JEDDAH, 22 May 2005 — Dubai International Capital (DIC), the investment arm of Dubai Holding, yesterday announced that it will launch an AED1 billion ($272 million) investment fund that will target opportunities in Jordan’s booming economy.
According to a report received here yesterday, the fund was unveiled during the World Economic Forum (WEF) on the Dead Sea by Mohammad Al-Gergawi, chief executive officer of Dubai Holding and chairman of DIC, after meeting with Jordan’s King Abdallah.
Al-Gergawi said “There is a growing number of feasible and profitable investment opportunities in Jordan. Through this fund we are looking to tap into the wealth of opportunities that exist in the country. We will invest in projects that will generate superior returns for investors. At the same time we are committed to contributing to the development of the country’s economy and the scale and type of our investments, many of these in expansion projects, will reflect this.”
He added that “The fund represents a significant strengthening of the partnership between Jordan and Dubai and demonstrates the strong determination by both to fully realize the benefits of a properly developed entrepreneurial culture.” Al-Gergawi revealed that DIC would be responsible for structuring the fund and identifying investment opportunities. Projected returns in excess of 25 percent have been forecast on the back of the upturn in Jordan’s economy.
Since 1998, the country’s annual GDP growth rate increased to 6 percent last year from just 3.2 percent on the back of economic reform, market liberalization, and major trade agreements that include USFTA, EU FTA, and World Trade Organization (WTO) membership.
Sameer Al-Ansari, CEO of DIC, said: “Jordan offers a wealth of investment opportunities, from start-up projects to buyouts. These have emerged in a variety of sectors, from financial services to aviation.
“We are confident that by combining DIC’s experience in managing and developing diverse investment portfolios with expertise in the Jordanian market, the new fund will provide strong returns for investors and enormous benefit for the local business community.”
Dr. Bassem Awadallah, Jordan’s minister of finance, added: “The launch of this fund is a major vote of confidence in the economic potential of Jordan and provides a vital new vehicle to drive growth across all sectors of our economy. Dubai International Capital has had a huge impact on the international investment market and we are delighted that they have chosen to invest in Jordan.”
DIC owns and manages a diversified portfolio of companies operating in the fields of leisure, healthcare, technology, finance, real estate, research, education, tourism, energy and communications. DIC has a $1 billion investment in DaimlerChrysler, making DIC the company’s third largest shareholder, as well as the recently announced $1.5 billion agreement to purchase the Tussaud’s Group.