Jordan reports record investment spending in 2025

Jordan’s spending on projects and other productive sectors soared by nearly 20 percent to its highest ever level in 2025, official data showed on Wednesday. 

Capital expenditure peaked at around 1.4 billion Jordanian dinars ($1.9 billion) last year, nearly 96 percent of the amount forecast, Petra news agency said, citing official data.

The ratio last year was far higher than the average 82 percent capital expenditure recorded in the previous years, the report showed.

A breakdown showed around 333 million dinars ($469 million) was allocated for the economic modernisation vision and 180 million dinars ($254 million) for municipal development projects. The rest was spent on tourism and other sectors.

“The increase in capital spending comes as the government seeks to stimulate economic growth and accelerate economic activity,” the report said.

It noted that capital spending is considered a key driver for encouraging private sector participation in development projects, and it has positive effects on boosting economic growth rates and improving public services and infrastructure.

In November Jordan approved its 2026 budget with an expected lower deficit despite a large increase in capital spending for economic and gas development.

The deficit was estimated at around 2.1 billion dinars ($2.9 billion), nearly 4.6 percent of the forecast GDP in 2026. The deficit compares with a shortfall of 2.26 billion dinars ($3.19 billion) in 2025, accounting for about 5.2 percent of GDP.

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A statement by the cabinet said the 2026 budget aims to support the economic modernisation vision and strategic projects as well as push ahead with economic and financial reforms.

The 2026 budget forecasts an increase in capital spending to around 1.6 billion dinars ($2.2 billion) compared with spending in 2025.

Jordan has reeled under persistent budget deficits over the past years due slow revenue growth, debt servicing and high current spending, mainly on salaries.

The country’s revenues come mostly from foreign financial aid, taxes, tourism, light industrial and farming exports, and remittances from its 700,000 expatriates in the Gulf.