Jordan: agreement signed with Canada Mortgage & Housing Corporation to establish 1st mortgage insurance company
United Arab Investors Company (UAIC) announced today that it has signed an agreement with Canada Mortgage & Housing Corporation (CMHC) to establish the first mortgage insurance company in Jordan.
The new company, which will be registered under the provisional name Jordan Mortgage Insurance Company (JMIC), aims to contribute to the development of the Jordanian mortgage market by providing mortgage insurance products and services to retail mortgage lenders and banks in Jordan. This will benefit potential Jordanian home owners struggling to keep up with the recent increase in house prices, by supporting lenders with insurance and risk management expertise and encouraging them to provide higher risk loans.
The USD $1.8 million contract requires CMHC to provide technical expertise to UAIC and other stakeholders over five years to support the creation and operation of JMIC. CMHC will also assist in developing liquidity funding and a securitization operation which, when JMIC proves successful in Jordan, will be jointly explored in other markets in the region.
The agreement was signed on May 28 at Le Meridien Amman by Mr. Younis Al Qawasmi, General Manager of UAIC, and Mr. Pierre David, Executive Director of CMHC International. The ceremony was attended by government officials and representatives of banking and real-estate investment companies in Jordan.
Dr. Fayez Tarawneh, the newly appointed Chairman of UAIC, said: “We are very pleased to be working in close collaboration with a well-established company such as CMHC. We truly feel we are entering a new era that will deepen the growing property market and real-estate sector. We also feel that this new mechanism will highly contribute toward the realization of the powerful and humane slogan that His Majesty King Abdullah I had initiated, namely: a home for every citizen.”
“CMHC is taking the lead in sharing Canada’s housing expertise with the world,” said Mr. Pierre David, Executive Director of CMHC International. He added: “By making housing more accessible in other countries and helping Canadian companies find opportunities in new markets, CMHC is becoming an ambassador of Canadian excellence.”
Mr. Younis Al Qawasmi, General Manager of UAIC, said: “The joint efforts of UAIC and CMHC will have far and positive implications for the growth and prosperity of the Jordanian real-estate sector. Through providing lending insurance products, Jordan’s lenders will gain the confidence to increase their risk portfolios, while buyers will be empowered to make important decisions about their family’s future.”
The establishment of JMIC transpired after UAIC, CMHC and Trycana Development of Canada conducted a feasibility study that was funded by the Canadian International Development Agency (CIDA Inc.). Acting as the business development arm of this venture, Trycana has been developing and implementing projects in a number of emerging markets, and has brought together numerous progressive companies, including international organizations involving various sectors.
Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency. Established as a government-owned corporation in 1946 to address Canada’s post-war housing shortage, the agency has grown into a major national institution. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.
United Arab Investors Company P.L.C. (UAIC) is a public shareholding company founded in 1994 by Mr. Zuhair Khouri along with other various investors including leading financial institutions, foreign investors and associations. UAIC portfolios are composed of investments in financially strong, well-managed companies. Its core activities cover all economic sectors including financial, industrial and real-estate.