Britain launched an economic and diplomatic push to protect Jordan as an oasis of political stability in the Middle East by staging a conference designed to rescue the debt-ridden country, and help its leader, mainly by an injection of private sector investment.

The crowded London conference was attended by Jordan’s King Abdullah II, the British prime minister, Theresa May, the bulk of the Jordanian cabinet, the US treasury secretary, Steve Mnuchin, and a host of economic experts.

Jordan has faced summer street protests directed at the severity of its six-year economic consolidation programme. Sporadic protests over tax rises are continuing, showing the government’s limited room for manoeuvre.

The IMF-backed programme has been described as the most draconian anywhere in the world since the financial crash, dwarfing the cutbacks in public spending seen even in Portugal, and broadly matching those in Greece. The aim of the conference was to showcase Jordan’s potential as a country in which to invest rather than raise aid.

At one point, the summer riots in its capital, Amman, led to unfounded rumours that the king might abdicate amid signs that members of the Jordanian royal family were circling to succeed him.

Jordan is suffering 39% youth unemployment, possesses few natural resources and is burdened with 1.3 million Syrian refugees on top of longstanding Palestinian refugees.

Jordan, although touted as a source of political stability in an unstable region, is on its seventh prime minister since 2011, with critics claiming the king uses his ministers as a lightning rod for his own unpopular policies.

The current prime minister, Omar al-Razzaz, appointed after the street protests and a former World Bank economist, insists Jordan’s economy is showing signs of an upturn, but the fear is that if the fiscal consolidation is not accompanied by export-led growth and private sector investment, sizeable street protests will recommence.

Economic growth in the 10 year prior to 2009 was 6.5%, but fell to 2.5% in the following nine years.

Many of the country’s most skilled workers have left for Saudi Arabia or increasingly Turkey. But Saudi Arabia is also trying to address its unemployment issues by substituting indigenous labour in jobs previously done by migrants. The London conference heard that for every 100 Jordanian managers working in Jordan, 80 are currently working in Saudi Arabia.

A further exodus is likely to occur if Jordan cannot change the structure of its economy. Educated women are pouring out of Jordan’s universities but are unlikely to be accommodated in the current public sector structures.

Economic planners have attempted to highlight what they say are Jordan’s strengths: a skilled young workforce, strength in services, access to markets and commitment to green energy.

King Abdullah told the conference “the world understands the importance of a strong and prosperous Jordan”, insisting the country has the resilience to withstand the turmoil in the region. He said it “was a centrepiece for the values in which the world depends on mutual respect, moderation and inter-faith harmony”.

May praised Jordan’s role as a steadfast ally in the fight against terrorism and announced the UK was underwriting a $250m World Bank loan to make it easier for Jordan to borrow at lower interest rates. It would also invest in helping young Jordanians learn the English language, she said.

There was little open discussion of political reform in Jordan at the conference. The government is appointed by the King and parliament has a largely consultative role.