13/05/2025

Program Development Objective is:

Improving the enabling business environment and deepening access to finance for private sector-led growth.

The Development Policy Financing (DPF) series aims to support the Government of Jordan’s efforts to promote private sector-led growth and job creation. This Program is the first in a programmatic series of two IBRD loans designed to support reforms initiated under the Government's Economic Modernization Vision (EMV) 2033. The initial single-tranche Program in the amount of US $400 million is structured around two pillars:

Improving the enabling business environment.

Deepening access to finance.

Jordan’s economy has struggled to generate sufficient productive private sector jobs to meet the growing population's needs. This Program aims to improve competitiveness and attract investment in high-potential sectors. It also focuses on expanding opportunities for MSME growth, entrepreneurship, access to finance, and innovation, while reducing barriers to female labor force participation. The reforms are informed by a wide-ranging program of Analytic and Advisory Activities (ASAs) funded by the Jordan Growth MDTF; sector-specific Country Private Sector Diagnostic (CPSD 2.0, forthcoming); an updated study on informal employment; the Women, Business and the Law report; and B-READY technical assistance on business-enabling reforms.

Notable Achievements:

Strengthened competition framework through amendments to the Competition Law, enhancing the autonomy, enforcement capacity, and advocacy role of the competition authority.

Enhanced trade facilitation by amending the Customs Law to operationalize the Post-Clearance Audit (PCA) regime and introducing pre-arrival cargo information systems for improved risk management and faster clearance. 

Improved MSMEs access to public procurement through the adoption of dedicated instructions and a policy framework, alongside strengthened conflict-of-interest safeguards in procurement complaints review processes.

Advanced labor market reforms by submitting amendments to the Labor Law aimed at increasing flexibility while safeguarding the rights of female workers. 

Promoted gender inclusion in corporate governance by mandating a minimum of 20% female representation on boards of select shareholding companies. 

Supported Fintech and non-bank financial sector development through amendments to the Finance Companies Bylaw and the launch of the Fintech Regulatory Sandbox, with the first cohort of startups entering the testing phase.

Strengthened credit infrastructure and financial inclusion by enabling digital access to credit reports (CRIF), launching the national eKYC platform, and requiring gender-disaggregated reporting of credit data.

Advanced green finance and climate resilience by issuing central bank instructions on climate risk management for financial institutions.

Enhanced insurance sector stability through the establishment of the Insurance Policyholders Protection Scheme (Insurance Guarantee Fund).

Relevant Stakeholders / Partners:

Line Agencies