Jordan

Context: From Stability to Strain
Long regarded as a relative oasis of political stability in a turbulent region, Jordan has come under mounting strain since 2019. Regional conflict spillovers, mounting debt, and the socio-economic pressures of a prolonged refugee influx have intensified following the COVID-19 pandemic and the Gaza–Israel war.

Despite resilience—GDP growth of 2.6% in 2023, slowing slightly in 2024—Jordan’s public debt has surged above 100% of GDP by late 2023 when accounting for state-owned company obligations. In January 2024, the government signed a four-year Extended Fund Facility (EFF) with the IMF, aligned with World Bank reforms and focused on fiscal consolidation, macroeconomic stability, and social protections.

Jordan also faces structural vulnerabilities: drought, chronic water scarcity, youth unemployment around 21%, and one of the lowest female labor force participation rates globally. International donor aid, including over US$1.45 billion annually from the U.S., plus large EU and World Bank packages, has been crucial in cushioning these shocks, even as austerity measures threaten social protection.

AWC has four member organizations in Jordan. 

Arab Watch Coalition (AWC) in Jordan
AWC monitors IFI engagement to ensure that international financing and reform programs translate into equitable growth, protect social spending, and incorporate civil society voices in oversight.

International Monetary Fund (IMF)

In January 2024, Jordan entered into a four-year Extended Fund Facility (EFF) arrangement with the International Monetary Fund (IMF), valued at US$1.2 billion. The program is designed to support fiscal consolidation efforts, maintain the stability of the currency peg, and advance reforms in key areas such as utilities and financial governance.

The Arab Watch Coalition (AWC) has been closely monitoring how these reforms unfold, with a particular focus on their impact on public services, subsidies, and the equity of social protection systems. By tracking these dimensions, AWC seeks to assess whether the IMF-backed reforms are contributing to inclusive development or deepening existing inequalities.

World Bank Group (WBG)

Jordan became a member of the World Bank Group in 1952, and today its development agenda is guided by the Country Partnership Framework for 2024–2029. This framework emphasizes green and inclusive growth, job creation, and the strengthening of human capital. Jordan has also emerged as one of the International Finance Corporation’s (IFC) largest investment destinations in the region.

 Since its inception, the IFC has mobilized over US$1.6 billion in the country, with an active portfolio currently standing at around €500 million. The Arab Watch Coalition (AWC) follows these developments closely, particularly scrutinizing whether private-sector investments are generating sustainable employment opportunities and ensuring equitable sharing of benefits across society.

The World Bank has 26 active projects in Jordan, and two are presently in the pipeline.

European Investment Bank (EIB)

The European Investment Bank (EIB) has been active in Jordan since 1979, playing a significant role in financing the country’s development priorities. Over the years, the EIB has committed a total of €2.99 billion across 74 projects, with investments concentrated largely in infrastructure and social services. These efforts have aimed to strengthen Jordan’s economic resilience while improving access to essential services for its population.

European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) has been operating in Jordan since 2012, supporting the country’s efforts to strengthen its economy and foster sustainable growth. To date, the Bank’s portfolio includes 71 projects, of which 57 remain active. These initiatives focus on advancing private-sector reform, promoting a green transition, and encouraging inclusive development, reflecting the EBRD’s broader mandate to combine economic progress with social and environmental responsibility.