ENTERPRISE FINANCING MENAOECD CONFERENCE DUBAI MARCH 2007 1162022

ENTERPRISE FINANCING MENA-OECD CONFERENCE DUBAI MARCH 2007 1/16/2022 Dr. Rashad Othman, Jordan

FACTS n WE ALL AGREE ON THE IMPORTANCE OF INVESTMENT AS A DRIVER FOR ECONOMIC DEVELOPMENT n THERE IS NO SHORTAGE OF CAPITAL FOR INVESTMENT, JUST THE ARAB CAPITAL AVAILABLE IS MORE THAN 3 TRILLION DOLLARS n SHORTAGE OF PROPER FINANCIAL PRODUCTS AND INSTRUMENTS 1/16/2022 Dr. Rashad Othman, Jordan

FACTS n SME’s REPRESENT MORE THAN 97% OF COMPANIES n ACCOUNT FOR TWO THIRD OF JOBS n SIGNIFICANT SHARE OF THE VALUE ADDED n WE NEED 47 MILLION NEW JOBS BY 2012 n WE ALL KNOW THE CHALLENGS, BUT THE IDEAL ENVIRONMENT MIGHT NOT COME SOON, SO WE ARE MOVING……. . 1/16/2022 Dr. Rashad Othman, Jordan

n WE NEED TO DEFINE FINANCIAL NEEDS BETWEEN: – EXISTING SME – START UPS – NEW IDEAS/INNOVATION 1/16/2022 Dr. Rashad Othman, Jordan

n EXISTING SME’S – THEY DO NOT HAVE ACCESS TO THE FINANCE – NEGATIVE IMPACT ON GROWTH AND COMPETITIVNESS – LIMITED VALUE ADDED TO THE ECONOMY 1/16/2022 Dr. Rashad Othman, Jordan

n START UPS – ALSO DIFFICULT TO HAVE ACCESS TO FINANCE – PERSONAL RISKS – LIMITED GROWTH 1/16/2022 Dr. Rashad Othman, Jordan

n NEW IDEAS/INNOVATION – THEY NEED MORE SUPPORT SINCE IT IS STILL AN IDEA – FEW IDEAS MIGHT MATERIALISE INTO REALITY 1/16/2022 Dr. Rashad Othman, Jordan

JORDAN REVIEW n GOVERNMENT ESTABLISHED TWO PROGRAMMES: – SUPPORT SME’S, UPGRADING THEIR CAPACITY & CAPABILITIES LEADING TO ACCESS TO FINANCE – INNOVATION CENTERS/INCUBATORS § TODAY THERE ARE 5 CENTERS, EACH HAS 5 INCUBATEES § IN COOPERATION AND HOSTED BY THE RESEARCH & EDUCATION INSTITUTIONS § DIVERSIFIED IN NATURE, FROM I. T, FOOD INDUSTRIES, INDUSTRIAL. . ETC 1/16/2022 Dr. Rashad Othman, Jordan

n SEED CAPITAL – EACH INCUBATEE CAN HAVE ACCESS TO UP TO 15, 000 JD (+20 K $) – TEAM OF EXPERTS ARE ASSIGNED TO THE PROJECT OWNER – USUAL TIME FRAME IS 6 -12 MONTHS. 1/16/2022 Dr. Rashad Othman, Jordan

PRIVATE SECRTOR INCUBATORS n WE PRESENTLY HAVE NEW INNOVATIVE PROJECTS IN THE FIELD OF CLIMATE CHANGE AND RENEWABLE ENERGY: – WINDMILL PROJECT TO PRODUCE 60 MEGA WATT OF ELECTRICITY – BIOMASS PROJECT BOTH QUALIFY FOR CDM, FINANCIALY SOUND AND NEEDS FINANCING 1/16/2022 Dr. Rashad Othman, Jordan

RECOMMENDATIONS n n n ENABLING ENVIRONMENT FOR VENTURE CAPITAL THROUGH – NEW BY LAWS – INCENTIVES ESTABLISHMENT OF INNOVATION FUND PROMOTING THE INNOVATION CULTURE STRENGTHENING RELATIONS WITH THE FINANCIAL SECTOR, CREATING SME’S FINANCING TEAMS STRENGTHEN RELATIONS BETWEEN STAKEHOLDERS, INCUBATORS, BUSINESS ANGELS, FINANCE INSTITUTIONS, RESEARCH. . ETC 1/16/2022 Dr. Rashad Othman, Jordan