Jordan is a small Arab country in the Middle East region, with a population of 5.3 million and a population growth rate of 2.4%. The majority (62.6%) reside in the central region, while 27.7% and 9.7% of the population reside in the Northern and Western regions respectively. The total area of Jordan is 89.3 thousands sq. km; approximately 7.8% is agricultural land (Department of Statistics, 2005).
After gaining its independence, Jordan was confronted with many problems relating to social and economic development. The lack of financial resources has hindered its efforts and ambitions to achieve a sustainable economic growth and development, increasing its dependency on external income flows in the form of grants from other countries in the region and remittances from Jordanians working, mainly, in rich Arab oil countries. Like other developing countries, Jordan has chosen a state–sponsored route for development with the Jordanian private corporate sector playing a minor role. Therefore, many development banks have been established to meet its investment financing requirements.