jordan pulse -

By Prof. Dr. Mohammad Al-Farajat

The government of Dr. Jaafar Hassan faces significant challenges with internal debt, particularly the JD 9 billion owed to the Social Security Fund. This debt, largely accumulated during the COVID-19 crisis, weighs heavily on the national budget.

To transform this challenge into an opportunity, the government could implement an innovative strategy: swap debt for strategic assets. The proposal involves transferring ownership of high-value state lands to the Social Security Fund in exchange for debt relief. Here’s how:


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Proposal: Strategic Asset Transfer and Development

1. Transfer Ownership of Strategic Lands

The government could transfer ownership of:

New City Project lands east of Amman

Wadi Araba development lands


These lands hold significant market value and investment potential, making them ideal for the Fund’s long-term sustainability.

2. Public-Private Development Partnerships

The government and the Social Security Fund would jointly oversee development plans, ensuring alignment with national development goals.

3. Economic-Driven Development Plans

These lands could be developed into residential, commercial, industrial, and infrastructure projects to generate sustainable income.


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Expected Benefits

1. Alleviating Government Debt

Reducing internal debt would ease fiscal pressure, enabling funds to be redirected toward vital development and operational projects across the country.

2. Provincial Development Boost

Savings from debt servicing could be allocated to infrastructure, SMEs, and public services in underdeveloped regions, reducing economic disparities and tackling unemployment.

3. Advancing National Mega Projects

The New City Project would decongest Amman and attract domestic and foreign investment.

Development in Wadi Araba could unlock its vast tourism, agricultural, and industrial potential.


4. Enhancing Social Security Sustainability

Converting debt into income-generating assets would secure the Social Security Fund’s financial stability, ensuring benefits for future generations.

5. Transparent Governance

A transparent and efficient management approach would maximise returns and bolster public trust in governance.


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Proposed Implementation Steps

1. Comprehensive Land Valuation
Accurately assess the market value and developmental potential of the lands.


2. Clear Partnership Agreements
Define responsibilities, rights, and obligations between the government and the Social Security Fund.


3. Detailed Development Plans
Design sector-specific projects, investment estimates, and timelines.


4. Private Sector Engagement
Attract private investors to fund and participate in development, leveraging public-private partnerships.


5. Revenue Management
Channel income from these developments into national development initiatives, particularly in education, healthcare, and municipal revitalisation.

This initiative not only offers immediate debt relief but also serves as a catalyst for balanced national development. By effectively implementing this strategy, the government can position itself for a remarkable economic and social turnaround, creating a more resilient and prosperous future for Jordan.