World Bank Approves $700 Million Loan for Jordan

SadaNews - The Board of Executive Directors of the World Bank approved a loan of $700 million to support Jordan in transforming economic stability into stronger private investments and more and better job opportunities.

According to the Bank's statement on Wednesday, the Development Policy Financing Program for Growth and Competitiveness in Jordan (Phase II) will contribute to supporting the government's efforts to stimulate private investments, expand access to financing, create more job opportunities, and accelerate the pace of green and digital transformation in the country.

The Bank confirmed that "Jordan has maintained macroeconomic stability despite the difficult regional environment, recording a real GDP growth of 2.8 percent in 2025. It also received its first upgrade in sovereign credit rating in over two decades in 2024, which was again preserved last year. The opportunity today lies in transforming this economic stability into investments and job opportunities, accelerating growth, and expanding economic opportunities for all Jordanians."

The World Bank's Regional Director for the Middle East, Jean Christophe Carre, said: "Jordan has been able to navigate a difficult regional environment with discipline and determination, maintaining macroeconomic stability and continuing the momentum of reforms. This program will support the efforts of the Jordanian government to transform stability into stronger private sector growth by facilitating business operations, reducing costs, expanding access to funding—including for women entrepreneurs—and advancing the implementation of digital and green reform agendas in the energy sector. Together, these measures can help unleash investments and create conditions for more and better job opportunities for Jordanians." The Development Policy Financing Program for Growth and Competitiveness in Jordan (Phase II) supports two integrated reform goals as part of the Economic Modernization Vision, aiming to make Jordan a more attractive destination for doing business by simplifying licensing procedures across sectors, modernizing the legal framework for electronic and cross-border transactions, and expanding social protection to include workers under flexible contracts and part-time employment, which helps attract more individuals into the formal labor market and enhance private sector investments in the electricity sector by empowering private transmission, generation, and storage systems.

He pointed out that the program aims at innovation and deepening access to financing for companies and entrepreneurs, supporting reform efforts aimed at modernizing capital markets and adopting new financing instruments, including crowdfunding and facilitating cash flow-based lending, which is crucial, especially for micro, small, and medium-sized enterprises that represent about 99 percent of businesses in Jordan.

He emphasized that these reforms also help expand access to business accounts for micro-entrepreneurs who do not deal with banks, enhance green financing, including activating the national classification of green economic activities in Jordan, updating the legal foundations for insurance products, and transitioning to complete digitization of government disbursement payments, a step that will significantly reduce transaction costs, improve efficiency, and support digital inclusion.

Carre stated: "With the foundations of macroeconomic stability in place, the economic reform efforts in Jordan represent an important step in the country’s journey towards a more inclusive economy, driven by private investment and supported by the promising opportunities offered by a green and digital future. The World Bank reaffirms its commitment to supporting this agenda and turning stability into real opportunities for businesses and entrepreneurs."