Investment Unit of Social Security Corporation generates JD276m profit

By Samir Ghawi -Jordan Times

AMMAN – The Investment Unit of the Social Security Corporation (SSC) achieved 23.8 per cent overall return on average assets last year.

Mufleh Aqel, president of the Investment Unit, told a press conference on Tuesday that 17.7 per cent of the overall return came from the change in the value of shares in the strategic portfolio.

The cash return of 4 per cent and the return from the change in the value of real estate, at 2.1 per cent, made up for the rest.

The asset average amounted to JD4,300 million, said Aqel.

The total profit amounted to JD276 million, of which, JD172.5 million was cash, JD90.5 million resulted from the increase in the value of real estate and JD13 million from the increase in the value of shares for trading.

This total profit, the highest since the Investment Unit was established in early 2003, represented an 82 per cent growth over the JD151 million recorded in 2006.

The gross value of the investment portfolio reached JD4.9 billion at the end of 2007, 31 per cent higher than the JD3.7 billion recorded at the end of 2006, according to figures announced by Aqel.

Last year, the SSC transferred JD145 million to the Investment Unit and the change in the value of shares in the strategic portfolio amounted to JD747 million. When adding the two figures to the JD276 million net income generated in 2007, total assets tally to JD4.9 billion.

The president expected total assets to reach JD8 billion by the year 2013.

He highlighted various projects that the Investment Unit has completed or was working on such as the Dibbeen tourism resort project in cooperation with Jordan Dubai Capital.

Aqel mentioned the purchase of 9 per cent equity in the Central Electricity Generating Company and the signing of an agreement with the Public Transport Regulatory Commission to establish a unified centre in Wihdat for cars operating on outside routes.

He said the Investment Unit bought a 10 per cent stake in Royal Jordanian and started setting up a JD55 million company to be known as Amlak Financing (Jordan) in cooperation with local investors and the Amlak Financing Company based in the United Arab Emirates. The Investment Unit would have a 25 per cent equity in the firm.

“Moreover, work is underway to finalise both the Mafraq Development Company and the Irbid Development Company which were launched by His Majesty King Abdullah and which are estimated to cost over JD1 billion,” he added.

Other projects include the Disi Water Conveyance Project, the Amman International Fair, Al Qatraneh Generating Station and Al Samra Station.

The government has agreed to sell its remaining stake in Jordan Telecom to the investment unit