AMMAN
– On Wednesday, Al-Ghad reported that since its establishment in 2003, the
Social Security Investment Fund (SSIF) has achieved substantial returns while
preserving the actual value of its assets and ensuring necessary liquidity to
meet future obligations of the Social Security Corporation (SSC).
According
to Dr. Ezzeddin Kanakrieh, the SSIF CEO, the fund is the largest in Jordan,
with assets reaching approximately JD14.9 billion by the end of 2023,
constituting around 40 percent of the GDP at current prices.
Over
the past 25 years, the SSIF has received significant royal attention,
emphasizing the importance of enhancing the role of the SSC and its investment
fund in providing social protection for citizens.
The
SSIF’s assets are distributed across several investment portfolios, including
bonds, equities, money market instruments, real estate investments, loans, and
tourism investments. The SSIF’s equity portfolio accounts for approximately
JD2.3 billion in 2023. As a long-term strategic investor, the SSIF focuses on
companies listed on the Amman Stock Exchange (ASE), aiming for solid
performance and optimal returns within acceptable risk levels.
Regarding
financial performance, the SSIF’s assets have grown significantly since its
inception, increasing from JD1.6 billion in 2003 to approximately JD14.9
billion by the end of 2023. The fund’s income, derived from various
investments, reached JD225 million, with an evaluation increase in the
strategic equity portfolio amounting to JD124 million. Additionally, SSC’s
contribution surpluses contributed JD65 million to the growth.
During
the first quarter of 2023, the SSIF’s income surged by 28 percent compared to
the same period in 2022. This growth primarily resulted from fixed-income
instrument portfolios, including JD133 million from bonds and JD59.4 million
from the equity portfolio. Furthermore, the dividends from companies in 2022
reached a historical record of JD152 million, the highest since the fund’s
launch.
The
comprehensive income, representing both SSIF’s income and the evaluation of the
strategic equity portfolio, increased to JD349 million in the first quarter of
2023, signaling a growth of 5.8 percent compared to the same period in 2022.
The
SSIF remains committed to its investment policy, balancing risk-adjusted
returns across different investment tools. The bonds portfolio constitutes 54.8
percent of the total portfolio, followed by equities at 18.4 percent, money
market instruments at 13.7 percent, real estate investments at 5.8 percent,
loans at 3.2 percent, and the tourism portfolio at 2.3 percent.
To
enhance the competitiveness of the tourism portfolio, the National Tourism Co.
for Tourism Development is undertaking various projects. These include managing
the Amman Cham Palace, renovating the Crowne Plaza Hotel/Petra, and designing a
new four-star hotel in Aqaba.
Additionally,
the Al-Daman for Development Zones Company (DDC) continues to develop
infrastructure and services in the King Hussein Bin Talal Development Area
(KHBTDA) in Mafraq and the Irbid Development Area, attracting industrial and
entrepreneurial investments. The current investments in both areas amount to
450 million dinars and have created 3,600 jobs.
Furthermore,
the Daman Investment and Agricultural Industries Company (DIAI) manages a
multiphase project in the Kingdom's southern region, covering 30 square
kilometers. It currently contributes to local demand for strategic crops such
as wheat, potatoes, and animal feed.
The
SSIF invests in shares of over 50 public shareholding companies, including
major national companies in sectors such as banking, industry, and services.
These companies are known for their substantial financial positions, consistent
growth rates, and commitment to annual cash dividends for shareholders.
The
SSIF’s portfolio value of shares in public shareholding companies reached
approximately JD2.1 billion by the end of 2023, constituting around 12.4
percent of the total market capitalization of the ASE.
The
SSIF’s investment in the banking sector is a crucial focus of the ASE. This
sector plays a vital role in the Jordanian economy by financing major economic
projects, supporting small businesses, and investing in promising areas such as
information technology, tourism, and renewable energy. Additionally, the
banking sector is a significant employer of highly skilled local human
resources.
The
SSIF invests in 13 commercial and Islamic banks operating in Jordan, with
varying ownership percentages. It also holds strategic investments in several
major companies in the manufacturing sectors, including the Jordan Phosphate
Mines Company (JPMC), Arab Potash Company (APC), and Lafarge Jordan Cement.
Furthermore,
the SSIF invests in various public-shareholding companies in the services
sector. Notable examples include the Jordan Telecom Group (JTG) and the Jordanian Free and Development Zones Group (JFDZ). Additionally, the SSIF has
holdings in insurance companies and financial services providers.
The
SSIF owns several five- and four-star hotels managed by the global
Intercontinental Hotels Group (IHG). These hotels are supervised by the
wholly-owned National Tourism Co. for Tourism Development, established in 1999
before the SSIF’s establishment. The SSIF also owns two hotels in Amman and
Madaba and tourist lodges in prominent destinations across the Kingdom,
including Aqaba, Ajloun, Jerash, Zai, Karak, and Wadi Rum. Jordanian investors
operate these properties.
Dr.
Kanakrieh highlighted the fund’s diverse investments in significant tourism
projects through strategic partnerships with leading local companies in this
sector. Notable investments include:
- Eagle Hills: The
SSIF invests in Eagle Hills, which is involved in the Saraya Aqaba
project.
- Zara Investment
Holding Co.: The SSIF has stakes in Zara Investment Holding Co., which
manages the IHG properties in Amman, Movenpick at the Dead Sea, Petra, and
Aqaba.
- The SSIF holds
shares in the Sheraton Amman Hotel.
- The SSIF invests
in the Marriott Hotel at the Dead Sea.
اضافة اعلان
In
the energy sector, the SSIF diversifies its investments by participating in
various projects, including:
- Oil refineries:
The SSIF invests in the Jordan Petroleum Refinery Company.
- Electricity
generation and distribution: The SSIF holds stakes in the Jordanian Electric Power Company (JEPCO) and the Central Electricity Generating
Company (CEGCO).
- Renewable energy
projects: The SSIF established and operates three solar power stations in
Ramah, Ghor Kabed, and Zarqa. These stations provide electricity to SSIF
buildings, General Social Security Corporation branches, and SSIF-owned
hotels. Additionally, the SSIF is preparing to launch a fourth solar power
station in the Shobak area to supply electricity to the Crowne Plaza Petra
Hotel.
The
SSIF also owns land and commercial complexes across various Jordanian
governorates, with a total value of approximately JD845 million. The fund is
actively developing and leasing these properties through long-term
Build-Operate-Transfer (BOT) contracts.
Furthermore,
in alignment with the royal vision to achieve food security for strategic
crops, the SSIF established the SSC Company for Investment and Agricultural
Industries in 2020. This company began operations at the end of 2021, focusing
on green investments and supporting local agriculture.
Last
year, the SSIF initiated the second phase of its agricultural project in the
southern region of the Kingdom, specifically in the Mudawara area. The project
encompasses an impressive 30 square kilometers and focuses on cultivating
various crops, including wheat, table potatoes, industrial potatoes, silage
corn, and animal feed.
Jordanian
professionals working for the company efficiently manage and run the project.
Additionally, the SSIF collaborates with local private-sector investors. This
joint effort has resulted in over 110 job opportunities for engineers and
agricultural workers, with 90 percent of these positions benefiting residents
of the Mudawara area and other southern governorates. Furthermore, the project
provides 80 seasonal job opportunities, with 50 percent of these roles
allocated explicitly to local women.
In
2009, the SSIF established the “Guarantee for Development of Development Areas
Company.” This wholly-owned company serves as the investment arm of the SSIF,
focusing on developing infrastructure, services, and marketing in specific
economic development zones. These zones include the KHBTDA in Mafraq and the
Irbid Development Area, which were declared as special economic development
regions through royal initiatives.
The
SSIF’s investments in these areas are diverse and strategically aligned with
the national vision. Here are some key highlights:
Irbid
Development Area:
- The SSIF owns 80 percent of the capital of the Irbid
Development Zone, which is actively developing the KHBTDA. This area
spans 21,000 dunams and primarily focuses on various industrial sectors,
including logistics services and renewable energy.
Solar Energy
Projects:
- The SSIF has invested in four solar energy projects
with a total capacity of 175 megawatts and an investment size of
approximately JD165 million. These projects have created around 200
permanent job opportunities during their implementation phase.
North
Development Area in Irbid:
- The SSIF wholly owns the Northern Development Company
in Irbid. This company plays a pivotal role as the primary developer of
the KHBTDA across an area of 1.8 square kilometers. Investments in this
area primarily focus on technology, telecommunications, and support
services. To date, the area has attracted eight investments totaling JD40
million, providing 2,300 permanent job opportunities.
In
2016, the SSIF established the Guarantee for Leasing Company to finance major
infrastructure projects across various governorates in Jordan. These projects
span sectors such as health, transportation, and services. Additionally, the
SSIF contributes to creating training and employment opportunities.
The
company provides funding for several significant projects, including:
- Tafila
Governmental Hospital: Opened in 2022, this hospital has a capacity of 150
beds.
- Amman Customs
Center project in Madouneh.
- Ma’an Military
Hospital: With a capacity of 150 beds.
- Bus Rapid
Transit (BRT): This project connects Amman and Zarqa efficiently.
The
pharmaceutical industry is valuable for the Jordanian economy, contributing to
research and development. Recognizing its importance, the SSIF holds strategic
shares in leading pharmaceutical companies such as Hikma Pharmaceuticals and
Dar Al Dawa (DAD). Additionally, the SSIF invests in around 80 public and
private joint-stock companies, with 119 representatives serving on their boards
and management bodies. Notably, 13 percent of these representatives are women.
The
SSIF supports these companies by enhancing their developmental role through
financing innovative projects, supporting small businesses, and promoting
corporate social responsibility initiatives and sustainable development.
The
SSIF emphasizes corporate governance standards and effective control
mechanisms. Regular specialized meetings are held to enhance the skills and
capabilities of board members, keeping them informed about legislative
developments, local and global economic updates, and best practices in
corporate governance and prudent management.
Since
2018, the SSIF has also established a Corporate Social Responsibility (CSR)
framework, defining strategies and practices to contribute to economic, social,
and environmental development.
To
contribute to responsible investment and participate in the comprehensive
national update project, the SSIF has incorporated sustainable development
goals into its 2022–2024 strategic plan for the first time. These goals include
economic growth, decent work, poverty eradication, gender equality, women’s
empowerment, climate action, and clean energy.
Since
2017, the SSIF has voluntarily published sustainability reports. These reports
highlight financial, institutional, environmental, and social sustainability
achievements. The SSIF practices responsible resource consumption by minimizing
paper, water, electricity, and fuel usage. This commitment reflects the fund’s
ethical stance and transparency, emphasizing the impact of its activities and
investments on both social security and the overall national economy and their
effects on the environment and society.
In
2018, the SSIF introduced the “Empowering Women Document” as part of its
corporate social responsibility framework. This document aims to enhance the
skills and capabilities of female employees, enabling them to excel in their
roles and advance equally within the organization alongside their male
counterparts.
During
2022, the SSIF actively participated in the Women’s Empowerment team, a
subgroup responsible for implementing the Economic Modernization Vision (EMV).
The SSIF proposed initiatives to increase women’s economic participation,
support women-led projects transitioning from the informal to the formal
economy, and create an enabling environment for women to assume leadership
roles in the private sector.
The
SSIF’s investments span various vital sectors of the national economy,
including banking, mining, tourism, telecommunications, traditional and
renewable energy, pharmaceuticals, agriculture, development areas, and real
estate. Additionally, the SSIF finances infrastructure projects through leasing
arrangements.
These
investments enhance the fund’s portfolio value, ensure financial sustainability
for social security, stimulate economic activity, create quality employment
opportunities, and contribute to comprehensive sustainable development.
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