Jordan lies at the epicenter of a fragmenting Arab state system and changing regional order. Its government is semi-autocratic with pervading attributes of neo-patrimonialism and the security state, both of which have led to a fragile civil society. Through the case of social enterprises, this paper examines how Jordan’s royal NGOs (RONGOs) have become involved in the state’s surveillance mechanisms and contribute to the entrenchment of authoritarian governance practices. Social entrepreneurship refers to the employment of business-like tactics to achieve primarily social goals. In Jordan, they constitute a nascent but important part of the country’s civil society by challenging established (and state-sanctioned) conceptions of government accountability and popular activism. International organizations and foreign governments alike have championed social entrepreneurship in Jordan because they consider it a promising vehicle for economic prosperity and citizen participation leading to greater state stability. In addition, entrepreneurship promotion efforts seek to address the various concerns raised by Jordan’s large youth population. While much of the existing literature discussing social entrepreneurship in the Middle East takes a positive and hopeful approach, this paper presents a critical review of its actual functions within the Jordanian surveillance state, with particular reference to the new role RONGOs play in this system. The research is based on over forty semi-structured interviews conducted in Jordan from January to April 2018 and analyses the challenges social entrepreneurs face in Jordan regarding state bureaucratic and surveillance mechanisms. The conclusions indicate that authoritarianism in the country is not only persistent but also evolving. That the regime would employ surveillance mechanisms to control social enterprises is to be expected, considering Jordan’s history. The involvement of royal NGOs in this process through sponsorship, awards, and cooptation of social enterprises, however, is new, particularly for King Abdullah II’s reign. It suggests a more direct participation of the monarchy in the surveillance apparatus which was not present before. It also shows that the monarchy, through its direct involvement, is tightening the leash it has given civil society and is devising new realms of influence through which society can be directed, restricted, and ultimately controlled. The research contributes to debates about democratization in Jordan and the wider Middle East by showing how royal NGOs have expanded their involvement in the surveillance state. The implication of this is that Jordan is not democratizing but further entrenching authoritarianism.