ISSF Earns 'Highly Satisfactory' Rating From WB, For Catalysing Entrepreneurship Ecosystem

(MENAFN- Jordan Times) AMMAN - The Innovative Startups and SMEs Fund (ISSF) has announced on Tuesday the findings of the World Bank's Implementation Completion and Results Report (ICR), which awarded the Fund a "highly satisfactory" rating, the highest within the Bank's evaluation framework.

During the press conference, ISSF Chief Executive Officer Mohammad Al Muhtaseb noted that the report, finalised at the end of March 2026, assessed the Fund's first phase of operations through 2025 and affirmed its ability to exceed both operational and investment targets despite a challenging regional economic and geopolitical environment.

According to the ISSF, the report validates the institution's strong performance and highlights its contribution to strengthening Jordan's venture capital ecosystem.

The Fund was established through a financing partnership involving the World Bank (WB) and the Ministry of Planning and International Cooperation, alongside a "direct" investment from the Central Bank of Jordan (CBJ). This partnerships played a key role in catalysing private investment and fostering entrepreneurship across the country.

The WB report described ISSF as a mature and replicable model of smart intervention in venture capital markets, highlighting its strong governance, efficient management and effective resource utilisation.

ISSF Chief Executive Officer Mohammad Al Muhtaseb noted that the Fund has been instrumental in structuring Jordan's venture capital landscape, stimulating economic activity and enhancing national competitiveness.

The report further commended the Fund's ability to maximise the impact of available resources while attracting private sector participation, positioning it as a model worth replicating in other countries.

In terms of results, ISSF mobilised around $108.97 million in private capital and supported around 160 startup investment transactions in Jordan.

The Fund also contributed significantly to job creation, generating about 2,600 direct jobs and an estimated 5,500 to 10,000 indirect jobs.

Notably, 56 per cent of these opportunities benefited youth, while women accounted for 37 per cent, reflecting the Fund's inclusive economic impact.

Launched in 2018 with total capital of $98 million, including $50 million from the World Bank and $48 million from the CBJ, ISSF was designed to address a critical financing gap for innovative startups and SMEs in their early and growth stages.

At the time, Jordan faced high unemployment, a fragile private sector and regional instability, the country possessed strong entrepreneurial potential that lacked adequate financial support.

Al Muhtaseb pointed out that several factors contributed to the Fund's success; among them was the ISSF s governance structure, which operates as an independent, privately managed joint-stock company adhering to international best practices in investment management, risk control and compliance.

This professional framework enabled the Fund to make disciplined investment decisions and build credibility among investors.

Another "key" element was ISSF's role as a catalytic investor, rather than competing with private capital, the Fund focused on attracting and leveraging it.

During its first phase, ISSF also invested $4.6 million in business development services, startup support programmes and ecosystem-building initiatives.

These included partnerships with Information Technology Association of Jordan and the Ministry of Digital Economy and Entrepreneurship to launch platforms supporting startup growth and investment readiness.

The WB also highlighted ISSF's openness to regional and international investors as a major success factor.

Through strategic partnerships and structured deals, the Fund attracted venture capital firms that had not "previously" operated in Jordan. This approach amplified the Fund's impact, achieving a capital multiplier effect of around 2.5 times its direct investments.

Overall, ISSF supported 160 startups, 135 through investment funds and 25 through direct investments, while attracting 22 venture capital funds to the Jordanian market.

Total investment activity reached around $338 million across local, regional, and international funds.

The Fund also reported that 26 per cent of supported startups were women-led, underscoring its role in promoting gender inclusion.

Looking ahead, the report identified a substantial financing gap estimated between $234 million and $885 million for the period 2025–2030. While this signals unmet demand, it also represents a "significant" growth opportunity for the venture capital ecosystem in Jordan and beyond.

Al Muhtaseb stressed the importance of continued collaboration with the WB and national institutions, noting that such partnerships were critical in building a transparent, efficient and globally aligned investment model.

He added that the combined support of the WB and the CBJ strengthened ISSF's governance and operational effectiveness, ultimately contributing to its strong performance.

ISSF remains committed to its mission of catalysing venture capital investment, bridging financing gaps, and fostering a dynamic entrepreneurship ecosystem in Jordan, one that is increasingly recognised as a model for other emerging markets.

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