Khaberni - The World Bank recently announced that it has started a study to offer Jordan a loan of $400 million as part of the "Growth and Competitiveness in Jordan" program.
The bank confirmed that this loan aims to improve the business environment and deepen access to financing, supporting economic growth led by the private sector, according to Al-Ghad.
According to the program information document dated January 9 this year, the program represents the second operation within a reform series of three operations targeted by the original program, which launched in 2024 and is expected to receive final approval on March 26, 2026, with the Ministry of Planning and International Cooperation handling the implementation.
The document indicated that the proposed funding program is in line with the partnership framework for Jordan with the World Bank Group for the financial period 2024-2029, particularly its objectives of boosting private sector-led job opportunities, improving human capital and inclusivity, and enhancing resilience and sustainability, complementing ongoing investments and partnership operations that support digital transformation, access to financing, renewable energy, and women's economic participation, and public sector efficiency.
The document confirmed that the program aligns with the priorities outlined in the Economic Modernization Vision and subsequent government reform plans, focusing on enhancing the business environment, encouraging private investment, boosting job opportunities, as well as national efforts to simplify regulatory procedures, expand companies' access to financing, reduce input costs, and improve digital and financial inclusion.
Desired Program Outcomes
Regarding the key outcomes expected from the proposed program, the document explained that this operation is expected to enhance the favorable environment for private investment, including simplifying business processes, supporting labor market flexibility, formalization, in addition to expanding digital and financial services and financial inclusion, deepening capital markets, and climate-conscious financing.
The key outcomes also include increased adoption of digital government payments and transactions, increased participation of small and medium enterprises in formal financial services, improved competition and regulatory clarity, increased private investment in renewable energy, as well as advancements in women's workforce participation, formalization, improving access to alternative financing channels, increasing sustainable finance mobilization, and expanding disclosures of climate-compliant financial activities and their classification.
Stable Economy and Ongoing Reforms
In assessing the general state of the Jordanian economy, the document noted that Jordan has maintained macroeconomic stability despite regional challenges, supported by prudent fiscal and monetary policies, and ongoing implementation of key structural reforms.
Also, the recent economic performance continues to demonstrate general resilience; inflation is under control, public debt is on a consolidation path, and the financial sector is stable.
The government is advancing its long-term reform program within the framework of the Economic Modernization Vision and the public sector modernization roadmap, with a particular focus on developing the private sector, digital transformation, energy efficiency, and economic participation of women and youth.
The World Bank announced late last year the closure of the first edition of the "Growth and Competitiveness" program in Jordan, after achieving satisfactory progress in implementing economic reforms supported by the bank, especially in improving the business environment and facilitating private sector access to financing.
