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The Social Security Investment Unit (SSIU)
Major New Investment & Project Opportunities in Jordan
MEED Conference
Le Meridien Hotel, Amman
February 2007
• The SSIU was established in 2001 under By-law # 111 in accordance with Article 76 of the Social Security Law.
• The SSIU is mandated to manage the investment portfolio of the Social Security Corporation (SSC) which totaled approximately JD 4 billion at the end of 2006.
• The SSIU is governed and supervised by a 9-member Commission including representatives from the labor union, business community and government.
• The SSIU portfolio consists of a variety of investments including listed equities, private equity projects, real estate and government treasuries.
Overview
Main Investment Guidelines
• Investments in the National Interest: priority is given to economically feasible investments that promote the national interest.
• Investment Diversity: the SSIU seeks to diversify investments with a preference for medium and long term instruments in order to reduce risks and ensure the highest possible returns.
• Fundamental Investments: the SSIU is prohibited from investing in speculative instruments; and invests based on sound economic fundamentals.
• Protection against Inflation: the SSIU invests in instruments whose return provides a level of protection against inflation.
• Code of Ethics/Corporate Governance: projects must comply with the SSIU’s Code of Ethics and policies on corporate governance.
Investments Objectives
• Portfolio Returns: achieve a reasonable margin over the
average (actuarial) discount rate with the aim of beating historical performance.
• Risk Tolerance: a higher risk tolerance which allows the SSIU to invest in longer-term instruments.
• Time Horizon: invest with a long term perspective which allows the SSIU to disregard short term market volatility caused by circumstantial events.
• Liquidity: match assets with liabilities in terms of their tenors.
PROJECTS
• The SSIU invests in a wide array of projects across a variety of
economic sectors including: banks, insurance companies, manufacturers, service companies, real estate and tourism.
• The SSIU has invested over JD 500 million in privatized projects.
• Examples of privatized projects in which SSIU is a major
investor include:
– Jordan Telecommunications: approximate 18% stake at a current market value of JD 195 million.
– Jordan Potash: approximate 12% stake at a current market value of JD 42 million.
– Jordan Cement: approximate 20% stake at a current market value of JD 182 million.
– Jordan Phosphate: approximate 15.67% stake at a current market value of JD 42 million.
– Al Rai Newspaper: approximate 55% stake at a current market value of JD 49 million
PROJECTS
OPPORTUNITIES TO INVEST
• Examples of opportunities to invest within the privatization
program include:
– Electricity: privatizations of the Central Electricity Generating Company; the Irbid Distribution Electrical Company and the Electrical Distribution Company (South) & Samra generating station.
– Transportation: Amman-Zarka Light Rail Project; Royal Jordanian Airlines and Aqaba Railway.
Telecommunication: 14% of Jordan Telecom.
– Industry: Juwaidah Flourmill Company and Jordan.
• Examples of opportunities to invest outside the privatization
program include:
– Tourism: land is available for tourist projects in the Dead Sea Area and Northern Jordan.
– 3 Hotels owned by social security.
– Mafraq Special Economic Zone: infrastructure development, warehousing, manufacturing, services, etc..
– BOT: Queen Alia International Airport expansion and the Disi-Mudawwara Water Project
OPPORTUNITIES TO INVEST
ADDITIONAL INFORMATION
The Investment Unit
Social Security Corporation
PO Box 850633
Amman 11185 Jordan
Tel.: (962 6) 550 1111
Fax: (962 6) 550 1097
Email: [email protected]
www.ssiu.gov.jo