Abdali, Jordan’s Premier Real Estate Project, Eyes IPO and Further Growth Amid Economic Rebound
Abdali Investment and Development, the largest real estate project in Jordan, is contemplating the possibility of an initial public offering (IPO) in the future.
According to the company’s chairman, Amer Al-Fayez, the decision will be contingent on the business’s performance and could potentially entail releasing 25 to 30% of the company. Abdali, a 50-50 joint venture between Jordan’s property investment firm Mawared and Horizon International for Development, showcases a mixed-use project incorporating hotels, serviced apartments, office towers, a hospital, and retail outlets.
Impact on Jordan’s Economy
Abdali has positively influenced Jordan’s economy by creating around 15,000 jobs. Despite this, Al-Fayez holds the belief that the government could provide further impetus to stimulate economic growth. Interestingly, despite the economic slowdown induced by the pandemic, Jordan’s tourism sector is witnessing a rebound. The first eight months of the year saw a 41.3% increase in revenue compared to the same period in 2022, equating to approximately $5.15 billion. The country welcomed over 4.5 million tourists up to the end of August, signifying a 42% surge compared to the same timeframe in 2022.
Expansion Plans and Future Prospects
Abdali is preparing to launch a second phase of expansion in the upcoming three months, which is projected to add another 1.2 million square meters to the project. Al-Fayez aspires to attract future tenants from the technology sector, companies from the UAE, the broader Gulf region, and Asia. The ambition is to position Abdali as a potential hub for an arbitration center in Jordan. As per International Monetary Fund estimates, Jordan’s economy is set to grow by 2.7% in 2023, marking a continuation of the post-pandemic recovery.
Abdali’s Success and Future Aspirations
The Abdali project has been hailed as one of the most successful multi-purpose investment and development projects in Jordan, exemplifying a model of partnership between the public and private sectors.
Despite the challenges posed by the pandemic, Abdali has managed to weather the storm and establish a robust base for itself, making it a competitive destination for businesses. It has successfully attracted foreign and Arab investments totaling more than $2.4 billion and has generated around 13,000 job opportunities.
Government Reforms and Enhancements
The Jordanian government has conducted significant reforms to enhance the country’s investment environment. Notably, the approval of the investment environment law and the establishment of the Ministry of Investment have been key developments.
The Ministry of Investment has agreed to promote the second phase of the Abdali project once the comprehensive plan and preliminary feasibility studies are completed. The launch of the second phase of the Abdali project is planned to take place in the upcoming months.
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