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Al-Daman Bond Portfolio Overview
The article discusses the significant increase in the bond portfolio of the Social Security Investment Fund in Jordan over the past twenty years. It has grown 18-fold, from 566 million Jordanian dinars in 2005 to 11.3 billion dinars in 2025. As the percentage of bonds approaches the permitted maximum (60%), which is higher than international standards recommending a range of 25-35%, this raises concerns. Excessive reliance on government bonds poses risks related to the fund’s solvency due to public debt, erosion of real returns, and limitations on investment diversification—all of which threaten the long-term sustainability of the pension system. The financial break-even point is expected to be reached by 2038. Therefore, restructuring investment portfolios and implementing reforms are essential to ensure the financial sustainability for future generations.
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