Privatization, as stipulated by the National Privatization Strategy, aims at redefining the role of the government away from monopoly over the public sector enterprises the nature of which requires that they be managed on commercial bases.   . In this context, the privatization policy in Jordan redefines the role of the government to focus on organization, control and provision of health care, education and social services, and constructing long term capabilities and administrative efficiency while concentrating efforts to reduce the government’s role in production sectors. The private sector shall, on the other hand, engage in economic production sectors and activities. Attracting new investors to engage in major production projects and utilities and creating more job opportunities while safeguarding the rights of employees are goals of the privatization program in Jordan whereby it is found to be a job creator rather than a job killer.

The objectives of privatization in Jordan includes the following: 

1.         Raising the efficiency, productivity and competitiveness of economic enterprises.

2.         Contributing to the encouragement of local, Arab and international investments by providing a favorable investment environment.

3.         Stimulating private savings and directing them towards long-term investments to strengthen the local capital market and the national economy.

4.         Alleviating the debt burden of the Treasury by ceasing its obligation to offer aids and loans to unsuccessful and unprofitable enterprises.

5.         The management of economic enterprises with modern methods which include the use of advanced technology in order to enable such enterprises to create stable markets and to penetrate new markets through their ability to compete in international markets.

The Executive Privatization Commission

Jordan’s Privatization Program

A Success Story: Accomplishments and Challenges

Outlook

·            Launched in 1996, the Privatization Program gained momentum as of 1998 to become one of the most, if not the most successful privatization program in the region and a model to be followed as acknowledged by the World Bank and other regional and International specialized agencies.

·            To date, 66 transactions have been completed including the government’s shares in 55 companies under the Jordan Investment Corporation Portfolio.

·            Privatization proceeds amount to over $1300 million, including the $163 million yield of the sale of the government’s stake in JIC companies.

·            The program has successfully attracted over $1 billion in investments associated with privatization particularly in the telecom, water, transport, and other privatized sectors.

·            The Privatization Program contributes to the financing of a number of projects under the umbrella of the Economic and Social Transformation Program and to a number of development projects as stipulated by the Privatization Law no. 25 for the Year 2000.

Completed Transactions

1.        Royal Jordanian Airlines:

2.        Jordan Airmotive Limited Company (JALCo)

3.        Jordan Airline Training and Simulation (JATS)

4.        Expansion of Queen Alia International Airport (QAIA) BOT

5.        Electricity 

6.        Jordan Telecom

7.        Postal Services

8.        Jordan General Silos & Supply Company  

9.        Civil Aviation Authority/ Restructuring only

10.    Queen Noor Civil Aviation Technical College

11.    Aqaba Railway Corporation (ARC)

12.    Jordan Real Estate Establishments Company – Tower Building (Total sale)

13.    Jordan Real Estate Complexes Company – Shabsogh Complex (Total Sale)

14.    The Airports Hotels Company – Alia Hotel (Sale of 80% of the shares)

15.    Amman-Zarqa Light Railway project   

16.    Medical and Hazardous Waste Treatment Facility