Banks launch largest private investment fund in Kingdom

JD275-million fund to empower firms to seize post-COVID opportunities

(Photo: Pixabay)
AMMAN — Jordanian banks have come together to create a JD275-million investment fund, the largest investment instrument owned by the private sector in the Kingdom’s history.اضافة اعلان

The Jordan Capital and Investment Fund, fully-owned by local banks, was launched on Tuesday as the largest in terms of incorporation capital.

According to Chairman of the Association of Banks in Jordan (ABJ) Hani Qadi, the rationale behind the inception of this company is driven by the need to stimulate local investment and empower local companies to capitalize on post-COVID opportunities in areas of food manufacturing, pharmaceutical and chemical industries, and ICT, among other promising sectors.

Qadi explained during Tuesday’s launch that the fund will have two investment arms; the first is the “Jordan Capital and Investment Fund Company”, in which commercial banks would invest, and the second is the “Jordan Islamic Capital and Investment Fund Company”, in which Sharia-compliant banks would invest.

The fund, which was launched under the aegis of Prime Minister Bisher Khasawneh, is designed to inject fresh investments and capital in promising Jordanian companies that have prospects for growth, development and expansion, according to Qadi.

During the virtual launch of the fund, Khasawneh emphasized the government’s firm approach to take the necessary decisions to remove obstacles to national and foreign investment and continue attracting foreign capital by improving the business environment in the Kingdom.

The stakeholders in the Jordan Capital and Investment Fund Company include the Arab Bank, the Housing Bank for Trade and Finance, the Jordan Kuwait Bank, Bank Al Etihad, Jordan Ahli Bank, Bank of Jordan, Cairo Amman Bank, Arab Jordan Investment Bank, Capital Bank, Jordan Commercial Bank, Societe Generale De Banque Jordan, Bank ABC Jordan, Invest Bank, and the Egyptian Arab Land Bank.

As for the other investment arm, the Jordan Islamic Capital and Investment Fund Company, the Jordan Islamic Bank, Islamic International Arab Bank, and Safwa Bank are the main stakeholders, according to Qadi.

He indicated that both companies will establish an investment management company called “the Jordan Capital and Investment Fund Management Company” which, according to Qadi, will apply the highest standards of professionalism, independence, and good governance.

In addition to providing a funding window, Qadi said the company will support local enterprises by offering expertise and will help open up new markets for them.

He also stressed that the company will strive to diversify its investment portfolio to cover the largest possible number of sectors with a real competitive advantage, by setting ceilings for the volume of investment in each sector.