Microfinance Industry Profile: Jordan

This report examines demand for microfinance in Jordan. It analyses microfinance providers and products, regulatory structure, financing sources and social impact of microfinance in Jordan.

Jordan has the fourth largest microfinance sector in the Arab region, with 144,232 active clients and gross loan portfolio of about $127 million as of end-2008. The report states that:

• Jordan has a liberalized and market-oriented microfinance economy;
• Demand for microfinance is about 200,00 households and microfinance penetration is about 18 percent;
• Microfinance providers include quasi-government organizations, NGOs, non-profit companies, for-profit companies and financial institutions;
• Microcredit is the most common form of microfinance;
• Microfinance organizations at the meso level include international organizations, microfinance associations and credit bureau;
• National microfinance strategy provides access to a wide range of financial services to the majority of economically active poor households and microenterprises;
• Government provides the enabling environment that encourages private sector participation, but there is no microfinance law to regulate providers;
• Donors, government, commercial banks and microfinance investment vehicles are the primary funding sources.

National Impact and Market Study of Microfinance is the only microfinance impact assessment study conducted in Jordan.