Ammon News - The Amman Stock Exchange (ASE) emerged as a standout global performer in 2025, according to Bloomberg data, signaling a major shift in investor sentiment toward Jordan’s economy despite a volatile regional backdrop.

The exchange closed the year with a 45 percent gain, ranking 13th globally and underscoring the resilience of the Kingdom’s fiscal and monetary frameworks.

The ASE’s benchmark index climbed from 2,488 points to approximately 3,611 points over the calendar year. Economists and financial analysts suggest this rally is not a transient spike but a reflection of strengthened economic fundamentals and a direct result of structural reforms aimed at enhancing market transparency.

The surge was underpinned by robust corporate earnings. Financial analysts noted that listed companies saw an 11 percent rise in net profits, totaling approximately JD1.7 billion through the third quarter of 2025. This growth was largely spearheaded by the banking, industrial, and services sectors.

Wajdi Makhamreh, a prominent financial expert, highlighted that the market’s performance coincided with a 2.9 percent expansion in Jordan’s GDP and a 32 percent increase in foreign direct investment. "The rally reflects a transition from fragile liquidity to functional liquidity," noted Dr. Adli Kandah, an economic analyst. He pointed out that 104 listed companies saw their share prices rise, indicating a broad-based recovery rather than one driven solely by heavyweight stocks.

The ASE’s inclusion in the top tier of global performers has significantly improved Jordan's investment profile. Experts identified several key drivers for the renewed interest.

* Monetary Stability: Success in balancing financial stability with attractive returns has drawn local and foreign capital back to the market.
* Reduced Risk Premium: A perceived decoupling of the Jordanian market from regional instability has positioned the ASE as a relatively low-risk sanctuary for institutional investors.
* Institutional Shift: Inflows in 2025 were characterized by long-term institutional positions rather than speculative "hot money," suggesting a more mature market outlook.

While the 2025 performance has been hailed as a success, financial authorities emphasize that the challenge for 2026 lies in institutionalizing these gains. Transitioning from a "rising market" to a "mature market" will require sustained daily liquidity and a broader base of listed small and medium-sized enterprises (SMEs).

To maintain this momentum, economists call for the introduction of innovative financial instruments, enhanced corporate governance, and a deeper integration of market performance with real-world economic indicators. Analysts argue that continued improvements in disclosure quality and sustainable financial reporting will be essential to attracting further long-term global institutional capital and lowering sovereign borrowing costs.

The government’s focus now shifts to ensuring that the stock market’s gains translate into broader economic dividends, including job creation and increased indirect tax revenues, to solidify Jordan's status as a stable emerging market hub.

Petra