Capital Bank of Jordan, the fourth largest private bank in the country, has secured a $25 million subordinated loan from the Arab Fund for Economic and Social Development. The financing is earmarked to bolster the bank’s capital base and expand its lending operations to small and medium-sized enterprises (SMEs) and climate-friendly projects across Jordan.
A Strategic Part of a Larger Global Effort
The investment from the Kuwait-based Arab Fund is a key component of a larger $135 million financing package. This international syndicate, arranged by the European Bank for Reconstruction and Development (EBRD), also includes participation from global lenders such as the ILX Fund, the OPEC Fund for International Development, the Green for Growth Fund, and the SANAD Fund for MSME, showcasing strong global confidence in Jordan’s banking sector and economic potential. The agreement was formalized at a signing ceremony under the patronage of H.E. Dr. Adel Al Sharkas, Governor of the Central Bank of Jordan.
Strengthening Jordan’s Economic Backbone
Leaders from both institutions highlighted the strategic importance of the partnership for Jordan’s private sector. Fawzi Yousef Alhunaif, Director General and Chairman of the Board of Directors at the Arab Fund, stated, “This investment underscores Arab Fund’s ongoing commitment to diversifying financial offerings and supporting private sector development across member countries. We are proud to partner with Capital Bank and other reputable lenders to support climate finance and small and medium enterprises, the main engine of growth and job creation.”
Tamer Ghazaleh, CEO of Capital Bank, added, “This agreement reinforces Capital Bank’s market leadership and ability to deliver sustainable growth. We remain committed to innovative financing solutions that help grow the green economy and enable small and medium-sized enterprises to achieve lasting success.”
Arab Fund’s Deep-Rooted Partnership with Jordan
This latest loan builds on a long-standing relationship between the Arab Fund and Jordan. Since its inception, the fund has provided approximately $2.6 billion in loans to support the country’s economic growth across key sectors including transport, infrastructure, industry, water, and agriculture. Further strengthening this commitment, the Arab Fund announced a $690 million financing package in April 2025 as part of its first Country Partnership Strategy with Jordan, aimed at promoting economic resilience and inclusive growth.
About The Arab Fund
The Arab Fund for Economic and Social Development is a regional financial institution based in Kuwait, established in 1968 to support the economic and social development of Arab countries. Through loans, grants, and technical assistance, the Arab Fund finances infrastructure, education, health, water and sanitation and public service projects that contribute to sustainable development and regional cooperation across the Arab world.
Source: Zawya
