Amman, June 27 (Petra)-- The Islamic International Arab Bank (IIAB) has signed a cooperation agreement with the Jordan Loan Guarantee Corporation (JLGC) to implement the "Guarantees for Employment" program, becoming one of the first banks to join the initiative, the entities announced on Saturday.

The agreement was signed by IIAB General Manager Iyad Asali and JLGC General Manager Adnan Naji.

The partnership aims to facilitate Sharia-compliant Islamic financing for targeted micro, small, and medium-sized enterprises (MSMEs) through IIAB, backed by JLGC guarantees. To qualify for the funding, projects must actively create new jobs in Jordan to help reduce unemployment. Financial incentives will also be provided to these businesses based on the recruitment and retention of Jordanian workers.

Asali said the strategic partnership reinforces the role of Islamic finance in supporting the kingdom's economy by empowering MSMEs and creating a sustainable employment environment for Jordanian youth.

He added that the agreement marks a significant step toward enhancing financial inclusion and meeting the aspirations of the emerging business sector in accordance with Islamic banking standards.

Naji noted that the "Guarantees for Employment" program links financing directly to job creation and tangible economic impact, allowing smaller enterprises to secure the capital needed for expansion while generating new employment opportunities for citizens. He added that the initiative helps mitigate credit risks for commercial banks and financial institutions, thereby increasing capital flows toward productive sectors to support sustainable economic growth.

//Petra// AF