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RIYADH: Promising Jordanian firms are set to have access to new financing with the launch of a private sector fund, backed by 16 local banks.
The Jordan Capital and Investment Fund, established in 2021 with a capital commitment of 275 million dinars ($387.6 million), was officially registered under the 2022 Investment Environment Law, the state news agency reported.
The instrument aims to inject money into emerging firms with growth, development, and expansion prospects, providing financing to enhance job opportunities and propel nationwide growth, as stated in an official statement reported by the Jordan News Agency.
As the country鈥檚 first and largest private sector investment fund, it is designed to allocate funds to vital and promising sectors, such as food and health security, manufacturing, and information and communication technology. The objective is to harness Jordan鈥檚 potential in building the future, it added.
The fund is crucial for achieving 鈥渁ccelerated growth鈥� by fully leveraging Jordan鈥檚 economic potential, according to Hani Al-Qadi, the chairman of the Jordan Capital and Investment Fund.
He expressed confidence in Jordan鈥檚 potential as a 鈥減romising investment market,鈥� emphasizing the opportunities to initiate targeted investments with measurable economic and social impacts, bringing numerous benefits alongside a sound financial dividend for investments.
The new offices of JCIF, wholly owned by Jordanian banks, were inaugurated by Minister of Investment Kholoud Saqqaf and Central Bank of Jordan Gov. Adel Sharkas in November 2022.
Subsequently, the financing vehicle entered its establishment phase, finalizing policies, strategies, and appointing an investment committee, CEO, and a specialized executive team.
鈥淭he Government of Jordan, through the Ministry of Investment, extends its full support for establishing investment funds, given their contributions to stimulating and attracting the capital of investment institutions in order to finance various priority economic sectors with significant competitive advantages,鈥� Saqqaf said during the inauguration.
She added: 鈥淚n doing so, they help achieve many economic and development goals that directly impact economic growth and efforts to combat poverty and unemployment.鈥�
The official commencement of operations, including investments in Jordanian companies, was scheduled for 2023.
In a statement released at that time, JCIF Management Co. stated: 鈥淚t aims to support the Jordanian economy by focusing on productive sectors to generate job opportunities, increase exports and prompt development across governorates.鈥�