The establishment of a joint fund to launch an estimated $3 billion worth of investments was a milestone in the implementation of a project that would serve the interests of both the kingdoms, a senior Saudi official said.
Chief Executive, Managing Director, and Secretary-General of the Board at Public Investment Fund Yasir Al-Rumayyan told the Jordan news agency, Petra, that the new company is a joint investment between his agency, which manages around 200 investments worldwide, and two local bank groupings: Jordan Commercial Banks Group and Jordan Islamic Banks Group.
The fund will be investing in vital sectors in Jordan, such as energy and tourism, he said.
The project comes in line with the Saudi development plan for 2030, which seeks diversification of investments and destinations.
Rumayyan explained that the investment decisions of the company will be taken based on specific criteria that “ensure long-term revenue”.
Each of the two banking groups was registered as a private shareholding company, with the first including Arab Bank, Housing Bank for Trade and Finance, Jordan Ahli Bank, Jordan Kuwait Bank, Ettihad Bank, Bank of Jordan, Cairo Amman Bank and others.
The Islamic Banks include the Jordan Islamic Bank, Arab International Islamic Bank and Jordan Dubai Bank.
Jordanian Prime Minister Hani Mulki expected the joint fund to implement economically feasible projects.
He assured every help to facilitate such investments, Petra reported.
Planned projects include reconstruction and rehabilitation of a north-south highway in Jordan and setting up a power plant on Jordan’s eastern border.
Saudi Arabia has been one of Jordan’s main financial backers.
Jordan and Saudi Arabia on Monday signed 15 agreements and memoranda of understanding, involving public and private institutions.
1. Memorandum of association for a company to run the Saudi-Jordanian Investment Fund to implement investments in Jordan in several key sectors, whose value can reach up to $3 billion.
2. A draft loan agreement to rebuild and rehabilitate the Desert Highway (Amman-Aqaba) with a value of $105 million.
3. A draft agreement on environment protection.
4. A draft executive program in the field of social care.
5. A draft executive program in the field of culture.
6. A draft memorandum of understanding on postal services.
7. A draft memorandum of understanding between health ministries.
8. A draft memorandum of understanding on cooperation in the housing sector.
9. A draft agreement on mutual promotion and protection of investments.
10. A draft contract on research and development on mining the uranium in the central region of Jordan.
11. A draft memorandum of understanding to study the economic feasibility of building two reactors of micro built-in units in Jordan for electricity generation and water desalination.
12. A draft memorandum of understanding on news cooperation.
13. A memorandum of understanding for a mega medical project in Riyadh, worth $320 million.
14. A memorandum of understanding to establish a Saudi-Jordanian company for developing medical services at a cost of $54 million.
15. A memorandum of understanding for the Reisheh project to develop, build and operate a 50-megawatt solar station on the eastern borders of Jordan with a value of $70 million.