Driving economic transformation through innovation in Jordan

Context

Jordan, a lower-middle-income country in the Middle East, leverages its open economy and stability to attract foreign investment. However, economic growth has slowed over the past decade due to limited natural resources, a small industrial base, and external pressures. As a result, unemployment remains high at 21.4 per cent, with few quality job opportunities, especially for women and people with disabilities. To address these issues, Jordan’s Economic Modernisation Vision (EMV) focuses on diversifying the economy and boosting competitiveness, with small and medium-sized enterprises (SMEs) playing a pivotal role. They account for 98.5 per cent of firms, contribute 40 per cent of gross domestic product (GDP), and provide 60 per cent of jobs. Yet, they still face challenges like limited access to technology, investment, and innovation.

Objective

The competitive situation of Jordanian companies in growth sectors with potential for innovation and quality employment has improved.

Approach

The project, aligned with Jordan’s EMV, and in collaboration with the Ministry of Industry, Trade, and Supply (MoITS), focuses on four main areas:

• Supporting conducive frameworks: Improving policies and regulatory frameworks while enhancing the role of MoITS to boost the competitiveness of SMEs
• Driving innovation in firms: Supporting 400 SMEs to adopt innovative products, processes, and business models.
• Fostering ecosystem collaboration: Improving the organisational and technical conditions to support cooperation projects.
• Promoting human capital: Fostering high-quality employment by supporting private businesses to adopt diversity and inclusion practices.

Last update: January 2025