Innovative Startups and SMEs Fund (ISSF) — Jordan's Fund-of-Funds Engine for Scaling SMEs

Established in 2018 following the first recommendation of Jordan's Economic Policy Council, the Innovative Startups and SMEs Fund (ISSF) is a privately managed fund-of-funds combining $50 million in World Bank financing with $48 million from the Central Bank of Jordan, designed to seed Jordan's early-stage equity market for innovative SMEs rather than lend directly to firms.

The fund aims to catalyse Jordan's early-stage equity market for innovative startups and SMEs by mobilising private capital alongside public financing, rather than lending directly to firms.

The World Bank's Implementation Completion and Results Report, completed in March 2026, rated the fund's first phase 'Highly Satisfactory' - its highest classification. Verified results include $108.97 million in private capital mobilised (a leverage ratio of roughly 2-3x per public dollar), 22 institutional investment funds attracted to the Jordanian market, and approximately 160 startups financed (135 through intermediary funds, 25 direct), of which 26% were women-led. The fund reports 2,600 direct jobs created, with youth accounting for 56% of employment opportunities and women 37%; total ecosystem investment mobilised reached roughly $338 million, and $4.6 million was separately allocated to business development services and incubator/accelerator support. Independent coverage in the Jordan Times and Jordan News Agency corroborates the World Bank's assessment.

A second phase is underway through 2030, but the World Bank itself flags a financing gap of between $234 million and $885 million projected for 2025-2030 - a reminder that the fund's continued scale depends on further donor and private capital rather than being self-sustaining.