A total of JOD200 million has been allocated to licensed banks in Jordan to finance SMEs.

Jojo Puthuparampil is a business news writer for Inc. Arabia.

The Jordan Enterprise Development Corporation (JEDCO), along with the Organisation for Economic Cooperation and Development (OECD), has launched a $1.3 million project titled “Supporting Jordan in improving policies of small- and medium-sized enterprises” (SMEs).

The move aims to improve the capabilities of SMEs in developing policies and increasing coordination between public and private institutions, among others, JEDCO said in a statement.

Economic challenges facing the Kingdom include population growth, the influx of Syrian refugees, high public debt and a decline in exports, said Industry, Trade and Supply Minister Yarub Qudah.

The cabinet reached the final stage of deliberations on the national strategy for developing entrepreneurship and SMEs, following discussions with several stakeholders, according to Qudah.

A total of JOD200 million has been allocated to licensed banks in Jordan to finance SMEs, providing them with competitive interest rates and reasonable grace periods for repayment, Quhad noted.

Besides, JOD40 million has been allocated to the Agricultural Credit Corporation to finance small- and medium-sized projects, he added.

The project is designed in line with the national strategy’s goals and vision, said JEDCO’s acting CEO Riyadh Al Khatib.

Improving local communities’ economic conditions and enhancing citizens’ living standards are supported by economic and social development, both at the local and national levels, Khatib said.

Jordan depends highly on its human resources, especially in the light of the scarce of natural resources, he noted.