Leveraging Venture Capital Funds to Build Jordan's Entrepreneurial Ecosystem
JCP has been working closely with the Ministry of Industry, Trade, and Supply (MoITS) to put in place the legal framework and regulations necessary to grow a fledgling Venture Capital (VC) industry in Jordan.
This effort has paid off in big ways in the last year alone. On October 22, for example, Jordan's Council of Ministers announced that it had instructed its Legal Committee to endorse a 2018 Venture Capital Law, which is slated to have "positive effects on the national economy," according to a government statement. Ramzi Nuzha, General Controller of Companies at the MoITS, thanked JCP for its assistance developing the new law, adding that JCP support "played a major role" in pushing through the legislation. Working with the Companies Control Department (CCD) at MoITS, JCP helped develop new regulations and instructions that will allow the establishment of VC funds in Jordan, bringing them in line with international best practice in governance, taxation, and a full range of support services.
A VC industry is a significant contributor to economic growth, business development, job creation, and the influx of Foreign Direct Investment (FDI). According to the Government of Jordan, the country's VC law aims to "make available financing for entrepreneurial and start-up projects, create job opportunities, and limit [brain drain]" from the country. These goals are consistent with those of USAID, which, through JCP, has worked with entrepreneurs, private firms, business associations, and policymakers to create a more competitive Jordanian economy, leveraging more than $100 million in investment since its inception in 2013.