A facilitated loan of about $50 million was signed by the World Bank in agreement with the Jordanian Ministry of Planning and International Cooperation. The former will put up the money to shore up Innovative Startups Fund. Imad Fakhoury, the Prime Minister of Jordan, said about $48 million will also be provided by the Central Bank of Jordan. The signing ceremony took place on August 21. The Jordan Loan Guarantee Corporation will implement and also operate the project.
Prime Minister Fakhoury had said that this fund project will be operated and also implemented by Jordan Loan Guarantee Corporation. As per the Prime Minister, the fund follows the principles laid down by the Economic Policy Council. A set of 'key and critical recommendations' were created to line up with Jordan 2025 vision. The Jordan Economic Growth plan for the 2018 to 2022 period was adopted recently in tandem with the larger vision. The stated aim of all blueprints is to increase the economic growth by offering support to entrepreneurial and innovative medium-sized, small, and micro-sized enterprises which lead to job creation and thus have a beneficial effect on the local economy.
The fund will assist budding entrepreneurs to develop their potential business ideas. It will help them to connect with the business incubators. It will also offer venture capital to a number of entrepreneurial medium-sized and small businesses which prove their innate ability to weather business perils and push towards growth and sustainability.
Fakhoury said that the government expects the fund to fund about 200 innovative business practices all over Jordan. He said that entrepreneurial businesses in the country have contributed to 40 percent of total jobs created in Jordan from 2006 to 2011 period. The Prime Minister said that this agreement will support the partnership program that the country has inked with the World Bank for the 2017 to 2022 period. He underlined the continuous support of the World Bank to Jordan as its important partner in the country's reform process. He expressed the hope that the fund will further enrich the successful pilot programs initiated by the bank in countries like Morocco and Lebanon.
Ziad Fariz, the Governor of Central Bank of Jordan, said the complete implementation of such a project by the private sector in the country's reform and development process will assist to maintain the professional management credibility along with credibility to finance new services and products.