2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information

2. Access to Credit

Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property


2.1 Banks (Strong)

Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?

Jordan has a modern and well-functioning financial services sector. The banking sector is regulated and supervised by the Central Bank. The sector includes 21 banks of which 5 are foreign, 5 are Islamic, and 9 are commercial.


Access (Very Strong)

2.1.1   How easy is it to obtain a bank loan?

Rank 33 out of 142; Score 3.36 out of 7

Soundness (Strong)

2.1.2   How sound are the country’s banks?

Rank 59 out of 142; Score 5.24 out of 7.

Source: The Global Competitiveness Report 2011-2012, World Economic Forum

2.1.3  Microlending (Strong)

Status – Strong, there are plentiful microfinance institutions, and the government actively encourages. Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country?

8 What is the number of active borrowers per institution?

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Source: Microfinance Information Exchange


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2.2 Other Sources (Strong)

Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange?


Financial Freedom (Strong)

2.2.1   How much control does the government exert over financial services?

Score 69.2 out of 100

Source: Index of Economic Freedom 2014, Heritage Foundation

Venture Capital (Strong)

2.2.2   How easy is it for entrepreneurs to find venture capital?

Rank 45 out of 142; Score 3 out of 7

Equity Investors (Strong)

2.2.3   How easy is it to raise money by issuing shares on the stock market?

Rank 43 out of 142; Score 3.9 out of 7

Source: The Global Competitiveness Report 2011-2012, World Economic Forum


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2.3 Credit Bureau (Very Weak)

Core Question: Is comprehensive credit information available through public and private credit bureaus?

Rank 170 out of 183; Trend ­↓

Coverage (Weak)

2.3.1   What is the depth of information available in credit bureaus?

Score 2 out of 6 with a higher number indicating more information is available

Public (Weak)

2.3.2   What is the extent of public credit registry coverage?

2 out of 6 with a higher number indicating more coverage

Private (Very Weak)

2.3.3   What is the extent of private credit registry coverage?

0 out of 6 with a higher number indicating more coverage

Source: Doing Business 2011 – Getting Credit, World Bank


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In-Country Assessment Information

FQ 8. How available are mortgage loans for purchasing commercial property (office, retail, industrial and logistics), who is the typical user and what are the prevailing trends?

FQ 9. What are the interest rates, term and loan-to-value ratios?

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FQ 10. In addition to microloans, to what extent are microenterprises (5 or fewer employees) active in the country? Approximately what percentage are formally registered firms?

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FQ 11. What services other than loans such as insurance, funds transfers, and business development training are available from microfinance organizations for formal businesses?

• Developing and investing in human resources
• Providing free vouchers to major shopping centers around the Kingdom in addition to fuel vouchers, complimentary mobile and internet services, free life insurance and coverage
• Supporting free medical days and job fairs
• Sponsoring various cultural and sporting activities, bazars to give clients the opportunity to showcase their products and handcrafts
• Arranging meetings with students and youth seeking to enter the job market


FQ 12. What professional financial services are available outside state owned banks including insurance, credit cards and investment management?

Private banks including both domestic and foreign provide financial services such as insurance, credit cards and investment management in both traditional and Islamic formats such as Islamic loans and leases.

FQ 13. What has been the appreciation (or depreciation) rate for commercial property over the last several years?

Overall house prices in Jordan rose by 9% during the year to end-Q2 2013, according to UAE-based property management company, Asteco.


FQ 14. How available is seed money or angel investors for the start up of small businesses?

The government has already started to make arrangements to create a setting in which angel investors for the start up small businesses can operate. Currently, availability of seed money or angel investors market is very weak.


FQ 15. Do small businesses have access to credit information about potential customers?

FQ 16. Can businesses gain access to information about them contained in credit bureaus and correct inaccuracies?