Moody's Investors Service has affirmed Jordan's sovereign B1 rating and changed the country's outlook to positive from stable, owing to the government pressing forward with structural reforms and the economy's improved growth prospects.
The “strong commitment” of Jordan's government to implement wide-ranging reforms and a track record of effective implementation on the fiscal front, have “the potential to raise the resilience” of its credit profile, the rating agency said.
Widening government revenue provides greater fiscal flexibility against a backdrop of rising global inflation, while recent economic and administrative reforms may increase the economy's growth potential and strengthen its ability to absorb shocks, Moody's said.
“Jordan has established a track record of fiscal reform implementation and prudence, which will likely contribute to a further narrowing of its fiscal deficit and decline in government debt over the next few years, despite global headwinds,” Moody's said.
The rating agency expects the government's fiscal deficit to narrow to around 2-2.5 per cent of gross domestic product in 2023-24, compared to 3 per cent in 2021 and around 5 per cent in 2020.
Moody's fiscal forecasts assume that the government's debt burden will decline over the next few years to pre-pandemic levels of around 78 per cent of GDP by 2026, although it remains high compared to similarly rated peers. Government debt likely peaked at just above 90 per cent of GDP at the end of 2021.
The narrowing of the deficit will be driven by revenue gains, as reforms increase tax compliance and upcoming changes to the goods and services tax law further reduces the scope for tax evasion, Moody's said.
Government revenue is forecast to rise 9 per cent this year after increasing 16 per cent in 2021.
Jordan, which has limited natural resources, imports more than 90 per cent of its energy needs and relies on foreign aid and grants to finance its fiscal and current account needs. The kingdom is trying to overhaul its economy and cut state subsidies amid high public debt and unemployment that is above 20 per cent.
Moody's said it expects the wider structural reform agenda mainly comprising the recently announced Economic Modernisation Vision and Public Sector Modernisation Roadmap to be more robust with a greater likelihood of tangible outcomes over the medium term compared to past attempts.
The EMV aims to boost growth to around 5.7 per cent by 2033, create one million jobs, and attract more than 40 billion dinars ($56 billion) in foreign investment, equivalent to about 116 per cent of GDP.
Jordan's economy is likely to expand between 3 and 3.5 per cent over 2023-24, according to Moody's. The International Monetary Fund expects the economy to grow by 2.7 per cent this year, revised up from 2.4 per cent, due to increased tourism and positive regional spillovers from GCC countries.
“Effective implementation of the structural reforms has the potential to raise Jordan's medium-term growth performance beyond Moody's current expectations and help reduce unemployment,” the rating agency said.
“Clearer indications that growth will step up to higher levels, thereby raising the Jordan's resilience especially to social risks stemming from unemployment, will be consistent with stronger credit quality and greater shock-absorption capacity.”
Jordan's B1 rating is underpinned by its solid and credible macroeconomic policymaking institutions, strong international support and access to sizeable domestic savings that contain liquidity and external vulnerability risks, Moody's said.
But the kingdom still faces challenges posed by the government's high debt levels, structural rigidities contributing to low economic growth over the past one and a half decades, high unemployment and social pressures, and a volatile regional geopolitical environment, the rating agency said.
Earlier this week, the IMF and Jordan reached a preliminary staff-level agreement that will boost the total assistance to the kingdom to about $2 billion over the 2020-2024 period. The agreement is subject to approval by the IMF’s management and the executive board.
The economy stands to benefit from the kingdom's industrial partnership with the UAE and Egypt, Moody's said.
The three countries forged the agreement in May with the aim of boosting growth and investment in priority sectors that include petrochemicals; metals, minerals and downstream products; textiles; pharmaceuticals; and agriculture, food and fertilisers.
A $10 billion investment fund, allocated and managed by Abu Dhabi's holding company ADQ, will accelerate work on the partnership across the five priority sectors.
The initiative will establish large joint industrial projects, create job opportunities, contribute to increasing economic output, diversify the economies of the three countries, support industrial production and increase exports.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Killing of Qassem Suleimani
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Killing of Qassem Suleimani
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
The specs
Engine: 4.0-litre flat-six
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
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Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
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Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Killing of Qassem Suleimani
Jetour T1 specs
Engine: 2-litre turbocharged
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Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
UAE currency: the story behind the money in your pockets
Zayed Sustainability Prize
