The Social Security Investment Unit SSIU

1

• The Social Security Investment Unit (SSIU)
• Major New Investment Project Opportunities in
  Jordan
• MEED Conference
• Le Meridien Hotel, Amman
• February 2007

2

• Overview

• The SSIU was established in 2001 under By-law
  111 in accordance with Article 76 of the Social
  Security Law.
• The SSIU is mandated to manage the investment
  portfolio of the Social Security Corporation
  (SSC) which totaled approximately JD 4 billion at
  the end of 2006.
• The SSIU is governed and supervised by a 9-member
  Commission including representatives from the
  labor union, business community and government.
• The SSIU portfolio consists of a variety of
  investments including listed equities, private
  equity projects, real estate and government
  treasuries.

3
Main Investment Guidelines

• Investments in the National Interest priority is
  given to economically feasible investments that
  promote the national interest.
• Investment Diversity the SSIU seeks to diversify
  investments with a preference for medium and long
  term instruments in order to reduce risks and
  ensure the highest possible returns.
• Fundamental Investments the SSIU is prohibited
  from investing in speculative instruments and
  invests based on sound economic fundamentals.
• Protection against Inflation the SSIU invests in
  instruments whose return provides a level of
  protection against inflation.
• Code of Ethics/Corporate Governance projects
  must comply with the SSIUs Code of Ethics and
  policies on corporate governance.

4
Investments Objectives

• Portfolio Returns achieve a reasonable margin
  over the average (actuarial) discount rate with
  the aim of beating historical performance.
• Risk Tolerance a higher risk tolerance which
  allows the SSIU to invest in longer-term
  instruments.
• Time Horizon invest with a long term
  perspective which allows the SSIU to disregard
  short term market volatility caused by
  circumstantial events.
• Liquidity match assets with liabilities in terms
  of their tenors.

5
PROJECTS

• The SSIU invests in a wide array of projects
  across a variety of economic sectors including
  banks, insurance companies, manufacturers,
  service companies, real estate and tourism.
• The SSIU has invested over JD 500 million in
  privatized projects.

6
PROJECTS

• Examples of privatized projects in which SSIU is
  a major investor include
• Jordan Telecommunications approximate 18 stake
  at a current market value of JD 195 million.
• Jordan Potash approximate 12 stake at a current
  market value of JD 42 million.
• Jordan Cement approximate 20 stake at a current
  market value of JD 182 million.
• Jordan Phosphate approximate 15.67 stake at a
  current market value of JD 42 million.
• Al Rai Newspaper approximate 55 stake at a
  current market value of JD 49 million

7
OPPORTUNITIES TO INVEST

• Examples of opportunities to invest within the
  privatization program include
• Electricity privatizations of the Central
  Electricity Generating Company the Irbid
  Distribution Electrical Company and the
  Electrical Distribution Company (South) Samra
  generating station.
• Transportation Amman-Zarka Light Rail Project
  Royal Jordanian Airlines and Aqaba Railway.
• Telecommunication 14 of Jordan Telecom.
• Industry Juwaidah Flourmill Company and Jordan.

8
OPPORTUNITIES TO INVEST

• Examples of opportunities to invest outside the
  privatization program include
• Tourism land is available for tourist projects
  in the Dead Sea Area and Northern Jordan.
• 3 Hotels owned by social security.
• Mafraq Special Economic Zone infrastructure
  development, warehousing, manufacturing,
  services, etc..
• BOT Queen Alia International Airport expansion
  and the Disi-Mudawwara Water Project

9
ADDITIONAL INFORMATION
The Investment Unit Social Security
Corporation PO Box 850633 Amman 11185
Jordan Tel. [phone] Fax [phone]
1097 Email info_at_ssiu.gov.jo www.ssiu.gov.jo