13/05/2025

Program Development Objective is:

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

The Jordan Growth and Competitiveness Development Policy Financing (DPF) series supports the Government of Jordan’s efforts to advance a more investment-led, private sector-driven, and inclusive growth model, in line with the Economic Modernization Vision (EMV). The programmatic series comprises three IBRD operations and supports reforms aimed at strengthening private investment, productivity, competitiveness, and job creation.

The series is structured around two pillars:

Improving the enabling business environment.

Deepening access to finance.

Building on the reforms supported under DPF I, DPF II advances reforms in priority areas to further improve the regulatory and business environment, strengthen competition, enable greater private sector participation, expand employment opportunities, and deepen and diversify access to finance. The reforms also support greater economic participation by women and youth and promote greener and more competitive energy and digital services.

The DPF series is supported by extensive World Bank Group analytical and technical assistance, including support financed through the Jordan Growth Multi-Donor Trust Fund (MDTF) and the Mashreq Gender Facility. This support helps translate upstream analytics and technical assistance into sequenced policy reforms, while complementary World Bank Group engagements support implementation, market uptake, and institutionalization of reforms.

Key Reforms & Achievements:

Strengthened the competition and business regulatory environment through reforms to the Competition Law and continued efforts to streamline priority sectoral licenses, reduce regulatory burdens, and improve market contestability.

Advanced trade facilitation and digital transactions through customs reforms, including the Post-Clearance Audit regime and pre-arrival cargo information, alongside a modernized legal framework for electronic transactions, recognition of foreign digital certificates, and electronic and remote notarization. DPF II targets at least 20% of notarization transactions to be completed electronically by 2028. 

Expanded opportunities for MSMEs, including improved access to public procurement and continued digitalization through JONEPS, with strengthened monitoring and transparency of contracts awarded to MSMEs. The series targets increasing the share of public procurement value awarded to MSMEs from 41.5% in 2024 to 45% by 2028.

Advanced labor market flexibility and formalization, building on Labour Law reforms by establishing proportional social insurance coverage for flexible work arrangements, while also facilitating access to highly skilled labor. These reforms support formal employment and labor force participation, particularly among women.

Promoted women's economic participation and corporate leadership, including measures supporting flexible employment and social protection and the introduction of a minimum 20% female representation requirement on boards of select shareholding companies. The DPF series targets increasing female labor force participation and women's participation in formal private-sector employment. 

Enabled greater private sector participation in energy and investment, including reforms supporting private participation in renewable energy generation, storage and transmission and facilitating private investment in strategic sectors. The series targets at least US$150 million in cumulative private capital enabled through renewable energy and transmission projects and newly awarded mining concessions by end-2028.

Accelerated the transition to digital government payments and financial inclusion, alongside the introduction of Light Business Accounts to expand access to simplified financial services for MSMEs and entrepreneurs, with a target of 50,000 active accounts by 2028, including at least 15,000 held by women or women-owned businesses.

Deepened capital markets and alternative financing, through reforms to the Securities Law, removal of double taxation on mutual investment fund profits, and the introduction of debt-based crowdfunding, expanding financing options available to businesses and investors.

Strengthened credit infrastructure and MSME financing, building on digital access to credit reports and the national eKYC platform by requiring financial institutions to report MSME business transaction and cash-flow information to the licensed credit bureau, supporting the expansion of cash-flow-based lending.

Advanced green finance and climate resilience, progressing from climate-risk management requirements for financial institutions under DPF I to operationalization of the National Green Taxonomy and introduction of climate-related disclosure and reporting requirements under DPF II. The series targets at least US$230 million in new taxonomy-aligned bank lending by 2028.

Strengthened insurance-sector stability, consumer protection, and market development, building on the establishment of the Insurance Policyholders Protection Scheme through submission of the new Insurance Contract Law, which establishes a strengthened framework for insurance contracts and consumer protection.

Relevant Stakeholders / Partners:

Line Agencies