The rally has been fueled by a combination of positive factors, including a more than 9 per cent increase in the net profits of listed companies during the first half of the year, besides the marked improvement in key national economic indicators.

 

In a statement on Thursday, the ASE also attributed the stock value boost to government-backed measures, including the special incentives for the local bourse that have played a key role in reinforcing confidence among investors.

 

In remarks to the Jordan news agency, Petra, Minister of State for Economic Affairs, Muhannad Shehadeh said that the achievement reflects the resilience of the Jordanian economy and its ability to navigate regional and global challenges, the Jordan

 

He attributed the rise in the general index of the financial market to the growing investor confidence and to government-led reforms that have fostered a more attractive and balanced investment environment.

 

Shehadeh noted that the Jordanian economy has demonstrated notable resilience in recent years, supported by a clear economic vision and comprehensive reforms across various sectors.

 

“These efforts have bolstered investor trust, attracted new domestic and foreign investments, and contributed directly to the capital market’s performance, which has now reached levels not witnessed in over 15 years.”

 

He added that the market rally coincides with marked improvements in several key economic indicators. “Jordan’s GDP recorded a growth rate of 2.7 per cent, exports rose by 9 per cent, and tourism revenues registered significant growth. Moreover, foreign reserves surpassed the $23 billion mark, reflecting the economic and financial stability the Kingdom currently enjoys.”

 

The minister also pointed to a series of government measures aimed at stimulating trading activity and enhancing market liquidity. These include permitting investors seeking Jordanian citizenship to invest through the stock exchange, exempting mutual funds from tax, reducing brokerage fees, and extending trading hours, all of which have contributed to creating a more vibrant investment environment and encouraging broader investor participation.

 

For his part, Mazen Wathaifi, CEO of ASE also told Petra thatthe “milestone achievement” was the result of close coordination between the regulatory and legislative bodies overseeing the capital market, foremost among them the Jordan Securities Commission (JSC) and the Securities Depository Centre.

 

He highlighted that recent amendments to related legislation and regulations have improved market transparency and boosted investor appeal. “These changes have strengthened market participants’ confidence and introduced new, quality liquidity into trading activity.”

 

He also said that these developments have “positively impacted the performance of listed companies, with share prices of 96 firms rising since the beginning of the 2025.

 

Market analysts and economists credited the rally to a combination of targeted regulatory reforms, improved corporate transparency, and strong performances by a handful of leading companies, primarily in the mining, phosphate, potash, and banking sectors, notably Arab Bank.

 

The return of the ASE to this level is not a coincidence,” said EssamQadamani, economic columnist.

 

“There are five leading companies whose solid performance attracted strong demand for their shares. But more importantly, we are seeing the effects of real reforms, not just speculation".

 

While the rally is seen as a positive development, Qadamanipointed out to the discrepancy in performance across listed firms, suggesting the market upswing is not yet comprehensive.

 

"It is supposed to be a market-wide movement, but most gains are concentrated in a few dominant players,” he added.

 

Reforms behind the rally

 

Unlike the speculative-driven spikes seen in 2008, the current gains are reportedly based on fundamentals, including higher profits, government-backed reforms, and greater market transparency.

 

Raad Tal, head of the Economics Department at the University of Jordan,saidJSC has been instrumental in pushing these changes, including steps to reduce trading costs, enhance digital infrastructure, and introduce more diverse financial instruments.

 

"As the main regulatory body, the JSC can and must play a central role in reshaping the capital market through bold reforms,” Al-Tal said, highlighting several structural issues that have historically constrained the market.

 

"Jordan’s capital market is flexible, but it still faces many challenges that prevent it from reaching its full potential,” he said.

 

"Few investors are active, and the market lacks a variety of instruments. Without derivatives, ETFs, or Islamic sukuk, investment and risk management options remain very limited".

 

He also warned of concentrated ownership within many listed firms.

 

"A small number of major shareholders control large portions of many companies, which lowers the number of shares available for public trading and reduces liquidity,” Al-Tal said.

 

"The stock exchange is becoming an investment ‘bowl’ once again, essential for financing company projects, particularly for small and medium-sized enterprises (SMEs),” Qadamani said.