Gulf investment gives Jordan vital support during war

Gulf investment and international financing have become a critical buffer for Jordan as the US‑Iran war escalates and the kingdom faces repeated missile strikes. Key support measures include a $300m contribution from Abu Dhabi to Jordan’s budget, multibillion‑dollar pledges from the UAE and Saudi Arabia to bolster railways, and the creation of a $100m Jordanian‑Omani Investment Company. The International Monetary Fund is also financing Jordan with “hundreds of millions of dollars” while the US and EU provide “billions of dollars” in aid, helping Amman preserve macroeconomic stability amid mounting regional risks.

“Jordan has a lot of experience in dealing with wars and managing foes astutely. It’s been around the block,” said Majd Shafiq, a capital markets consultant in Amman, underscoring the kingdom’s resilience and its appeal as a destination for Gulf funds.

The kingdom’s resilience is reflected in a set of economic indicators and policy responses. S&P Global affirmed Jordan’s credit rating with a stable outlook at the end of August, noting that “in 2026, the rerouting of regional trade through Jordan, specifically its port in Aqaba, continues to support growth.” S&P also cited government measures to protect energy supply and price levels and to ease transportation bottlenecks as positive factors. The IMF likewise said Jordan has “maintained macroeconomic stability despite strong headwinds,” crediting “prudent policies, continued reform implementation, and robust international support.”

Analysts warn, however, that risks remain skewed to the downside if the conflict becomes prolonged. The IMF cautioned that Jordan’s economic outlook, fiscal health and external buffers could “substantially” deteriorate in that scenario, citing threats including supply‑chain disruptions, declining foreign direct investment and tourism revenues, volatile commodity prices and rising borrowing costs.

Observers note the conflict has tightened the connections between security, politics and the economy. “The main fallout of the 2026 US‑Israel‑Iran war for Jordan is not the additional strain it has placed on the kingdom’s economy, politics and security,” wrote Samriddhi Vij, an associate fellow for geopolitics at Observer Research Foundation Middle East. “It is that the conflict has intensified the connections among them, so that pressure on one domain increasingly resurfaces in another.”

On the ground, Jordanian businesses and financial markets show mixed signals. Capital market consultant Shafiq pointed to a strong banking sector, a stable foreign‑exchange regime, a booming stock exchange and a pipeline of infrastructure, energy and residential projects as evidence of resilience. But smaller firms are feeling acute cash‑flow stress. “Business in Jordan has continued largely as normal,” said Omar Sati, managing director of Dash Ventures, an Amman‑based venture capital firm. He added that the single biggest impact of the war on young companies is receivables: when Gulf private and government‑backed customers stretch payment terms, “the cash flow damage doesn't land in Riyadh or Abu Dhabi, it lands in Amman.” Sati urged Gulf institutions to prioritise faster payments to regional suppliers as an effective support measure.

Outlook

• If Gulf investment and pledged funding — including the $300m Abu Dhabi support, multibillion‑dollar railway commitments, and the $100m Jordanian‑Omani fund — flow as intended, they will remain a vital lifeline that preserves Jordan’s macroeconomic stability.
• But prolonged hostilities could erode foreign direct investment, tourism and trade flows, sharply raising fiscal and external vulnerabilities, as warned by the IMF.
• Policymakers face the dual task of maintaining immediate stability through international support while not losing sight of long‑term challenges such as unemployment, stagnation and debt.