Jordan has launched a €35 million ($39 million) German-backed program to strengthen industrial competitiveness, support 370 micro, small and medium-sized enterprises (SMEs), boost exports, and create jobs. The “Leadership in Industry” initiative will be implemented through the Industrial Development and Support Fund, providing non-refundable grants of up to 25,000 Jordanian dinars ($35,300) for micro-enterprises, 50,000 dinars for small businesses, and 100,000 dinars for medium-sized firms, as reported by state news agency Petra.
Program Details and Funding
The program builds on Jordan’s longstanding development partnership with Germany. In 2025, the two countries signed €35 million in grant agreements through the German Development Bank to support entrepreneurship, improve access to finance for SMEs, and expand women’s economic participation under Jordan’s Economic Modernisation Vision. The initiative also supports Jordan’s broader economic reform agenda, which identifies SMEs as a key driver of growth, employment, and industrial competitiveness. The government’s 2026-2029 executive program includes measures to improve SME access to finance, support entrepreneurship, promote exports, and strengthen manufacturing value chains.
Women-Led Businesses and Economic Participation
The newly released Petra statement said: “It allocates €10 million to support women-led businesses and promote women's economic participation through technical and logistical assistance.” It added: “The fund will cover up to 70 percent of eligible project costs, rising to 80 percent for businesses owned or managed by women or those that create employment opportunities for women.”
Official Statements and Impact
Speaking at the launch, Ministry Secretary-General Dana Al-Zoubi said the initiative supports Jordan’s Economic Modernisation Vision and the 2024-2028 Industrial Policy, both aimed at enhancing the competitiveness of the industrial sector and expanding its contribution to economic growth. She added that the industry accounts for around a quarter of the national economy and generated nearly 45 percent of the country’s economic growth last year. Al-Zoubi noted that the Industrial Development and Support Fund has received more than 2,500 applications, supporting 635 companies that recorded sales growth of over 30 percent and export growth of about 40 percent, while creating more than 4,100 jobs. She also said preliminary discussions are underway with the World Bank to secure approximately 60 million dinars in additional funding for 2027-2029 to expand the fund’s industrial support programs.
Industry and Partner Perspectives
Jordan Chamber of Industry Vice President Mohammad Al-Jitan said SMEs account for more than 90 percent of the nation’s industrial sector and require continued financial support to expand and strengthen their competitiveness. He added that the fund’s programs have helped businesses address financing and operating cost challenges while boosting productivity and exports. World Bank representative Mohammad Abdel-Qader said the initiative reflects nearly three years of cooperation among Jordan, Germany, and the World Bank to support small businesses, promote regional development, and expand women’s participation in the industrial workforce. Matthias Schmidt-Rosen, director of the German Development Bank’s office in Jordan, said supporting the country’s industrial sector remains a key pillar of cooperation with the government through financing programs that enhance competitiveness, drive economic growth, and create jobs.
