Ammon News - The signing of a strategic objectives agreement for bilateral cooperation between Jordan and the United States marks an important step in strengthening ties between the two countries and reflects continued confidence in Jordan’s economy and its ability to implement reform and development programs, economic experts said.

Speaking to the Jordan News Agency (Petra), the experts said the agreement supports the implementation of the priorities of the Economic Modernisation Vision by directing funding toward priority development sectors. They noted that this would contribute to supporting economic growth, attracting investment, improving public spending efficiency, creating job opportunities, and enhancing services.

The Ministry of Planning and International Cooperation signed the four-year bilateral cooperation agreement between the governments of the two countries.

The agreement is the first of its kind with the current US administration and comes in line with the United States’ new approach to foreign assistance. Valued at $354.6 million, it will support the Jordanian government’s efforts to implement several national priorities outlined in the Economic Modernisation Vision. It also reflects the depth of the strategic partnership between the two countries and aims to strengthen their established economic relations.

The agreement focuses on supporting national priorities by enhancing long-term water security, strengthening economic resilience, and promoting self-reliance through programs and projects in key sectors, including water and wastewater, energy, education, tourism, and expanding economic opportunities. These efforts are expected to contribute to development efforts and improve the quality of services provided to citizens.

University of Jordan economics professor Dr. Raad Al-Tal said the agreement reinforces the strategic partnership between Jordan and the United States and reflects continued confidence in the Jordanian economy and its ability to implement reform and development programs.

He said the four-year cooperation framework provides a basis for medium-term planning and helps improve the allocation of resources toward national priorities.

Al-Tal explained that the agreement aligns with the Economic Modernisation Vision, which focuses on investment in infrastructure, digital transformation, and vital sectors such as water, energy, and transport. He said this would contribute to improving private-sector competitiveness and supporting the implementation of development and reform projects, which could strengthen the Kingdom’s ability to attract further investment.

He added that such agreements support economic growth by strengthening productive capacity and contributing to job creation. He noted that the agreement also aims to improve public spending efficiency through monitoring mechanisms and performance indicators, while achieving the desired outcomes depends on effective implementation, sound governance, and the ability to translate available resources into practical economic benefits.

Financial and economic expert Dr. Mohammad Abdel Qader said the importance of the agreement lies in being the first of its kind with the current US administration, reflecting confidence in Jordan’s ability to continue implementing reform and development programs and confirming its position as a stable and reliable partner in the region.

He said directing assistance toward priorities identified under the Economic Modernisation Vision would help translate external support into tangible development outcomes. The agreement could contribute to accelerating priority projects, improving infrastructure and basic services, enhancing resource efficiency, and easing part of the financial pressures facing the public budget, allowing the government to direct additional resources toward social protection programs and supporting investment and economic activity.

Abdel Qader highlighted water security as one of the main areas covered by the agreement, given its national and economic importance. He said improving water and wastewater networks, reducing losses, and developing supply sources would directly improve services for citizens while supporting agricultural, industrial, and tourism sectors.

Regarding energy, he said directing part of the funding toward energy projects and improving efficiency could contribute to strengthening energy supply security, reducing production costs over the medium term, and enhancing private-sector competitiveness, particularly through renewable energy, energy storage, and improved energy consumption efficiency in public and productive facilities.

In the education sector, Abdel Qader said the economic impact of the agreement requires linking education and training programs with labour market needs and developing digital, technical, and vocational skills to improve workforce productivity and reduce the gap between education outcomes and the requirements of emerging economic sectors.

He added that supporting tourism could contribute to developing tourism sites and services, diversifying tourism products, increasing visitors’ length of stay and spending, boosting foreign currency revenues, and creating direct and indirect employment opportunities in the governorates.

Abdel Qader also stressed the importance of implementing projects through effective partnerships with the private sector and providing local companies and small and medium-sized enterprises with an appropriate role in supply, implementation, and services to strengthen local content and ensure that the impact of funding reaches different economic sectors.

He said the agreement could contribute to stimulating investment, creating job opportunities, and improving the business environment, stressing the importance of directing funding toward sustainable projects that increase the economy’s productive capacity, improve service quality, reduce operating costs, and strengthen Jordan’s ability to rely more on its own resources.

Financial and economic expert Dr. Mohammad Al-Hadab said the signing of the agreement reflects a transition in relations between the two countries from separate support programs to a medium-term development framework that defines priorities and targeted outcomes and provides implementing bodies with greater capacity for planning and follow-up.

He added that the agreement falls within a broader strategic partnership based on the 2022 Memorandum of Understanding, which aims to support Jordan with US assistance amounting to $1.45 billion annually during the 2023–2029 period. He said the continued signing of new implementation agreements demonstrates the institutional nature of bilateral relations despite changes in administrations and international circumstances.

Al-Hadab explained that the importance of the agreement lies in directing funding toward six key development areas, including water and wastewater, energy, education, tourism, expanding economic opportunities, and supporting resilience and self-reliance. He noted that these sectors are directly linked to citizens’ quality of life and the cost of doing business.

He said allocating part of the funding to water security carries economic importance for Jordan, which is among the world’s most water-scarce countries. Improving network efficiency, reducing losses, and developing wastewater services can help increase available resources for industrial, tourism, and service sectors.

Al-Hadab stressed that support for the energy sector could strengthen energy supply security and reduce exposure to external market fluctuations, particularly with Jordan’s expansion in renewable energy and infrastructure development. He noted that funding directed toward efficiency and clean energy could reduce operating costs, improve the competitiveness of industry and services, and support investment.

He explained that the economic value of education support lies in reducing the gap between education outcomes and labour market needs through vocational and technical education and digital skills development. He said the success of programs should be measured by the number of trainees who move into employment rather than only the number of training courses or beneficiaries.

He also highlighted the importance of supporting tourism and economic opportunities, noting the sector’s contribution to foreign currency revenues and employment. He said the agreement could support tourism site development, services, marketing, and training, increasing visitor stays and spending while benefiting local communities and small businesses.

Al-Hadab noted that economic relations between Jordan and the United States provide an important foundation for further cooperation. Jordanian exports to the United States reached JD 595 million during the first third of 2026, while total exports amounted to around $3 billion in 2025, according to data from the American Chamber of Commerce in Jordan.

These exports are concentrated in garments and textiles, jewellery, machinery, electrical equipment, and pharmaceutical products, providing opportunities to strengthen the capabilities of these sectors and diversify exports.

Al-Hadab concluded that the agreement reflects confidence in the Kingdom's ability to continue implementing reform and development programs and highlights the strength of cooperation between the two countries in economic, trade, security, and development fields.