Developing the financial industry in Jordan

Jordan is a country with a developing financial industry that has a lot of potential for growth. The financial sector in Jordan is made up of various institutions such as banks, insurance companies and investment firms. The industry has grown significantly in recent years, thanks to government initiatives aimed at promoting economic growth and attracting foreign investment.

The development of the financial industry in Jordan has been driven by various factors, including the country's strategic location, stable political environment, and a growing middle class. The government has also taken steps to modernise the financial sector by introducing new regulations and policies that promote transparency, accountability and innovation.

One of the key challenges facing the financial industry in Jordan is the need to increase access to finance for small and medium-sized enterprises (SMEs). SMEs are the backbone of the Jordanian economy, but they often face difficulties accessing finance due to a lack of collateral and credit history. To address this issue, the government has launched various initiatives aimed at providing SMEs with easier access to credit and financial services.

Another area of focus for the financial industry in Jordan is the adoption of financial technology (fintech) solutions. Fintech has the potential to transform the financial industry by making it more efficient, secure, and accessible. Jordan has already made progress in this area, with the Central Bank of Jordan launching a regulatory sandbox for fintech startups to test innovative solutions.

In conclusion, the financial industry in Jordan has a lot of potential for growth and development. The government's efforts to modernise the sector and promote economic growth, along with the adoption of fintech solutions and increased access to finance for SMEs, are positive steps that will help to drive the industry forward. With the right policies and initiatives in place, the financial industry in Jordan can become a key contributor to the country's economic development.

Ahmad Al-Naimi is an assistant professor of finance and risk at the Applied Science Private University