What does new investment fund mean for Jordan?

It is really a courageous step by the banking sector, at this time in particular, to launch the Jordan Capital and Investment Fund (JCIF) with the capital of JD275 million, marking the first entrepreneur project for the Jordanian state as it enters its second centennial.  اضافة اعلان

The importance of this investment fund, which will operate under commercial and Islamic investment standards, is that it is a completely local investment, launched by the most strategic sector in the Kingdom — Jordanian banks moving against the current in the face of the COVID-19 pandemic. 

The banks’ steps to establishing this investment fund refutes all allegations and rumors that the Kingdom does not enjoy an attractive investment environment, especially since banks’ outlooks usually dive deep and can see what others cannot.

The untraditional strategy of the JCIF, uses a new approach that provides finances to various sectors to get them involved in projects that have real and promising opportunities via economic feasibility studies.

Also, the fund will not have to receive any external instructions regarding investing in any project. The investment decision for the fund is completely independent.

Banks’ participation in the fund, under this new investment form, sends a positive message to foreign investors who have always criticized weak local investments. So, this is an important step towards enhancing the positive economic outlook of the Kingdom’s investment environment, and, at the same time, allows partnerships between the fund and foreign investors who look at Jordanian banks as an important and trustworthy partner.

The fund is expected to provide new finance mechanisms to support promising projects in various sectors.

Such finance, which will make banks partners in these schemes, will help sectors secure their necessary needs for resilience and expand economic activities for these ventures, which will act as an important factor to attract investors.

Announcing the fund at this particular time also contributes to changing impressions about the economic outlook.

It is true that there are enormous challenges encompassing the national economy, especially due to the COVID-19 pandemic, but there are also promising opportunities within the economy that can to be discovered.

The fund is the biggest company to be established in the Kingdom since 2008, and its capital is the most to be pumped into companies in almost two decades.

The investment fund from the banks is an important indicator of their positive aspirations on the course of the national economy in the near future, and for the full harmony and coordination of national banks the Central Bank of Jordan which played a role in announcing this company.

The fund is the result of untraditional efforts from the Association of Banks in Jordan with an institutional vision and action strategy, that managed to preserve the higher interests of the state and maintain conformity with banking finance, from one side, and investment partnerships, from the other.