Dr. Hamza Alakaleek

At the very moment you read these lines, algorithms are reshaping the contours of wealth and stability across global financial markets. Artificial intelligence is no longer a technical add-on for banks; it has become a decisive force that determines who remains competitive and who is forced out by rising operational costs or unmanaged cyber risks. In this evolving landscape, Jordan is positioning itself at the forefront of regional transformation, guided by the Central Bank’s vision not merely to keep pace with technological change, but to engineer a resilient financial system that blends innovation with stability.

Jordan’s economic performance in 2025 reflects this direction. The economy recorded real growth of 2.7 per cent in the first quarter, signalling resilience in a challenging global environment. This progress was not accidental; it was the result of prudent monetary policy that preserved price stability and strengthened confidence. Foreign reserves reached a record $28.5 billion by the end of January 2026, reinforcing financial security. Meanwhile, digital transformation accelerated significantly, with 84% of banking transactions conducted electronically. This shift enhanced efficiency, reduced reliance on foreign currencies, and brought dollarisation down to 17.6 per cent, reflecting growing trust in the Jordanian dinar and its supporting digital ecosystem.

These indicators point to a banking sector that is not only stable but increasingly driven by digital ambition. However, as payment system transactions exceed JD42 billion, an important question emerges: how can artificial intelligence protect such a vast financial system from fraud and algorithmic shocks?

The answer lies in understanding the dual nature of AI. On one hand, it offers remarkable opportunities. Banks can improve operational efficiency by up to 15 per cent, boost productivity by 30 per cent through generative AI, and increase revenues by around 6 per cent. AI enables more accurate risk assessments, real-time monitoring, and more intelligent decision-making processes. These advantages position financial institutions to operate faster, more cost-effectively, and with greater precision than ever before.

Yet the risks are equally significant. Overdependence on algorithms can produce flawed outcomes if the underlying data are biased or incomplete. Even more concerning is the speed at which shocks can spread through interconnected systems. A minor disruption, when amplified by algorithmic reactions, can quickly escalate into a broader financial disturbance. This makes it essential to introduce specialised stress-testing frameworks tailored specifically to AI-driven systems.

Jordan’s approach reflects a clear awareness of these challenges. The country is not operating in isolation, but is actively learning from global best practice. Leading institutions such as the European Central Bank and the US Federal Reserve have prioritised stress testing for AI models, while Singapore’s Monetary Authority has advanced real-time monitoring of algorithmic systems. In the United Kingdom, regulators emphasise robust data governance and executive accountability for AI outcomes.


Building on these lessons, Jordan introduced its regulatory framework for AI in the banking sector in 2025. This framework is forward-looking, aiming to guide institutions towards responsible and secure adoption. It does more than regulate; it encourages innovation by providing clarity and legal certainty. Importantly, Jordan has avoided overly restrictive policies, instead promoting algorithmic transparency and ensuring customers have the right to challenge automated decisions.

Practical implementation is already visible. Arab Bank, through its AB Xelerate initiative, is exploring digital assets and block chain technologies within the Central Bank’s regulatory sandbox, JoRegBox. This initiative highlights how banks can transform into integrated digital platforms by embracing innovation strategically. Similarly, Jordan Islamic Bank is applying AI to strengthen anti-money laundering and counter-terrorism financing efforts, while maintaining compliance with Sharia principles. These examples demonstrate that AI in Jordan is not a passing trend but a structural shift in how financial services are designed and delivered.

Ultimately, financial stability in Jordan will depend on achieving a careful balance between innovation and protection. Institutions must embed ethical governance frameworks, invest in digital sovereignty, adopt advanced stress-testing tools, and promote a strong culture of digital awareness. Jordan is steadily moving towards a future in which responsible artificial intelligence supports sustainable economic growth.