The cabinet has approved a plan for the Greater Amman Municipality to transition to Islamic sukuk financing, marking an important step toward strengthening financial sustainability and maintaining essential public services. The move is intended to help the municipality secure stable funding while continuing to meet the needs of citizens.
Under the approved plan, the municipality will shift to sukuk issuance in phases, with a total value of up to one billion dinars. An initial tranche of 400 million dinars is expected to be issued خلال the current year, allowing for a gradual and well-managed transition.
This decision reflects a strategic effort to adopt modern, Shariah-compliant financial instruments. By relying on long-term sukuk financing at relatively lower costs, the municipality aims to restructure its budget, reduce financial burdens, and improve overall fiscal efficiency.
The transition is also expected to provide the liquidity required to support key development projects. In particular, the funds will be directed toward infrastructure and transportation initiatives, which play a crucial role in urban growth and public service delivery.
By focusing on capital projects with developmental and potential revenue returns, the municipality can further enhance the quality of services offered to citizens. Overall, the shift to Islamic sukuk represents a forward-looking approach to sustainable financing and improved municipal performance.