EBRD and Jordan Securities Commission strengthen cooperation

By Nibal Zgheib

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Amman, Jordan

  • EBRD and Jordan Securities Commission to strengthen capital market cooperation
  • Institutions to capitalise on mutual comparative advantages to boost market resilience
  • 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 capitalise on their mutual comparative advantages to further support capital market advancement. The EBRD is providing technical assistance to bolster the resilience of Jordan’s capital market, supported by €1.05 million of funding from the government of Japan through the Japan-EBRD Cooperation Fund (JECF).

Signing on behalf of the EBRD, Regional Head of the Eastern Mediterranean region Philip ter Woort said: “We are pleased to consolidate our partnership with the JSC through this memorandum of understanding to work towards further developing Jordan’s capital market. Our joint efforts are aimed at diversifying the supply of capital to the Jordanian private sector within a robust and transparent regulatory framework, which will contribute to Jordan’s sustainable post-pandemic economic recovery.”

Shimazaki Kaoru, Ambassador of Japan to Jordan, said: “I am glad to witness the signing of the MoU, which I believe gives further momentum to promoting cooperation between the JSC and the EBRD. I hope that this support contributes to Jordan’s better recovery from the COVID-19 pandemic.”

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.”

Jordan’s capital market strategy sets seven strategic goals: to increase investor interest, make the financial market more attractive to issuers, reorient capital market institutions as private-sector operations, make the securities industry more competitive, strengthen the capacity of the JSC, create more attractive investment products and develop 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 matters, discussing proposed legal and regulatory reforms with parliament, and submitting proposed improvements to the tax code to the appropriate bodies of the Jordanian government.

Jordan adopted its comprehensive capital market development strategy and roadmap in 2017, also 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.

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