UK Export Finance (UKEF), UK Government’s export credit agency, has announced its first deal in Jordan to support Classic Fashion Apparel Industry in the construction of four new garment factories including three satellite manufacturing units as well as the Aqaba main facility. The £66 mn deal will help enhance Jordan’s already strong textile industry.
UKEF has provided support through a combination of direct lending and a buyer credit guarantee, allowing Classic Fashion Apparel Industry to move swiftly with their project and benefit from flexible repayment terms.
The new planned site located in Aqaba Special Economic Zone is expected to create around 4,000 jobs for Jordanians by 2024. Jobs for the local community are offered at varying levels, with the potential to grow and the opportunity to enter the business of garment manufacturing. This unique location is near Aqaba port and gives Classic Fashion Apparel Industry an exporting advantage. This project will contribute to boosting manufacturing exports and jobs, in line with the targets for the sector contained in the recently launched Economic Modernisation Vision 2033, the Government of UK said.
The UK’s support will extend beyond the funding scheme, as more than 30 percent of the services and supplies for the project, such as machinery and other building materials, will come directly from UK providers. ASGC UK, a leading British construction company in the region, will project manage and oversee all related elements to ensure quality and timely delivery.
Classic Fashion Apparel Industry Group is the largest apparel manufacturer in the MENA region. It produces around 550,000 garments per day and contributes to over 42 percent of all garment exports from Jordan. The company produced 130 mn garments in 2021 and expects production to grow to 165 mn garments this year.
Classic Fashion Apparel Industry chairman and managing director Sanal Kumar said: “I thank UKEF, British Embassy, and Department for International Trade in Amman and HSBC for coming along and supporting Classic Fashion in its journey of creating another 4,000 jobs for Jordanians with the new set up in Aqaba of GIA Apparels- a fully owned entity of Classic Fashion.”
Through UKEF, the UK can help international buyers access finance and insurance when it is not available from the private sector. UKEF has made up to £3 bn available to help Jordanian buyers access the finance they need to trade with the UK. The full range of UKEF support is available to help finance priority projects in Jordan.
British Ambassador to Jordan Bridget Brind OBE said: “I am delighted to welcome this ground-breaking deal with Classic Fashion as the first to be backed by UK Export Finance in Jordan with the involvement of British company ASGC UK. It will help create new jobs and increase exports, contributing to Jordan’s economic growth and future prosperity. I hope it can act as a success story which can inspire more similar agreements in the future for the benefit of Jordan and the United Kingdom.”
