02222017 Ikea Partners with Jordan to Set Up Syrian Refugee Rug Weaving Program

LEIDEN, Netherlands -- Ikea, the world's largest furniture retailer, will start purchasing rugs from Jordan and is partnering with local Jordanian enterprises and foundations to engage about 200 Syrian refugees to produce the rugs and textiles. The goal is to have the products available during fiscal year 2019.

"Ikea is aware that many refugees have suffered a lot and experienced difficult times. This is one of the reasons why we have decided to engage in Jordan. We believe that having a livelihood gives one the opportunity step by step - to build a new life," said Per Heggenes, who is the head of the Ikea Foundation. "This not only provides income but it's also a way to regain confidence and hope for the future. Ikea wants to contribute to this progress."

Heggenes says the situation in Syria is a "major tragedy of our time," and that Jordan has taken a great responsibility in hosting the Syrian refugees. Knowing about Jordan's efforts to turn the refugee crisis into a development opportunity, the Swedish-based company decided to look into how Ikea can contribute to supporting Jordan's journey toward integrating refugees with locals in the labor market through creating jobs. 

After visiting Syria, Ikea executives decided to start purchasing from Jordan and are working with local agencies that focus on women to get their project underway. 

"We will work jointly with the selected social enterprises to evaluate the situation, as most of these women need flexibility in their work so that they can take care of their families," he said.

Ikea will first focus on selling these products in Jordan and in Middle Eastern countries with which Jordan already has free trade agreements, making it easier to export goods. 

Since 2012, Ikea has created partnerships with businesses across the world that work with enterprises benefiting social issues and creating lasting change in their communities through livelihood -- namely social entrepreneurs. Through these partnerships the Swedish retailer has the opportunity to fight poverty, improve gender empowerment, particularly among women and minority groups that are discriminated or even removed from the labor market, Heggenes said.

"Working with social entrepreneurs can play a part in not only boosting handicraft but also knowledge sharing with partners, bringing in best practices in quality, supply chain and compliance to them, and hence increase their employability," he added. "Contributing to positive societal impact and change by creating livelihood, goes hand in hand with our vision to create a better everyday life for the many people." 

Ikea, which had 2016 total sales of around $44 billion, designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. It owns and operates 340 stores in 28 countries. Ikea sells a variety of rugs, including flat woven, high pile and sheepskins. Many are produced at an Ikea-approved weaving center in India, with fair wages and safe working conditions.

"Ikea is aware that many refugees have suffered a lot and experienced difficult times. This is one of the reasons why we have decided to engage in Jordan. Having a livelihood gives one the opportunity  to build a new life," Heggenes continued. "This not only provides income but it's also a way to regain confidence and hope for the future. Ikea wants to contribute to this progress."

Adding, "Ikea is committed to contributing to a positive societal impact. It goes hand in hand with our vision to create a better everyday life for the many people."