The Arab Fund for Economic and Social Development announced its new strategy, which reflects a fundamental shift in developmental financing policies and the restructuring of its operational mechanisms. The choice of Jordan as the first incubator for this vision is a culmination of an exceptional partnership, with investments exceeding $3 billion.
اضافة اعلان
Dr. Mirza Hassan, Senior Adviser to the Director-General of the Arab Fund for Economic and Social Development, confirmed in an interview with the Jordan News Agency (Petra) via Zoom that an ambitious strategy has been revealed for restructuring the Fund and setting its developmental priorities for the coming years.
He said the Fund aims to expand the size of its financing portfolio, with about $750 million allocated to Jordanian projects over the coming years. He emphasized that this funding will be managed in cooperation with international and regional partners, including the World Bank and the European Investment Bank, to ensure full support for developmental projects in Jordan.
He explained that this strategy, developed by a group of Arab and Jordanian experts over a year, aims to transform the urgent developmental challenges in the region into sustainable investment opportunities, with a particular focus on sectors that are central to Arab economies, such as water, energy, and digital transformation.
Jordan Possesses a Clear Economic Vision
Hassan pointed out that the Arab Fund decided to apply this strategy in Jordan as the ideal country for this purpose, noting that Jordan enjoys a clear vision for its economic directions, having shown a positive interaction with the economic, political, and administrative reforms that have taken place in the country in recent years.
He clarified that a thorough analysis of the Jordanian economy has been conducted, and a central strategic plan has been developed based on the outcomes of a diagnostic study carried out in cooperation with international and local institutions.
He added that the Arab Fund considers Jordan one of its largest partners in development, with the volume of dealings between the Fund and Jordan exceeding $3 billion, reflecting the trust and attention given to the Jordanian economy. Jordan is considered a fertile ground for development projects due to the administrative and economic reforms being implemented, which are in line with the Arab Fund’s strategy to support major developmental projects. He stressed the importance of proceeding with further reforms, which will attract foreign investments.
5 Key Sectors to Support the National Economy
Hassan explained that the restructuring process, which took a full year of study and analysis, aims to transform the Fund into a more dynamic and effective developmental institution capable of addressing the economic and social challenges facing Arab countries. He noted that the new strategy focuses on five key sectors: "water, energy, roads, telecommunications, education, and health."
He highlighted that these sectors face significant challenges in the Arab world, including the worsening water crisis, the increasing demand for energy, especially renewable energy, the development of road and telecommunications infrastructure, and the improvement of education and healthcare quality.
Hassan confirmed that the Arab Fund is giving special attention to the "National Water Carrier" project, which aims to transport desalinated water from Aqaba to Amman to provide drinking water to the areas most in need in Jordan. He noted that this project is one of the major projects in the strategy and requires cooperation with relevant authorities, especially in light of the climate challenges the region is facing, such as drought and rainfall shortages.
He added that the energy sector, particularly renewable energy, is another priority for the Fund, as Jordan needs to develop sustainable energy projects to meet its growing energy needs. This includes working on financing solar and wind energy projects, which are promising sectors in the kingdom.
He noted that the education and healthcare sectors will receive special attention in the coming phase. As part of improving infrastructure in Jordan, the focus will be on building and renewing schools to provide an appropriate educational environment, in addition to improving healthcare services, including establishing new hospitals and medical centers.
Regarding the education sector, Hassan mentioned that there is a need to build many schools in Jordan, as well as develop new educational facilities. He emphasized that partnerships with the private sector will significantly contribute to the development of this sector by providing the necessary financing and offering innovative solutions for managing schools sustainably.
He also discussed the important role that the private sector will play in implementing the Fund's strategy, emphasizing that cooperation between the public and private sectors will be strengthened for the implementation of major developmental projects. The Arab Fund will work on providing concessional financing for these projects, along with guarantees for private sector financing to encourage investments in the vital sectors it focuses on.
The Resilience of the Jordanian Economy Leads to Sustainable Growth Despite Regional Challenges
Hassan added that despite the economic and regional challenges, Jordan has significant opportunities in various fields, and the Jordanian private sector possesses distinguished human and creative capabilities, enhancing the chances for national economic growth.
He mentioned that many Jordanian companies have succeeded in entering international markets, reflecting the success that can be achieved in the Jordanian market.
He confirmed that the new strategy of the Arab Fund for Economic and Social Development represents an important step toward achieving sustainable development in the Arab world, particularly in Jordan. He added that cooperation between the public and private sectors will be the foundation for the success of this strategy, and the Fund will continue to provide the necessary support to meet the needs of Arab countries in economic and social development fields to improve the living conditions of all Arab citizens.
Hassan noted that the Fund will rely on innovative financing mechanisms, including concessional financing for major projects and building strategic partnerships with the private sector by offering guarantees to encourage investment in priority sectors, alongside enhancing cooperation with international funds and banks to maximize financial resources directed towards development.
He clarified that the Arab Fund will also work on reducing the risks that investors may face in the Jordanian market, especially in high-risk sectors, by providing certain guarantees that will encourage private investments. He emphasized that ongoing support will help reduce barriers for these companies and provide them with the opportunity to expand and grow in new markets.
On another note, Hassan praised Jordan's significant humanitarian role in hosting refugees, considering it a model to be followed internationally. He affirmed that the Fund will work to support Jordan in overcoming the challenges arising from hosting refugees through a comprehensive package of developmental projects aimed at enhancing economic resilience and building infrastructure capable of handling the growing pressures.
He pointed out the Fund's future vision, which includes promoting regional economic integration, noting that Jordan is an eligible environment to become a regional hub in many vital sectors such as energy, health, and education.
Hassan confirmed that the new strategy of the Fund aims to turn challenges into real developmental opportunities, with a focus on creating sustainable job opportunities and empowering youth and women in the labor market.
