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AMMAN — Jordan's capital market is undergoing a significant recovery, driven by higher market capitalisation, stronger liquidity, increased trading activity and rising stock indices, according to a report by the Jordan Economic Forum (JEF).
The report "Amman Stock Exchange: Market Transformations, Growth Drivers and Sustainability" noted that the recovery has lifted the Amman Stock Exchange (ASE) to its highest level in almost two decades, reflecting renewed investor confidence and the market's growing ability to attract capital.
The JEF said the gains support the objectives of the Economic Modernisation Vision by strengthening the financial services sector, improving access to finance and expanding capital markets, Al Mamlaka TV reported.
Market capitalisation of listed companies reached around JD30.5 billion at the end of May 2026, up from JD19.5 billion a year earlier, an increase of more than 56 per cent. The ASE exceeded JD30 billion for the first time, surpassing its previous peak of JD29.2 billion in 2007.
The number of listed companies fell to 155 from 162, indicating that higher company valuations and stronger liquidity, rather than new listings, drove the market's growth.
The ratio of market capitalisation to GDP rose to 69.7 per cent in May 2026 from 51.5 per cent a year earlier, highlighting the market's expanding role in the national economy.
The report also highlighted a shift in market composition as the industrial sector increased its share, led by mining and basic materials companies.
The Jordan Phosphate Mines Company (JPMC) and the Arab Potash Company (APC) together account for about 42.5 per cent of the ASE's market capitalisation, reflecting a concentration of market value in a small number of blue-chip companies.
Jordanian investors held 53.7 per cent of the market at the end of May, while Arab investors accounted for 29.6 per cent and foreign investors for 16.7 per cent, underlining the exchange's continued appeal to regional and international investors.
Trading activity also strengthened. The value of traded shares rose to JD1.279 billion during the first five months of 2026 from JD687.5 million in the same period of 2025, while trading volume increased to 445.6 million shares from 359.5 million.
The average value of traded shares climbed to JD2.9 from JD1.9, while average daily trading reached JD12.9 million, compared with JD8.8 million in 2025 and JD4.9 million in 2024.
The financial sector accounted for 38 per cent of trading activity during the period, followed by the industrial sector at 32 per cent and the services sector at 30 per cent.
The report said the ASE outperformed several regional and international markets in 2025 as the ASE General Index (ASEGI) climbed 45.1 per cent, supported by strong performances in the financial and industrial sectors.
On sustainability, the JEF said the ASE continues to strengthen its environmental, social and governance (ESG) framework.
The exchange now requires companies on the ASE20 index to publish sustainability reports in line with Global Reporting Initiative (GRI) standards and has introduced a climate disclosure framework in cooperation with the International Finance Corporation (IFC).
The ASE has also prepared guidance based on International Sustainability Standards Board (ISSB) standards. It will encourage companies to adopt the standards voluntarily in 2026 before requiring mandatory reporting in 2027.
The report also highlighted the Stock Market Resilience and Momentum Index (SEMI), which it described as Jordan's first index to measure the resilience of listed companies alongside overall market momentum. The index has accelerated since mid-2024, reflecting stronger company valuations, higher investor confidence and positive market prospects.
To sustain growth, the JEF recommended further regulatory reforms, encouraged more large family-owned businesses to list, called for greater financing through public shareholding companies, and urged authorities to develop the bond and sukuk markets.
It also called for stronger financial literacy, completion of the exchange's digital transformation, greater market liquidity, a broader range of listed companies and financial products, and higher ESG, disclosure and transparency standards, according to Al Mamlaka TV.
