JCIF announces investment share acquisition in Aqaba Digital Hub

AMMAN — Jordan Capital & Investment Fund (JCIF) announced that it has finalised details on a significant minority investment in Aqaba Digital Hub (ADH), a flagship project poised to tap into the growing demand for modern digital transformation in Jordan. 

The project encompasses the largest carrier-neutral 6MW data centres in Jordan and stands as one of the MENA region’s largest. Its array of services covers a range of offerings, including an open-access submarine cable landing station, cloud services, long-haul telecommunications services, a carrier-neutral Internet exchange point, expanded fibre networks and satellite services, according to a JCIF statement.

During a ceremony held at ADH’s offices in Aqaba on Thursday, JCIF — which is owned by Jordanian banks — and ADH signed the deal in the presence of Minister of Investment Kholoud Al Saqqaf; ASEZA Chief Commissioner Nayef Al Fayez; Deputy Governor of the Central Bank of Jordan Khaldoun Al Wshah; and Chairman of the Board of Commissioners of the Telecommunications Regulatory Commission Bassam Al Sarhan. The ceremony was also attended by leaders and dignitaries from the private sector.

Founded in 2017 by Eyad Abu Khorma, ADH currently operates regional fibre-optic networks and a carrier-neutral, Uptime-Certified Tier-III data centre; serves as a hub for connectivity, infrastructure technologies and cloud services; and provides wholesale capacity services to local and neighbouring markets. Moreover, ADH has been chosen as the Jordanian hosting facility and landing station for the Blue Raman submarine cable, linking Asia with Europe. Leveraging its existing infrastructure from the BlueRaman cable landing station, ADH will introduce new options for cloud services, international gateway services and other high-technology solutions and applications to the Jordanian and regional markets.

Strategically located within Aqaba, ADH data centres act as an ideal disaster recovery site for banks across Jordan, fortified by their secure and technologically advanced facilities. This development not only strengthens the financial sector’s resilience but also elevates Jordan’s financial technology ecosystem.

Saqqaf underscored the significance of the first investment agreement between JCIF and ADH as a vital step towards addressing the increasing demand for modern digital transformation services in Jordan. The minister emphasised the importance of establishing investment funds, as they stimulate and attract capital to invest in various priority and competitive economic sectors. This, in turn, is poised to substantively contribute towards the realisation of economic and developmental goals that will directly influence economic growth while combating poverty and unemployment issues.

Furthermore, Saqqaf added that the Investment Environment Law for 2022, for the first time, laid the foundation for a legal framework that facilitates the inception of investment funds devoted to the pursuit of economic activities. According to the law, an investment fund assumes legal personality following its establishment and formal registration under the Ministry of Investment. She also highlighted that the Investment Promotion Strategy 2023-2026, approved by the Investment Council in May, targets multiple sectors — namely IT — as a priority sector set to attract investments to Jordan.

Fayez stated that Aqaba serves as a host for the first Jordanian digital city and is considered a primary hub for tech investments within the region, which thereby helps promote Jordan globally. He emphasised ASEZA's pivotal role in providing facilitations for investors and in equipping and empowering youth through dedicated tech initiatives aimed at preparing them for such investments, as well as for the local and international job markets.

“This deal will mark a key investment for JCIF since its official launch in 2022 and aligns with the fund’s strategy to play a central role in the Jordanian economy by creating jobs, attracting new businesses and bringing cutting-edge technologies to local communities,” stated Hani Qadi, chairman of JCIF Management Company. “Information and communications technology [ICT] has emerged as a core driver of the modern knowledge-based economy and plays a crucial role in the socioeconomic development of a country. On this note, we extend our sincere appreciation to the government of Jordan and the Central Bank of Jordan for their consistent support of JCIF.” 

“Since its inception, the Aqaba Digital Hub has attracted distinguished local, regional and international telecommunications operators, as well as global content delivery networks,” said Abu Khorma. “Our partnership with JCIF will provide capital for growth, increase access to resources and help drive expansion by further opening up new market opportunities,” Abu Khorma added. 

“We are delighted to partner with Eyad Abu Khorma on this pioneering project, which will help serve the growing demand for modern digital services in Jordan and the MENA region. This project will be critical to enhancing solutions for digital transformation and developing hubs for companies and organisations of all sizes,”commented Faris Sharaf, CEO of JCIF Management Company.  

JCIF is wholly owned by 16 Jordanian commercial and Islamic banks and is the largest private sector investment fund in Jordan, with a capital commitment of JD275 million ($388 million). The fund aims to invest in pioneering companies with opportunities for growth, development and expansion by providing fresh capital to help increase employment and promote economic growth across Jordan. JCIF targets investments in dynamic and promising sectors, notably in the fields of food and health security, manufacturing, and ICT, with the aim of unleashing Jordan’s potential to build for the future, according to the statement.