Jordan’s Market Chief Urges Gulf Investors to Diversify, Citing Strong Economic Fundamentals

AMMAN — Jordan’s stock market rally is underpinned by robust economic fundamentals rather than speculative capital inflows, according to the head of the country’s securities regulator. The Amman Stock Exchange posted a 38 percent gain in 2025, securing the top spot among Arab bourses by index performance.

“It is proven that it is not hot money,” Emad Abu Haltam, chairman of the Jordan Securities Commission, told Arab News in an exclusive interview. “It is a combination of institutional and retail investments, both foreign and local.”

The index climbed 38.2 percent over the 12 months leading to September, bringing cumulative growth to approximately 70 percent over two years. Market capitalization has surged to a record range of $45 billion to $47 billion, a milestone Abu Haltam described as unprecedented for Jordan’s capital market. Total returns, including reinvested dividends, also reached historic highs.

Abu Haltam linked this performance directly to the broader economy, noting that listed companies achieved their second-highest audited profits on record in 2025, followed by record profits in the first half of 2026. Exports, remittances from Jordanians abroad, and tourism revenues each grew by 10 to 15 percent year-on-year, even in the face of regional travel disruptions.

“Jordan as a whole is an investment shelter despite the geopolitical tensions in the region,” he asserted.

Foreign selling ‘part of the game’

June data revealed that market liquidity hit a year-to-date high, despite foreign investors acting as net sellers of approximately $12.8 million. Abu Haltam downplayed this outflow, characterizing it as a normal market correction.

“We don’t consider it a significant number,” he explained, describing the movement as “a normal correction” in an open market that welcomes regional competition. “It’s part of the process, it’s part of the game.”

He highlighted two decades of legislative reforms focused on governance, transparency, and disclosure, which have strengthened the local investor base. Over the past year, new mutual funds have registered at a pace not seen in years, and private-sector companies have commenced issuing Islamic sukuk.

Abu Haltam argued that foreign investors typically follow strong local anchor investors, predicting, “Definitely they will come and capitalize on this.”

Fewer listings, bigger companies

While the number of listed companies has declined in recent years, Abu Haltam attributed this largely to market consolidation. “It shrank already, and now we are in the process of self-correction and reviving again,” he noted.

Mergers and acquisitions—particularly mega-mergers among banks—along with capital increases, have fostered larger, more institutionalized firms capable of accessing new export markets. He specifically cited phosphate and potash producers, as well as Jordan’s services exporters.

The regulator is collaborating with the government on incentives to encourage family-owned businesses, privately held firms, and state-owned enterprises to go public. New initial public offerings (IPOs) are anticipated during the second phase of Jordan’s Economic Modernization Vision, spanning 2026 to 2029.

Furthermore, Abu Haltam aims for the bourse to help finance the $15 billion in mega-projects announced by the government in energy, railways, and mining. This financing is expected to come via corporate bonds, sukuk, and green and blue financial instruments. With banking deposits exceeding 50 billion Jordanian dinars ($70.52 billion), he emphasized, “We want our share as a capital market.”

A pitch to the Gulf

While Riyadh and Abu Dhabi are investing heavily to attract listings and capital, Abu Haltam framed the dynamic as “healthy competition” rather than outright rivalry. He pointed to strong, collaborative ties with Saudi Arabia and the UAE, highlighting the railway project recently launched by King Abdullah II and Abu Dhabi’s crown prince.

Despite the market’s rally, Abu Haltam maintained that valuations remain attractive based on price-to-earnings ratios and dividend yields, with listed companies being “generous” in distributing dividends. He also pointed to the market’s resilience during the US-Iran conflict in March, during which Amman recorded some of its highest inflows even as other regional indices suffered.

“We don’t say liquidate your portfolios and come to Jordan,” he stated, addressing Saudi and Emirati investors. “Diversify your portfolio. You have an opportunity in the Jordanian companies listed in the market.”

Central to this pitch is Jordan’s emerging role as a logistics hub, linking Gulf economies to broader markets through rail, port, and infrastructure investments. He asserted that regional conflicts have only heightened the necessity of this role.

“Even with this war and geopolitical risk and tensions, we actually prove that Jordan has an opportunity for anyone that can invest in Jordan,” he concluded, “to increase their capacities, to not have any disruption in supply chain, and to export to the whole world through Jordan.”

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