Amman – Jordan’s local bank responded to the government’s request to invest in Jordan Investment Fund (JIF). Banks have also agreed to buy stakes and invest part of its savings in the capital of the fund as well as financing any strategic projects done by the JIF.

Deputy Prime Minister for Economic Affairs and Minister of Industry, Trade and Supply Jawad Anani thanked the banks for their positive response.

During a meeting with the chairpersons of the banks’ boards of directors and heads of several corporates, Anani said the contribution of the banks would serve national economy and generate revenues, especially since the projects on the drawing board are lucrative.

Anani declared there are lots of opportunities that can be used to benefit the national economy for more projects.

For his part, Central Bank of Jordan (CBJ) Governor Ziad Fariz said that banks can increase their contribution as the CBJ’s rules allow banks to invest up to 10 per cent of their capital.

Fariz added that the current total investments of local banks in companies do not exceed 430 million Jordanian Dinar (JD), although they have a margin of investment up to 3 billion JD.

President of the Association of Banks in Jordan Musa Shehadeh said that there is an initial agreement from the banks to contribute the needed percentage of the JIF Company’s capital, adding there is a possibility to increase the percentage in accordance with the projects to be announced and implemented later.

JIF aims at investing in national development projects based on profit to attract money need to implement mega projects in strategic sectors like transportation, energy, water and infrastructure.

Anani and Minister of Planning and International Cooperation for Jordan Imad Fakhoury are expected to arrive to Jeddah, KSA on Tuesday to discuss bilateral agreements between the two countries.

Preceding the expected meetings in Jeddah, Jordanian government held several preparatory meetings regarding JIF and the Saudi Arabian General Investment Fund to continue the procedures to initiate a company of two billion JD capital. The company will be able to fund the eight billion JD cost of the projects.

Sources revealed that several meetings were held prior to the meetings in KSA.

The JIF was initially established following an agreement to establish Saudi-Jordanian Coordination Council earlier this year, with reports of Saudi plans to invest billions in the fund, which is governed by a special law that offers privileges to investors.