Projects and Private Equity Funds
The Investment Fund, through its subsidiaries, is establishing many projects that have positive impact on society. These projects are:
Unified Travel Terminal:
The Investment Fund, through the Unified Travel Terminal Company - wholly owned by the Fund- , established the unified transport center for international travel and buses between Amman, Damascus, Beirut, Baghdad and Riyadh in the area of Middle East Circle - South Amman.
This infrastructure project improves transportation services in the region and includes lots for travel cars and buses, commercial shops, offices, restaurants and supermarkets in addition to a fuel station with maintenance workshops.
The contractor finished the work at the end of 2011 and the Investment Fund is currently working with Transportation Commission to officially launch it in the first half of 2012.
Al-Mothalathyah land/Aqaba:
The Investment Fund in cooperation with Jordanian Duty Free Shops Company completed the preparation of the master plan and financial studies to develop Al-Mothalathya land, an area of (123) Donum, located at the northern entrance of Aqaba city. This mixed use project will contain many facilities:
- A four-star hotel, sports and social club.
- Mall, shops and restaurants.
- Residential facilities
- Entertainment facilities
The total area for buildings is 189 thousand Sq. m., and the investment in the project is expected to reach about JD 170 million. The final approval of the master plan was obtained from Aqaba Special Economic Zone at the end of 2011 and the Investment Fund is currently setting a plan to start the infrastructure work and attract strategic investors and partners for the project.
Private Beach / Aqaba:
The investment Fund, through the National Company for Tourism Development - wholly owned by the Fund-, finished the plans for establishing a private beach for non-beach hotels tourists on a (13.4) Donum land owned by the Investment Fund near the Intercontinental Hotel.
The project consists of many entertaining and water activities that target different age groups. The company will invite a tender call to execute the project.
Hotels and tourism investments:
The Investment Fund, through the National Company for Tourism Development, is managing six working hotels and one hotel under construction owned by Social Security Corporation. These hotels are:
• Crown Plaza - Amman.
• Crown Plaza – Petra
• Intercontinental Hotel - Aqaba
• Hotel Amman Cham Palace
• Holiday Inn Hotel - Dead Sea
• Madaba Inn Hotel
• Crown Plaza Dead Sea/ under construction
The Investment Fund also owns a number of rest houses that are managed by private sector, these rest houses cover the kingdom ; Jerash, Ajloun, Karak, Azraq, Wadi Rum, etc.
Investment Funds:
To diversify the portfolio and invest in new investment instruments, the Fund signed agreements with other investment funds to acquire equity in promising companies in vital sectors.
Foursan Fund :
Foursan Group – a company specialized in private equity investments –launched a private equity fund called the "Foursan Capital Partners” of US 100 million dollar to invest in promising companies in Jordan, neighboring countries and North Africa. The Investment Fund is participating in 20% of the capital, along with other partners; U.S. Overseas Private Investment Corporation (OPIC), International Finance Corporation- World Bank Group- and Olayan Group. The Foursan fund directly invests 60% of its investments inside Jordan in promising private companies in education, health, insurance, technology and communication sectors.
Catalyst Investment Fund:
The Investment Fund signed an investment and partnership agreement with Catalyst Private Equity Fund, to establish an open fund that invests in small and medium size companies specialized in IT, energy, water and developing environmentally friendly technologies in Jordan and Middle East. Catalyst Fund includes, in addition to Social Security Investment Fund, a group of investors from Jordan, Arab Gulf and Overseas Private Investment Corporation (OPIC). The total contributions in Catalyst Fund until the end of 2010 reached US (21) million dollar, the Investment Fund contribution is US (7) million dollars.
Energy Sector
- Acquiring 9 % of Central Electricity Generating Company ( CEGCO) :
The Government has put 60% of ( CEGCO) capital for privatization, where its capital has reached JD 30 million at privatization. In 2007 it was officially announced that “Enara” Company acquired 51% of (CEGCO), share acquisition agreements were signed with all parties, 9% of the shares was allocated to the Investment Fund, the actual acquisition of that quota took place at the end of 2007.
Acquiring Jordan Company for Electricity Distribution Investments:
During 2011, the Investment Fund acquired 100% of Jordan Company for Electricity Distribution Investments which owns 51% of Kingdom Electricity Company FOR Energy Investments (KEC). KEC owns electricity distribution companies (100% of Electricity Distribution Company ( EDCO) and 55.4% of Irbid District Electricity Company (IDECO)). The name of the company has been changed to “ Daman Energy Investments Company”.
Development Areas:
The initiative of His Majesty King Abdullah II Bin Al-Hussein to establish specialized economic development areas in the Kingdom reflects His Majesty’s vision to redistribute the development gains, improve the living standards of all Jordanians and attract direct foreign investment to the vital sectors in the Kingdom.
Based on this vision, Social Security Investment Fund established Al-Daman Development Company to be the primer developer of three development areas:
1- King Hussein Bin Talal Development Area– Al-Mafraq:
As a key partner in development process, the Investment Fund established Al-Mafraq development Corporation to develop King Hussein Bin Talal Development Area in Mafraq , Social Security Corporation owns 80 % of the company’s shares, Hashemite Fund for the Development of Jordan Badia owns 5 %, King Abdullah II development Fund owns 5 % and Development & Investment Projects Fund ( DIP) owns 10 % of the company’s shares. King Hussein Bin Talal Development area is located 60 Km north east of Amman, an area of 21 square Km close to the borders of Syria, Iraq and Kingdom of Saudi Arabia. This location gives the development area a competitive advantage because of its strategic location for industrial production and transport, and makes it a regional center for trade and goods exchange especially after establishing the airport and railway station in the near future.
Key Sectors in the Area:
- Industrial Sector (Light and Medium Industries):
- Food and Beverage Industries.
- Medical and Pharmaceuticals Equipment.
- Light Chemical Industries.
§ Construction material and plastic industry
§ Food and beverage.
- Logistics Sector, including 2nd and 3rd party logistics.
- Housing and Commercial Services along with community facilities.
Over time, King Hussein Bin Talal Development Area will have the components to provide new competitive advantage not only for local investors but also for the regional companies that work in the same field.
2- Irbid Development Area:
Irbid Development Area is located 20 km east of Irbid - 80 km to the north of Amman-, stretched over an area of 2.2 square km. Irbid Development Corporation attracts potential investors to the area where there are many investment and business opportunities as it is close to a number of leading universities in the Middle East in the fields of information technology, communications and health care.
Key Sectors in the area:
- Service Industry (Information Technology and Communication)
- Healthcare
- Scientific and pharmaceutical Research and Development
- Various housing and commercial services.
3- Business Park / Dabouq:
Business Park combines the ideal location in the most distinctive areas in Amman in terms of high quality facilities and the latest data and communications networks, the Park represents an unmatched opportunity to invest and enjoy the benefits of working at a site just few minutes away from main shopping and entertainment malls that currently exist in Amman, its location which directly leads to Queen Alia International Airport, in addition to the new facilities ready for immediate use, buildings designed for offices, networks and infrastructure of high quality information technology, gym, conference center and other facilities. The Business Park Company runs the Park facilities to ensure investors enjoy best quality of services.
Targeted Sectors:
- IT companies along with professional services
Non-governmental Organizations and Non-profit International Institutions
- Medical Services and Health Sector
- Education Sector
- Media Sector
- Housing Sector
- Entertainment Services Sector
Examples of companies and institutions that are currently located at the park: Microsoft, HP, Ericsson, LG, Oasis 500, Samsung, Hakeem, Development Zones Commission and many others.
Future Projects:
- Wind Power Station / Kamsheh:
The project aims to establish a station that generates electricity by wind power in Kamsheh area. The generating power of the station shall be (40 MW), and it will be established and run on BOO system (Build, Own, Operate) for 20 years. The Investment Fund had negotiations with "Enara" company to acquire its shares in the project company that represent (35%) so as the Investment Fund will replace “ Enara” company in “TERNA Coalition” the Greek winner of the project tender. The coalition is currently in its the final stages of negotiation with the Ministry of Energy and Mineral Resources to close the deal.
Wind Power Station / Alfujaj:
The project aims to establish a station that generates electricity by wind power in Alfujaj area in the South. The generating power of the station shall be of (90 MW), it will be established and run on BOO system (Build, Own, Operate) for 20 years, of a total expected value of US (200) million dollar.
The Investment Fund initial investment in the project was 15% of its capital according to the tender documents (RFP) and when the Ministry of Energy and Mineral Resources announces the winner coalition (Preferred Bidder) it will be contacted to negotiate the Investment Fund interest to invest in the project company.
Private Electrical Power Generation Project (IPP3):
The project aims to establish a station that generates electricity power in East Amman with a capacity of (300-350 MW) by using gas and heavy fuel. The estimated size of the investment is US (400) million dollars, it will be established and run on BOO system (Build, Own, Operate) for 25 years.
The National Electricity Company invited a tender call to receive letters of interest from companies to execute the project. Six coalitions were initially qualified, the Investment Fund addressed the National Electricity Company to express its interest to acquire shares up to 26% of project company capital, and when the Ministry of Energy and Mineral Resources announces the winner coalition, they will be contacted to negotiate the Investment Fund interest to invest in the project company.
Projects Understudy:
Private Electrical Power Generation Project (IPP4):
The project aims to establish a station that generates electric power in Al Hussein Thermal power plant /Zarqa . the generating power of the station shall be of (200-250 MW) by using gas and heavy fuel. The estimated size of investment is around US (350) million dollars. The project will be established and run on BOO system (Build, Own, Operate) for 25 years. The Central Electricity Generating Company submitted an offer to implement the project (IPP4) through establishing a project company (SPV) by a coalition of Social Security Investment Fund and Enara Company ( represented by Aqua Company - Saudi Company) to establish, own and operate the station. If this coalition wins the tender, it will start negotiating with the National Electricity Company to close the deal.
Samra Electric Power Generating Company:
Samra Electric Power Generating Company expressed its interest in the Investment Fund contribution in the company, accordingly the Investment Fund expressed the same interest. The Investment Fund will officially address the Company to inform them to take prior approvals from the concerned government authorities on this contribution and within a mechanism acceptable by the Fund. The necessary feasibility studies will be conducted when all the approvals are obtained.
LNG Project:
In light of the discontinuous supply of Egyptian gas, the Investment Fund -in coordination with the Qatari private sector- is studying to establish an investment company aims to build and run a liquefied natural gas importer in Qatar and pump it to feed the electrical system in Jordan .