Saudi Jordanian Investment Fund approves increase in company’s capital

AMMAN — The Saudi Jordanian Investment Fund (SJIF) held its extraordinary general meeting on Thursday via teleconference, in accordance with defence orders and the instructions issued by the Minister of Industry, Trade and Supply.

The meeting was chaired by SJIF Chairman Hisham Attar and attended by the company’s shareholders, board of directors and senior management, as well as the Companies General Controller, and its external auditors, Ernst & Young, according to a  SJIF statement. 

The meeting approved the increase of the company’s authorised capital to JD100 million. 

The Saudi Jordanian Investment Fund was formed in 2017, with an initial capital of JD7,100,000.

Speaking at the meeting, Attar stated that the increase in SJIF’s capital comes in response to the progress in identifying suitable investment projects, particularly in the healthcare and information technology sectors, and to enable SJIF to start the execution of the projects in the near future.

He emphasised “the deep-rooted ties” between Saudi Arabia and Jordan, noting that the company seeks to fulfil the vision of the leadership of the two countries to enhance joint economic cooperation.

The chairman stressed SJIF’s interest in long-term investment opportunities offered by the Jordanian economy in various vital sectors, especially in the field of infrastructure. 

Attar pointed out to the decision of the Jordanian Cabinet issued on October 18, 2020, which officially approved the inclusion of SJIF’s healthcare project under the provisions of Jordan Investment Fund Law No. 16 of 2016. 

The project will be implemented based on a build-operate-transfer (BOT) model, as ownership of the project will be transferred to the Jordanian government after the end of the investment period. 

Attar expressed SJIF’s appreciation of the Jordanian government, highlighting the importance of the mega project in improving the quality of healthcare and medical education in Jordan, and enhancing the competitiveness of medical tourism in Jordan regionally and internationally. 

With an initial investment of $400 million, the project will include partnerships with leading global healthcare institutions, and will consist of a general academic hospital which includes 300 beds, 60 outpatient clinics, and a medical university with a total capacity of 600 students, with a projected annual student intake of 100 students.

The SJIF chairman noted that the company seeks to position itself as a leading investment company in Jordan by establishing long-term investment projects aimed at contributing to advancing economic growth in Jordan, enhancing the competitiveness of the sectors in which it invests, and serving the local communities.

He pointed out that the company is in continuous contact with various government and investment entities to explore areas of cooperation related to priority developmental projects.

“One of the most important objectives of the company is to contribute to economic development in Jordan by investing in strategic, sustainable and economically viable projects, especially the projects included in the Jordan Investment Fund Law No. 16 of 2016 and projects of priority to the government”, he added, noting that one of these projects is the National Railway Network Project.

SJIF is currently reviewing the technical and financial studies related to the railway project, and the outcome of these studies will determine the investment decision in this regard, Attar said.

The Saudi Jordanian Investment Fund held its third general assembly meeting via teleconference on July 15, 2020, during which shareholders were briefed on the progress of key investment projects. The general assembly meeting also approved the board of directors’ report and the audited annual financial statements for 2019.

The Saudi Jordanian Investment Fund is a Jordanian Limited Public Shareholding Company formed in 2017 as a partnership between the Public Investment Fund of Saudi Arabia, which owns 90 per cent of the company, and 16 Jordanian banks, which own the remaining 10 per cent, according to the statement. 

The company was registered per the Jordan Investment Fund Law No. 16 of 2016, and its formation was an outcome of the Jordanian Saudi Cooperation Council and the memorandum of understanding signed between the Public Investment Fund of Saudi Arabia and the Jordan Investment Fund on August 25, 2016.

The company’s memorandum of association and articles of association were signed during the visit of King Salman to Jordan on March 27, 2017, where he held a summit meeting with His Majesty King Abdullah at the Royal Hashemite Court in Amman.

SJIF’s investment strategy focuses on three pillars: Infrastructure projects based on a public-private partnership model, strategic sectors such as healthcare, technology and tourism, and growth capital investments through supporting the growth of large, promising Jordanian companies, concluded the statement.