AMMAN – During a recent
meeting with investors in
Irbid's Chamber of Industry, Minister of Investment,
Kholoud Al-Saqqaf, highlighted that the ministry has been established as the
primary reference for investment in Jordan, representing investors before all
government entities.
اضافة اعلان
To achieve this,
numerous reforms were undertaken, resulting in significant developments in
economic areas. These reforms included completing regulations governing the
business environment, issuing the Investment Environment Law, endorsing the
general investment policy, enacting the Public-Private Partnership Law, and
currently working on drafting regulations for partnership projects. The goal is
to create a supportive environment for existing investments and foster
conditions attractive to investors.
34.6% increase of investments
Saqqaf pointed out that the
Investment Environment Law and its associated regulations offer various
incentives to both local and international investors, contributing to a 34
percent increase in investments benefiting from the law during the first nine
months of 2023, reaching JD878.5 million compared to JD656.9 million during the
same period in 2022.
She explained that the
law authorized the establishment of
investment funds, with the registration of
the first investment fund as the largest fund in the Kingdom, owned entirely by
Jordanian banks, with a capital of JD100 million.
The government, through
the
Ministry of Investment, provides full support for creating investment
funds, aiming to stimulate investments in priority sectors, ultimately aiding
economic and developmental goals. The law also outlined a clear mechanism for investors
to appeal decisions affecting their rights and guarantees.
During the meeting,
Saqqaf outlined the ministry's steps to improve the business environment in the
Kingdom. Initiatives included launching the "Invest in Jordan"
platform to showcase the business environment and investment opportunities,
executing promotional activities to reach international investors, activating
the comprehensive investment service platform, and completing the automation of
services related to licenses and economic activities.
Economic expert Mufleh
Akel told
Jordan News that the establishment of an additional financing fund
alongside banks and other funding sources would significantly contribute to the
development of existing industries and the creation of new ones. He emphasized
the fund's potential capital of JD275 million as unprecedented, enabling
investment in new projects.
Akel added that the
fund's importance lies not only in its quantity but also in its potential to
leverage financial resources for expanding existing projects and initiating new
ones, thus generating employment opportunities and greater economic growth. He
stressed the need to manage and handle the fund carefully to ensure its success
and avoid significant disappointments.
Economic expert Mohammad
Al-Bashir told
Jordan News that the fund aims to establish industrial or
commercial companies aligned with the economic modernization system. He
highlighted the idea as a response to pressures from the government or
governmental entities to have a regulated financial arm supporting partnerships
between the
private and public sectors.
Bashir emphasized that
the fund serves as a financing window, creating a participatory situation for
some investment projects. It can play a role in addressing the trade balance by
focusing on imported goods, which has an impact on the trade deficit. Prioritizing
projects related to economic reality and reducing the gap between imports and
exports should be a priority.
A priority in enhancing economic growth
Economic expert Mazen
Irsheid told
Jordan News, "The
fund can be considered a priority in
Jordan's economic program due to its
potential role in enhancing economic growth, diversifying income sources, and
improving the citizens' standard of living for several reasons. First, boosting
market confidence: This fund serves as a strong indicator of confidence in the
Jordanian economy, similar to the impact when the UAE launched major investment
funds such as Mubadala and ADQ, leading to significant investments and economic
diversification."
Irsheid also emphasized
that this fund can act as an engine for economic growth, as observed in similar
cases in countries like Singapore. Sovereign wealth funds such as Temasek and
GIC contributed to stimulating growth and innovation, as well as directing
investments towards vital sectors like technology and renewable energy. This is
analogous to China's approach through funds like the China Investment
Corporation, which invests in multiple sectors to support innovation and
sustainable development.
He pointed out,
"Another positive aspect is that this fund reduces Jordan's reliance on
external aid and foreign direct investments. It can be compared to Malaysia's
experience with its sovereign fund, 'Khazanah Nasional,' which helped achieve
economic independence, improve infrastructure, and create job
opportunities." A multifaceted strategy addressing all facets of
investment and economic development is necessary for the successful
implementation of a fund with 100 percent ownership by Jordanian banks.
He stressed the
importance of initially identifying investment priorities and promising
sectors. Similar to Norway's focus on sustainable investments and technology
through its sovereign fund, Jordan can concentrate on sectors such as
technology, renewable energy, or tourism. This focus should be built on a
precise analysis of Jordan's economic and competitive potential.
Afterward, strategic
partnerships need to be established with investors and international
institutions. Just as China invested globally through its sovereign funds, such
as the Belt and Road Initiative, Jordan can enhance its economic partnerships
with other countries and international organizations to attract investments and
exchange expertise.
He highlighted, "To
ensure effective implementation, it is crucial to develop efficient mechanisms
for management and oversight, ensuring transparency and efficiency in fund
administration. Transparency and good governance of investment funds are essential
for building trust with the public and investors.”
Moreover, he noted that
the timing coincides with a period characterized by global economic changes,
similar to those witnessed in markets after the global financial crisis in
2008. Many countries sought to diversify their economies and enhance their ability
to face economic shocks during that period.
Diversifying income sources
For Jordan, this fund
represents an opportunity to achieve important objectives, such as diversifying
income sources, stimulating growth, and reducing dependence on specific
sectors. Amid
political transformations, especially in the Middle East region, this fund
serves as a means to enhance Jordan's economic independence. In times of
political uncertainty, the importance of possessing robust economic tools that
enable the state to maintain stability increases.
Furthermore, this
initiative comes at a time when global interest in sustainable and socially
responsible investments is growing. This trend aligns with global initiatives
to achieve sustainable development goals. Through this fund, Jordan can seek
investments that benefit society and the environment, similar to what countries
like Denmark have done by focusing on investments in renewable energy.
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