Positive results recorded by Jordan in global governance indicators are strengthening the country’s institutional standing and providing a supportive foundation for continued economic and administrative reform. Attention is now turning to the kingdom’s ability to translate this progress into tangible results in the real economy, reflected in investment, productivity, growth and job creation.
Economic experts said Jordan’s improved performance in several governance dimensions, particularly regulatory quality, government effectiveness and control of corruption, reflects progress in the institutional and regulatory environment and strengthens confidence in the national economy. They noted that this could help improve the business climate and reduce the costs of economic activity if accompanied by clear and sustainable implementation measures.
In statements to Al-Ghad, the experts said the real significance of the results lies not simply in improved scores or rankings in international assessments, but in the ability of public institutions to build on this progress by simplifying procedures, speeding up transactions, improving service quality, and strengthening transparency, accountability and the rule of law. Such measures would provide a more stable and predictable environment for investors, companies and citizens.
They stressed that the next phase requires linking institutional reform to measurable economic indicators, including private investment, exports, corporate productivity, the establishment of new businesses and job creation. This would ensure that the impact of reform extends beyond international indicators to economic activity and citizens’ living standards.
Jordan Advances in Three Key Indicators
The World Bank’s 2026 edition of the Worldwide Governance Indicators (WGI) showed improved results for Jordan across several governance dimensions, while the kingdom maintained relatively strong positions at the Arab level in some indicators.
The edition covers nearly 200 economies for 2025 and is based on six main dimensions: voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption. The indicators draw on data from 35 international sources, including household and business surveys and expert assessments.
Jordan recorded its most significant improvement in regulatory quality, with its score rising to 61.2 points in 2025 from 59.9 points in 2024, an increase of 1.3 points. The kingdom ranked 72nd globally and seventh among Arab countries.
The control of corruption score also increased to 54.2 points from 53.6 points a year earlier, an improvement of 0.6 points, placing Jordan 78th globally and fifth among Arab countries.
In government effectiveness, Jordan’s score rose to 54.6 points from 54.3 points in 2024, placing it 102nd globally and seventh among Arab countries.
The voice and accountability indicator recorded a slight increase to 44 points from 43.9 points the previous year, placing Jordan 140th globally and third among Arab countries.
Meanwhile, the rule of law and political stability indicators remained close to their previous levels. Jordan scored 61.8 points in rule of law, compared with 61.9 points in 2024, while its political stability score stood at 60.1 points, reflecting relative stability compared with the previous year.
These results provide an assessment of Jordan’s institutional and regulatory environment compared with other economies. However, their economic significance remains tied to the extent to which they translate into greater public-sector efficiency, clearer legislation, easier business activity and stronger institutional capacity to implement economic policies and programs.
“Institutional Capital” as a Driver of Investment
Economic expert Hossam Ayesh said the 2025 global governance indicators represent a positive signal of gradual improvement in Jordan’s institutional and regulatory environment, particularly in regulatory quality, government effectiveness and control of corruption. He stressed that the real value of this progress lies in the ability to translate it into tangible economic outcomes.
Ayesh said the results should be viewed in light of regional and global conditions. In his view, they reflect a degree of institutional and economic resilience, but do not mean that the reform process is complete. Rather, they provide a foundation on which to build and strengthen the competitiveness of the national economy.
He explained that improved regulatory quality could enhance the flexibility of the legislative and procedural environment, facilitate business and investment, and reduce bureaucratic complexity. This would lower the risks facing companies and investors and create greater opportunities for expansion, particularly in productive and export-oriented sectors.
He added that the improvement in control of corruption signals greater confidence in institutional integrity and reduced informal risks and costs, while improved government effectiveness reflects stronger capacity to implement policies, deliver services and turn decisions into practical outcomes.
Ayesh noted that simultaneous improvement in these three areas provides essential elements for a stronger business environment and could encourage domestic and foreign investment, improve businesses’ access to financing, and strengthen the government’s ability to implement major projects and develop partnerships with the private sector.
He said these factors should ultimately translate into stronger economic growth, higher productivity and more jobs, describing good governance as a form of “institutional capital” for Jordan that can enhance the economy’s ability to attract investment and achieve higher growth rates.
He stressed the need to measure the impact of reform through clear economic indicators, including private investment, exports, corporate productivity, the number of new companies and jobs created, so that positive results do not remain confined to international assessments but generate added value for the real economy.
Economic expert Ahmad Awad, meanwhile, said Jordan’s improved position in several global governance indicators represents a positive signal, particularly in regulatory quality, government effectiveness and control of corruption. These areas are directly linked to public institutions’ ability to implement policies and provide a stable and predictable environment for economic activity.
Awad said improved governance could strengthen confidence among investors and citizens while reducing risks and costs associated with regulatory uncertainty and inconsistent implementation of procedures. Clear rules, faster government services and fairer competition can help businesses expand, attract investment and create jobs, he said.
However, he stressed that economic and social returns cannot be achieved simply through higher international ratings. They materialize when businesses, workers and citizens experience tangible improvements in transactions, services and incomes. This requires linking institutional reform to improvements in the production environment, expanding opportunities for decent work and ensuring that different regions and groups benefit from economic activity.
Awad called for simplifying company registration and licensing procedures, reducing repeated approvals, establishing clear deadlines for completing transactions and addressing overlapping responsibilities among government bodies. He also called for greater transparency in government decisions and public procurement, as well as effective mechanisms for appeals and complaints.
He stressed the importance of creating a more supportive regulatory environment for social enterprises, cooperatives and nonprofit organizations and facilitating their access to financing and ability to operate. Such organizations can help fill service gaps, create jobs and stimulate local economies.
He also highlighted the importance of strengthening dialogue among the private sector, trade unions and civil society organizations, as well as reviewing the impact of legislation before and after implementation. This would help address actual obstacles and distribute the costs and benefits of reform more fairly.
Awad said the practical test of improved governance lies in reducing the time and cost required to complete transactions, improving service quality, ensuring fair application of the law and expanding participation in decision-making. These outcomes would turn institutional progress into tangible economic and social value.
Governance Strengthens Economic and Financial Confidence
Economic expert Munir Deyeh said governance indicators are important tools for assessing the seriousness of governments in implementing economic reforms and policies, given their potential impact on growth, investment flows and economic stability.
He said Jordan’s progress in several of these indicators reflects efforts to strengthen oversight and accountability in the public sector, monitor the implementation of programs and projects according to clear standards, promote integrity and transparency in data disclosure, and address corruption and hold those responsible accountable.
Deyeh said improved governance supports the investment environment, strengthens Jordan’s ability to attract foreign investment and creates more favorable conditions for implementing projects and reforms. This could reinforce the kingdom’s image as an economy with a degree of stability and the capacity to address challenges and risks.
He added that compliance with laws and regulations and stronger oversight and accountability can increase investor confidence. They can also strengthen Jordan’s ability to build more robust relations with donor countries, lenders and international financial institutions, potentially improving access to financing and financial support and positively affecting credit-risk assessments, although such assessments are also influenced by other economic and financial factors.
Deyeh said applying governance principles, including oversight, transparency, anti-corruption measures and improved administrative regulation, can support investment, production, exports and growth, with potential positive effects on the labor market and unemployment if accompanied by effective economic policies.
He stressed the need to strengthen the role of oversight institutions within government agencies, monitor compliance with governance systems, evaluate institutional performance and develop incentives for institutions that achieve stronger levels of governance implementation.
He said the next phase requires continued progress across all governance dimensions rather than relying solely on improvements in selected indicators. This would strengthen Jordan’s standing regionally and internationally and raise confidence in the national economy.
Despite the positive implications of Jordan’s progress in some areas of governance, the main challenge is to translate this progress into procedural and regulatory reforms that investors, companies and citizens can actually experience, reflected in lower business costs, faster service delivery and more efficient public spending.
This requires continued simplification of government procedures, reducing bureaucracy, improving coordination among institutions, strengthening transparency and accountability, and ensuring the stability of economic legislation and decisions. It also requires regularly assessing the impact of reforms against clear and measurable indicators.
Ultimately, improved governance represents an important institutional asset for the Jordanian economy, but it is not in itself a guarantee of higher investment or faster growth. The real return depends on institutions’ ability to translate this asset into a more competitive business environment, broader productive activity and sustainable employment, making institutional reform a genuine driver of economic development and improved living standards.
Source: Al-Ghad
