SSIF signs MoU with Gov’t Shareholding Management Company, Islamic Awqaf Directorate

AMMAN — Social Security Investment Fund (SSIF) CEO Kholoud Saqqaf has signed two Memoranda of Understanding (MoU) with the Government’s Shareholding Management Company/the Government of Jordan and the Islamic Awqaf Directorate.

Referring to the MoU with the Government’s Shareholding Management Company, Saqqaf said that this  agreement aims to transfer the fund’s expertise in governance to the company to help it develop “proper criteria” for selecting, monitoring and evaluating the government’s representatives on boards of directors of companies in which the government holds shares, according to an SSIF statement.

After 16 years of institutional experience, the SSIF “spares no effort” to entrench and enhance corporate governance at different levels and adapt the best international practices, the statement quoted Saqqaf as saying. 

According to the CEO, the SSIF has developed a “well-structured governance manual” for its representatives on different companies’ boards of directors, as they are required to monitor the performance of companies and maintain investment revenue and stakeholders’ rights according to clear criteria that account for investment risks. 

The SSIF has also developed a “comprehensive programme” to enhance its representatives’ abilities and performance, read the statement. 

Chairman of the Government’s Shareholding Management Company Yehea Nueimat said that the company is looking forward to benefitting from the SSIF’s “long experience in good governance” to create a comprehensive mechanism that mandates the scope of the company’s representatives’ roles and guarantees their efficient participation in the decision-making process, according to the statement.

Commenting on the MoU with the Islamic Awqaf Directorate, Saqqaf said that the agreement aims to examine the possibility to co-invest in new projects and sectors that align with the fund’s strategic direction.

 This MoU also complements the fund’s efforts as an “anchor investor to build strategic partnerships with public and private entities to explore potential investment opportunities in the national economy based on economic feasibility and returns”, read the statement. 

Saqqaf added that the SSIF has recently signed an MoU with Meridiam/Jordan to identify potential opportunities in infrastructure, healthcare and education in partnership with the private sector. Another MoU was signed with the Investment Commission to attract international businesses and investors.

 “We are keen to partner with the largest investment fund in the Kingdom, which contributes to more than 30 per cent of the GDP and has vast experience in various vital sectors,” Islamic Awqaf Directorate CEO Mahmoud Al Hadid was quoted in the statement as saying. 

The directorate will explore the possibility of establishing new investments with the fund on a BOT (build-operate-transfer) basis.  In addition, the fund will provide specialised training for the Islamic Awqaf Directorate on investment methodologies and corporate governance, concluded the statement.