Despite regional challenges, Jordan's economy stable, growth on track — CBJ governor
During a forum organised on Monday by the Jordan Strategy Forum (JSF) titled "Reform, Stability, Resilience," Sharkas said that the economy recorded 2.7 per cent growth in both quarter 4 of 2024 and quarter 1 of 2025, the Jordan News Agency, Petra, reported.
The CBJ expects 2025 growth to remain at 2.7 per cent, rising above 4 per cent by 2028 with the implementation of 'major' infrastructure projects and continued fiscal reform, Sharkas noted.
He stressed that Jordan's 'strong' fundamentals are solid monetary framework, stable investment climate, healthy banking sector and credible exchange rate.
These factors boosted investor confidence, reflected in the strong performance of Jordan's Eurobonds, which are trading below issuance yields, he added.
The CBJ governor added that during 2021–2024, the economy grew at an average of 2.9 per cent, recording the highest since 2010, driven by gains in productivity, human capital and non-traditional exports.
This growth contributes now in 20.9 per cent to the gross domestic product (GDP), up from 16.2 per cent in 2016, Sharkas added.
He noted that investment contributed 40 per cent to growth during this period, while external demand contributed 38 per cent.
Sharkas attributed this momentum to structural reforms, with around 100 reforms since 2012, enhancing governance, competitiveness and job creation.
Jordan's energy bill dropped to 7 per cent of the GDP in 2024, down from 21 per cent in 2012, thanks to energy diversification and long-term gas deals, he noted, adding that tourism revenue reached $3.7 billion in the first half of 2025 and is projected to hit $7.7 billion by year-end.
Sharkas said that the foreign direct investment (FDI) reached $1.6 billion in 2024, while remittances are expected to rise to $3.7 billion, while inflation reached 2 per cent in the January-June period of 2025. Foreign reserves hit $22 billion, which is enough to cover 8.4 months of imports.
Bank deposits reached JD47.7 billion in May, while dollarisation declined to 18.1 per cent, the CBJ governor said, pointing out that financial inclusion rose to 43.1 per cent in 2022, with gender gap narrowing from 53 per cent to 22 per cent.
He added that digital payment activity surged to 538 million transactions worth JD55.3 billion in 2024, and credit facilities rose by over JD7 billion since 2020, reaching JD35.3 billion by May.
The CBJ completed 90 of 94 initiatives under the 2023–2025 economic vision. The remaining are on track, Sharkas said.
Public finance reforms are also advancing, with the primary deficit expected to drop to 2 per cent of GDP in 2025, aiming to a surplus by 2027. Public debt is projected to fall below 80 per cent of the GDP by 2028, the CBJ governor said.
JSF Chairman Faris Sharaf stressed the need to balance monetary stability with flexible economic policies.
JSF Executive Director Nasreen Barakat highlighted the forum's role in fostering evidence-based policy dialogue.
JSF board member Nadia Saeed emphasised CBJ's regulatory role in supporting sustainable development.
The event also addressed virtual asset regulations, SME support, economic literacy, and Jordan's resilience to external shocks.
© Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
27 minutes ago
- Zawya
Oman's OQ Group secures first-ever S&P ‘BBB-' rating
MUSCAT: International ratings agency S&P Global Ratings has assigned a 'BBB-' global scale issuer credit rating and a 'gcAA-' Gulf Cooperation Council (GCC) regional scale rating to OQ SAOC, the wholly government-owned integrated energy group operating under the umbrella of Oman Investment Authority (OIA). This marks the first time OQ Group has received a public rating from S&P. Commenting on the announcement in a post on Thursday, July 31, 2025, the Group stated that the rating affirms 'OQ's position as a national energy leader committed to long-term resilience and value creation.' 'The assessment highlights OQ's strong liquidity position, disciplined capital structure, and key role in supporting Oman's economic diversification and energy transition under Vision 2040,' the company added. S&P said its assessment of OQ's business risk profile reflects its vertically integrated operations across the hydrocarbon value chain, with efforts to diversify and enhance its asset base. In 2024, upstream accounted for 60% of reported EBITDA, downstream 37%, and other segments—including alternative energy, marketing, manufacturing, and corporate functions—3%. The agency noted that most of OQ's assets are located within Oman (rated BBB-/Stable/A-3), benefiting from the country's robust energy infrastructure. This provides feedstock security, particularly for its refining and petrochemical operations. A well-established trading arm supports both upstream and downstream segments by off-taking production and sourcing feedstock, enhancing operational flexibility. OQ's downstream capacity was significantly boosted following the final completion of the 230,000-barrel-per-day Duqm (OQ8) refinery in April 2025. Developed as a 50:50 joint venture with Kuwait Petroleum (Europe), the refinery represents a major strategic milestone for the group. S&P further highlighted OQ's government-backed mandate to promote economic diversification and investment in Oman. Through its subsidiary, OQ Alternative Energy, the company is investing in renewable energy projects, many of which are expected to be developed in partnership with private players, with OQ retaining up to 50% ownership. Final investment decisions on several of these initiatives are expected in 2025 and 2026. Since 2021, OQ has significantly improved its balance sheet, reducing gross debt by over 45%—from RO 5.3 billion to RO 2.9 billion by end-2024. This deleveraging, supported by strong operating cash flows and nearly RO 2 billion in IPO and divestment proceeds over 2022–2024, underpins its robust credit profile, even amid expectations of a weaker market in 2025–2026. S&P expects funds from operations (FFO) to debt to remain solid at 50%–53% in 2025 and 54%–57% in 2026. Despite planned capital expenditure of RO 700–800 million annually in 2025 and 2026, including investments in maintenance and alternative energy projects, OQ is projected to generate positive free operating cash flow (FOCF) of RO 125–175 million in 2025 and RO 150–200 million in 2026. This is supported by its strong liquidity, including RO 3 billion in cash and cash equivalents, largely placed in interest-bearing short-term deposits, the agency noted. OQ maintains a conservative financial policy, targeting net debt to EBITDA of 2.0x–2.5x and keeping Funds from Operations (FFO) to debt above 55%. Annual dividends are set at RO 289 million, with additional payouts dependent on divestment proceeds. Distributions from 2026 onward are expected to remain balanced with performance, leverage, and investment priorities, S&P added. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
27 minutes ago
- Zawya
QCB issues treasury bills worth $357mln
Qatar Central Bank (QCB) has issued treasury bills for maturities of 7 days, 28 days, 91 days, 189 days, 252 days, and 336 days, worth QR1.3 billion. In a post on X platform on Thursday, QCB said that the treasury bills issued were distributed as follows: QR500 million for a 7-day term (New Issuance) at an interest rate of 4.610 percent, QR200 million for a 28-day term (New Issuance) at an interest rate of 4.611 percent, QR200 million for a 91-day term (Tap Issuance) at an interest rate of 4.546 percent, QR200 million for a 189-day term (Tap Issuance) at an interest rate of 4.461 percent, QR100 million for a 252-day term (Tap Issuance) at an interest rate of 4.415 percent, and QR100 million for a 336-day term (Tap Issuance) at an interest rate of 4.365 percent. According to QCB, the total auction bids for the treasury bills amounted to QR4.4 billion.
Zawya
27 minutes ago
- Zawya
KNPC to build 16 fuel stations in Kuwait
KUWAIT CITY: Kuwait National Petroleum Company (KNPC) has obtained approval to build 16 fuel stations this year, say sources from the oil sector. Sources disclosed that the stations will be located in new residential cities, while some densely populated residential areas will have additional fuel stations. Sources said the company aims to increase its sales of all types of gasoline to at least seven million liters by 2030, considering that its sales exceeded 5.105 million liters of gasoline by the end of the fiscal year ending March 31, 2025; compared to 5.016 million liters in the previous year and around 4.891 million liters in 2023. Sources confirmed that the company is targeting increased revenues from car wash stations, whose revenues declined in fiscal 2024/2025 to KD393,300 compared to KD432,000 in the previous fiscal year. Sources indicated that KNPC is planning to develop its car wash stations to achieve the targeted returns. Sources stated that KNPC will establish new fuel stations in line with environmental cleanliness and international requirements, particularly the strategy of Kuwait Petroleum Corporation (KPC) to achieve carbon neutrality. Sources added the company intends to implement many initiatives related to its projects and refineries in order to reduce carbon emissions. Moreover, sources confirmed that the Chief Executive Officer (CEO) of KNPC Wadha Al-Khatib ensured that around 120 Kuwaiti employees under contractor contracts were treated fairly as their salaries, which exceeded the top of the grade scale, were not affected. Sources said these employees remain entitled to promotions and job placements under the regulations. Sources added that the Kuwaitis employed at Al-Dar Company, which implements service projects for KNPC, will soon receive their end-of-service benefits. Sources also stated that the executive management of KNPC prioritizes nationals, such that it periodically announces job advertisements to increase the percentage of nationals working in the company to compensate for the decline in 2025. They revealed that in the first quarter of this year, the number of Kuwaiti workers reached 5,864; compared to about 6,007 during the same period in 2024. The percentage of national workers in KNPC stands at 92.4 percent, which, sources stressed, is a good percentage. They went on to say that Al-Khatib's recent instructions to the leadership of the company center on the need to increase the national human capital and develop their functional capabilities. They added that KNPC organized many training courses for the national workforce in cooperation with local and international institutions.
