Jordan to launch ICT fund for start-ups

Kind Abdullah II Fund for Development (KAFD) in Jordan would launch an ICT fund in two months to seed start-ups in the country.

Called Oasis 500, the fund aims to provide an initial capital of between $50,000 (Dh183,500) and $100,000 to 500 startups. The seed investors include three major technology names that could not be disclosed at this stage.

KAFD was established by a Royal Decree in 2001 as a non-governmental organisation to provide all segments of the Jordanian community, particularly the underprivileged, with loans.

Abdelmajeed Shamlawi, CEO at Information Technology Association (Int@j) Jordan told Emirates Business, "It is still not decided if the fund will be made accessible to companies outside Jordan. This is under discussion by the fund committee. The structure of the fund is created, which is owned by the King Abdullah Fund and Int@j is a member of this investment. The fund is also planning to go public to raise capital attracting investors." He did not reveal the size of the Oasis 500 fund.

In the past, according to Shamlawi, companies had ideas on innovation but did not have access to early stage funding. "Seed and angel investors are present in the country. Angel investors have also moved up the value chain, as they become venture capitalists. Both startup companies as well as entrepreneurs can utilise the fund."

Shamlawi stressed on the fact that the ICT sector in Jordan has seen increased investments from GCC countries such as Saudi Arabia, the UAE, Kuwait and Bahrain. "The majority has come from Saudi Arabia in back office software. Oasis 500 will also look at funding new ideas, especially in media, online, content, applications and service industry."

Jordan has been active in outsourcing, content and online applications. "Mobile applications are the next area of growth for the country. In terms of talent, people and innovation, Jordan has stood out, especially when 70 per cent of the content exchanged in the region is via Jordanian content engines. This is another reason why it is important to create IP value in media, online and mobile applications," said Shamlawi.

The ICT sector recently received support from the local Development Zone Commission. "The King Hussain Business Park was created for all industries including ICT," said Samer I Asfour, Commissioner for investor services and development at Development Zones Commission. "This was done to create a business environment and platform. There is also a special law introduced, which brings all zones into one umbrella and gives the right to the commission to make decisions."

The zone focuses on six industries, including ICT,. "Currently, at least 15 per cent of Jordan's GDP comes from the ICT sector. There are investments from both local and international companies. We have been encouraging local businesses to invest in the sector," said Asfour.

Technology giants are making significant investments in Jordan. "HP has recently signed a MoU with the ministry of ICT to invest in shared services, while Dell has visited and plans to establish a centre in the same area," said Shamlawi.

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