His Excellency Mr.
Samir Al-Rifai |
What do investors see when they come to Jordan?
A number of things actually, including a sound macro-economic
policy, solid institutions that provide service
to investors, and a good attitude towards promotion.
After 15 years of continuous loans Jordan was deemed
free to graduate from IMF programs in November 2004.
The nation has also realized its accession to the
World Trade Organization and the emergence of a
free trade agreement with the United States, just
over five years ago.
According to Sharif Ali Zu’bi, Jordan’s
Minister of Industry and Trade, the country is fully
committed to a reform program such as amending its
legislation, revitalizing its economy, and moving
ahead with privatization. "More important than
all this is the fact that the mind set has changed
in Jordan—towards business and foreign direct
investment," says Zu’bi.
Dr. Maen Nsour, of the Jordan Investment Board,
believes this is one of the reasons why foreign
direct investment has jumped so dramatically in
recent years. According to Nsour, the biggest investors
in Jordan are currently Saudi Arabia, Kuwait, and
France; however, "We are, of course, looking
to get more investment from the United States."
One of the primary players in terms of Jordanian
investment is Jordan Dubai (JD) Capital, a newly
formed investment vehicle aiming to capitalize on
the robust growth of the Jordanian economy and its
ever-increasing number of solid investment opportunities.
Unlike many of the surrounding countries the Jordanian
economy is not dominated by a single industry. JD
Capital seeks to capitalize on the most promising
sectors and make investments in the companies with
the best investment cases and sound fundamentals.
"We are very upbeat about the Jordanian economy
in 2006," said Samir Z. al-Rifai, CEO of Jordan
Dubai Capital, "and we are upbeat about investment
opportunities in Jordan, and believe this country
is on the brink of something bigger and better than
what we had." Such investment will translate
into increased employment and, says al-Rifai, turn
into things that people can actually touch.
That exports to the United States now total more
than a billion dollars, up from only $14 million
per year in 1998 to $1.3 billion in 2005. "When
you do that, this is the strongest message that
you can send to extremists," says al-Rifai.
After the November bombings last year al-Rifai and
others went to the hotels and publicly pledged more
investment.
JD Capital made two initial investments in Jordan,
one of which was with Saraya Aqaba, in large- scale,
public and private sector real estate project, possessing
an initial capitalization of $242 million, designed
to expand the beachfront of Aqaba and enhance the
physical, economic and social well-being of the
Jordanian tourism sector. JD Capital has also come
into a deal with one of the top investment banks,
and seeks to create larger and better Jordanian
companies that can play a bigger role in the Gulf.
"You will hear, within several year’s
time, of very large Jordanian companies playing
a regional, and later, international role,"
says al-Rifai.
To create a free and democratic society that is
avant-guard in the way it moves forward, a country
needs, says al-Rifai—the kind of leadership
that is exhibited by His Majesty, an educated population,
in addition to security and stability. The fourth
ingredient, according to al-Rifai, is an expanded
middle-class. "When you have these four elements
you can be an example to all the region of how democratic
society in the Arab world can function. The more
economic movement there is, the more support from
the United States, the more free trade—this
is where you have strong foundations, not just to
do good things in the country, but to expand this
experience—to be a light beacon for what other
Arab countries can do."
It is important that investors commit for the long-term,
and JD Capital sees itself as having just such a
lasting strategy. Already the second largest company
in Jordan in terms of capital, its connection with
Dubai, and access to its centers of excellence,
is something that JD Capital hopes to use in order
to maximize its business in Jordan. Talk to anyone
involved in Jordanian investment ant they will tell
you that this country represents more than just
a good place for investment… it also has the
element of stability. "Their needs to be a
realization that countries like Jordan are on the
brink of something very good," says al-Rifai,
"and there is a need for economic support from
Washington, both directly and indirectly, thinking
in terms of the issue of the Greater Middle East."
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Jordan 
