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: info@ssiu.gov.jo

www.ssiu.gov.jo