The project to build the city some 30 kilometres (18.5 miles) from Amman was part of a drive to stimulate the economy and attract long-term investment, the government said in a statement published yesterday.
Touted as "environmentally friendly, sustainable and smart", the new city would be built on a major highway that links Jordan to Iraq and Saudi Arabia.
The project was aimed at finding "drastic solutions to rising population density and traffic congestion" in Amman and the northeastern city of Zarqa, said the statement carried by the official Petra news agency.
The project would "invest in clean and renewable sources of energy and water treatment" as well as provide affordable housing, the statement said.
It would be built in five phases with the first one ready by 2030 and the last expected to be completed in 2050.
"State institutions and ministries will be moved to the new city throughout the project's various stages," it added.
Cash-strapped Jordan hopes the project will attract private and foreign investors.
The United Nations says Jordan is hosting more than 650,000 refugees from Syria alone, while the kingdom puts their number at 1.4 million.
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