World Bank Approves $1.1 Billion to Support Jordan’s Economic Modernization Vision

Jean-Christophe Carret, World Bank Division Director for the Middle East Department, emphasized the importance of these reforms in the country’s development trajectory.

The World Bank Group has approved a significant new financing package totaling US$1.1 billion aimed at accelerating Jordan's Economic Modernization Vision and enhancing the country's socio-economic resilience. This new investment will fund four key projects designed to improve people's lives, promote sustainable growth, and help Jordan navigate continued regional crises and economic shocks.

Jordan's government has been actively working to modernize its economy and ensure long-term sustainability. The newly approved financing will help the country achieve several critical milestones in its development agenda. The financing package covers a range of vital sectors, including private sector investment, entrepreneurship, social protection, and clean energy.

Jean-Christophe Carret, World Bank Division Director for the Middle East Department, emphasized the importance of these reforms in the country’s development trajectory. “Jordan continues to demonstrate commitment to advancing critical reforms to build a more competitive, inclusive, and resilient economy,” Carret said. “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.”

Jordan’s Economic Modernization Vision, launched in recent years, has set the groundwork for enhancing the country's fiscal sustainability, promoting innovation, strengthening social protection, and increasing private sector involvement. The government has emphasized digitalization and inclusion as key pillars for growth, with a focus on youth and women’s empowerment. These new programs represent a significant step forward in the World Bank Group’s Country Partnership Framework for Jordan 2024-2029, which is designed to drive tangible results through reform initiatives and strategic investments.

H.E. Zeina Toukan, Jordan's Minister of Planning and International Cooperation, expressed optimism about the new partnership with the World Bank. “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,” she noted.

Key Projects Funded by the New Financing

1. Jordan Growth and Competitiveness Development Policy Financing (US$400 Million) This program will provide crucial support to the Jordanian government’s efforts to unlock private investment, boost exports, and create jobs—particularly for youth and women. Through a series of reforms aimed at improving the business environment, promoting fair competition, expanding access to finance, and enhancing customs procedures, the program seeks to promote inclusive and sustainable economic growth. The financing will also help strengthen Jordan's fiscal capacity and competitiveness on the global stage.

2. Innovative Startups and SMEs Fund (ISSF 2.0) (US$50 Million) The ISSF 2.0 program is designed to foster innovation and entrepreneurship, particularly in high-growth sectors such as ICT, fintech, greentech, and healthtech. This initiative builds on the success of ISSF 1.0, which mobilized over US$240 million in private capital, supported more than 2,290 jobs, and led to the creation of 170 startups. With a focus on startups led by youth and women, ISSF 2.0 will help catalyze private sector growth by expanding early-stage equity financing. It aims to create 1,500 new jobs and mobilize an estimated US$150 million in private capital over the next five years.

3. Resilient and Sustainable Social Protection Program (US$400 Million) This program is designed to strengthen Jordan's social safety net, enabling the country to better respond to socio-economic shocks and crises. It focuses on expanding cash-based assistance, improving digital service delivery, and linking social protection with education, healthcare, and job access. The program aims to reach 1.2 million vulnerable individuals with cash transfers, provide health insurance for 150,000 people, and offer essential services to 1 million people through early warning and response systems.

4. Additional Financing for the Electricity Sector Efficiency and Supply Reliability Program (US$250 Million) This initiative is aimed at accelerating Jordan’s clean energy transition while improving the stability and efficiency of the country’s power grid. With an emphasis on cost savings and revenue enhancements in the energy sector, the program supports the rollout of energy efficiency measures in public institutions and the strengthening of cybersecurity in transmission operations. The project aligns with Jordan’s target of increasing renewable energy’s share in the country's electricity mix to 31 percent by 2030.

Addressing Jordan’s Economic Challenges

The World Bank’s increased engagement in Jordan underscores the importance of a strong partnership to help the country navigate the numerous challenges it faces. Jordan has been grappling with regional instability, ongoing refugee crises, and economic pressures. These new projects are designed to create long-term solutions by building resilience, fostering innovation, and supporting key sectors such as clean energy, entrepreneurship, and social welfare.

The success of these initiatives will be crucial in helping Jordan achieve its economic modernization goals, create sustainable jobs, and strengthen the resilience of the most vulnerable members of society. Through these investments, Jordan will not only be better positioned to manage future challenges but also to ensure a more inclusive and prosperous future for its citizens.

The approval of this financing package marks a significant milestone in the country’s journey toward achieving its ambitious economic and social goals. The collaboration between the World Bank and Jordan exemplifies a shared vision for economic transformation, growth, and stability, paving the way for a brighter, more resilient future for the Kingdom.