these 

opportunities is also limited due to weak knowledge and awareness of what financing 

options are available to support handicraft producers. 

12 Financing entities providing less than 1000 JD were excluded from these comments; such as, the 

Jordanian National Forum for Women which provides loans of ceiling 500 JD to local women and 

UNRWA which provides loans ranging from 400 to 600 JD to Jordanian and Palestinian women running 

productive projects. 



Table 10: List of the financing institutions and types of loans provided, loan ceilings, target 

group, and the requirements or conditions to provide loans 

2 

2 

1 

3 

4 

Financial 

Institution 

Cairo Amman 

Bank 

Islamic 

Jordanian Bank 

Islamic 

Jordanian Bank 

– Type 2 of 

loans 

(partnership 

loans) 

Industrial 

Development 

Bank 

Development 

and 

Employment 

Bank 

Loan ceiling 

JD 

Interest 

rate for 

loans 

5000 17% MSME 

Target group Requirements 

o Personal assurances 

o Business provides past 

cash flow reports 

o Business is more than 2 

years old 

o Business is officially 

licensed 



Payment 

period 

One year 

Up to 10,000 34% - o Personal assurances 

o Cash flow report 

- 

- 6% All o Loan is dedicated to Up to 2 years 

- 6.5% All purchasing products and 2-4 years 

- 7% All 

equipment 

o Salary transfer to bank 

with assurances equals to 

90% of loan amount for 

employees and 10% for 

trade businessmen 

4- 5 years 

100% of new 

business cost 

or business 

expansion 

requirements 

Up to 10,000 

More than 

10, 000 and 

up to 25,000 

1/3 of the 

revenues 

minus the 

salary of the 

owner and 

2/3 of the 

capital shares 

until payment 

is made in full 

The bank 

funds 100% of 

the project 

with a 

descending 

interest rate 

equal to 7.5% 

with no 

processing 

charges 

Bank funds 

80% of the 

business 

Same interest 

rate as above 

Business people 

Industrial and 

manufacturing micro 

business loans 

Industrial and 

manufacturing small 

business loans 

o Good reputation. 


o Transfer 2 salary accounts 

to bank or mortgage real 

estate that is worth 175% 

of loan base amount 

o Jordanian nationality; for 

Iraqis and Palestinians 

additional procedures are 

required 

o Valid practicing license 

o Registration certificate 

o Valid rental contract 

o For financing equipment 

purchasing, applicant 

should present offers 

received 

o If loan is intended to 

expand the business, a 

formal list of assets 

indicating their value 

should be presented 

1- 5 years 

6 – 12 months 

6 – 12 months

4 

cont 

5 

Development 

and 

Employment 

Bank 

Jordan 

Hashemite 

Fund 

6 Tamweelcom 

7 

8 

9 

Up to 2000 6.5% 

Rural women 

(Loan title is 

Empowering Rural 

Women) 

2000 - 15000 6.5% Startup financing 

2000 - 15000 7.5% 

Up to 50,000 

500 – 1500 

9% 

descending 

interest 

10% fixed or 

accumulative 

1500 - 7000 9% fixed rate Startups 

1500 - 5000 

First time 300 

– 800, second 

time 800 – 

1200 

Third time 

1200 – 1500 

200 – 600 - 

1500 – 5000 - 

Up to 5000 

10% fixed 

rate 

18% 

Developing the 

business 

Entrepreneurs 

Home-based micro 

businesses 

Developing small 


Individual women's 

micro-businesses 

(Al Amal Loans) 

Group/cooperative 

loans (group of 

women) 

Progress loan 

(progressing womenowned 


(99% of these loans 

are for home-based 

businesses) 

Personal loans to 

individuals 

o Life insurance 

o Salary transfer 

o Obligation to pay back 

certificate 


o Mortgage real estate 


o Salary transfer 

o Mortgage real estate 


Letter of commitment 


o Practicing certificate 

o Feasibility study 


o Practicing certificate 

o Feasibility study 

o Personal bail 

o Salary certificate 



6 months no 

payments 

Payments 

distributed 

over 6 years 

Payments 

distributed 

over 6 years 

Up to 6 years 

Up to 6 years 




10 months 

12 months 

15 months 

o Group bailing 15 months 

o Personal bails 

o Salary certificate 


36 months 

1500 - 2000 Home-based loans 36 months 

The Middle 

East Micro- 

Credit 

Company 2000 - 25000 12% 

Agriculture 

Credit 

Corporation 

Social 

Development 

Directorate 

500 - 3000 5% 

500 - 4000 

10 UNRWA 400 - 600 

Only 40JD for 

the expenses 

10% 

approximately 

Commercial loans to 

business owners 

practicing trade 

Agricultural projects 

or related to food 

production 

(member of family) 

Productive household 

Women only 

Jordanians & 

Palestinians 

o Bank checks from a trader 

o Transfer salary to housing 

bank 

o For bank employees 

guarantees are bank 

checks and mortgage real 

estate or cars 

o Land mortgage + salary 

transfer 

o Or land mortgage + court 

guarantee 

o Court guarantee 

o Income sheet for 

government employee 

36 months 

5 years 

4 years 

1 year

d. Key Organizational Challenges 

Overall, the handicrafts sector in Aqaba is not seen by the government or any ASEZ key 

stakeholders as an area of priority. Following are the key challenges facing handicrafts 

producers in two aspects: the organizational capacity of a producer and the enabling 

environment for organizational growth. 

1. Lack of information on the sector as a whole 

There have been no studies previously addressing this sector in Aqaba. In July 2006 the 

USAID-funded Jordan Tourism Development Project (Siyaha) conducted an overview and 

an assessment of the handicrafts sector in Jordan to provide decision-makers with 

recommended actions towards developing the sector. The study indicated that “according 

to the Ministry of Social Development, there are about 250 societies registered, 

representing several thousand persons (mainly women) with productive activities in 

handicrafts. 13” Most of these professional associations are involved in weaving and 

embroidery. Some of them are involved in basketwork. There is no source of information 

on the exact numbers of these individual crafts workers, but there are thousands spread 

across the country. 14 

There is no one central place to find information about handicrafts in Jordan as no 

databases of any kind exist. Information is scattered, segmented, and not organized. This 

makes it very hard to identify which products are the most marketable, where to locate 

the workshops or businesses, and with whom to cooperate and coordinate. In Aqaba 

access to knowledge is highly dependent on personal networks. 

Besides these individual crafts workers and social societies and cooperatives that are 

spread within the rural areas, there are a number of NGOs that are registered under the 

Ministry of Social Development. They initiated many crafts projects to alleviate poverty and 

improve the standard of living of the deprived in the rural areas. According to Mr. Raed 

Badri, the founder of the Jordan Handicrafts Association, there are an estimated 14,000 

crafts workers in Jordan who are working and generating income from producing crafts. 

This number includes all crafts workers who have registered individual companies, are 

working in workshops that are not registered, in NGOs, and in societies, as well as 

individual crafts workers. 

2. Lack of coordination and cooperation 

Producers interviewed were unaware of what others were producing, prices others were 

seeking or alternative marketing channels. Cooperation between producers is limited to 

participation in joint exhibitions. Cooperation between producers and retailers is virtually 

non-existent. A few small shops, such as the one at the InterContinental Hotel in Aqaba, 

source products directly from producers. Some organizations sell at souvenir shops in 

limited amounts and others provide products on a consignment basis. Overall there is 

minimal connection between the tourist market and the handicraft products made in 

Aqaba. 

13 Siyaha Handicraft Assessment 

14 Ibid 



3. Contradicting role of the NGOs producing handicrafts 

The biggest challenge the supporting agencies involved in handicrafts are facing is how to 

treat the production and selling of handicrafts as a business and not as a charity venture. 

The dilemma that current producers are facing mainly lies in the conflicting roles they are 

playing: on the one hand supporting the local community through job creation, and yet not 

looking at it as a sustainable enterprise. Current organizations are using charity-based 

structures and policies to practice a business activity. 

4. Weak organizational setup to match the requirements of income 

generating activities 

The organizational setup of producers in Aqaba is dependent on volunteers and subsidized 

wages for employees. This pattern does not allow organizations to maintain their 

employees who are the core element of handicrafts production, nor does it allow them to 

invest in their skills and capabilities through training, exposure to case studies or 

investigating the possibility of other models. 

5. Weak human resources competencies 

Currently, availability of qualified technical people and expertise in the handicrafts sector is 

a challenge. Salable designs and products are produced by those who were trained well and 

mentored, or who are still being mentored by experts, either from developed countries or 

from Amman. 

6. Staffing issues 

Most of the producers do not have the luxury of hiring full-time staff; so they tend to 

arrange a no-risk relationship with their workers through home-based production, via 

fulfilling payments after the selling of the products. Those who hire full-time workers 

mentioned that it is difficult to find "good" workers. "Out of 30 interviewed candidates, only 5 

have the basic skills required," said Doris, designer for the JSSD. 

There is a scarcity of competent employees, and retention is difficult. The Noor Al Hussein 

Foundation, the JSSD, and the Red Crescent Society are able to hire full-time employees. 

Two out of these three, however, mentioned that they are suffering from a high turnover 

rate, and that women in Aqaba tend to prefer a home-based employment even if they get 

paid less. 

"It is hard to keep good female employees here, they are burdened with social and family 

responsibilities, and this is why I am flexible regarding working hours at the workshop. 

Some come late or leave early sometimes, and I accept that as long as they are doing 

their work. If I am strict in this, I will lose them." Rodica, Manager of the Women’s Center 

in Aqaba for the Noor Al Hussein Foundation. 

7. Weak access to and lack of sufficient financing 

The weak access to financing is a significant weakness, as this does not encourage 

entrepreneurship or risk-taking development of self-sustainable enterprises. 

Additionally, available loans to support producers are small and typically inadequate to 

ensure success of a well-established enterprise. The majority of NGOs that focus on 

handicrafts production started their operations by relying on grants and funds from donors 



such as USAID and the European Commission. Their progress in handicrafts production is 

still dependent on the availability of funds and donations, and they are not close to selfsufficiency. 

Individual producers as well are dependent on external support: either financial support by 

relying on loans and credit, or technical support from other institutions or programs. 

Entities providing this external support assist individual producers by building their 

technical skills through training, or by building their marketing capabilities through 

providing them with access to markets or providing them with booths for exhibiting their 

products. For organizations and individuals, it is clear that financial sustainability has not 

been attained yet, and both are facing a lot of financial challenges, which jeopardizes their 

sustainable existence in the market. 

e. SWOT Analysis Institutional Capacity 

Table 11: SWOT Institutional Capacity matrix 

Strengths 

• Availability of some organizations that 

can be local role models in some areas 

(have longer and more successful 

experience in producing handicrafts as an 

income generating source for the 

organization) 

• Availability of labor, especially homebased 

• ASEZA claims to be behind the 

development of handicrafts and supports 

this initiative 

• Many groups (producers and NGOs) are 

open to collaboration with others – they 

just need assistance in doing so 

Weaknesses 

• Sector is not a priority for official authorities 

• Sector is not organized or coordinated by any one 

entity 

• Lack of supporting/protecting legislation regarding 

local handicrafts producers 

• Insufficient financing 

• Weak cooperation and networking between producing 

NGOs 

• None of the current organizations can be considered 

as key producers of handicrafts (handicrafts 

production is one of their many programs) 

• Weakness in required skills for management, technical 

personnel and working labor 

• Lack of organizational systems that support handicrafts 

production such as proper quality control and 

documentation 

• None of the organizations working in handicrafts 

production are sustainable organizations 

• Skillful personnel such as designers and project 

managers are mostly not local, they are either 

foreigners or from Amman 

• There is no accumulated knowledge in the producing 

organizations (either they keep producing the same 

products without clear improvement plans, or they 

keep switching from one product to another based on 

type of funds they get) 

• Groups of artisans are segmented, with little or no 

constructive coordination between groups either at 

the managerial level or at the production level 

• Hard to retain workers who find some of the work 

frustrating, tedious and without real tangible benefits, 

since there is little marketing done to get their 

products out to the market 



Opportunities 

• Utilization of inherited skills can 

maximize profit 

• Availability of individual producers who 

are willing to consider their production 

as a main source of income (seeds for 

micro-business and entrepreneurship) 

• Opportunities for vertical and horizontal 

collaboration 

• Opportunities to organize and regroup 

artisans together through cooperatives 

or associations, and provide coordination 

and technical support through a design 

training and exhibition center 

• Most groups who have been involved in handicrafts 

lack business savvy and have no real sense of what the 

market (the tourist industry) wants in a product, nor a 

realistic pricing or profit margin scheme 

• All of the handicrafts projects have been or are 

currently subsidized, as none have functioned 

sustainability as a real financially viable business 

• Projects have not been vision – based, but projectbased, 

which needs to change if the handicrafts 

industry is to thrive. There is a need to think of 

handicraft production as a business, not a charity. 

• Insufficient capacity within local organizations to 

properly and efficiently carry out planning and 

regulatory functions, and insufficient skills among the 

local population 

Threats 

• As Aqaba is vastly changing and becoming more 

attractive to “outsiders,” the local community is 

reacting by being more conservative and thus fewer 

locals accept to work in the city 

• Limited availability of competent technical staff such as 

marketing people, designers and sales people 

• Sector is not currently attractive to the private sector 



VI. Sector Strategy 

a. Introduction 

This strategy provides an overarching framework for guiding necessary action to promote 

the growth of the handicrafts sector as a mechanism to reduce poverty, and create longlasting 

income generation for the Aqaba community. It promotes coordination among 

stakeholders and focuses and encourages innovation, creativity, and horizontal and vertical 

linkages to improve the sector’s performance. The strategy takes a market-oriented 

approach incorporating the following: 

• A vision for the sector’s future; 

• An analysis of identified constraints; 

• The design of target interventions to address priority constraints; 

• The facilitation of product- and production-oriented interventions; 

• The facilitation of market-oriented interventions; 

• The design of institutional capacity interventions; and 

• Suggestions for the next steps needed to be made. 

1. Vision and Overall Objective 

The development of the handicrafts sector strategy is driven by the following strategic 

objective and vision: 

“To build the entrepreneurial capacity of handicrafts producers and associated 

organizations in order to capture the influx of money being spent by the tourism sector, 

including visitors to Aqaba and sector stakeholders.” 

2. Strategy 

The implementation of the strategy will be through two phases over a 4 - year period: 

− Phase one is a preparatory phase, which allows for relationship building, capacity 

building and overall development of the sector in terms of producers, production, 

markets and institutional needs. It is two years in duration. 

− Phase two will focus on strengthening what has been initiated during phase one, 

transferring the different initiatives to identified entities and upgrading systems to a 

more sustainable level. Phase two is a two-year program. 

The strategy has been divided into three sections: product development and production, 

marketing, and institutional development. An overall strategy for each section is described 

in detail in the following sections. This is followed by a detailed action plan and cost analysis 

for the entire strategy. 

b. Strategy for Product Development and Production 

The strategy for product development and production takes a business-oriented approach, 



ensuring that products developed are market-driven, include associated marketing and 

business plan, and take into account factors such as time-to-market requirement, product 

cost, development cost, product reliability, and training and human resource needs. 

The following product development core constraints have been identified, and the 

solutions to these constraints form the basis of the product development strategy. 

Core constraints: 

• Inability of organizing institutions and individual producers to design quality 

products, successfully market them through viable channels, and sell products at a 

profit; 

• Insufficient access to product design services and timely market information for 

new product development; 

• Insufficient capacity of producers to be innovative and creative when producing 

their crafts; 

• Products produced don’t reflect the cultural heritage of Aqaba, nor are the natural 

motifs, symbols and images of the area incorporated into the products; 

• Products are priced without any real sense of cost structure or market 

competition, thus impacting their overall competitiveness; 

• Sector as a whole is fragmented; 

• Lack of capacity to identify and link with buyers in key market segments; 

• Lack of access to regular, affordable, and consistent quality raw materials; and 

• Insufficient access to production and product development financing. 

1. Priority Product Analysis 

Initial product areas were based on a diagnostic of identified skills of the producers 

population, current areas of production, cultural heritage and availability of local resources. 

Based on the criteria set, ten core areas were identified, but not ranked: 

• Felt products 

• Palm leaf products 

• Ceramics 

• Textiles 

• Jewelry 

• Wood products 

• Eco-friendly products (glass, paper, tin, recycled products, etc.) 

• Food 

• Leather 

• Sand bottle art 

Identification of product areas was followed by an analysis of critical factors, a ranking of 

these factors and a criteria-weighting exercise. A detailed explanation of the methodology 

used and graphs showing the ranking and analysis are noted in Annex 4. The areas in order 

of priority are shown in Table 12 and Figure 7. 



Table 12: List of handicraft product areas according to their priority score in a descending 

order (1 is highest priority, 9 is least priority) 

Product Areas 

Felted products 

Eco-friendly products 

Wood products 

Priority # Product/s 

1 Textile 

1 Sand bottles 

2 Food 

3 Palm leaves 

4 Eco-friendly products 

5 Jewelry 

6 Felt products 

7 Ceramics 

8 Wood products 

9 Leather 

Figure 7: Distribution of handicraft product areas according to their cumulative priority 

scores 

Sand bottles 

Leather 

Food 

Jewelery 

Textile 

Cermanics 

Palm leaves 

0 5 10 15 20 25 30 

Scores 

2. Strategy Components 

The product development strategy focuses on developing demand-driven products from 

the prioritized list based on identified target market criteria. The strategy builds upon 

already existing skills and cultural heritage found in Aqaba, coupled with inputs from new 

designers, training in core business areas, horizontal and vertical linkages, ensuring access 

to raw materials and the fostering of entrepreneurship. The strategy uses a businessoriented 

model to identify handcraft items from Aqaba that will bring long-term benefits to 

the individuals and communities in ASEZ. 

It is important to point out that there is a difference between “handcrafted” products 

(artisans who produce the same product in exactly the same way) and “unique” handicrafts 

(artisans who use their own creativity to produce unique items). Each of these two areas 

has different customer bases, clients with different preferences, and different distribution 

channels. When targeting effective sales of products and identifying markets, both 



customers and products need to be synergistic. 15 This strategy aims to create opportunities 

for both types of product development: handicrafts and handcrafted products. The 

following are the main pillars of the product development and production strategy: 

Pillar I : New Product Development and New Designs 

1. Invest in innovation and product development skills 

New products and product lines need to be created that represent the “Aqaba 

Experience.” Product development will take a market-driven approach based on current 

analysis of what tourists and locals want, raw material availability, quality standards, unique 

designs and other competitive and enabling factors, which will raise the standards and 

image of products produced in Aqaba. This type of product development has proven to be 

more successful than producing products and hoping the market will respond. 

Products and product lines will be based on the prioritized product areas, followed by a 

detailed feasibility study, and a business and marketing plan for each product line before a 

determination of which product lines are to be prioritized for development. A feasibility 

study will provide detailed information on the product specifications, costs, resources 

needed, timeframe, markets, etc. – all of which are essential before any investment is made. 

Expanding opportunities via combining skills and materials will call for artisans with wider 

skill applicability and those that can cluster and work well with other artisans. 

Product development must be an on-going initiative. No design or product will last forever. 

Every product has a life cycle, meaning that products and product ideas cannot remain the 

same forever. In order to continually remain competitive in the marketplace, it will be 

essential that products and designs be continually explored in relationship to their targeted 

market. This may mean altering, tweaking, expanding, subtracting from, adding to, and 

changing product lines to include more market-oriented products. The most successful 

businesses have used a mixture of different products at various stages in their product life 

cycle to balance their businesses. This ensures that the more established and profitable 

products will finance newer products. 

2. Hire qualified designers 

Using the already identified product areas, qualified international and local designers should 

be hired to design product lines and products that can be successfully sold in the identified 

target markets. Experts in each product area will be brought on board to bring expertise in 

design, new techniques and industry innovations throughout the life cycle of the program. 

Ceramic artists should be brought on to design ceramic products, papermakers to design 

paper products and so on. Hiring designers based on their area of expertise will bring 

talent not only in new product lines, but could aid in the adoption of technological 

innovations and best practices. International designers can be teamed with local designers 

to mentor and guide the process were local expertise does not exist. This will help capture 

and build the capacity, within Jordan generally and Aqaba specifically, rather than relying on 

continued outside guidance. 

3. Build on Aqaba’s heritage, cultural designs and locally found resources 

There are a number of products that once were produced in Aqaba for local utilitarian 

15 IDB Handicraft Mapping Document, August 17, 2007. 



uses. These include items made out of palm leaves (baskets, brooms), wood and sea corals, 

and finished products such as musical instruments, fishing nets and mud bricks. A complete 

list of products can be found on the following pages in Table 13. While new product areas 

will be included in what is developed in Aqaba, product development will do best to build 

on the cultural history of the area, to use locally found resources, and to incorporate local 

motifs and designs into the products that are produced. This is also a key to gaining trust 

amongst entrepreneurs and encouraging community involvement. 

Two core product areas that have potential in Aqaba are palm leaf products and recycled 

products. Even though these product areas did not rank among the highest in the ranking 

exercise, it is believed that these have potential because of their availability and for the 

palm’s cultural significance. The palm leaf baskets have culturally been used for all 

household uses and could be made in a variety of sizes to hold dates, coffee, spices, soaps, 

oils and lotions, or made larger to hold other items. Palm leaves can also be weaved into 

mats and beach hats. The use of recycled material goes well with Aqaba’s “protected area” 

status and adds to the branding of Aqaba as an eco-friendly tourist destination. Moreover, 

the trend now is with making sustainable, green products that are eco-friendly. (See the 

Core Documents CD for pictures of some recycled product lines in the document entitled 

“recycled ideas”). However, before any investment is made and products are produced, a 

detailed feasibility study must be done. 

The following outlines suggested cultural motifs that may represent Aqaba. This is followed 

by a table that outlines potential product areas and product lines. 

Key Motifs: 

• Camels, donkeys, horses 

• Aqaba carriages 

• Aqaba Castle 

• The sea – fish, shells, boats, fishing, diving, corals, fishermen, sailing, windsurfing and 

other water sports 

• Mountains 

• Subtle color of landscape 

• “Turn Sand into Gold” theme 

• Desert colors 

• Desert flora and fauna 

• Traditional patterning used in embroidery 

• Musical heritage products - such as different drums or the Semsemieh (local harp) 

4. Creation of design incentives 

In order to foster innovation amongst producers and designers, there must be an incentive 

to do so. One way is for products to become successful and popular in the market place, 

but another is to stimulate competition amongst producers and designers through awards 

and recognition. A local design competition can be implemented that rewards the best 

design and product developed with financial or other recognition. This could be done 

annually or biannually. Once established, this competition could expand to include all of 

Jordan. A committee would need to be established that reviews products, sets criteria, 

and designs a campaign to publicize the competition. 

5. Feasibility study 

In Annex 3 there are illustrative examples of ten product lines representing ten different 

businesses to provide a sense of their cost of the operation and potential revenue 



generation. These are meant to be illustrative examples, with various assumptions made, 

and are not meant to take the place of a thorough feasibility study. It is recommended that 

before any product development is done in any area or product line, a detailed feasibility 

study and business and marketing plans should be completed. 

Pillar II: Training and Learning Initiatives 

1. Business training 

Producers will need training in a variety of areas to help them become successful 

entrepreneurs. Training should focus on basic costing and pricing, product development, 

marketing, packaging and presentation, and business management. These types of training 

need to be done over time and repeated when entrepreneurs establish their businesses. 

The training could first be run through the business incubator during years 1-2, followed by 

the design and exhibition center taking the lead in years 3-4. Training should be 

participatory in nature, ensuring that practical learning takes place and not purely 

theoretical learning. There are various training modules available. One example is the 

Crafts Center at CHF International’s Artisan Training Modules, which highlight key learning 

areas, are experiential in nature, and focus on the essential lessons needed by 

entrepreneurs. A training-of-trainer workshop for each module should be conducted for 

designers and excelling handicraft workers in order to transfer the knowledge to new 

entrants in the market. 



Table 13: list of potential handicraft products for both international and local tourists 

Category Potential Product Lines for International Tourists 

Potential Product 

lines for Local 

Tourists 

1. Palm Products Baskets of all sizes Home furnishing line 

Hats (beach) Furniture (local market) 

Woven Mats – for the beach 

Export – Christmas wreaths 

Woven mats 

2. Ceramics 

Use local sand to produce ceramics – new line Utilitarian Line –plates, 

cups, bowls, etc. 

Sculpture – small animals, whistles, figures of people Vases 

Small houses depicting scenes of life in Aqaba Home furnishing line 

Candle holders Candle holders 

Small vases 

Tiles from Aqaba 

Small vases 

3. Textiles (Upgrading 

and New designs) 

4. Jewelry ( Upgrading 

and New designs) 

5. Heritage 

Rugs 

Pillow cases Home furnishing line 

Duvet covers 

Linens 

Napkins 

Tablecloths 

Bags and purses 

Beach bags 

Silver: necklaces, bracelets, earrings, picture frames 

Beaded: necklaces, bracelets, earrings, picture frames Same 

Eco-line: necklaces, bracelets, earrings using green malekite 

from Aqaba or green agate, which is for good health; sea 

glass; date pits and other seeds 

Musical instruments Home furnishing line 

Traditional date baskets 

Brooms 

6. Sand Art Change the bottles, tell the story with a good hang-tag, 

showcase unique drawings, have a designer competition 

New bottles used, produced locally 

New bottles used, 

produced locally or 

from recycled glass 

7. Glass Recycled and other Home accessory line 

8. Wood Boats (small), canoes, other sculptured items Furniture line 

9. Eco-Friendly Recycled products (glass, tin art, and recycled paper Home furnishing line 

a. Green 

products) 

Beach wear – Recycled plastic bags 

b. Glass Recycled glass – cups, dishes, bowls, etc 

c. Soap Recycled soap (reprocessed oil) 

10. Food: locally Date molasses, nuts, spices, jams, honey, Turkish coffee, Same, but in larger sizes 

produced oregano (za'atar), herb oils, lotions for hotels 

and sold to hotels 

11. Felted products 1. Bags, purses, coin purses, wall hangings Same, but in larger sizes 

from goat, sheep 

and sold to hotels 

and camel wool 2. Dolls and animal figures 

12. Leather Wallets Furniture 

13. Fair-Trade Line Could be applied to any product area using a hang-tag or logo 

to explain story of artisan, wages, etc. 



2. Study tours 

Designers and producers should be invited on study tours of other craftspeople. As a start 

they can visit those who are of similar expertise and can be within the region. These tours 

can then be expanded to other countries and even trade shows, such as the New York Gift 

Show or the Los Angeles Craft Show, so that producers/entrepreneurs can see what their 

competition is like, refine technology used and receive training from peers. But as a start, 

they could go on a local tour within Jordan by visiting Madaba, Amman (stores and 

boutiques), Wadi Rum, Petra, Irbid, and other identified areas. 

Pillar III: Horizontal and Vertical Linkages Created 

Linkages, both horizontal and vertical, are practically nonexistent in the handicrafts sector. 

Establishment of effective stakeholder coordination is critical for sector growth and 

sustainability. Cooperation between entrepreneurs, programs, affiliate entities and most 

importantly the private sector is crucial. 

Forming a satellite producers association 

Horizontally, producers need to be linked so that they can aggregate responsibilities, lessen 

burdens by sharing in risk taking, and learn from each other. Strengthening the Jordanian 

Producers Association based in Amman, rather than starting from scratch, is a suggested 

first step in forming a branch in Aqaba. By strengthening the association in Amman, 

producers in Aqaba can work with peers more advanced than they and apply core lessons 

learned to their own production and product development. This serves as a venue for 

linking producers together as entrepreneurs, rather than linkages solely based on 

associated projects. Horizontal cooperation will also reduce transaction costs and mitigate 

risks. Other horizontal linkages could be made between NGOs, retailers, designers and so 

on. 

Vertical linkages are important as well. Creating entrepreneurs that make products and sell 

them directly to clients will help in creating strong businesses that rely less and less on 

subsidized services, donors or NGO involvement. By linking the private sector into the 

overall production and product development process, there is greater hope that the 

products made will sell in the market. Linking designers and producers more effectively 

with buyers will go a long way in addressing the fragmentation of the sector and in building 

on potential market agreements. By identifying strong and diverse local partners the 

project has more potential to create more long-term, effective change. Hotel chains, retail 

stores, and developers need to be part of the stakeholder mix, and both sides (handicrafts 

producers and the private sector) need to be aware of needs of the growing Aqaba tourist 

sector. While tourism is not the only venue for handicrafts, the handicrafts sector is a subsector 

of tourism. 

Access to raw materials 

Currently there is inconsistent availability of quality raw materials, and producers are 

unable to finance material costs. Lack of access to regular, affordable, and consistent quality 

raw materials can be resolved in two ways: 

a) Linking producers with buyers who provide them with the necessary raw materials, 

and 

b) Creating a raw materials bank. 



a. Linking Producers with materials though a buyers' consortium 

Linking producers with buyers who provide them with the necessary raw materials to 

make their products will help to ensure quality, consistency and timely delivery of 

products. This can be done in years 1-2 through a buyers' consortium and incubator, 

followed in years 3-4 with the design training and exhibition center involvement. This 

will also enable producers to move forward with their production, even if they cannot 

afford to buy the raw materials in their initial stages of entrepreneurship. 

b. Establish a raw materials bank 

A raw materials bank will lessen the possibility of unavailability of resources during low 

seasons, will increase affordability and consistency in the supplying of materials, and will 

foster entrepreneurship. Because agricultural raw materials are highly seasonal and 

irregular, a raw materials bank offers the advantages of being able to buy the materials 

in advance and store them for use during the low season. These materials can be 

housed in, and administered through, the design (training) and exhibition center. Raw 

materials banks have been used in many places around the world to help producers 

have consistent-quality raw materials that they themselves can either purchase or take 

out as a loan. 

c. Marketing Strategy 

Sales of handicrafts continue to be confronted by obstacles in meeting the quantity, quality, 

and cost demands of different segments of the market. For producers to be able to take 

advantage of new economic opportunities and capture new market segments they need 

assistance in expanding their production capacity, in upgrading the quality of their products 

to the standards demanded by buyers, and in overcoming the many obstacles they face in 

meeting the requirements of the targeted markets. 

Core Constraints: 

The core constraints in marketing are the following: 

• Inability to produce products that reflect the market needs or the city’s heritage. 

What is produced is a mishmash of products that are replicas of what is made in 

other parts of Jordan. 

• Product design is poor and innovation is lacking. 

• Problems in achieving consistency of quality. 

• The prices are not set properly, which impacts the competitiveness of the Aqaba 

handicrafts prices. 

• Little adherence to delivery schedules and quantities, which was one of the main 

issues the traders highlighted when questioned about buying Aqaba-made 

handicrafts products. 

• No research or understanding of the market needs. 

• Poor marketing efforts are scattered without utilizing specific sales channels. 



• No branding, theme or story that characterizes the products and attracts the 

buyers. 

• No differentiation between the different market segments with specific products 

that respond to their market segment needs. 

The above constraints affect the ability of the sector to sell quantities that sustain 

handicrafts projects in Aqaba. 

1. Overall Marketing Strategy 

The overall marketing strategy focuses on the steps needed to enhance the marketing 

efforts of the sector to capture a larger market share, and to seize the opportunities 

associated with the expanding tourism and corporate investments being made. The 

marketing strategy focuses on identification of the most appropriate market niches, 

ensuring proper market access, branding, and marketing of the products efficiently. 

The strategy will enable collective marketing of the artisans’ products through the 

establishment of a marketing consortium and will incorporate the use of the fair trade 

approach, which has proved to be successful in marketing handicrafts. 

"Fair Trade is a trading partnership, based on dialogue, transparency and respect that 

seeks greater equity in international trade. It contributes to sustainable development by 

offering better trading conditions to, and securing the rights of, marginalized producers 

and workers - especially in the South. Fair Trade organizations (backed by consumers) 

are engaged actively in supporting producers, awareness raising and in campaigning for 

changes in the rules and practice of conventional international trade". For details see 

the Core Documents CD. 

Utilizing the above fair trade approach through a consortium entails strong branding and 

marketing efforts to tell the stories of the people who are making these products, as well 

as involving corporate clients through their corporate social responsibility activities. Based 

on the influx of tourists revealed by the survey, and the average budgets for foreigners and 

Jordanian tourists, it is expected that the market for the handicrafts products in Aqaba may 

reach almost US$7 million per year in the coming five years if the growth pattern of 

tourists continue. 

The following main pillars make up the marketing strategy: 

Pillar I: Increase Market Access 

Increasing market access of handicrafts products will be achieved through the following 

main activities: 

1. Developing products based on customer preferences 

The products that are made must be developed based on target market information 

and detailed customer preferences. This can be achieved by: 

• Understanding the needs of the target market; 



• Translating the needs into meaningful, beautifully- and well-designed products that 

fulfill them; and 

• Delivering quality products to the consumer in a timely manner. 

2. Formation of a Handicrafts Marketing Consortium 

The establishment of a marketing consortium composed of producers in the sector 

would help in the collective marketing and selling of the products. This might be 

accomplished through sourcing of sales orders that could be met through group 

cooperation, the distribution of benefits to all producers, and the reduction of selling 

and marketing costs. 

The consortium would need to emphasize the fair trade approach. Products would be 

linked to the communities and producers via hangtags that tell a bit about the product, 

the production process, or a related unique story. The use of hangtags has proven to 

add value to handicrafts products and give tourists a feeling that they have a unique 

product with a unique story. 

3. Tapping all available market segments (tourists, retail souvenir shops, 

corporate clients, etc.) 

The marketing strategy encourages producers to target certain market segments. All of 

the products developed need to be demand-driven, based on the specificities of the 

individual markets: 

• The tourist market targeting foreigners and locals: Foreign tourists are interested in 

aesthetically pleasing, cultural products, as well as products that represent Aqaba. 

Jordanians will look for jewelry and home decorations, as well as products that 

represent Aqaba. Continuous research and analysis should be utilized to 

understand the demands of each market segment as they evolve over time. 

• Retail souvenir shops: These shops represent significant sales channel potential. 

Selling to this segment requires specific agreements with retail shops for the proper 

display of products and the adequate marketing of the products as "Made in Aqaba." 

• Corporate clients: It is anticipated that this segment will represent a substantial 

share of the market in the near future, as corporate clients vie to foster their 

corporate social responsibility image. 

4. Direct selling through the establishment of a central showroom or 

market place 

Showrooms are needed to showcase the beauty, value and aesthetics of each unique 

piece under one roof for consumer selection. Setting up a conveniently located 

showroom with the right assortment of products will help market the Aqaba 

handicrafts products and make them more accessible. This should be housed near the 

center of town in an accessible area that is frequented by tourists. Efforts should begin 

now to explore the location of such facility in the area to be developed by Al Mabaar, 

so as to capture a portion of the cruise-line tourist trade. Also, new mega-projects 

should allocate areas to showcase some of the local handicrafts. 



5. Establish contacts with tour guides and bus drivers that will help in 

bringing tourists to the handicrafts showrooms 

Tour guides and bus drivers play an important role in marketing handicraft products. 

Contacts with tour guides and bus drivers should be established to ensure that 

producers are visited, core shopping areas are included in tours, and that buying 

handmade products from Aqaba is an essential part of every tourist’s experience. Tour 

guides and bus drivers might develop specialty tours to Aqaba handicrafts showrooms 

as part of a local cultural experience time, which can capture a good portion of the 

tourist market. 

6. Tapping the other markets in Jordan 

Aqaba handicrafts products should not depend only on the Aqaba market. Other 

regions of Jordan represent an opportunity where Aqaba-produced handicraft products 

can be sold. Expansion of marketing to other areas should be initiated when the sector 

is sufficiently producing enough quantities and the quality is reaching acceptable levels; 

this is expected to be achieved in 3-5 years from the start of aggressive development of 

the sector. 

7. Price products correctly 

Pricing is fundamental to the success of any marketing or sales effort. The pricing of the 

handicrafts products should be thought through carefully, responding to market 

requirements while not overlooking the uniqueness of each piece. Pricing should reflect 

the cost of the product as well as a realistic profit margin that will guarantee the 

sustainability of the project, while maintaining its competitiveness in the marketplace. 

This requires researching the target market, understanding the market competition, 

and knowing the true costs of production. 

8. Research and continual update of market needs 

Understanding continually evolving market needs is a key to producing sellable 

products, and these needs must be reflected in the products made. Research on 

designs, quality, prices, packaging and other information should be collected, analyzed 

and updated continually. 

9. Training on selling and marketing techniques 

Equipping Aqaba handicrafts producers with the right skills for selling and marketing 

their products is important for the sector’s sustainability. This will be done through 

training in marketing and selling techniques. 

Pillar II: Branding and Promotion 

1. Branding 

The creation of a common brand for Aqaba handicrafts is essential for the development 

of the sector. Aqaba handicrafts should be themed under one specific brand that 

reflects the heritage and traditions of the city. A stamp or logo should be designed that 

characterizes all the products made in Aqaba. Souvenir shops that sell products 

handmade in Aqaba should have a sign that emphasizes this and shows that retailers are 

sourcing locally made products. ASEZA must become involved in the licensing of such 

branding and its strict enforcement. 



2. Creation of a story 

Telling of artisans' unique stories is frequently a critical component to marketing their 

craft. Thus a component of the marketing effort should focus on documenting their 

stories, their techniques, and anything that adds to their products’ uniqueness. This can 

be done by adding hangtags to each product giving extra value to the uniqueness of 

each product. Recognition of the people and organizations contributing to the 

enhancement of the artisans’ living standards might be emphasized as well. 

3. Organizing exhibitions and festivals 

The sector stakeholders must join to organize themed exhibitions and festivals that 

represent Aqaba's culture and traditions. Examples of possible festivals include the 

following: 

• Semsemieh (traditional instrument) festival 

• Festival of the date 

• Festival for opening of the fishing season 

• Traditional music festival 

• Palm baskets festival 

• Film festival in cooperation with the new film school, the Red Sea Institute of 

Cinematic Studies 

4. Creation of a website 

Informing the public and potential tourists, both within and outside of Jordan, about 

Aqaba handicrafts is important for promoting the sector. A website that is linked to the 

key tourism sites in Aqaba, as well as those in Jordan, should be developed. Information 

on the site should include products, where to find them, who produces them, as well 

as the unique stories of the artisans and producers. 

5. Design of attractive brochures 

The sector should print brochures that will help in marketing the sector's products. 

These brochures can be used as a way of promoting products to new customers either 

through direct contacts or through the participation in local, regional or international 

exhibitions. 

d. Institutional Development 

This institutional development strategy seeks to respond to the main challenges facing 

capacity building in the sector and suggests solutions to these challenges in the context of: 

1) the organizational framework and regulation of the sector; 2) the producers' capacity to 

produce marketable products; and 3) the availability of an enabling and supporting business 

environment that ensures the emergence of entrepreneurs and SMEs in the sector in 

Aqaba. The overarching goal of this strategy is to strengthen the institutional and 

entrepreneurial capacity of handicrafts producers and stakeholders in Aqaba. 

Core Constraints: The core constraints facing the sector are segmented into three main 

intervention areas: 

1. The sector's regulation and management 

• The sector is not officially represented or managed by any entity in Aqaba 



• ASEZA plays no proactive regulatory role to enhance the handicrafts quality or 

sales 

• NGOs are playing the role of producers instead of supporters 

• Cooperation and coordination between the sector's stakeholders via both 

vertical and horizontal levels is weak 

2. The capacities of producers 

• A lack of vision and planning by producers 

• Unavailability of tangible entrepreneurial initiatives in the sector due to the 

majority of current producers being predominantly home-based and thus 

running informal businesses (not registered and thus not tracked) 

• Technical skills, such as management, design, pricing and marketing, are not 

available 

• Management of the production is very basic, and there in an inability to cope 

with high or prompt demands 

• Handicrafts production by NGOs is donor-driven and based on the availability 

of funds 

• NGOs producing handicrafts base their production on short term employment 

• Producers depend on an unstable labor force with high turnover rates, and 

inconsistent working hours 

• Weak skills of the local workforce in handicrafts production 

• Lack of accumulated knowledge and skills in the sector 

3. The business-enabling environment 

• Lack of a supporting legislative or policy environment 

o No policies or regulations that protect local products from market 

competition and imported handicrafts 

o No quality control or certification process of handicrafts products 

o Lack of incentives that encourage producers to grow their businesses 

from informal home-based operations into formal SME businesses 

• Weak awareness of and access to funding from financial institutions 

• Lack of information, statistics, and databases related to the sector 

• Unavailability of business incubation services to handicrafts business startups 



The following main pillars makeup the institutional development strategy: 

PILLAR 1: Business-Enabling Environment 

Ensuring the availability of a supportive business environment for the handicrafts sector in 

Aqaba is essential. This includes the legislative environment, the availability of financing, 

business support and incentives for entrepreneurship and the aggressive enforcement of 

regulations and standards. 

1. Amend or issue legislation that support local handicrafts in Aqaba 

Aqaba is a Special Economic Zone where imports are not taxed. This affects locally- 

produced handcrafts negatively, as they cannot be as competitive due to higher labor and 

production costs than off-shore producer’s experience. Laws and regulations governing 

handicrafts sold in Aqaba should be revised, and new laws that protect local and traditional 

handicraft products need to be issued. 

Handicrafts businesses are usually small, informal, and home-based, yet to be a formal 

business, they must adhere to the process and requirements of larger businesses. The 

establishment of locally-owned handicrafts businesses needs to be eased and encouraged 

through proper regulations, such as reducing income taxes, subsidizing registration fees and 

required capital, and rationalizing the certification process. 

2. Establish a quality control system and certification system for Aqaba 

handicrafts 

A quality control system should be initiated for handicrafts to ensure the creation of 

competitive local handicrafts in Aqaba and to encourage producers to produce quality 

products. Local handicrafts should be certified to ensure preservation of traditional 

products and heritage and to encourage marketable, branded production by producers. 

This should be administered by an appropriate governing body in coordination with 

ASEZA, the regulatory body in the ASEZ. 

3. Foster access to available financing 

Access to financing is currently difficult. While there are a number of micro-credit 

institutions housed in Amman with branches in Aqaba, few small producers know how to 

access them. ASEZA, through its Local Community Development Directorate, as well as 

the ACED Program Incubator can assist in promoting these financial institutions within the 

community, NGOs who deal with home-based producers, the producers' association, the 

incubator and the handicrafts design training and exhibition center. 

4. Build databases and studies related to the sector 

Sound planning requires easy access to information about the handicraft sector. A database 

with information about producers, their locations, sales, and customers would be critical 

for a potential entrepreneur and the government. 

5. Link handicraft entrepreneurs to the newly-formed business incubator 

A handicraft business incubator will provide technical assistance to those who are willing to 

transform their business from the informal stage into the formal stage. These services 

include: 1) venue; 2) office services; 3) access to business services such as legal, accounting, 

personnel and computer technical support; 4) training; 5) product design and development 

assistance; and 6) business coaching and consulting. At the time of the study, the ACED 



Program, in cooperation with Noor Al Hussein Foundation – Aqaba Women's Center, was 

setting up a micro-business incubator targeting this sector. 

PILLAR II: Producer’s Capacities 

1. Conduct a comprehensive capacity building program for NGOs supporting 

handicrafts producers 

NGOs in Aqaba that are supporting handicrafts producers lack essential skills in planning, 

management, pricing and marketing. By building the capacity of these NGOs in these and 

other key areas, they will become effective supporters to informal businesses and homebased 

producers, which will foster sector business success. 

2. Initiate a capacity building program in alliance with the business incubator 

and the satellite Jordan Handicrafts Producers Association 

Producers of handicrafts need to be competent in order to be successful. Informal 

producers, who are willing to start a business in this sector, need to know how to do it 

properly. These producers can be supported by providing them with required knowledge 

and skills in this area. This includes training in pricing and costing, marketing, basic 

accounting, business management, basic research and the conducting of feasibility studies. 

PILLAR III: Handicrafts Sector Regulation and Management 

This pillar addresses the representation and the main stakeholders of the sector in Aqaba. 

There is no governing body that currently represents the handicrafts sector in either 

Aqaba or Jordan. Though currently made-up of marginalized and fragmented entities, this 

sector needs a strong entity to support and direct the collective movement towards 

progress, new markets, and attracting new stakeholders, while supporting its members and 

fostering horizontal and vertical linkages. 

1. Create and effectively run a Handicraft Development Taskforce 

The need for official oversight of the sector in Aqaba is vital for its progress, and ASEZA 

should encourage the creation of a Handicraft Development Taskforce. The taskforce 

could coordinate advocacy initiatives providing the required oversight and regulation of the 

sector, with a mandate to support and represent the sector at the first stage of the 

strategy implementation. Following the initial phase, the taskforce will then foster the 

transfer of core responsibilities to the design training and exhibition center. The main 

responsibilities of the taskforce would be the following: 

- Coordinate advocacy initiatives would result in issuing policies and regulations related 

to the sector which aim at easing the process of investing in the sector by 

entrepreneurs, and which increase the competitive advantage of handicrafts; 

- Represent the sector in national, regional and international events; 

- Supervise the setting up of a quality assurance and control systems for local 

handicrafts; 

- Support the marketing of local handicrafts; 

- Establish the training (design) and exhibition handicrafts center in Aqaba; and 



- Facilitate the establishment of a producers association for Aqaba city linked to the 

producers association in Amman. 

The Handicraft Development Taskforce should initially be a joint initiative between ASEZA 

and the private sector, with the role of ASEZA limited to coordination and promotion. The 

Taskforce can consist of three representatives of the private sector, three representatives 

of ASEZA, the Ministry of Tourism and ADC, one representative of the incubator, two 

representatives of NGOs, one representative of ACED Program and one representative 

from a Handicraft Association from Amman (as possible). 

2. Establish and effectively run the Handicraft Design, Training and Exhibition 

Center 

The Handicraft Development Taskforce should encourage the development of the 

Handicraft Design, Training and Exhibition Center which will be responsible for providing 

needed training and building local expertise in the areas of design, production, pricing and 

marketing of handicraft products. The Handicraft Design, Training and Exhibition Center 

could also provide a permanent exhibition facility for local handicrafts, which would be 

promoted as a tourist attraction through agreements with tour guides, tour operators and 

hotels. This may be targeted by the new investments in Aqaba as a prime idea for 

development. A space within the Center should also be established which allows tourists 

to see artisans working on their crafts. At first this should be a space rented free-of-charge 

to the producers, but as producers become self-sustaining entrepreneurs, the space should 

be rented for a nominal fee. A lottery system could be used to allow different producers to 

work and display their items for 3-month time periods. 

3. Establish a satellite producers association in Aqaba 

The sector currently lacks the existence of business-oriented producers. Producers will 

need professional representation to assist them in aggregating risks and opportunities, as 

well as to provide a chance to learn from their peers. The establishment of the Handicrafts 

Producers Association of Aqaba will represent producers’ interests before official bodies, 

increase horizontal linkages and cooperation amongst producers, support marketing of 

local products and motivate producers to provide high quality products. 



VII. Action Plan 

The Action Plan outlined following describes the actions and activities planned to be 

implemented in order to undertake the described strategy and achieve its objectives and its 

vision in the long run. 

Segments and Components: 

The Action Plan is divided into three main sections based on its components; 1) action plan 

for product development, 2) marketing action plan, and 3) capacity building action plan. 

Each section illustrates activities required, responsible entities for the activities, resources 

needed, targets aimed to be achieved, time frame per activity and cost estimates. 

Phases: 

The Action Plan is proposed to cover a five-year duration (2008 – 2012), where this period 

is divided into two main phases: 

Costing: 

• Phase one entails all the activities planned to take place during 2008 and 2009, 

while phase two entails all the actions planned to be implemented in 2009, 

2010, 2011 and 2012. The segmentation of the Action Plan into two phases 

reflects the characteristics of each phase. Phase one is mainly the phase of 

setting the foundation of the sector in Aqaba in the sense of establishing 

infrastructure required, organizational setups, resources, studies and databases 

needed for the success of the sector. 

• Phase two is the growth phase where the foundation and resources settled will 

be utilized to transfer this sector from the initiation stage into an income 

generating sector. It is envisioned that by the end of the five-year Action Plan, 

the sector will be a stand-alone sector, capable of supporting itself. 

To provide tangible numerical indicators for the use by the implementers of the Action 

Plan and for the sector's decision-makers, the cost of implementing each component of the 

Action Plan was estimated by phases and for the total, where the implementation cost for 

each component as a whole was calculated and the required financial investment in each 

phase estimated separately. 

Production Projects Costing: 

Approximate costs for individual product lines are presented in Annex 3 to assist the 

reader; however, all of the products do not need to be developed together. After feasibility 

studies are completed for chosen areas, the number of product lines and areas can be 

determined based on available budgets. These costs were estimated on the higher side, 

and can change depending on experienced training and product needs. 

The detailed Action Plan is presented in the following tabulation to provide a holistic and 

detailed view on what actions are required in each component, who will implement, when 

to implement, how to measure attainment and with what cost. 



7.1 PRODUCT DEVELOPMENT ACTION PLAN FOR THE HANDICRAFT SECTOR IN AQABA (2008 – 2012) 

Pillar 1: Product Development and Design 

7.1.1.1 

Action 7.1.1. Hire qualified designers and create new designs and products 

Activities 

Identify potential experts in 

product development and design - 

international and local expertise 

Responsible 

Entity 

Incubator 

7.1.1.2 a. Textile - rugs Incubator 

7.1.1.3 b Textile - bags Incubator 

7.1.1.4 c. Sand bottle Incubator 

Resources where 

applicable 

Create a database from 

which to draw on 

Hire a local designer 

through the incubator 

Hire an international 

designer to mentor 

local designer 

Upgrade and diversify 

designs and bottles 

used 

7.1.1.5 d. Palm Leaves Incubator International 

7.1.1.6 e. Eco-friendly - paper products Incubator International 

Targets 

5-10 product 

lines 

produced 

5-10 product 


produced 

5-10 product 


produced 

5-10 product 


produced 

5-10 product 


produced 

* Approximate amounts maybe revealed based on discussions with the ACED Program 

Budget Budget Budget Time Frame 

Total (JD) Phase 1 Phase 2 

(JD) (JD) 2008 2009 2010 2011 2012 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 



Activities 

Responsible 

Entity 

7.1.1.7 f. Eco-friendly - glassware Incubator 

7.1.1.8 g. Jewelry Incubator Local 

Resources where 

applicable 

Hire an international 

designer to mentor local 

designer 

7.1.1.9 h. Ceramic Incubator International 

7.1.1.10 

Conduct feasibility study for 30 

companies corresponding to 

identified product lines 

7.1.1.11 Upgrade existing product lines 

(assess current product lines, 

produce new product lines and 

serve as mentor to design staff ) 

7.1.1.12 Develop new product areas or 

lines produced 

Handicraft 

Development 

Task Force, 

Incubator, 

IRADA 

Incubator, 

Design and 

Handicraft 

Design, 

Training and 

Exhibition 

Center 

Incubator, 

Handicraft 

Design, 


Exhibition 

Center 

Targets 

5-10 product 


5-10 product 


5-10 product 


Accomplish 30 

studies within 

150 working 

days, 5 days 

per company 

International consultant 3-4 upgrades 

per area 

Local designers 5-10 product 


Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

Total cost for action 7.1.1 is * * * 


Budget 

Time Frame 

Phase 2 

(JD) 2008 2009 2010 2011 2012 



7.1.2.1 

7.1.2.2 

7.1.2.3 

Action 7.1.2. Develop incentives for product designs and development 

Activities Responsible Entity 

Conduct design competition for 

producers 

Create committee for reviewing 

products made up of private 

sector, designers, government 

and other key entities 

Create design competition rules 

and mandates 

7.1.2.4 Promote design competition 

7.1.2.5 

7.1.2.6 

Collect products, review 

products, award winners 

Hold a promotional event for 

winners, runners up. 

Total cost for action 7.1.2 is 

Handicraft Development 

Task Force 


Taskforce and Handicraft 

Design, Training and 

Exhibition Center 

















Resources 

where 

applicable 

JD 10,000 for 

each of 3 

product areas 

Targets 

Monetary 

awards 

delivered to 

winner 

annually 

Governing 

body created 

Rules and 

regulations 

created 

1500 

brochures 

and 

pamphlets 

distributed 

100% of 

producers in 

Aqaba submit 

products for 

review 

3 winners 

awarded - 1st 

and 2nd 

runners-up 

and winner 


Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

Time Frame 

2008 2009 2010 2011 2012 



Pillar 2: Training and Learning Initiatives 

Action 7.1.3 Conduct a comprehensive business training program for producers 

Resources Targets Budget Budget Budget Time Frame 

Activities Responsible Entity where 

Phase 1 Phase 2 

applicable 

Total (JD) (JD) (JD) 2008 2009 2010 2011 2012 

7.1.3 1 

Training on product development 

(Trainings should be 15-20 people 

max. # of trainings will depend on 

# of entrepreneurs identified) 

Incubator phase 1; 

Handicraft Design, 

Training and Exhibition 

Center Phase 2 

Need qualified 

trainers and 

materials 

3 per year 

* * * 

7.1.3.2 

Training on Production 

Techniques and Productivity 





2-3 day trainings 1 per year 

* * * 

7.1.3.3 Training in Costing and Pricing 






* * * 

7.1.3.4 Training in management 






* * * 

7.1.3.5 Training in marketing 






* * * 

7.1.3.6 Training in Business Development 






* * * 

Incubator 

Handicraft 

phase 1; 

Design, 

* * * 

7.1.3.7 Training in Design and Innovation Training and Exhibition 



7.1.3.8 

Training in Computer Aided 

Design 






* * * 




7.1.4.1 

7.1.4.2 

Action 7.1.4 Conduct Exchange Programs and Study Tours Focusing on Production Areas 


Identify and coordinate 

appropriate study tours and 

exchanges for each product area 

selected 

Identify appropriate study tours 

and exchange programs locally and 

regionally for most successful 

product areas 


ACED Program 



Center 

Resources 

where 

applicable 

JD 20,000 per 

study tour 

JD 20,000 per 

study tour 

Targets 

3 exchange 

and study 

tours 

implemented 

by end of 

2009 one per 

each product 

area 

3 exchange 

and study 

tours 

implemented 

by end of 

2012 one per 

each product 

area 


Budget Budget Budget Time Frame 

Total (JD) 

Phase 1 

(JD) 

* * * 

* * * 

* * * 

Phase 2 

(JD) 2008 2009 2010 2011 2012 



7.1.5.1 

7.1.5.2 

7.1.5.3 

Pillar 3: Vertical and Horizontal Linkages Created 

Action 7.1.5 Strengthen Producers and Establish systemized relationships between producers and buyers 

Activities 

Establish producer association in 

Aqaba 

Establish buyers relationships with 

producers through the buyers 

consortium 

Establish a raw material bank 

within the Handicraft Design, 

Training and Exhibition Center 


Responsible Entity 

Private Sector, 





Sign MOUs with the 

buyers consortium and 

other individual 

businesses to provide 

raw materials to 

producers 



Center 

Resources 

where 

applicable 

incubator 

Total Cost for Implementing Product Development strategic plan 

(2008 – 2012) 

Cost for implementing phase 1 (2008 - 2009) = 

Cost for implementing Phase 2 (2010 - 2012) = 

Targets 

30 MOUs 

signed 

Producers 

using the raw 

materials 

bank to 

source 

materials 


* 

* 

* 

Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD)s 

* * * 

* * * 

* * * 

* * * 

Time Frame 

2008 2009 2010 2011 2012 

0 



7.2.1.1 

7.2.1.2 

7.2.1.3 

7.2.1.4 

7.2.1.5 

7.2.1.6 

7.2.1.7 

7.2.1.8 

7.2.1.9 

7.2.1.10 

7.2 MARKETING ACTION PLAN FOR THE HANDICRAFT SECTOR IN AQABA (2008 – 2012) 

Pillar 1: Market Access 

Action 7.2.1 Establishing market accessibility basis for handicraft products 

Activities 


Resources 

where 

applicable 

Targets Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 2008 

Time Frame 

2009 2010 2011 2012 

Establish an exhibition area for 

handicrafts within the incubator 

Incubator * * * 

Contact tour guides and operators for 

directing tourists to the exhibition area 

Incubator/ Producers * * * 

Establish contacts with corporate clients 

within ASEZ for Aqaba produced 

corporate handicrafts gifts and 

giveaways 

Producers 

* * * 

Identify and establish contacts with new 

buyers (retail and wholesales) 

Producers (Incubator 

may assist) 

* * * 

Establish a market research and 

information data base 

Incubator or Handicraft 

Development Taskforce 

or Association 

* * * 

Participation in exhibitions and trade 

fairs inside Jordan (at least 2 each year) 

Producers (Incubator 

may assist) 

* * * 

Establish the Marketing and Sales 

Consortium and hire one manager and 

two staff 

Producers or Handicraft 


* * * 

Rent an exhibition area within the 

Design, Training and Exhibition Center 

Marketing Consortium * * * 

Identify new buyers and establish 

contacts with them 

Marketing Consortium * * * 

Participation in exhibitions and trade 

fairs inside and outside Jordan (two 

Marketing Consortium 

or Handicraft 

* * * 

each year) 






7.2.2.1 

7.2.2.2 

7.2.2.3 

7.2.2.4 

7.2.2.5 

7.2.2.6 

Pillar 2: Branding and Promotion 

Action 7.2.2. Developing a unique Brand for Aqaba 

Activities 

Design a unified and attractive 

packaging for Aqaba handicrafts 

Design a logo and signature for 

Aqaba handicrafts that give 

uniqueness to its products 

Design and print brochures for the 

Handicraft Sector in Aqaba 

Design and operate a web site for 

the Handicraft Sector and link it 

with other tourism sites in Jordan 

Establish a certificate/stamp for 

shops selling Aqaba handicrafts 

Update the web site and Brochures 

of the sector 



Taskforce or Producers 


Taskforce or Producers 

Producers 


Taskforce / Incubator / 

Producers 

Marketing Consortium/ 


Task Force 

Marketing Consortium 

Resources 

where 

applicable 

Targets 

Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 



Time Frame 

2008 2009 2010 2011 2012 



7.2.3.1 

Pillar 3: Capacity Building 

Action 7.2.3 Hire qualified staff for sales and train the producers 

Activities 

Hire a marketing and sales person 

within the incubator 


Incubator 

7.2.3.2 Provide a marketing and sales training Incubator 

7.2.3.3 

Provide training courses in sales and 

marketing 

Handicraft Design, Training 

and Exhibition Center 

Resources 

where 

applicable 

Targets 

4 courses are 

provided in 

each year 

4 courses are 

provided in 

each year 

Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

Cost for action 7.2.3 is * * * 

Total cost for implementing the Marketing strategic plan (2008 - 2012) = 




* 

* 

* 

Time Frame 

2008 2009 2010 2011 2012 



7.3.1.1 

7.3.1.4 

INSTITUIONAL DEVELOPMENT ACTION PLAN FOR THE HANDICRAFT SECTOR IN AQABA (2008 – 2012) 

Pillar 1 : Business Enabling Environment 

Action 7.3.1 Create and effectively run a Handicraft Development Taskforce within ASEZ, whose mandate is to organize and coordinate the support of the sector 

Activities Responsible Entity Resources 

where applicable 

Develop the Handicraft Development 

Taskforce 

Develop mission, vision and business 

plans on running the taskforce 

7.3.1.5 Implement the business plan 

7.3.1.7 

Monitor and evaluate the 

achievements of the taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

One local 

consultant 

One local 

consultant 

Targets 

Dept. establishment 

regulations are 

ready by end of 

Dec2008 

Budget 

Total 

(JD) 

Budget 

Phase 1 

(JD) 

* * * 

* * * 

* * * 

* * * 



Budget 

Phase 2 

Time Frame 

(JD) 2008 2009 2010 2011 2012 



7.3.2.1 

7.3.2.2 

7.3.2.3 

7.3.2.4 

7.3.2.5 

7.3.2.7 

Action 7.3.2. Establish and effectively run a handicraft design and exhibition center 


Conduct 2 study tours to other 

cities who have design centers to 

learn from their experience 

Develop the establishment plan of 

the Center (structure, roles and 

responsibilities, management and 

reporting) 

Acquire the location and equip the 

Center 

Hire the manager of the Center 

and key staff 

Develop the strategy and business 

plan for the Center 

Conduct exhibitions inside the 

Center for handicraft products 


Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicrafts Design, 


Center 

Handicrafts Design, 


Center 

Resources 

where 

applicable 

International 

consultant 

Consultant with 

expertise in 

handicraft 

training centers 

Targets 

Min. 2 

exhibitions 

with an 

audience of 

100 

international 

tourists 


Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

Time Frame 

2008 2009 2010 2011 2012 



7.3.3.1 

7.3.3.2 

7.3.3.3 

Action 7.3.3 Establish and operate a handicraft’s producers association 


Conduct preparatory meetings with 

handicraft producers in Aqaba 

Conduct a study tour for the core 

people to visit other crafts 

producers associations in other 

countries (Tunisia is suggested as 

one destination) 

Prepare the bylaws and statute of 

the Association 


Taskforce 


Taskforce 


Taskforce 

Resources 

where 

applicable 

Consultant 

Targets 

Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

7.3.3.4 Register the Association Producers * * * 

7.3.3.5 

7.3.3.6 

7.3.3.7 

7.3.3.8 

Formulate the general assembly and 

elect the board 

Hire the manager and the 

membership officer 

Prepare the Association’s strategy, 

internal rules and regulations, 

membership system and services, 

and business plan 

Implement the strategy and 

business plan of the Association 

Association established 

with support from 


Taskforce 

* * * 

Association board * * * 

Association manager consultant 

Association manager 

* * * 

* * * 

7.3.3.9 Conduct annual member’s activity Producers association * * * 



* * * 

Time Frame 

2008 2009 2010 2011 2012 



7.3.4.1 

7.3.4.2 

Action 7.3.4. Conduct a "how to support handicraft producers" program with NGOs 

Activities 

Conduct a study tour for NGOs 

to another country where NGOs 

are playing an efficient supporting 

role to handicraft producers 

Conduct training for NGOs on 

role of NGOs in supporting 




Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Resources 

where 

applicable 

International 

consultant 

Targets 

4 workshops 

conducted on 

role of NGOs 

in supporting 

producers 


Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 

* * * 

* * * 

* * * 

Time Frame 

2008 2009 2010 2011 2012 



Pillar 2: Producer Capacities 

Action 7.3.5 Conduct a comprehensive capacity building program for NGOs who support handicraft producers. Program to include; strategic planning, management 

skills, marketing for micro-businesses and accounting. 


Resources 

where 

applicable 


Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 2008 2009 

Time Frame 

2010 2011 2012 

7.3.5.1 

Selection of NGOs who will be 

subjected to the training based on 

criteria, main factor is the level of 

potential support to MSMEs 

Handicraft 

Development 

Taskforce 

* * * 

7.3.5.2 

Design the training program for 

NGOs 

Handicraft 

Development 

Taskforce 

Trainers & 

consultants for 

the design 

program 

Program 

material and 

content is 

ready by end 

of 2009 

* * * 

7.3.5.3 

Train selected NGOs on strategic 

planning and business planning 

ACED Program - 

Component 3 is 

working on NGO 

capacity building 

Trainers 

4 workshops 

conducted by 

end of 2010 

* * * 

7.3.5.4 

Train selected NGOs on 

management skills (HR and 

financial) 

ACED Program - 

Component 3 is 

working on NGO 

capacity building 

Trainers 

8 workshops 

conducted by 

end of 2010 

* * * 

7.3.5.5 

Provide technical support to 

NGOs to develop their support 

plans for handicrafts producers 

and to implement their programs 

Handicraft 

Development 

Taskforce 

Int. and local 

consultants 

* * * 

Provide NGOs who have crafts 

production as part of their income 

* * * 

7.3.5.6 

generating activities with 

management systems required to 

succeed (documentation of sales 

and residues, pricing, accounting 

and budgeting) 

Handicraft 

Development 

Taskforce 

Relevant 

consultants 



* * * 



Action 7.3.6 Conduct a capacity building program for handicraft producers either formal or informal, program to include; how to start a business, business planning, 

production management, budgeting, pricing, marketing, accounting, and conducting feasibility studies for new products. 

Activities 

Responsible Entity Resources 


Targets 

Budget 

Total 

(JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 2008 

Time Frame 

2009 2010 2011 2012 

Incubator or later the 

A list 

microof 

* * * 

7.3.6.1 

Scan home-based handicraft 

businesses available in Aqaba 



businesses is 

produced 

Center 

and updated 

annually 

7.3.6.2 

Select home-based businesses to 

be subjected to the training 

package based on their potential 

to turn into profitable formal 





Center 

30 homebased 

selected 

* * * 

Implement the training package Incubator or later the 

30 homebased 

* * * 

7.3.6.3 

with home-based micro businesses 

those of potential growth into a 




trained on 

formal business 

Center 

the 

package 

full 

7.3.6.4 

Provide technical support to crafts 

producers 




5 microsmall 


* * * 

Center 

assisted 





7.3.7.1 

7.3.7.2 

7.3.7.3 

7.3.7.4 

Pillar III : Sector’s Regulatory and Management 

Action 7.3.7 Amend or issue legislations that support local handicraft production in Aqaba, easing the process and requirements for the establishment of new businesses 

in crafts sector and protect local production from competition. 

Activities 


Resources 

where 

applicable 


Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 2008 

Time Frame 

2009 2010 2011 2012 

Formulate a committee to review 

Regulations and 

Committee 

representing 

* * * 

laws, regulations and policies 

affecting handicraft producers and 

the establishment of MSMEs in this 

Handicraft 


policy analyst 

with experience 

in handicraft 

main 

regulatory 

stakeholders is 

sector 

sector 

formed by end 

of August 

Issue an assessment report on 

impact of current laws, regulations 

and policies on local handicraft 

production and market including 

policy recommendations 

Review committee 

Report 

launched by 

end of Nov. 

08 

* * * 

A law/policy 

to support 

local 

* * * 

Issue supporting laws or policies to 

local handicraft production 

Handicraft 


handicrafts 

through easy 

registration 

processes for 

handicraft 


Promote policy changes among 

handicraft producers and 

stakeholders through workshops 

Handicraft 


3 workshops 

conducted 

with 

attendance of 

150 

* * * 

Total cost for action 7.3.7 


* * * 



7.3.8.1 

7.3.8.2 

7.3.8.3 

7.3.8.4 

Action 7.3.8 Establish a quality control system and certification system to handicrafts produced in Aqaba 

Activities 

Formulate a committee to establish a 

quality assurance system and a 

certification process for handicrafts 

production in Aqaba 

Endorse the quality assurance system 

and the certification process for 

handicrafts 

Train quality assurance personnel at 

the handicraft dept on how to use the 

system and how to monitor and 

report on quality 

Train the design center on how to 

fulfill the quality requirements, so that 

they can implement quality 

requirements in their training and 

transfer the knowledge to trained 

handicrafts producers 

7.3.8.5 Launch the certification process 

7.3.8.6 Implement the certification process 


Responsible 

Entity 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 

Handicraft 

Development 

Taskforce 










Resources 


International 

consultant and a 

local consultant with 

experience in quality 

assurance systems 

Trainer on quality 

assurance 

Trainer on 

implementation of 

quality requirements 

Technical support 

Targets 

Committee 

formed by end of 

Jan.09 

Quality assurance 

system starts 

operating by end 

of June 09 

Training on 

quality assurance 

system by end of 

2009, training 

repeated before 

end of 2011 

All training 

completed by end 

of October 09 

5 at least register 

for the 

certification 

before end of 

2009 

3 products at 

least are certified 

by end of 2010 


Budget 

Total 

(JD) 

Budget 

Phase 1 

(JD) 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

* * * 

Budget 

Phase 2 

Time Frame 

(JD) 2008 2009 2010 2011 2012 



7.3.9.1 

7.3.9.2 

7.3.9.3 

7.3.9.4 

Action 7.3.9 Ease the access to financing for micro-enterprise handicraft entrepreneurs in Aqaba 


Build the database of financial 

institutions (F.I.) in Aqaba who can 

provide financing to handicraft 

producers, either home-based or 

formal businesses 

Design and print promotional 

material on all support to 

handicraft producers including 

financial , training marketing and 

government support 

Disseminate the above indicated 

information to producers 

Liaise the process of getting financial 

support by handicraft producers 

form listed financial institutions 

ACED Program 

Incubator or Handicraft 



Taskforce 


Taskforce during 2009 and 


association starting from 

2010 onwards 

Resources 

where 

applicable 

Consultant 

with micro 

and SME 

funding 

expertise 

Targets 

Database 

available 

3000 copies of 

the database 

and basic 

information 

on each 

financial 

institution is 

published by 

end of May 09 

100% of 

handicraft 

producers visit 

handicraft 

dept at Gov. 

or association 

to get the 

information 

50 producers 

received 

funding from 

financial 

institutions on 

the list to 

support their 

handicraft 

production by 

end of 2012 

Budget 

Total (JD) 

Budget 

Phase 1 

(JD) 

* * * 

* * * 

* * * 

* * * 



Budget 

Phase 2 

Time Frame 

(JD) 2008 2009 2010 2011 2012 



Action 7.3.10 Build databases and studies related to the sector (databases of producers, products, marketing outlets, records of sales per product) 

Activities 


Resources 

where 

applicable 


Total (JD) 

Budget 

Phase 1 

(JD) 

Budget 

Phase 2 

(JD) 2008 

Time Frame 

2009 2010 2011 2012 

7.3.10.1 

Build a database of handicraft 

producers on the website in Aqaba 

both informal and formal and update 

the database annually on 



Center (2008 - 2010) and 

the producers' Association 

(2010 onwards) 

Software 

First database 

is available by 

end of 2008 

* * * 

7.3.10.2 

Build a database of local handicraft 

products produced in Aqaba 

showing raw material quantities 

used, and update the list annually 



Center (2009 - 2010) and 

the producers' association 

(2010 onwards) 

Software 

First database 

is available by 

March of 2009 

* * * 

7.3.10.3 

Develop an annual agenda for local 

handicrafts exhibitions and outlets 

opening durations and update it 

annually 

Handicraft 


Center 

Design, 

Exhibition 

Graphic 

designer 

3000 copies of 

the agenda is 

distributed 

annually 

* * * 

Promote the exhibitions and outlets 

agenda with all hotels, tourism Handicraft Design, 

100% of 5 

starts hotels in 

* * * 

7.3.10.4 information centers, tour operators Training and Exhibition 

Aqaba have 

and tour guides association and on Center 

the agenda at 

the internet 

the reception 

First report 

on 2009 sales 

record 

* * * 

Develop annual records for sales of 

launched end 

7.3.10.5 

local handicrafts in Aqaba showing 

quantities, product segment, income 

and tourists nationality, and launch 

the annual report at the handicrafts 

Handicraft 


Center 

Design, 

Exhibition 

Consultant 

software 

+ 

of Jan. 2010. 

Starting from 

2010 onwards, 

each annual 

dept website. 

report is 

launched end 

of Jan. of the 

following year. 



* * * 



Total cost for implementing the Institutional Development strategic plan 

(2008 - 2012) = 



Strategy Component phase 1 cost phase 2 cost total budget 

Product Development * * * 

Marketing * * * 

Institutional Development * * * 

Totals * * * 


* 

* 

* 



VIII. ANNEXES 



ANNEX 1: SCOPE OF WORK 

Conducting a Diagnostic and drafting an Action Plan for the 

Development of the Handicraft Sector in Aqaba 

SW # / TO# SOW- 001-2008 

RFP # 

Potential candidate(s): All consultants 

Position: 

Local / International: International 

Maximum Level of Effort: 

Contract Name: International Senior Expert in Handicraft Production 

Contract Number: 

Period of Performance: April – May 2008 

Maximum Level of Effort: 45 days 

Aqaba Community and Economic Development Program Background 

The ACED Program is a five-year program funded by the United States Agency for 

International Development, benefiting the people and businesses of the Aqaba Special 

Economic Zone (ASEZ). The program is based in Aqaba city, and is composed of activities 

under three major areas: 

• Component 1 will work to strengthen the government institutions and will be 

working directly with Aqaba Special Economic Zone Authority (ASEZA) and Aqaba 

Development Corporation (ADC); 

• Component 2 will strengthen private sector to become more competitive, through 

enhancing the capabilities of Micro, Small and Medium Enterprises (MSMEs), and 

supporting training; and 

• Component 3 will be working closely with the local community to develop its 

capacities and empower NGOs and Community-Based Organizations (CBOs). 

Background 

There are approximately 2,200 enterprises presently registered in the ASEZ (according to 

the records ASEZA records as of November 2007), of which 951 have been or are 

beneficiaries of ASEZA et all benefits. Over 50% of local enterprises are sole 

proprietorships, 80% employ less than 5 people, and 60% occupy less than 55m 2 of space. 

Wholesale and retail trade dominates with 55% of enterprises, followed by transport, 

storage and communications (10%), and hotels and restaurants (9%). Manufacturing 

enterprises comprise over 5% of the total. Overall, the Aqaba enterprise landscape is 



populated by many small, fragmented enterprises with few larger enterprises that employ 

more than 250 people. Looking ahead -- based on ASEZA’s and ADC’s announced and 

planned investments -- the main drivers for growth in Aqaba will continue to be tourism 

and related services (transport, hospitality, food and beverage, facilities maintenance), 

warehousing and logistics, construction and maintenance related trades (electrical, 

mechanical, carpentry, etc. ); IT services; and other general professional services. The 

planned activities of the ACED Program will primarily focus on targeting three main areas 

for MSME expansion: (1) increasing the size of existing enterprises in Aqaba; (2) 

encouraging the establishment of new start-ups in Aqaba to meet the growing market 

demand, and (3) attracting existing firms in Amman to establish branches or new 

operations in Aqaba. 

To take advantage of the importance of the tourism sector in Aqaba and to encourage 

more women to enter the market while promoting startups, it is proposed that the first 

incubator should focus on handicraft related activities. To ensure a correct focus for this 

planned incubator, a study should be conducted. 

Objectives 

The objectives of this scope of work are two fold: 

1- Conduct a diagnostic of the handicraft sector in Aqaba, identifying potentialities and 

opportunities for the development of the sector as well as threats and challenges. 

2- Design an Action Plan for the sector in Aqaba that includes 

1. A proposed Business Plan for the setting up of a handicraft projects' Incubator 

2. A Marketing support to the business plan 

3. A proposed a Human Resources Action Plan 

4. Recommendations to ASEZA, ADC and any others applicable entities upgrading the 

creation of a conducive environment for the development of the sector 

Activities required from the Consultant 

The following six activities, a minimum, are required of the consultants: 

a) Conduct an overview of existing studies of handicraft on a regional and national level; 

b) Conduct interviews with handicraft sector representatives and supporting institutions; 

c) Supervise and coordinate with the local consultant in carrying out a survey among a 

sample of handicraft MSMEs assessing the current position of the sector so as to define 

a gap analysis of the following: 

• The current technical capabilities of existing handicrafts and workers in Aqaba, 

• Raw materials and supporting industries and services in Jordan, and 

• Institutional Framework in Aqaba 

d) Provide the local Marketing Strategy expert with needed advice regarding all 

production aspects for the Design of the overall Incubator Business Plan. 

e) Supervise the activities of the local senior consultant in training and institutional 

strengthening in the design of the training action plan for the sector, and 



f) Formulate recommendations to create a conducive environment for the development 

of the sector, including the potential transition of incubator activities to a legacy 

institution over the initial years of ACED Program oversight and support 

Required Resources 

One International Senior Expert in Handicraft Production, having at a minimum indicated 

qualifications and availability as follows: 

Qualifications: 

• A university degree or equivalent in a relevant field 

• 10 years experience in carrying out technical diagnostics and production 

management in the Handicraft industry 

• Hands-on knowledge of the Handicraft production technology in the region, 

experience in Jordan would be an asset 

• Established professional track record 

• Superior communication skills and the ability to present policy to various private 

and public sector groups 

• Proficiency in English 

Duration: 45 days for each consultant – to be completed by mid May. 

Coordination: 

The consultant will coordinate with 2 local consultants (tentatively identified as Ms. Rana 

AlAkhal and Ms. Ahlam Shabana) and work with ACED Program Component 2 team 

members as may be identified at the time of signing the contract. 



ANNEX 2: List of Interviews 

Preparation of a Diagnostic study and a Strategy for the Handicraft sector 

in Aqaba 

Person 

In Aqaba 

Organization Post Notes 

Mariam Hussein Al Al-Thagher Association Manager Produce accessories using 

Hourany 

beads 

Producers are disabled 

girls from the local 

community 

Doris Ghneim Jordan Society for Socio-Economy She is a designer and 

Sustainable Development Program 

currently is working with 

Coordinator 2 NGOs, one in Aqaba 

Salam Allabadi Jordan Society for Project Manager named Aqaba Costal 

Sustainable Development 

Women’s Association, 

and one in Wadi Rum 

named "Al-Rahma Coop". 

They bring in the 

products from Al – 

Rahma and do the 

finishing in Sayidat Al 

Sahel 

Mona J. Hawa ASEZA Tourism Director They don't have a clear 

mandate on handicrafts. 

Yet, they are willing to 

support local producers 

by purchasing their 

giveaways from them. 

Fatima Al Hinnawi JOHUD – Princes Basma Center Manager They support producers 

local community center in 

by including them in local 

Aqaba 

exhibitions in the city and 

they also produce 

themselves. 

Mohammad Al Thaher Red Crescent Manager They have a vocational 

training facility for women 

in sewing and have 

embroidery and 

traditional crafts. 

Rodica Athamneh Noor Al Hussein Project Manager The center was 

Foundation – Aqaba and handicrafts established in Aqaba in 

Women's Center designer 

1995; they produce 

tailored and sewed 

products 

Hanan Kafaween Jordanian National Forum Aqaba Branch They produce crafts, 

for Women (JNFW) Manager 

mainly baskets, out of jute 

Kunuz Thibyan Women and Child Center Manager Produce baskets using 

Center - JNFW 

palm leaves and other 

home accessories 

Jordanian Al-Hajanah 

Association 

Weavings 

Princess Basma Bazaar 

Variety of projects 

Tayek A. Majali ASEZA City Services 

Manager 

Marwan Saleh Entrepreneur Self-employed Wooden boats 



Karima Dhabet ASEZA Head of the Local 

Community 

Development 

Department 

(LCDD)-ASEZA 

Abdullah Manzallawi Librarian Local historian Gave us a book on 

Al Rahma Women’s 

Cooperative 

Hana Kreisem Aqaba Women 

Association 

In Wadi Rum 

Samiha Al Zalabia Burda Women's 

Cooperative 

Khalil A. Abdallat Wadi Rum Protected 

Area 

Salam Allabadi 

Al Salhyeih Production 

Village 

In Amman 

Inas Abu Shaheyeh USAID – SABEQ 

program 

Raed Al Badri Handicrafts Producers 

Association 

handicrafts in aqaba 

Work in alignment with 

JSSD making leather 

boxes, paper and lamps 

Manager They support home-based 

producers through 

exhibiting their products 

in their venue; products 

range from embroidery, 

sewing, crocheting and 

tailoring. The association 

produces traditional food 

through their kitchen 

CBO President Located in Wadi Rum 

Village where they 

produce several 

handicrafts but are mostly 

specialized in traditional 

clothing made out of 

camel's fur/skin. They 

received grants from the 

SIYAHA program of 

USAID that helped them 

in branding their 

cooperative and 

developing their products 

Manager They are willing to 

cooperate with Aqaba 

handicrafts related NGOs 

to transfer the experience 

of Wadi Rum 

Manager They produce handicrafts 

from leather, cooper and 

jewelry and they sell 

through a shop in the 

Wadi Rum Visitors' 

Center 

Gender integration 

workforce and 

youth specialist 

She held the post of the 

manager of Wadi Rum 

Information Technology 

Project;. a project that 

build the IT capacity of 

the handicrafts NGOs in 

Wadi Rum and 

established their websites 

President and CEO Established in 2005 under 

the Ministry of Culture 

with the aim of 

developing the handicrafts 

sector of Jordan and 

helping producers 



ANNEX 3: Illustrative Project Costs 

Illustrative Examples 

Following are details of 9 illustrative examples of potential product lines that could be 

produced and the type of investment needed. It is crucial to note that before any of the 

product areas and lines are initiated, a feasibility study must be done for each product line 

that includes a detailed business and marketing plan. Regardless of what product areas and 

lines are chosen, the following is recommended: 

o Government Support. There must be two years of government support 

towards technical design and product development. This should include a budget 

for bringing in a mix of local and international design expertise, as well as a budget 

for study tours and exchanges related to the products being developed. Within this 

budget there should also be resources allocated for trade shows and exhibitions, 

both at local and regional levels. 

o Training. Training in various business areas such as pricing and costing, basic 

marketing, product development, management, and entrepreneurship. 

o Target markets. Suitable markets must be identified. Is the product being 

developed for the tourist market, the local market, and what type of tourist market 

is being addressed, etc.? 

o Designers. A designer who specializes in the chosen product area must be hired 

to lead the product development. If products are targeted for a local market, a 

local designer can be used, but if they are being developed for international 

markets, an international designer with expertise in the specified market is likely 

needed. 



1. Textile Bags 

Product Line: Embroidered bags 

Assumptions: 

o Cost of fabric is estimated at J0D 5 a meter. (1 meter = about 4 yards) 

o One bag is produced in 2 hours 

o Number of working hours during the year = 8640 working hours per year 

o 4 people X 8 hours a day X 270 days a year = 8640 of working hours/year 

o Produce 1 bag every 2 hours, thereby 4320 bags a year 

o 8640 /2 = number of bags = 4320 bags a year 

o Labor is 6 Workers(4 for sewing+2 for cutting and finishing): JD150/month working 6 days a week, 8 hours a 

day 

Costs: 

a. Equipment cost : 

4 Sewing Machines JD 3,000.00 

1 Cutting Table JD 2,000.00 

Other basic Tools JD 1,000.00 

Total Equipment Cost JD 6000.00 

b. Working Capital for 3 months: 

6 Workers: 150/month working 6 days a week, 8 hours a 

day 

JD 2,700.00 

Raw Materials and accessories JD 8,000.00 

Overhead Costs JD 3,300.00 

Total Working Capital JD 14,000.00 

Total Initial Investment Cost JD 20,000.00 

Costs Per Year JD 56,000.00 

Potential Revenue: 

# of Bags per year JD 4,320.00 

Income generated(4320*20) JD 86,400.00 

Gross Profit 

JD 30,400.00 



2. Paper using local plants' residues 

Product Line: blank books, greeting cards, albums, boxes and sheets of paper 

Assumptions: 

o Cost of raw material is estimated as following: 

o Cost of collecting recycled materials and plants is 1 cent for 1 kilogram 

o Each kilo produced 30 sheets 

o 400 sheets produced per day 

o In one year 54000 sheets 

o Cost of sheets = 54000/ 30 = 1800 

o Cost of labor is estimated as following: 

o 14 people are needed to work on this line at the start, a one year cost will include 

o Salaries estimated as 150 JD per month 

o 14 persons x 150 JD per month x 12 months = 25200 JD total first year salaries 

o Production 

o Books 

� Size of books 5x8" requires 5 sheets per book 

� 100 books a day 

� 10800 books / year 

o Boxes 

� 2 sheets per box 

� 100 boxes a day x 270 days = 27000 boxes 

Costs: 

A. Equipment cost: 

20 Vats JD 2,000.00 

100 Moulds and Deckles JD 1,000.00 

2 Industrial Beaters JD 1,500.00 

100 felts JD 500.00 

Total Equipment Cost JD 5,000.00 

B. Initial Investment 

Working capital JD 11,000.00 

Equipments JD 5,000.00 

Total Initial Investment JD 16,000.00 

C. Operating Costs for 1 year: 

14 Workers: 150/month working 6 days a week, 8 hours 

a day for 12 months 

JD 25,200.00 

Raw Materials JD 1800.00 

Rent JD 12,000.00 


Total Operating Costs JD 44,000.00 


Boxes JD 40,500.00 

Books JD 32,400.00 

Total Potential Revenue JD 72,900.00 

Gross Profit 

JD 28,900.00 



3. Rugs - Tapestries 

Product Line: tapestries, adorned with pictures of traditional Aqaba scenes, Wadi Rum, Petra, representative of 

famous artist’s paintings or traditional motifs such as mosques, tea sets, etc. 

Assumptions: 

The project can product 100 pieces per year, 1 every 3 days 

Each piece can be sold for 60JD. 

Materials Needed 

1 Loom JD100 

Costs: 

A. Initial Investment for 3 months 

Working capital JD 600.00 


Overheads JD 300.00 

Cost of 1 loom JD 100.00 

Total Initial Investment for 3 months JD 1,150.00 


1 Worker: JD 200/month working 6 days a week, 8 

hours a day for 12 months 

JD 2,400.00 





Total expenditure JD 4,200.00 JD 42,000.00 

Total revenue JD 6,000.00 JD 60,000.00 

Gross Profit 

JD 1,800.00 JD 18,000.00 

If you want to increase production by 10, then cost is JD 11,500.00 and profit rises to JD 18,000.00 



4. Rugs 

Product Line: High Quality Rugs. One Rug is made every 6 Days and sell for JD 120.00 

Assumptions: 

- 1 Rug produced every 6 days, 

- 50 Rugs produced in one year, 

- Each Rug will be sold for JD 120.00 

- Material needed is One Loom for JD100.00 

Costs: 


Working capital JD 600.00 


Overheads JD 400.00 



1 Worker: JD 200/month working 6 days a week, 8 


JD 2,400.00 

Raw Materials (produced 50 Rugs per year) JD 600.00 




Total expenditure JD 4,200.00 

Total revenue JD 6,000.00 

Gross Profit 

If you want to increase production by 10, then cost is JD 11,500.00 and profit rises to JD 18,000.00 

JD 1,800.00 



5. Ceramic 1 

Product Line: Several ceramic pots and ceramic home decorations 

Assumptions: 

- Project can produce 50 pieces a day X 270 days = 13500 a year 

- Potential revenue = JD 8.00 per piece X 50 pieces X 270 = JD 108,000.00 

Costs: 






5 Workers: JD 150/month working 6 days a week, 8 


JD 9,000.00 

Energy JD 27,000 

Painter JD 2,700.00 


Raw material JD 17000.00 JD 65,700.00 

Equipments 

- Kiln 

- Glazing room 

- Tools 

JD 10,000.00 

JD 2,000.00 

JD 3,000.00 

Total Equipments JD 15,000.00 



Total expenses JD 65,700.00 

Gross Profit 

JD 42,300.00 



6. Ceramic 2 

Product Line: Several ceramic pots and ceramic home decorations 

Assumptions: 

- Project can produce 100 pieces a day X 270 days = 27000 a year 

- Potential revenue = JD 8.00 per piece X 100 pieces X 270 = JD 216,000.00 

Costs: 








JD 18,000.00 

Energy JD 54,000 

Painter JD 5,400.00 


Raw material JD 34000.00 JD131,400.00 

Equipments 

- Kiln 

- Glazing room 

- Tools 

JD 10,000.00 

JD 2,000.00 

JD 3,000.00 




Total expenses JD 131,400.00 

Gross Profit 

JD 84,600.00 



7. Glassware 

Product Line: handmade glasses and glass home decorations 

Assumptions: 

Costs: 

- Project can start with 4 workers 

- Each worker can produce 10 pieces a day 

- In one year there is 270 days 

- 4 workers x 10 pieces a day x 270 days = 10800 pieces a year 

- Each piece can be sold by 5 JD 

- 10,800.00 pieces x 5 JD per piece = JD 54,000.00 a year 

A. Initial Investment 


Oven JD 10,000.00 

Tools JD 2,000.00 

Total Initial Investment JD 18,350.00 

B. Operating Costs for 1 year: 



JD 7,200.00 

(4x150x12 = 

Energy cost JD 10,000.00 

Overhead Costs JD 500.00 

Raw material JD 7,700.00 

Equipments 

Oven 

Tools 

JD 10,000.00 

JD 2,000.00 


Total Operating Cost JD 25,400.00 


Total Operating Cost for One Year JD 25,400.00 


Gross Profit 

JD 28,600.00 



8. Food 

Product Line: Variety of Different Jams Made from Locally Sourced Fruits 

Assumptions: 

• Price of jar of jam will be 1.5 JD 

• 600 jars of jam can be made a day 

• Potential revenue = 600 X1.5 X 270 = JD 243,000.00 

• Cost of fruit = JD 0. 50 per jar 

• Cost of Jar = 0. 50 per jar 

• Cost of raw materials per year =1JD X 600/day X270 = JD 162,000.00 

• 4 workers will work on this project 

Costs: 


Working capital (4x150x3 = 1,800.00 JD) JD 1,800.00 

Raw material during 3 months JD 40,500.00 






JD 7,200.00 

(4x150x12 = 


Raw material 

JD162,000.00 

(600 jars/day x 270 days a year x 1.00 JD production cost/ 

jar) 





Total revenue 

JD 243,000.00 

600 jars/day x 270 days x 1. 5 JD price/jar = 

Gross Profit 

JD 66,850.00 



9. Jewelry 

Product Line: Variety of cultural handmade jewelry 

Assumptions: 

• 6 people 150 JD X 12 = 10,800 

• Raw materials = Silver, brass and semi-precious stones 

• Cost of equipments = 10,000 JD 

• Average price is 20 JD 

• Per person a day = 20 pieces a day X 20Jd X 270 days = 108,000 – on average 

Total working capital = 10800 

Costs: 


Working capital 

JD 2,700.00 

(6 persons x 3 months x 150 JD per month) 

Raw material (20% of revenue) 

JD 5,280.00 

Revenue for first 3 months = 20 pieces/day x 66 days x 20 

JD price of piece = 26,400.00 JD 

20% of 26,400.00 = 5,280 JD 

Equipments JD10,000.00 





JD10,800.00 

6 persons x 150 JD/person x 12 months = 10,800 


Raw material (20% of revenues) 

JD 21,600.00 

20% (20 pieces/day x 270 days x 20 JD per piece) 

20% x 108,000.00 = 21,600.00 





Total revenue 

JD 108,000.00 

600 jars/day x 270 days x 1. 5 JD price/jar = 

Gross Profit 

JD 62,900.00 



Cost Benefit Analysis for the Handicraft Strategy 

The investment cost, the generated revenues and profit and number of job created by the 

nine identified projects are: 

Investment 

(JD) 

Revenue (JD) Profit (JD) 

# of 

Employees 

Textile Bags 16,000 86,400 30,400 6 

Eco-friendly 16,000 72,900 28,900 14 

Tapestry 11,000 60,000 18,000 10 

Rugs 11,000 60,000 18,000 10 

Ceramic (1) 31,427 108,000 42,300 6 

Ceramic (2) 47,852 216,000 84,600 12 

Glassware 18,350 54,000 28,600 4 

Jam 47,300 243,000 66,850 4 

Jewelry 18,000 108,000 62,900 6 

Total during the 2 

first years 

216,929 1,008,300 380,550 72 

third year 650787 3024900 1141650 216 

4th year 1952361 9074700 3424950 648 

5th year 3904722 18149400 6849900 1296 

According to the above table the two years of preparation will generate only nine projects 

with limited investment. The success achieved during the starting period and the 

implementation of the Handicraft Action Plan will permit to triple the achievements during 

the third year, to triple again the achievements during the fourth year, and to double for 

the fifth year. 

Accordingly, the benefits from the implemented Strategy and Action Plan will be as 

following: 

Government Benefits 

Sales Tax of 7 % 

(JD) 

Income taxes of 

5 % (JD) 

Total (JD) 

3 rd year 211,743.0 57,082.5 26,8825.5 

4th year 635,229.0 171,247.5 806,476.5 

5th year 1,270,458.0 342,495.0 1,075,302.0 

Total 2,117,430.0 570,825.0 2,150,604.0 



ANNEX 4: Methodology for Selection of Product 

Areas 

This section identifies the major product areas, analyses their potential and recommends 

implementation activities for product development. Initial product areas were based on a 

diagnostic of identified skills of population, current areas of production, cultural heritage 

and availability of local resources. Based on these criteria set, a list of 10 core areas were 

identified, but not ranked: 

• Felted Products 

• Palm Leaf Products 

• Ceramics 

• Textiles 

• Jewelry 

• Wood Products 

• Eco-friendly Products (glass, paper, tin, recycled products) 

• Food 

• Leather 

• Sand Bottle Art 

Next, in order to prioritize these 10 areas, an additional set of criteria was used, weighted 

(weighed?) and ranked to further identify product areas. The following list shows the 

ranking codes and the weighted scores used for each criteria set. 

Ranking Code Rank Value Ranking Meaning 

A 4 Very High 

B 3 High 

C 2 Average 

D 1 Low 

The exception to the above was with production costs, which reversed the order of 

importance. 

Weighted Scores 

• Availability of raw materials 4 

• Potential production lines 4 

• Potential for local tourists 4 

• Potential for international tourists 4 

• Cultural heritage linkages 4 

• Organizational capacity 3 

• Product cost 3 

• Skills of workforce 2 

As a team the 10 identified areas were discussed and ranked together. The following shows 

the team’s ranking by code, then by number and finally total score. 



Team’s ranking by code 

Prioritization Criteria 

16 Includes glass, tin, bottles, paper, soap etc. 

Palm 

Leaves 

Ceramics Textile Jewelry Wood Eco-friendly Food Leather 

ORGANIZATIONAL CAPACITY C D B- C C B B- C A D 

AVAILABILITY OF RAW MATERIALS A A A C B A A C A B 

PRODUCTION LINES B A A A B B A A A A 

MARKET (INT. TOURISTS) C D B+ C- C B- B C A D 

MARKET (LOCAL TOURISTS) A-B B-C A A C A A B A A 

SKILLS OF WORKFORCE A B B C B- A- B C A A 

PRODUCTION COST B A A A C A A D D A 

CULTURAL HERITAGE A D A B C+ D A D A C 

Prioritization 

Criteria 

ORGANIZATIONAL 

CAPACITY 

AVAILABILITY OF RAW 

MATERIAL 

Palm 

Leaves 

Ceramic Textile Jewelry Wood Eco-Friendly 1617 Food 

Leather 

Sand Bottle 

Sand 

Bottle 

2 1 2.5 2 2 3 2.5 2 4 1 

4 4 4 2 3 4 4 2 4 3 

PRODUCTION LINES 3 4 4 4 2 4 4 1 1 4 

MARKET (INT. TOURISTS) 3.5 2.5 4 4 2 4 4 3 4 4 

MARKET (LOCAL TOURISTS) 3 4 4 4 3 3 4 4 4 4 

SKILLS OF WORKFORCE 2 1 3.5 2.5 2 2.5 3 2 4 1 

PRODUCTION COST 4 3 3 2 2.5 3.5 3 2 4 4 

CULTURAL HERITAGE 4 1 4 3 2.5 1 4 1 4 2 

Total points 25.5 20.5 29 23.5 19 25 28.5 17 29 23 

Felted 

Products 

Felted 

Products 



The following diagram shows the prioritization of product areas the team came up 

with. 

Prioritization of Product Areas 

Priority # Product/s 

1 Textile and sand bottles 

2 Food 

3 Palm leaves 

4 Eco-friendly recycled products 

5 Jewelry 

6 Felted products 

7 Ceramics 

8 Wood products 

9 Leather 



ANNEX 5: HISTORICAL PRODUCTS ONCE 

PRODUCED IN AQABA 

Translated from the book “Heritage and Handicrafts in Aqaba” by Abdullah Manzallawi 

Palm Leaf Products: 

1- Various sizes and styles of brooms made from the staff of the palm leaf, used for 

cleaning homes 

2- Fans 

3- Rope, al-shalq, was made from the lower end of the bark and was used to sew things 

together when working with palm. 

4- Woven mats for the floor and for sitting on 

5- Baskets of all sizes 

6- Hats 

7- Pillow cases 

8- Water holders made from the main bark when its divided up 

9- Leaves used as fillers for mattresses and pillows 

10- Boats from the palm bark 

11- Furniture, chairs, tables, and baby beds 

12- Used in buildings materials for ceilings 

Mud Bricks were used in building homes and thereby many of the utensils where also 

made of mud such as: 

1- Urns 

2- Chicken coops 

3- Incense burners for homes 

Corals where also utilized, especially for household items such as : 

1- Ashtrays from corals 

2- Ashtrays from muscle shells 

3- Pipes for smoking 

4- Women’s accessories such as necklaces 

5- Plates for fruits 

6- Decorations on clothes and ornaments 

Various corals are regarded as a sign of good luck and some have special functions; 

1- Uod Al-Yessr – overall good luck 



2- Al-Barouka Shell – brings money 

3- Al-Nar Murjan ( Fire Coral ) for stopping children from drinking mother’s milk 

Fishing: 

• As fishing was the main industry, the people of Aqaba were known for their salted fish 

(fasekh), and the embalming of fish. 

• In the fishing trade, nets were originally brought from Gaza or Egypt, but in the 1940’s 

the local population started making their own nets. The nets used were made of steel 

wiring and had different names for their different shapes. 

• The scales of fish were dried, and then used to make ornamental flowers, that were 

then painted. 

Sand Art: 

The art of sand designs in glass bottles dates back to late 1940’s in Aqaba. There are two 

historical versions regarding the origin of putting sand designs into glass bottles. The first 

version is that there was evidence in tombs found in Petra that glass urns were found with 

colored sand designs, and this was later revived with the region's revival. 

The second version is that some European visitors came to the region, found the different 

colored sand so unique that they started collecting the different colored sand in the area of 

Petra and Aqaba, and the art was developed in this manner. 

According to the book, the first verified person in Jordan to start bottling the sand to give 

to tourists was Khalifah Ahmad Kreishan in 1885. He was from the area of Ma’an near 

Petra. 

Musical Instruments: 

Al-Semsemieh – A string instrument with a harp-like structure utilizing 5 strings 

Al-Marawas – A long drum with sheep skin on the sides 

Al-Taarr – a frame drum (thin drum of 15 cms) 

Al-Bazara - a drum with a metal bell structure 

Al-Shababah – flute 

Al-Rababa – a string instrument

HANDICRAFT SECTOR in AQABA ... - Aced-jordan.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?