Capital Markets
From The Report: Jordan 2014
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After the turbulence of recent years, indicators are positive for Jordan’s capital markets. The Amman Stock Exchange (ASE) Free Float Index showed a 5% year-on-year increase in 2013, while the value of traded shares reached JD3bn ($4.2bn) in 2013, up from JD2bn ($2.82bn) in 2012. The ASE, with its total of 237 listed companies, reflects the diversity of Jordan’s economy. The recent coordination of the Jordan Securities Commission and the European Bank for Reconstruction and Development in drawing up a list of reforms is seen as a step towards increasing investor confidence and boosting foreign investment. The ASE has also taken other steps to increase foreign investment, most notably with the signing of a memorandum of understanding with the Cyprus Stock Exchange in 2012.

This chapter contains an interview with Tarik Awad, CEO, Capital Investments.

Articles from this Chapter

Overview

Maintaining healthy and steady growth, the exchange is set to face any challenges
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The Amman Stock Exchange (ASE) entered 2014 with renewed momentum on the back of the higher trading values and volumes of the previous year. With the ASE Index more buoyant than at any time since 2011, there is a sense that interest in the exchange as a source of capital and destination for investment is returning. However, with intense competition from regional exchanges, Jordan’s stock market faces numerous challenges if it is to build on this incipient recovery, and therefore the question of…

Interview

OBG talks to Tarik Awad, CEO, Capital Investments
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Interivew:Tarik Awad Daily trading volumes at present fluctuate between $10m and $15m; what will it take for these to increase once more to pre-crisis levels? TARIK AWAD: At present, the market is dominated by retail investors and investment fund regulations. To increase trading volumes, taxation needs to be reformed to help develop the institutional investor base. Further, some existing institutional investors should be encouraged to become more active again in the market, but this will…

Analysis

New partners: There is an improved strategy in place aimed at attracting more foreign investment
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The argument for Jordan as an investment destination is certainly a compelling one. The nation occupies a strategic position near the convergence of Europe, Asia and Africa, and, despite its politically turbulent neighbours, it is a relatively stable monarchy supported by a democratically elected parliament. The government has established an open economy, adopted a private-sector-led approach and has implemented a programme of privatisation that has, for the most part, been deemed successful. The…

Analysis

Banking
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The Company Arab Bank was founded in 1930 in Jerusalem and was the first private banking institution in the Arab world. In 1948 the bank moved its headquarters to Amman after the start of the Arab-Israeli conflict, where it was officially incorporated as a public shareholding company. In 1978 the bank was the first company to be listed on the Amman Stock Exchange (ASE). With a sound financial reputation and structure, the bank expanded its activities worldwide and opened branches in almost 30 countries covering five continents, making it the most diversified financial group in the Middle East and the largest financial institution in the Arab…

Analysis

Banking
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The Company Cairo Amman Bank was established in 1960 when Egypt’s Banque du Caire converted its branch in Amman to a public shareholding company. The bank operates in Jordan and Palestine with Jordan being its primary market. In 2013 about 82% of Cairo Amman Bank’s pre-tax income originated from its operations in Jordan. The bank is also one of Jordan’s most well-known mid-sized banks, with its main focus being on the retail sector. Specifically, the bank targets the employees of Jordan’s large public sector. In Palestine, however, the bank focuses on the corporate sector with the majority of its loans directed towards the Palestinian…

Analysis

Al Eqbal Investment Company: Tobacco and cigarettes
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The Company Al Eqbal Investment Company, formerly known as the International Tobacco and Cigarettes Company (ITCC), was established in 1992 as a public shareholding company focusing on the production and distribution of tobacco products. In 1998 ITCC signed an agreement with Phillip Morris International to locally produce and market L&M cigarettes and the arrangement later expanded to include the Marlboro brand in 2002. These agreements helped increase ITCC’s share in the local market to 40%. The prospects for ITCC’s cigarettes business looked very promising as the company’s sales grew by more than 170% between 1998 and 2002. In subsequent…

Analysis

Bank of Jordan: Banking
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The Company Established in 1960 in Jordan, the Bank of Jordan (BOJX) has evolved into a key player in the Jordanian banking sector. The bank is a medium-sized institution with 67 branches in Jordan, 14 in Palestine, and a subsidiary in Syria. In the Jordanian market, the BOJX accounts for 4.2% of customer deposits and 5.1% of credit facilities. The bank’s market share is considerably higher in the Palestinian Territories, where it holds a 10.9% share of deposits and 7.7% of loans. Finally, in Syria, the BOJX has claimed 4% of deposits and 6.8% of credit facilities from private banks. Although the BOJX does have a regional presence, the Jordanian…