Advertisement on retail banking have seen a marked improvement in access to financing, both ind local businesses. Now, local banks are focused on market consolidation, while at the same time developing a wider range of products
for consumers
and introducing more efficient and modern banking technology' Jawad Hadid, C"hief Executive of lordan Commercial Bank, says that Jordan's banks have also benefited from the continuous increase in economic activity and cross-border capital inflows since lordan began on its privatisation program a decade ago. "0vei the past five years we have seen deposits grow by about 40 %, with" a doubllng in credit'facilities," says Plr. Hadid, adding: "This
means that
the banking
An island of stability in a troubled region Jordan is benefiting from the ambitious agenda of the government of King Abdullah ll. 0ver the last decade
sector is providing the necessary funding for
sustained fdreign direct investment (FDl) has driven the economy, resulting in average GD[growth since 2000 of 6 percent. FDI has doubled-every year since 20b4, rea-hing $3 billion for 2006. The Jordan lnvestment Board says that FDI growth for lOOl was 200 percent. Key sectors attracting investment are consiruction, real estate, tourism, pharmaceuticals, textiles, automotive
JCB has begun
parts, and mining. Growing numbers of investors are also locating in the country's Qualifying lndustriil Zones, Free Zones, and industrial estates. "Jordan is on the move, says Gerhard Mansbart, General lvlanager of the Meridien Hotel, in the heart of the capital's business district: "There isabuzz here that reminds me of Abu Dhabi in the I 980s. New projects are springing up everylvhere", he adds.
A sound and transparent financial sector Jordan's economy is built on the twin rocks of judiclous supervision by the authorities and a strong banking sector - as point"ed out by a recent IMF report that highlighted the central bank's prudent monetary lrolicy, the healthy foreign exchange market and an appropriately valued Jordaniandinar The country's I5 domestic commercial airb tslamic banks and eight foreign banks are well capitalised at more than 20% of assets, while the country is introducing Basel ll capital adequacy regulations this month that will further strengthen risk management capabilities and ensure good corporate qovernance. 0ther rec"ent refoims to t"he banking sector have been the introduction of new financial instruments which, along with increased competition and a focus
Jordan's economic activity."Over the last year, transforming
its branches into what he calls points of sale, which specialise in providing
consumer credit and soliciting deposits. The bank
now has 27 branches in lordan and 3 in Palestine. Jordan's bourse has also been attracting billions of dollars of Arab capital seeking a safe haven in a region of political turmoil, says lalilTarif, Chief Executive oithe Amman Stock Exchange (ASE), pointing oui that inflows from regional investors have contributed to a tripling of the bourse's market capitaliiation since 2003 to $32.4bn. "Economic, legislative, and structural reforms have been executed with profound care and the restructuring of the capital markets created a sound and transparent environment which proteits investors," says Mr. Tarit A new financial centre to be completed by 2009 will strengthen the ;bility of the ASE which is already linked to the London Stock Exc6ange to compete with bigger Arab Gulf financial centres by attracting funds arid listings of Arab firms. "The ASE is committed to the piinciples of fairness, transparency and efficiency, Thi: Exchange seeks to provide a strong and secure environment for its
listed securitie; while protecting and guaranteeing the rights of investors,"
bf any restrictions on foreign ownersh.ip increased the percentage of equity owned by nonJordanians to over 46
says Mr. Tarif, he adds that the absence
his
% of the market's toial market capitalisation compared
with
38 % in 2003.
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