World Bank: "Satisfactory Progress" in the Second Phase of Jordan Innovative Startups and SMEs Fund (ISSF)

The World Bank has reported that the second phase of the Jordan Innovative Startups and SMEs Fund (ISSF) is "progressing satisfactorily" after initial implementation steps and early disbursements. As of the Bank’s evaluation, $5.13 million — roughly 10.26% of the $50 million financing — has been disbursed, leaving $44.88 million available. The project entered its implementation phase in October 2025 and is scheduled to run through July 31, 2030.

"The second phase of the Jordan Innovative Startups and SMEs Fund (ISSF) project is 'progressing satisfactorily' toward its development goal of supporting innovative startups and small and medium-sized enterprises (SMEs)," the World Bank said in its evaluation report.

Implementation and governance

The World Bank’s report notes several concrete steps completed since the ISSF became effective. The Project Operations Manual (POM) has been finalized and the Corporate Governance Framework updated. Financial and operational arrangements are now in place to support project activities, and the investment committee has begun reviewing early-stage investment proposals within both the co-investment and venture capital windows.

The second phase continues to leverage expertise from the International Finance Corporation (IFC) for due diligence and co-investment. The ISSF’s structure mirrors its first phase, which was also funded with $50 million by the World Bank in partnership with the Central Bank of Jordan (CBJ).

Targets, KPIs and funding allocation

• Total World Bank financing (Phase II): $50 million; disbursed so far: $5.13 million (10.26%).
• Project lifespan: Implementation through July 31, 2030.
• Key performance indicators by 2030:
  • Private capital mobilization target: $150 million.
  • Direct support: 100 startups.
  • Job creation: 1,500 direct jobs.
  • Inclusivity targets: 30% women-led/owned businesses; 40% youth-led.
  • Sustainability target: 10% of investments in Green Technology.
• Funding allocation across components:
  • $42 million for investments through investment funds (venture capital).
  • $3 million for direct co-investments.
  • $5 million for project management and capacity building.

The report also highlights the first phase’s outcomes as a reference point: it attracted more than $240 million in private capital and created over 2,290 jobs. Phase II aims to replicate and build on those results by mobilizing private capital and supporting growth-stage startups in priority sectors such as ICT, FinTech, HealthTech and GreenTech.

Outlook

With governance documents in place and early investment committee activity underway, the World Bank’s characterization of the project as "progressing satisfactorily" sets expectations for a ramped-up deployment of capital over the coming years. Key milestones to watch include the pace of additional disbursements from the remaining $44.88 million, the investment committee’s approvals under the co-investment and venture capital windows, and progress toward the $150 million private capital mobilization target by 2030.