• The World Bank approves USD 1 billion financing to support Jordan’s Economic Modernization Vision and strengthen socio-economic resilience.
• Investments focus on inclusive growth, job creation, startups, SMEs, and sustainable energy to fuel Jordan’s economic development.
• It will support four projects aiming to foster innovation, improve social protection, and enhance clean energy transition, with a focus on youth. 

World Bank

What happened? The World Bank approved USD 1 billion in new financing to support Jordan’s Economic Modernization Vision. In addition, supporting Jordan to build socio-economic resilience in the face of continued shocks and crises. 

The investments will span four projects that aim to positively impact by promoting reforms for inclusive growth and job creation.  Additionally, the projects will support startups and SMEs as well as expand social assistance. It also aims to foster a more sustainable energy future to fuel Jordan’s economy.

“These new programs reflect a comprehensive approach – supporting private sector-led investment, entrepreneurship, social protection, and energy transition – that is critical to achieving sustainable growth.”  said Jean-Christophe Carret, World Bank Division Director, Middle East Department.

Jordan

Economic Modernization Vision Since the launch of the Economic Modernization Vision, the Kingdom has taken steps to promote innovation, strengthen fiscal sustainability, and expand social protection. 

The Jordanian government is working to foster the potential of the  private sector and deliver improvements for the public. 

 The newly approved projects mark a milestone in the implementation of the World Bank Group’s Country Partnership Framework for Jordan 2024-2029. 

“This new financing reflects our continued partnership with the World Bank to promote economic opportunities, enhance social protection, and strengthen Jordan’s innovation and clean energy agenda as per the development priorities under the Economic Modernization Vision,” said H.E. Zeina Toukan, Minister of Planning and International Cooperation.

What are the projects? One of the projects is the  Jordan Growth and Competitiveness Development Policy Financing, valued at USD 400 million. This intends to support the government’s efforts to foster investment, boost exports, and strengthen job creation – particularly for youth and women. Additionally, it aims to back reforms to improve the business environment, promote fair competition, expand access to finance, and further enhance customs procedures.

The Innovative Startups and SMEs Fund (ISSF 2.0), valued at USD 50 million, aims to expand early-stage equity financing. As well as accelerating private investment in high-growth startups in key sectors such as ICT, fintech, greentech, and healthtech. 

The Resilient and Sustainable Social Protection Program, valued at USD 400 million, aims to strengthen Jordan’s ability to respond to shocks. They also aim to focus on improving support for the most vulnerable.The Additional Financing for the Electricity Sector Efficiency and Supply Reliability Program is valued at USD 250 million. It aims to scale Jordan’s clean energy transition while improving grid stability and financial sustainability.