About Jordan

Cooperative Housing in Jordan: History, Current State, and Key Insights

Cooperative housing in Jordan emerged as a community-based response to the country’s growing urbanization and housing affordability crisis. One of the earliest and most successful examples is the Al-Ridwan Housing Cooperative.  It was established in 1993 in Naour, a district on the southwestern edge of Amman. Al-Ridwan exemplifies how collective action can create not only homes but vibrant, self-sustaining communities.

AlRidwan Society in Jordan

Legal Framework

Housing cooperatives in Jordan operate under the Jordan Cooperative Housing Law of 1959, enacted under the broader Cooperation Law No. 17 of 1956. Key provisions include:

• Restrictions on selling or renting units without cooperative approval.
• Permissions for cooperative management to act in cases of default or absenteeism.
• Guidelines for property mortgaging, construction changes, and penalties for violations.

Current Landscape

As of 2024, Jordan has:

• 147 housing cooperatives
• Serving over 17,000 members
• Managing assets worth over 270 million Jordanian Dinars (~USD 381 million)

These cooperatives are mainly concentrated in Amman, leaving some regions like Ajloun and Tafileh entirely underserved. This uneven distribution points to the need for targeted policy and investment support in neglected areas.

Characteristics and Financing

Jordanian housing cooperatives are defined by:

• Democratic governance structures (General Assemblies, Administrative Committees, Audit Committees)
• Sharia-compliant financing models (notably, Murabaha loans with ~7% margin)
• High repayment rates (e.g., Al-Ridwan maintains a 100% repayment rate)
• Community-focused development, including public facilities like mosques, parks, and multi-purpose halls

The financial model fosters trust and responsibility, although cooperatives often face delays in collecting equity contributions and struggle with urban land prices and bureaucratic red tape.

Case Study: Al-Ridwan Housing Cooperative

Founded in 1993, Al-Ridwan has:

• 129 members
• Built 130 housing units
• Developed vital community infrastructure (e.g., mosque, school land donation, community hall)
• Enabled social cohesion and local engagement

Despite challenges—ranging from administrative delays to internal management conflicts—the cooperative has demonstrated resilience through transparency, participatory governance, and shared responsibility.

Role in Addressing Housing Challenges

Cooperative housing plays a critical role in:

• Reducing pressure on urban centers like Amman
• Providing affordable, community-based alternatives to speculative development
• Strengthening local identity and resilience
• Offering leadership and civic engagement opportunities to members

Future Outlook

For the cooperative housing movement to scale in Jordan, several reforms are needed:

• Improved land access and pricing
• Simplified regulatory and licensing processes
• Tax and financial incentives
• Policy support for geographic diversification
• Stronger partnerships between government agencies and cooperatives

There is also growing interest in integrating sustainability practices such as renewable energy, green building techniques, and water conservation.

Summary

The story of cooperative housing in Jordan, particularly through examples like Al-Ridwan, shows that housing can be more than shelter—it can be a platform for collective empowerment and long-term resilience. With the right support, cooperative housing can help address Jordan’s housing crisis and serve as a model for the broader region.

Resources Tagged "Jordan"

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