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Economy of Power: Jordan at the Heart of the Geoeconomic Transformation

Countries today focus on who owns the commodity and controls its delivery route, and on what happens if a crisis occurs, after their primary concern used to be searching for the lowest price.

Jordan lies at the core of this equation; its location in the middle of a turbulent region makes it highly vulnerable to what happens beyond its borders—the very same location that grants it geopolitical and economic value upon which it can build.

This was evident during the region's disturbances in 2026, as the rise in energy and shipping costs and the decline in tourism activity directly impacted the Jordanian economy. The International Monetary Fund projected growth of around 2.7% in 2026, with the current account deficit widening due to increased energy, shipping, and insurance costs, and lower tourism revenues. Nevertheless, the economy remained largely stable, thanks to its reserves and economic policies, including measures to secure energy and supply chains.

The most prominent challenge facing Jordan is to shift economic resilience from a reaction to crises into a strategy of power; the Port of Aqaba is a strategic asset for the Kingdom, and land transport networks are capable of granting it a greater role in regional trade and future reconstruction.

Diversifying energy sources has become a matter touching upon economic sovereignty alongside its environmental dimension, with renewable energy contributing about 28% of electricity supplies in 2025 according to the IMF report.

However, building power on self-sufficiency is not available to an economy of this size, as it requires openness. This entails diversifying reliance so that energy and exports are not concentrated in a single source or market, and trade and investment routes are multiplied.

Through this diversification, the Kingdom's options expand: Aqaba to the south, Iraq and the Gulf to the east, Syria, Turkey, and Europe to the north, in addition to its relations with the United States, the European Union, and Arab countries.

Jordan's opportunity lies in employing its location and stability to turn geography into economic value and negotiating power, thereby moving out of the position of a recipient of geopolitical shocks.

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