Saudi Jordanian Investment Fund (SJIF)

Sarah Al-Shahed
What Is the Definition of an Investment Fund?
An investment fund is a pool of money from a group of investors that is
pooled together to buy assets while each investor retains ownership and
control of his or her own shares. An investment fund offers a bigger range of
investment options, more management skills, and lower investment fees than
an individual investor might get on their own. Mutual funds, exchange-traded
funds, money market funds, and hedge funds are examples of investment
funds.
An investment fund in Jordan is the Saudi Jordanian Investment Fund
(SJIF). The Saudi Jordanian Investment Fund (SJIF) is a Limited Public
Shareholding Company based in Amman, Jordan. SJIF was formed in 2017 by
the Public Investment Fund of Saudi Arabia and 16 commercial and Islamic
Jordanian banks, and is registered according to the Jordan Investment Fund
Law No. (16) of 2016. With a capital commitment of $3 billion, SJIF pursues
strategic, sustainable, and economically feasible investments in Jordan’s vital
and promising sectors. SJIF seeks to invest in viable long-term projects, create
a clear and sustainable socio-economic impact in Jordan, and align its
objectives with the Public Investment Fund of Saudi Arabia’s strategic
investment direction.
As part of its growth capital investment strategy, which aims to assist
the growth and expansion of potential and successful Jordanian enterprises,
the Saudi Jordanian Investment Fund (SJIF) announced a USD 15 million
investment in prominent Jordanian technology startup OpenSooq. Omar Alwir,
CEO of the Saudi Jordanian Investment Fund, and Adey Salamin, Co-Founder
and CEO of OpenSooq, signed the investment agreement. The funding will help
OpenSooq expand in Jordan and throughout the Middle East and North Africa
region (MENA). SJIF CEO Omar Alwir said at the signing that the investment will
help the organization realize its strategic and developmental goals in the
Hashemite Kingdom of Jordan.
"This investment will promote and expand the entrepreneurial
environment by developing the capacities of local businesses and offering
opportunities for regional expansion, especially given that Jordan's ICT sector
contributes 12% to the country's GDP." Jordan, according to Alwir, is brimming
with youthful talent who have proved their ability on a regional level and have
helped the Kingdom establish itself as a regional IT hub. He went on to say that
SJIF is eager to continue exploring interesting investment options that would
help Jordanian companies overcome hurdles such as acquiring enough capital
and breaking into overseas markets.
"We value the trust SJIF has placed in our company, and its ability to
expand to new areas that will involve future developments, building on prior
accomplishments," said Adey Salamin, co-founder and CEO of OpenSooq.
Salamin went on to say that the investment will allow OpenSooq to further
improve its business model and expand its presence in a number of markets,
which will help the firm grow and achieve its aims and objectives. Investing in
Jordanian businesses is critical for strengthening the sector's competitiveness,
improving the business environment, and encouraging other investors to
follow suit.
The Saudi Jordanian Investment Fund is a Jordanian Limited Public
Shareholding Firm created in 2017 as a joint venture between the Saudi
Arabian Public Investment Fund, which owns 90% of the company, and 16
traditional and Islamic Jordanian banks, which own the remaining 10%. The
Jordan Investment Fund was established in 2016 under Jordan Investment
Fund Law No. 16 and is the result of the Jordanian Saudi Cooperation Council
and a Memorandum of Understanding signed on August 25, 2016 between the
Public Investment Fund of Saudi Arabia and the Jordan Investment Fund.
The Memorandum of Association and Articles of Association for the firm
were signed on March 27, 2017, in the presence of His Majesty King Abdullah II
Ibn Al Hussein, during the visit of the Custodian of the Two Holy Mosques, King
Salman bin Abdulaziz Al Saud, to the Hashemite Kingdom of Jordan.
The three pillars of SJIF's investing strategy are: Infrastructure projects in
various sectors based on public-private partnerships, particularly in
transportation, energy, tourism, and water; new projects in vital sectors,
particularly healthcare, education, and tourism; and expanding capital
investments by supporting successful and promising Jordanian companies.
SJIF stated late last year that it would launch a healthcare investment
initiative with a USD 400 million initial investment. A general academic hospital
with 300 beds, 60 outpatient clinics, and a medical university with a total
capacity of 600 students and a projected yearly student intake of 100 students
will be part of the project. The initiative will be developed in collaboration with
two of the world's most famous healthcare delivery and medical education
institutions.