JD Capital’s new initiatives have materialised in less than two years after His Excellency Mohammad Al Gergawi, Executive Chairman of Dubai Holding, had announced the decision to found JD Capital. The announcement was made during the WEF 2005 in the presence of His Majesty King Abdullah II of Jordan.
H.E. Al Gergawi stated that the vision behind the creation of JD Capital has been realized through the outstanding results produced by JD Capital. “JD Capital was established as a mega-investment company that will take full advantage of the promising market opportunities in Jordan, and will also benefit Jordan through the expertise and success of Dubai. Politically stable and geographically well positioned, Jordan is poised to soak up a sizeable portion of the excess liquidity in the Gulf region.”
JD Capital has conducted a comprehensive review of the performance of the different sectors of the Jordanian economy in order to focus on the sectors with the most promising growth potential such as financial services, power, industrial and real estate sectors.
Speaking about JD Capital’s investments and future plans, Sameer Al Ansari, Executive Chairman and CEO of DIC, and Chairman of JD Capital said: “We, at DIC, believe in backing solid incumbent management teams and in growing the businesses we invest in.
“JD Capital is yet another example that proves our investment philosophy is an efficient way for us to intelligently deploy capital while providing us and our management teams with the best opportunities to deliver value and to make a good return on our investments. We have managed to create in less than two years, one of the largest single country funds in the region and the second largest financial institution in Jordan.”
“With JD Capital, we have established the framework for replicating the same successful model in other countries in the wider Middle East and North Africa (MENA) region. A wide range of opportunities exist in privatisations, banking, real estate, infrastructure and other areas and we plan to play a full and proper role as a responsible investor and corporate citizens in this region like we have done in others,” Al Ansari added.
The investments announced during WEF on the Middle East include a 51 per cent purchase of Central Electricity Generating Company (CEGCO) by Energy Arabia (ENARA), a company established by JD Energy, the energy investment arm of JD Capital. The transaction is considered the first privatisation in Jordan’s power sector and one of the first transactions of its kind in the region.
In another first, JD Capital and the Social Security Corporation announced the launch of the US$ 50 million eco-tourism “Munya Woodland Resort & Spa”. Tourism is a pivotal pillar of the Jordanian national economy and the project which is the first tourism investment of its kind in the northern region of Jordan, aims to uplift the Kingdom’s tourism industry.
In the mortgage finance sector, JD Capital and Social Security Corporation established “Inwan”, Jordan’s first specialised mortgage finance company that aims to provide financing for middle and low income housing. The company, whose capital is over US$ 75 million, includes several high profile shareholders such as Global Investment House, Tameer Jordan and Jordan Kuwait Bank. Jordinvest, Jordan’s leading investment bank will be the executive financial advisor to Inwan.
JD Capital, DIC and Dubai Islamic Bank also entered into a strategic partnership with the Industrial Development Bank (‘IDB’) by acquiring a controlling stake in IDB via a capital increase exceeding US$ 100 million in transaction value.
Since its establishment in 2005, JD Capital has been actively involved in several projects in Jordan. Its first project was Saraya Aqaba, is a hospitality and leisure development that aims to become a premium world class destination. It offers a combination of luxurious hotels, opulent residential units and specialised retails activities in luxurious settings with unparalleled levels of service and unique hospitality. JD Capital also has a 28 per cent stake in Jordinvest and more than 8 per cent stake in First Islamic Insurance Company.
JD Capital has already invested 40 per cent of its US$ 300 million initial capital.
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