World Bank mulls $900m in new financing for Jordan's economic, social development

-        $400m to enhance Kingdom’s welfare programmes and economic resilience

-        Additional funding for ‘Masar’programme to improve vocational training and teacher support

-        $50m in new financing to strengthen entrepreneurship and innovation

AMMAN — The World Bank is currently assessing the financing of five projects and programs aimed at supporting economic reforms, social protection, key sectors and entrepreneurship in Jordan, with a total potential investment of up to $900 million.

These proposed projects align with the Country Partnership Framework (2024–2029), launched by the Ministry of Planning and International Cooperation in collaboration with the World Bank, Al Mamlaka TV reported.

In the last fiscal year, the World Bank signed four agreements to fund government projects and programmes in Jordan, amounting to $1.235 billion, alongside an additional $41 million from other donors under the Bank’s guarantee, marking the highest financing level in the past five years. So far, the Bank has disbursed $554 million, covering 44.8 per cent of the total allocated funds, while $681 million remains undisbursed.

The World Bank is also considering up to $400 million in new financing to enhance Jordan’s social protection system, aligning with the National Social Protection Strategy and the Economic Modernisation Vision (2022). The initiative aims to double growth rates over the next decade, create job opportunities and boost productivity in high-potential sectors.

The Bank noted that Jordan’s social protection system is the largest in the Middle East and North Africa (MENA) in terms of coverage for the poorest groups, playing a critical role in supporting vulnerable populations. Under the Ministry of Social Development, social protection programmes have expanded significantly, benefiting 34 per cent of the population by 2022, with 45.2 per cent of Jordanians and 42 per cent of the lowest-income group receiving assistance.

The Bank is also evaluating a $400 million project aimed at stimulating economic growth and creating sustainable jobs through private-sector leadership, as part of ongoing efforts to strengthen Jordan’s economy and attract investment.

The World Bank is also considering an additional $5.6 million in financing for the "Masar" programme, launched in September with an initial investment of $400 million. The programme aims to enhance basic education quality, expand vocational and technical training, and better align education with labour market needs, particularly for vulnerable groups, including refugees.

The funding package includes a $4 million grant from the Forced Displacement Trust Fund to expand the school feeding programme and a $1 million grant from the Early Learning Partnership Programme to support teacher training initiatives.

In an effort to boost private sector investment and employment, the Bank is also reviewing a proposed additional $50 million in financing to support startups and small and medium-sized enterprises (SMEs) in Jordan. The initiative builds on the success of the Innovative Startups and SMEs Fund (ISSF). Between 2018 and 2022, Jordan ranked fourth in the region for venture capital funding, attracting a total of $246 million in investments in local startups.

Additionally,  the Bank is planning a second round of financing for the "Strengthening Reform Management" programme in Jordan, allocating an additional $7.5 million and bringing the total programme funding to $23.3 million. The implementation period would be extended by three years (2026–2028) to continue supporting Jordan’s economic reform efforts.

The Jordanian government reaffirmed its commitment to economic reform and sustainable growth during the London Conference in February 2019, where it introduced a five-year reform matrix (2018–2022). This framework, later extended to 2024, outlines a series of political and structural reforms aimed at addressing key economic challenges and enhancing the country’s investment climate.

Despite challenges from regional instability, Jordan’s economy grew by 2.6 per cent in the third quarter of 2024, according to the Department of Statistics (DoS).  The conflict in Gaza and Lebanon has impacted key sectors such as tourism and transport; however, the World Bank’s Global Economic Prospects report projects continued growth of 2.6 per cent in 2024 and 2025, up from a previous forecast of 2.4 per cent.