Amman, April 21 (Petra) – Minister of State for Economic Affairs Muhannad Shehadeh said Jordan is pursuing parallel tracks of economic stability and recovery while advancing major strategic infrastructure projects, despite ongoing regional tensions.

In an interview with CNN anchor Becky Anderson, Shehadeh said the Kingdom is responding to the impact of regional conflict through flexible economic policies designed to strengthen long-term resilience.

Fifty-one days into the ongoing conflict, the International Monetary Fund (IMF) projected that Jordan's economic growth could slow to 2.7% in 2026, assuming disruptions remain temporary.

The forecast highlights the dual challenge facing the Kingdom: managing short-term economic pressures while reinforcing long-term stability.

Shehadeh stressed that Jordan continues to pursue both stabilisation and recovery simultaneously, noting that recent developments reflect tangible progress despite regional uncertainty.

"It has been an important week for Jordan," he said, referring to the signing of a new partnership agreement with the United Arab Emirates valued at approximately $2.3 billion.

The agreement, part of the Aqaba Port Railway Project, is structured as a 50-50 partnership and marks a shift from the planning phase to implementation.

He explained that the project involves key national and regional partners, including the Jordan Phosphate Mines Company, the Arab Potash Company, the Government Investment Management Company, the Social Security Investment Fund and an Emirati partner.

The initiative aims to reduce transport costs, enhance competitiveness and expand market access, while serving as the foundation for a future national railway network and broader regional trade corridor.

According to Shehadeh, the railway will ultimately connect Aqaba Port to the Mediterranean Sea via Syria, strengthening Jordan's role as a regional logistics hub linking the Gulf, the Levant and parts of Africa.

In a related development, Shehadeh highlighted the signing of the National Water Carrier Project agreement, with total financing estimated at around $6 billion and supported by 26 international donors.

The project is expected to increase Jordan's drinking water supply by 40%, equivalent to approximately 300 million cubic meters annually.

He said Jordan is focused on "seizing opportunities rather than focusing solely on the consequences of the war."

Regarding regional economic pressures, including volatility in global energy markets, Shehadeh said energy shocks remain the Kingdom's most significant challenge due to its dependence on imported oil.

He noted that Jordan has developed considerable experience in managing external shocks over the past two decades, including regional conflicts, refugee inflows and the COVID-19 pandemic, which has strengthened the economy's resilience and adaptability.

"This is not the first external shock Jordan has faced," he said. "Over time, the economy has become more resilient and better able to adapt."

He added that the government is adopting a gradual approach to managing inflation by absorbing part of rising energy costs to protect citizens from sharp price increases.

"Passing on the full impact at once would be painful, so gradual adjustment is the most appropriate approach," he said.

Shehadeh pointed to the strength of Jordan's financial position, noting that foreign reserves at the Central Bank stand at around $28 billion, while the banking sector maintains a capital adequacy ratio of approximately 18%.

He added that recent monetary measures, including a reduction in mandatory reserve requirements, have injected about $500 million into the economy.

For his part, Jihad Azour, Director of the IMF's Middle East and Central Asia Department, said the conflict has exposed weaknesses in regional infrastructure and trade connectivity.

He called for diversifying trade routes and reducing reliance on limited corridors, emphasising that secure and open supply chains are essential to strengthening investor confidence.

Shehadeh said the Aqaba Railway Project directly addresses these challenges by creating alternative trade routes linking the Red Sea to the Mediterranean, with potential future integration into transport networks in Gulf countries and Iraq.

He added that one of the key lessons of the conflict is that reliance on a single transit route poses a strategic risk.

Looking ahead, the minister pointed to potential regional opportunities, including the revival of the Basra–Aqaba oil pipeline project, which could provide Iraq with additional export routes and enhance regional energy cooperation.

He concluded that strong economic relations between Jordan and Gulf countries will play a central role in building a more integrated regional economy capable of withstanding future challenges.

//Petra// AK

21/04/2026 19:23:21