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- EBRD and Jordan Securities Commission to strengthen cooperation
- Institutions to leverage mutual comparative advantages
- Memorandum of understanding to support further capital market development
The Jordan Securities Commission (JSC) and the European Bank for Reconstruction and Development (EBRD) are intensifying their capital market development efforts in Jordan and implementing the 2017 government-approved capital market strategy with a view to boosting economic growth.
The two institutions signed a memorandum of understanding (MoU) today, committing to leverage their mutual comparative advantages to further support capital market advancement.
Signing on behalf of the EBRD, Regional Head of the Eastern Mediterranean region Philip ter Woort said: “We are pleased to partner with the JSC to work towards further developing Jordan’s capital market during these economically challenging times. What we need is to mobilise capital within a robust and transparent regulatory framework that allows for better supervisory functions on the one hand and the supply of capital to the private sector on the other.”
JSC chairman Leith K. Ajlouni said: “This MoU continues the realisation of the Capital Market Development Project’s goals and actions. The project’s main activities are guided by the Capital Market Development Strategy and Roadmap for Jordan, funded by the government of Japan, approved by the cabinet in 2017 with the overriding objective of supporting Jordan’s efforts to boost economic growth.”
The strategy sets seven strategic goals aimed at increasing investor interest, making the financial market more attractive to issuers, reorienting capital market institutions as private-sector operations, making the securities industry more competitive, strengthening the capacity of the JSC, creating more attractive investment products and developing outreach programmes for investors and issuers.
The MoU strengthens JSC and EBRD cooperation in the following key areas:
- The JSC will remain committed to complying with the numerous applicable international capital market standards.
- The JSC will make best efforts to maintain the independence of certain capital market entities and to ensure the continued smooth operation of the market, in keeping with best international practices.
- The JSC and the EBRD will work to promote reform of the capital market to the Jordanian government, including agreeing project management issues with the Ministers’ Committee for Higher Market Development, discussing proposed legal and regulatory reforms with parliament and submitting improvements in the tax code to the appropriate bodies of the Jordanian government.
Jordan adopted its comprehensive Capital Market Development Strategy and Roadmap for Jordan in 2017, funded by the government of Japan. The ultimate goal is to raise Jordan’s profile as a business destination and to attract investment to create new jobs and prosperity for more Jordanians.
Since it started investing in Jordan in 2012, the EBRD has provided more than €1.5 billion in financing for 59 projects in the country.