Ammon News - The Arab Fund for Economic and Social Development (AFESD) has outlined its new strategic approach, signaling a significant shift in its developmental finance policies and operational restructuring. Jordan has been selected as the initial focus of this vision, building on a partnership that has already delivered over $3 billion in investments.

This strategy, developed over a year by a consortium of Arab and Jordanian experts, aims to convert pressing regional development challenges into sustainable investment opportunities, with a targeted emphasis on critical sectors like water, energy, and digital transformation.

In an exclusive Zoom interview with the Jordan News Agency (Petra), Mirza Hassan, Senior Advisor to the AFESD Director-General, detailed the Fund's planned restructuring and prioritized development areas for the coming years.

Hassan explained that Jordan was chosen as the optimal starting point for this strategy due to its clear economic vision and its proactive engagement with recent economic, political, and administrative reforms.

He highlighted a rigorous analysis of the Jordanian economy, which informed a strategic roadmap developed in collaboration with international and local institutions.

"Jordan is one of AFESD's largest development partners, with over $3 billion in investments, reflecting our strong confidence in its economy," Hassan stated. "Its progressive reforms align with our strategy to support major developmental projects, making it an attractive investment destination."

The year-long restructuring process, he noted, aims to transform AFESD into a more dynamic and responsive development institution, capable of addressing the evolving economic and social challenges in Arab nations.

The new strategy prioritizes five key sectors: water, energy, transportation, telecommunications, and healthcare. These sectors face significant challenges across the Arab world, including water scarcity, rising energy demand (especially for renewables), infrastructure development, and improvements in education and healthcare quality.

AFESD plans to allocate approximately $750 million to Jordanian projects in the coming years, leveraging partnerships with international and regional institutions such as the World Bank and the European Investment Bank.

A key focus will be the National Water Carrier project, aimed at transporting desalinated water from Aqaba to Amman, addressing critical water shortages. The Fund will also prioritize sustainable energy projects, including solar and wind power, to meet Jordan's growing energy demands.

Investments in education and healthcare infrastructure, including school construction and hospital development, are also planned. Hassan emphasized the critical role of public-private partnerships in these sectors, facilitating funding and innovative management solutions.

He highlighted Jordan's potential, despite regional challenges, citing its skilled workforce and entrepreneurial spirit. He also noted the success of Jordanian companies in international markets.
Hassan underscored that AFESD's new strategy represents a significant step towards sustainable development in the Arab world, with a focus on Jordan.

He emphasized the importance of public-private partnerships and innovative financing mechanisms, including concessional loans, guarantees, and collaboration with international financial institutions.

He also acknowledged the challenges facing Jordan's investment environment, including administrative bureaucracy and the need for improved regulatory frameworks. However, he expressed optimism about Jordan's political will and government efforts to enhance the business climate.

Looking ahead, AFESD aims to foster regional economic integration, positioning Jordan as a regional hub in sectors such as energy, healthcare, and education. The strategy will focus on job creation, youth empowerment, and gender equality.

Hassan noted the regional economic uncertainties and declining growth rates but commended Jordan's economic resilience.

AFESD's strategic shift comes at a time of significant economic transformation in the region, aiming to provide a model for sustainable development across Arab nations. Petra