In a move aimed at addressing the gains made by the Islamist opposition in recent elections, King Abdullah of Jordan is set to appoint Jafar Hassan as the new prime minister, according to insider sources. This decision comes after the government's resignation on Sunday, following a parliamentary election that witnessed an increase in support for the Islamist opposition in the US-allied kingdom.

Jafar Hassan, a Harvard-educated technocrat and the current head of King Abdullah's office, will assume the role of prime minister, replacing Bisher Khasawneh, a veteran diplomat who has held the position for nearly four years. Khasawneh will continue in a caretaker capacity until the formation of a new cabinet, as stated by the royal court.

One of Hassan's key challenges will be to mitigate the impact of the recent Gaza war on Jordan's economy, which has been significantly affected by restrictions on investment and a sharp decline in tourism. In his appointment letter, King Abdullah emphasized the importance of strengthening democracy and pushing forward with donor-backed mega-infrastructure projects in energy and water to secure the country's economic future.

The outgoing prime minister, Bisher Khasawneh, had made efforts to drive reforms as advocated by King Abdullah. These reforms aimed to reverse a decade of sluggish economic growth, exacerbated by the COVID-19 pandemic and conflicts in neighboring Iraq and Syria. However, the implementation of these changes has faced resistance from the conservative establishment, fearing that liberal reforms would undermine their long-held grip on power.

Politicians acknowledge the urgency to accelerate IMF-guided reforms and address Jordan's high unemployment and over $50 billion in public debt. The stability of the country heavily relies on foreign aid from Western donors. The recent parliamentary election saw the Muslim Brotherhood opposition and its ideological allies, including the Palestinian group Hamas, make significant gains. They secured 31 seats, becoming the largest political grouping in parliament since its revival in 1989.

While the pro-government majority is maintained in the new composition of the 138-member parliament, the more vocal Islamist-led opposition could pose challenges to IMF-backed free-market reforms and foreign policy, according to diplomats and officials. Jordan's constitution grants most powers to the king, who has the authority to appoint governments and dissolve parliament. However, the assembly can force a cabinet to resign through a vote of no confidence.

The appointment of Jafar Hassan as the new prime minister signals King Abdullah's intent to navigate the evolving political landscape in Jordan. As he assumes this key role, all eyes will be on Hassan to steer the country towards economic recovery and address the demands and aspirations of its citizens.