Jordan unveils $1bn stimulus for banks and tourism

Jordan has launched a stimulus package to inject fresh liquidity into its banks and support the tourism sector after it was affected by the US-Israel war with Iran.

The JD760 million ($1 billion) package is intended to allow banks to increase domestic lending and also salvage ailing tourism companies.

Jordan has been hit hard by the ongoing regional conflict, with recurrent Iranian missile and drone attacks and a decision by Israel to temporarily suspend gas supplies to Amman.

The new measures will inject JD700 million into the financial sector by reducing the required reserve ratio by 2 percentage points on current and demand deposits, bringing it to 5 percent for commercial banks and 4 percent for Islamic banks, the central bank of Jordan (CBJ) said on its website.

These measures will provide domestic banks with additional lendable liquidity of approximately JD300 million, CBJ added.

The package also includes a gradual reduction of the outstanding balance of certificates of deposit issued since June 2025, from JD550 million to JD150 million as of April 7, thereby injecting another sum of JD400 million.

CBJ said the package also includes easy financing facilities through banks to tourism establishments that have been “significantly” affected by the war.

These facilities aim to cover operating expenses, especially the salaries of employees, to ensure the continuity of operations and accelerate recovery after the end of the war, CBJ said.

The package follows an emergency plan launched by Jordan to manage the gas shortage, including rationalising supplies to the industrial sector.

The plan also includes accelerating a project to develop Jordan’s sole gas field in its eastern desert in a bid to become self-sufficient in 2029.

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