During a session chaired by Prime Minister Jafar Hassan, Jordan’s Cabinet approved the launch of a strategic partnership with the Arab Fund for Economic and Social Development (AFESD) to finance a range of priority development projects. This partnership, which covers the period from 2025 to 2029, marks a new phase of collaboration between the two parties and, for the first time, includes the financing of private sector initiatives.
Jordan will be the first country to adopt this model, with similar agreements expected in other Arab states. The initiative will target key sectors including water, social services, private sector growth, value-added industries, public-private partnerships, digital transformation, export development, and start-up support. Each project under this framework will require Cabinet approval before implementation.
The partnership between Jordan and AFESD spans over five decades, with the fund previously supporting major projects in sectors such as energy, agriculture, transportation, water, mining, industry, and social development. The AFESD is planning to allocate around $750 million to support development projects in Jordan over the next year, in collaboration with regional and international partners like the World Bank and the European Investment Bank.
Mirza Hassan, Senior Advisor to the AFESD Director-General, stated that the fund has restructured its developmental financing policies, with Jordan chosen as the “initial incubator” for the new vision. He highlighted that the strategy, developed by a consortium of experts, aims to transform regional challenges into sustainable investment opportunities, with a focus on critical sectors such as water, energy, and digital transformation.
Jordan’s role as a key development partner is underscored by over $3 billion in investments from AFESD, reflecting strong confidence in the country’s economy. One of the major projects the fund will prioritize in Jordan is the National Water Carrier project, along with sustainable energy projects, including solar and wind power, to address the country’s energy demands. Additionally, investments in education and healthcare infrastructure, such as school construction and hospital development, are planned.
In another related decision, the Cabinet approved a memorandum of understanding with AFESD to finance activities of the Jordanian Hashemite Fund for Human Development (JOHUD). These funds will support social and economic programs aimed at enhancing local skills and addressing community needs.
The Cabinet also extended its framework agreement with Fortescue Future Industries for a green hydrogen and ammonia production project in the Aqaba Special Economic Zone. The extension, valid until March 31, 2026, aims to facilitate infrastructure financing and standardize investment contracts, making it easier for future investors in the green hydrogen sector.
Additionally, the Council of Ministers approved the settlement of 979 outstanding tax cases between taxpayers and the Income and Sales Tax Department. This decision is part of ongoing efforts to reduce financial burdens on businesses, improve tax compliance, and encourage economic growth and expansion.
