A new era of partnership: Jordan and Arab Fund chart path to sustainable growth

Jordan Times

10-05-2025

During the last decade, the Jordanian economy has shown a remarkable resilience towards regional instability and global economic and environmental shifts. The growing effects of climate change, particularly extreme weather events and water scarcity, pose serious threats to social welfare and sectors like manufacturing and agriculture. The generous hosting of numerous refugees has also placed considerable strain on Jordan's national resources and public services infrastructure.
The country's growing population amplifies the demand for resources and employment opportunities, particularly for youth and women. These interconnected factors slow sustainable development and require careful consideration and innovative solutions.
Marking a bold new era in development financing, the Arab Fund embarked on an ambitious plan to support the implementation of Jordan's Economic Modernization Vision 2033, aiming to unlock its economic potential, improve the quality of life for all citizens, and aligning it with the Sustainable Development Goals (SDGs).
The partnership between Jordan and the Arab Fund extends for more than fifty years, where the Arab Fund has provided a total funding amount of about $2.67 billion in loans and grants to support the growth of many different sectors. These sectors include energy and electricity, agriculture and rural development, social services, in addition to transportation, water and sanitation, industry, and mining.
Among our major contributions is the financing of the Samra Electric Power Company, with approximately $600 million provided over seven successive development phases. Additionally, Jordan values the Sheikh Sabah Al-Ahmad Al-Sabah LNG Terminal Development Project because it directly benefits the economy. The under-construction project located in Aqaba, is being built with the Arab Fund as a partner, investing around $68 million to support Jordan's interests. The project will replace the high-cost floating storage and regasification unit with a more cost-effective storage vessel and establish an onshore regasification unit. These efforts are expected to significantly reduce the overall cost of supplying liquified natural gas (LNG) to power generation plants.
Beyond national initiatives, the Arab Fund has also played an instrumental role in promoting regional integration through supporting electrical interconnection between countries, linking Jordan with Egypt, Syria, and Saudi Arabia (in the near future), with a total investment of approximately $170 million.
These strategic engagements highlight the Arab Fund's broader commitment to fostering regional cooperation across the Arab world, while also reflecting Jordan's dedication to improving its energy infrastructure and ensuring long-term economic growth.
This laid the groundwork for a more comprehensive and strategic partnership across the entire Kingdom.
Through over a year of close collaboration, extensive consultations, and in-depth discussions between the Arab Fund and the Government of Jordan - represented by several ministries (including the Ministry of Planning and International Cooperation, the Ministry of Digital Economy and Entrepreneurship, The Ministry of Energy and Mineral Resources, the Ministry of Health, the Ministry of Investment, the Ministry of Water and Irrigation, as well as with the representatives of the Jordanian private sector and banking system), key critical development gaps were identified.
This intensive joint effort formulated a comprehensive Country Partnership Strategy (CPS) for Jordan, poised to chart a transformative new course for development partnership in the years ahead.
With an SDG-driven vision, the CPS will support Jordan's efforts in narrowing the gaps across six SDGs, including: SDG 3: Good Health and Wellbeing; SDG 4: Quality Education; SDG 6: Clean water and sanitation; SDG 7: Affordable and Clean Energy; SDG 8: Decent Work and Economic Growth and SDG9: Industry innovation and infrastructure.
The implementation will focus on improving social services — including water supply infrastructure, improving production of renewable energy and export of electricity, and improving access to quality early childhood education and Technical and Vocational Education Training. It will also support developing digital infrastructure and boosting digital skills needed for the digital economy.
One of the drivers of the transformative investment that will be supported by the Arab Fund is public-private partnership particularly in health and early childhood education, to improve employability for youth and women.
Besides, recognizing the significant contribution the private sector can make to development; the five-year strategy (2025-2029) aims to contribute to the growth and development of high-value industries and the digital economy, supporting the expansion of small and medium enterprises and startups.
That's why a cornerstone of the strategy is collaboration with the public and private sectors. Jordan's economic resilience has been supported by its creative and entrepreneurial human capital, capable private sector, and its ability to contribute to the region's development.
The Arab Fund will continue to provide concessional financing to support Jordan's development initiatives, along with private sector financing. The implementation of the CPS will be backed by a financing package of $690 million over the coming five years.
The Arab Fund will also mobilize more financial and technical resources from global and regional institutions to support the implementation of this strategy. This strategic intervention from the Arab Fund coming at a time of major global challenges, testimonies the confidence of the Arab Fund in the immense potential of Jordan.
By supporting member countries turn challenges into genuine development opportunities, the Arab Fund affirms its commitment to narrow SDG gaps and fosters integration across the region.
Bader Alsaad is director general and chairman of the Board of the Arab Fund for Economic and Social Development