Government Role in the Economy
In-order to liberate the national economy and increase the flow of foreign capital, the government of Jordan has initiated a privatization program designed to activate the role and efficiency of private investors in the long-term development plans of the kingdom.
In 1996 the Telecommunication Corporation and the Jordanian electricity authority were both transformed into a public shareholding companies fully owned by the government as a first step towards full privatization. By the end of 1997, the government had sold off all its other holdings in companies where the original stake was 5% or less.
The privatization of the Telecommunication Company was finalized on January 23, 2000 when the government sold 40% of its shares to a conglomerate comprising France Telecom and a group of banks headed by the Arab Bank at a total cost of US$ 508 Million, and a 33% share in the Jordan Cement Company. 40% of state-owned Aqaba Railways has been sold to a consortium of American, Japanese and Jordanian companies.
On August 28, 2000 an agreement was signed involving the sale of the Duty Free Shops Co. of Royal Jordanian (the national air carrier) to a Spanish Co. (Diasa) and a tender to sell the Engine Restoration Center pertaining to RJ and is expected to be finalized soon.