The economic rationale is clear and direct, as the Greater Amman Municipality seeks to replace a portion of its commercial borrowing, which has an estimated cost of 8.25%, with lower-cost financing. This 2.75 percentage point spread could alleviate pressures resulting from debt servicing and free up financial resources for investment in infrastructure and public services. According to announced estimates, the issuance is expected to generate savings of about 70 million Jordanian Dinars over five years, which could rise to 140 million Dinars if the Sukuk are extended for an additional five years, based on the same financial assumptions.
This initiative is part of a broader financing plan, as the Greater Amman Municipality intends to issue additional Sukuk worth 300 million Dinars in both 2027 and 2028, bringing the total planned issuance to one billion Dinars. If this program is implemented effectively, it could support the refinancing of existing obligations at more favorable costs. However, its ultimate contribution to financial sustainability will depend on how the proceeds of the issuance are used and whether refinancing is accompanied by effective expenditure management and control over future borrowing.